FUTURA POLYESTERS LIMITED - IDBI Capital

India Scenario
Consumption of PE, PP and PVC (three major polymers) in India reached 4.6 million tonnes registering a y-o-y
growth of 10% during FY 2006-07. PP and LLDPE registered a healthy growth of 15%. LDPE consumption
grew at 8% whereas HDPE grew at 9% and PVC witnessed a modest growth of 7%. The demand for PVC in
India experienced a 7% y-o-y growth.
The production performance of major petrochemicals during 2001-02 to 2005-06 is as follows:
Units in Kilo Tons
Sub-group 2001-02 2002-03 2003-04 2004-05 2005-06
Annualized
Growth Rates(%)
Synthetic Fiber 1667 1755 1868 1875 1906 3.4
Polymers 3974 4175 4499 4776 4768 4.7
Elastomers 79 81 87 97 110 8.63
Synthetic
Detergent 425 447 453 488 556 7.0
Intermediates
Performance
Plastics
90 95 99 113 127 9.0
Total 6235 6553 7007 7349 7467 4.61
Source: Ministry of Chemicals and Fertilizers-Petrochemicals
Polyester fibers are the most widely used synthetic fibers in the world today. Polyester fibers, however, have
poor elasticity and stretch recovery, do not absorb moisture, are comparatively difficult to dye, and generate
static electricity under dry conditions. However, many of the deficiencies of polyester filament yarn and staple
fibre can be reduced or overcome by fiber modification and/or by blending with cotton or other fibers. Hightenacity
polyester filament yarn and staple fibre have a higher tensile strength and a lower elongation before
break than conventional polyester fiber. High-tenacity polyester fibers are used for both industrial and textile
applications for which high strength and low crimp are important.
Textile exports from India to the developed countries have increased in the post quota regime. A rise in the
domestic textile consumption with the aid of a high GDP growth and changing lifestyle patterns is helping the
consumption of polyester. The emergence of retail boom is boosting the demand for innovative products from
the end consumers who have not experienced such products earlier. Cotton prices are expected to remain firm in
the year ahead with limited growth in crop production thereby leading to a higher cotton-price environment.
This typically has a positive impact on the polyester business both from a demand perspective (higher polyester
blending) and pricing perspective.
The current capacities of Synthetic Fibre and Commodity Polymers are depicted below:
Synthetic Fibre Capacities July 2007 (3168 kilo tons)
Source: Ministry of Chemicals and Fertilizers-Petrochemicals
1%
4%
33%
60%
2%
AF NFY NY/TC PFY PSF
30