Garden Silk Mills Ltd. has enhanced its continuous polymerization (CP) capacity by 250 TPD on successful commissioning of CP plants 4-5. The company has also increased its yarn processing capacity by installing additional draw warping and air texturising machines. This will help the company consume its captive POY production to supply value-added yarns to the markets. It is also in the process of increasing its POY/FDY capacities.
Garden Silk Mills is undertaking further expansion of draw texturising and air texturising capacities which are expected to be financed under the Technology Upgradation Fund Scheme (TUFS).
The company has been continuously focusing on technology and process upgradation to produce new value-added specialty products. The expansion of polymerization capacity and the ongoing expansion of PFY spinning capacity will further strengthen the company’s capability to bring innovative products to the market.
In 2010-11, all commodity prices, including petroleum derivatives, increased sharply, and so did raw material prices and polyester prices. Cotton was in short supply globally, and prices more than doubled during the year. This gave impetus to growth in demand for competing fiber polyester. Polyester prices are weakly correlated with cotton prices and does get affected by substantial changes in cotton prices.
Major investments in PFY continued to be made in India and China on the back of sustained double-digit growth in polyester yarn demand. In India shortage of PTA forced polyester chips producers to operate at lower capacity yet production grew at a healthy pace. Demand for PFY grew by 13 per cent to 2.1 million tons. Of the total demand, export demand grew much faster than the domestic market.
According to CRISIL Research, demand for polyester staple fibre (PSF) and partially oriented yarn (POY) is expected to grow at 7.5 per cent CAGR over the next two years, driven by rising consumption of blended and non-cotton yarns. Demand will accelerate to 9 per cent CAGR after 2012-13 due to limited availability of cotton and higher substitution by polyester.
Exports are expected to grow at a higher 10-15 per cent between 2011-12 and 2014-15 due to rising demand from export destinations in Asia, the Middle East, Europe and Latin America.