Published on November 18, 2013

Polyester is defined as “longer-chain polymers”. Chemically it is bonded with several esters within the fibers. The strong chemical bonding in polyester has denoted the property of elasticity. Polyester is used in various industries. Some of them include clothes, ropes and many more. Again one of the most popular utilization is in PET industry.

Indian polyester industry has been very prominent in India. Contribution of this industry has always added to the Indian GDP. The turbulent phase of Indian GDP has affected all the industries. Since GDP of India has dropped to 4.4 percent, in turn has affected the polyester industry as well.

Polyester producers in India are facing tough period. Excess capacity and slow economy has been attributed for this downfall. Since April 2011 the manufacturers are getting lower margins and are finding it difficult to survive in the market. Constantly profit margins are being squeezed, as a result the industry is drawing losses. Moreover there has been quite uneven expansion of this industry. Production has increased by 25-30% in this fiscal year where as consumption has increase by just 15percent. This uneven distribution of production and consumption has dragged the profitability of this industry.
Other than slowdown of economy, Chinese products had been the biggest threat to the polyester producers. China is the biggest manufacturer and consumer of polyester in the world. The quality being supplied has affected the domestic manufacturers in India.
To overcome this phase, recently polyester association conference was held in India. Major manufacturers were the participants of this conference. Summit was held to take the measures to help small traders and producers, to assure their profit margins. Discussions were held to take measures to save this industry. One of the measures was to increase the use usability of polyester in different sectors to increase its utilization. Emphasis was laid more on domestic production rather than importing from China, as India is already importing heavy quantity of MEG. The association was optimistic with their plans and believes this industry will show growth in the coming years. Along with government support the industry can do much better.