Budget 2006-07 - a boon to Reliance's yarn business
03 Mar '06
1 min read
Reliance Industries Ltd (RIL) yarn processing business has got a shot in the arm due to the announcement of reduction in import duties on yarn from 16 percent to eight percent in the current Budget of 2006-07.
Reduction of duty will help RIL to compete effectively with influx of cheap processed yarn from China and also help develop garment industry, as raw yarn import cost will reduce, said Parimal Nathwani, Group President.
Slide in domestic market prices and rise in India's textile exports will be effected by cheaper yarn produced from RIL's plant.
Hike in polyster garment export is also expected to new destinations like South Africa by the duty slash, said Parimal Nathwani.
Reliance plans to enter denim business segment and also revive its Vimal brand, said company sources.
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