Polyester capacity expansion to augment RIL’s stand in the global market

Reliance Industries Limited (RIL), spear headed by Mukesh Ambani, has commenced operations towards expanding its polyester processes across India as a part of its planned world-scale project. The project looks at capacity expansion in the sector, the largest for RIL so far, in its efforts to claim top spots as the world’s largest integrated polyester producer.

Reliance is the largest producer of polyester fiber and yarn in the world, with a capacity of 2.5 million tonnes per annum. It currently enjoys a portfolio of about 120 global patents in the polyester domain. Due to unswerving rise in cotton prices and subsequent uncertain view regarding the availability of the crop has led to the creation of favorable opportunities for polyester products like Polyester Filament Yarn (PFY), Polyester Staple Fiber (PSF) and Polyethylene Terephthalate (PET). The opportunity for Reliance here lies in its extensive and well-established presence both domestically and internationally with its cost-effective and wide ranging product offerings. By expanding its current fiber manufacturing processes, RIL can cater to the rapidly growing demand readily.

The plans include establishment of new PTA capacity plants in Dahej and polyester filament and textured yarn at Silvassa with an option of increasing the capacity at the later stages. RIL is likely to start the PTA plant at Dahej in the first quarter of 2013 and the second one in the next six to twelve months. The PTA volumes are projected to feed the company’s downstream polyester investments at Silvassa while the capacity addition will further strengthen Reliance’s leadership position in the polyester sector.

As of yet, the expansion projects are under various stages of implementation ranging from technology licensing, basic engineering and obtaining necessary regulatory approvals. Nevertheless, it suffices to say that RIL will be able to capitalize on the growing fiber demand quite positively, given that polyester fiber is likely to cater to almost 80 per cent of the total global fiber demand in the near future.

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