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Related Keywords: bleak outlook, Bombay yarn Traders association, decline in world buying capacity for textile, domestic production, dwindling Chinese economy, export potential, Indian textile industry, Indo Rama Synthetics, market crash in China, MEG, multi-year lows, price of raw material, PTA, sharp decline, synthetic yarn, texturised yarn

Export potential for synthetic yarn in the Indian industry is seeing a sharp decline again with the dwindling Chinese economy. The recent market crash in China has a lot to do with bleak outlook of domestic production in almost all sectors including textiles. Units in China have been cutting down production due to decline in the world's buying capacity for textiles. This has resulted in synthetic yarn exports, especially texturised yarn falling steeply, said Jayesh Pathak of Bombay Yarn Traders Association.

Related Keywords: CITI, excise duty, finished products, import raw material, Indian Department of textiles, Indo Rama Synthetics, issue of duty rationalization, make in India’ programme, man made fibre, PTA, taxed heavily, TUFS, with the PM

This is for first time that the Indian department of textiles has taken up the issue of “duty rationalization” with the PM, although it has noted that the approvals of other ministries are key to making such plans a reality. At present, man-made fibres attract a 12% excise duty while cotton fibres attract none. Similarly, imports of some of the raw materials for producing man-made fibres are taxed heavily and those of their finished products are taxed lower.

Related Keywords: apparel players, Arvind, demand cycle, Erratic costs, fabrics, high inflation, high interest rate, Indian textile industry, Indo Rama Synthetics, KKCL, low capactiy utilization, polyester yarn, raw material price, Raymonds, Textile, Vardhman Textiles, weakened rupee

India is the second largest producer of textiles and garments in the world. The Indian textiles and apparel industry is expected to grow to a size of US$ 223 billion by 2021. But during the Q2 of financial year due to several factors including stiff competition in certain products, low capacity utilization, high inflation, high interest rates and weakened rupee has impacted in some way or the other on be it textiles, polyester yarn, fabrics or apparel players.

Related Keywords: anti-dumping duty, Indo Rama Synthetics, Mitsubishi Chemical, polyester fiber and yarn, polyester producers, PSF manufacturers, PTA, PTA User Association, Purified terephthalic acid, raw material, RIL

The decision of purified terephthalic acid (PTA) producers like Reliance Industries Ltd (RIL) and Mitsubishi Chemical to increase prices by a steep Rs 2,100 a tonne from August 1 - just a week after the new government imposed anti-dumping duty on the product despite stiff opposition from the user lobby have added yet another chapter to their long-drawn battle.

Related Keywords: financial result of textile company, Indo Rama Synthetics, largest polyester manufacturer, per capita fibre consumption

India’s largest polyester manufacturer, Indo Rama Synthetics (India) Limited, announced its audited results for the Quarter and financial Year ended March 31, 2014 on 20 May. For the quarter ended 31 March, 2014, the company’s net revenue stood at Rs 693.47 crore as against Rs 706.99 crore of Q4 of previous year.

The EBIDTA for the period stood at Rs 56.38 crore compared to Rs 22.19 crore for the corresponding quarter in the previous year. Net loss for the period stood at Rs 14.17 crore as compared to a loss of Rs 38.06 crore in Q4 FY13.

Related Keywords: Indo Rama Synthetics, Itochu

Itochu Corp, a Japanese trading house who owned 3.5 percent equity stake in Indo Rama Synthetics, polyester manufactured decided to exit the company by selling off its entire equity stake in the company to the promoters, the Lohia family. The deal was for around Rs 8 crore or $1.25 million via bulk deals on the BSE.

As on December 31, 2013, the promoters of Indo Rama Synthetics owned 64.13 per cent stake in the company which has now hiked it to 67.6 per cent.