Mukesh Ambani run Reliance Industries Limited (RIL), India’s largest private sector company, is now enroute a major development process. It announced on Wednesday that RIL has commenced implementation of world-scale polyester projects across India, to strengthen its position as the world’s largest integrated polyester producer.
In its official statement, RIL reported that the global supply constraints, substantial price increase and uncertain outlook for cotton availability is creating considerable substitution opportunities for polyester products like Polyester Filament Yarn (PFY) and Polyester Staple Fiber (PSF). It is estimated that polyester will be able to capture a substantial share of the global fiber demand, almost 80 per cent to say, of the requisite 3 million tons per annum over the medium to long term. The demand for India’s other high flying polymer Polyethylene Terephthalate (PET) is also, reportedly, growing at a speedy rate due to incessant demand in the packaging and bottling sectors.
With global demand increasing, Reliance was eyeing major expansion of its polyester manufacturing capacity in a major way to make the most of the growing demand for such kinds of fiber. In tune with its plans, Reliance commenced the process of implementation under which it has plans to set up a 2.3-million tonne purified terephthalic acid (PTA) plant at Dahej, with an option to increase its capacity by another 1.15 million tonnes at a later stage. The company also has plans to include 395,000 tonnes of polyester filament yard and 140,000 tonnes of polyester textured yarn at Silvassa. It also plans to add 540,000 tonnes of polyethylene terephthalate capacity at Dahej, with the option of accommodating an equal size plant at the same location at a later stage.
This venture by Reliance comes at an opportune time for the company since the fiber market is undergoing tremendous growth. Given Reliance’s extensive presence in India and Malaysia via its well established manufacturing units, cost leadership position and wide product range, the company is likely to benefit immensely following its expansion process.
Labels: Mukesh Ambani, Reliance, Reliance Industries, RIL