The Times of India | April 28, 2004
MUMBAI: Petrochemical giant Reliance Industries has decided to double its annual polyester fibre and yarn capacity over the next 15 months to 11 lakh tonnes from 5.5 lakh tonnes.
The investment for the expansion was not revealed.
The decision to exploit the global demand for textiles was taken in view of the removal of quota restrictions by 2005 under the World Trade Organisation agreement.
After the capacity addition in its Hazira and Patalganga units, Reliance will replace the Taiwan-based Nan-Ya as the world's largest polyester manufacturer.
The group commands 50 per cent of the total two million tonne polyester fibre and yarn market in India with a capacity of 10.5 lakh tonnes.
The other prominent players are Indo Rama Ltd and Bongainon Refinery Private Ltd. After expansion, RIL's capacity will touch 15 lakh tonnes with the existing four lakh tonnes manufactured by its group companies like DCL Polyester, the erstwhile polyester unit of Reliance which was acquired in 2001.
However, the company will not increase the capacity of its intermediaries that produce polyester.
A senior official said, "We will optimise the full production of raw materials rather than selling them," he said.
Doubling of capacity of this size is the first in last 20 years as the company has built up the present capacity from 1994, an industry analyst said.:
