| INTRODUCTIONThe PET industry has focused very | | | | make polyester fibers.MTZ Polyester at Patalganga, |
| much on Asia in recent years, and especially on China. | | | | Gujarat manufactures PET from purchased DMT and |
| But there is another Asian country with a one billion | | | | ethylene glycol. The company acquired a controlling |
| plus population - India. India is keen to join the march | | | | interest in Tributon Exports, and purchased a DuPont |
| of progress and open up to PET, welcoming visitors | | | | polyester plant at Brevard, North Carolina, and a |
| and businessmen with open arms.Companies have put | | | | composite plant from Lindauer Dornier, also in the |
| up PET melt phase capacities to be able to cater to | | | | United States. The plants were re-erected in India, |
| the polyester users. Several of them are operating | | | | and refurbished to produce polyester film and other |
| sub-optimally. For raw materials they are dependent | | | | products.Nakoda Textile at Silvassa, Dadra |
| on large commodity petrochemicals manufacturers or | | | | manufactures PET melt chip from DMT or PTA and |
| on imports. Recent import duties on raw materials | | | | ethylene glycol. The PET is used captively for |
| which affected the PET manufacturers adversely | | | | polyester fiber.Parasrampuria Synthetics at Alwar, |
| have now been rationalized in this year's budget, so | | | | Rajasthan and Bhiwadi, Rajasthan manufactures PET |
| that raw materials and intermediates attract the | | | | from DMT for captive use in making polyester fibers |
| same level of import duties as the final | | | | and solid-state bottle resin.Pearl Engineering Polymers |
| product.COMPANY LOGISTICSAkai Impex at | | | | (PEPL) at Kurkumbh, Maharashtra manufactures PET |
| Silvassa, Dadra manufactures PET melt chip from | | | | from purchased PTA and ethylene glycol. It produces |
| purchased PTA and ethylene glycol. A PET melt | | | | PET bottle resins, mainly for use by its promoter |
| expansion occurred in 1997. Some of the PET is used | | | | company, Pearl Polymers Ltd. (PPL) at various |
| captively for polyester fibers.Baroda Rayon at Surat | | | | locations such as Delhi, Bangalore, and Mahad. Zimmer |
| manufactured PET from purchased PTA and ethylene | | | | AG of Germany provided complete technology for |
| glycol. The plant closed in 1999.Bongaigaon Refinery | | | | the project and retains an equity share of the |
| at Bongaigaon manufactures PET from captive DMT | | | | company.Petrofils Cooperative at Vadodara |
| and purchased ethylene glycol. The PET is used for | | | | manufactured PET from purchased DMT and |
| production of polyester fibers. The plant was idled in | | | | ethylene glycol. Most of the PET is used to produce |
| 2001 with restart in 2004. Reliance Industries market | | | | polyester fibers. The company was closed in 2000 |
| the polyester fiber produced here beginning in | | | | for economic reasons.Polyplex at Khatima |
| 2004.Century Enka Ltd. at Bamalla, Gujarat and Pune, | | | | manufactures PET resins from purchased ethylene |
| Maharashtra manufactures PET from purchased DMT | | | | glycol and DMT or PTA for captive use in polyester |
| PTA and ethylene glycol. The PET is used captively | | | | film. The company is now a major player in the |
| to make polyester fibres. Surplus chips are sold | | | | polyester films market. Recently it has announced |
| transferred to associates and others. The company | | | | plans to add a third line of 15,000 mt/y capacity at |
| has been promoted by the Birla Group and AKZO of | | | | Khatima.Rajashree Polyfils - see Century |
| the Netherlands with equity being held by the Indian | | | | Enka.Raymond Synthetics at Allahabad, Uttar |
| public as well. Rashree Polyfils and Century Enka | | | | Pradesh, manufactures PET from purchased PTA and |
| merged in April 1997, but all the legal formalities in | | | | EG from Reliance. Raymond produces about 8 kta of |
| connection with the merger were completed only in | | | | surplus chips above its required demand for polyester |
| 1999. The combined entity is now known as Century | | | | fiber. A Reliance affiliate, Silvassa Yarn and |
| Enka Limited.DCL Polyester at Nagpur, Maharashtra | | | | Investments, purchased 36% of Raymond |
| manufactures PET from purchased PTA and EG. | | | | Synthetics and in late 1999 acquired another 20% to |
| Beginning in May 2000, DCL began producing PET and | | | | obtain a controlling interest.Reliance Industries at |
| polyester fiber exclusively for Reliance Industries. In | | | | Hazira, Gujarat manufactures PET from captive PTA |
| 2001, DCL Polyester has been acquired by Synergy | | | | and ethylene glycol. The PET is used captively to |
| Synthetics Ltd., a group company of Reliance | | | | make polyester fibers. Reliance built a separate plant |
| Industries.Elque Polyesters at the Falta Export | | | | of 80,000 mt/y capacity at Hazira for PET bottle |
| Processing Zone manufactures PET resin using | | | | resins using captive PTA and MEG. PET melt capacity |
| technology provided by Sunkyong of South Korea | | | | will be expanded using DuPont's new NG3 technology |
| and Buhler of Switzerland. The PET is used captively | | | | to produce PET solid-state resin in 2004.Reliance at |
| to produce bottle resins. The company restarted | | | | Lakshiminagar manufactures PET from purchased |
| operations in 1999 that had been idle for two years. | | | | PTA and ethylene glycol. Most of the PET is used |
| The company's earlier expansion plans have now | | | | captively to make polyester fibers. Reliance acquired |
| been put on 'hold'.Ester Industries at Khatima, Uttar | | | | the plant from J K Corp. in 1999 after the company |
| Pradesh manufactures PET from purchased DMT and | | | | incurred significant losses in 1997-1998 and decided to |
| EG. PET melt capacity expanded in 1997. PET melt is | | | | sell its polyester business. The plant was converted |
| used captively to produce polyester films.Flex | | | | to use PTA instead of DMT in 1999.Reliance |
| Chemical at Malanpur, Gwalior, Madhya Pradesh, built a | | | | Industries at Patalganga, Gujarat manufactures PET |
| 50,000 mt/y PET plant to meet the rapidly growing | | | | from transferred ethylene glycol and captive PTA. |
| demand of polyester film manufacture of its | | | | The PET is used captively to make polyester |
| associate, Flex Industries. The plant expanded PET | | | | fibers.Sanghi Polyester at Hyderabad manufactured |
| melt capacity in 2001.Futura Polymers at Madras | | | | PET from purchased PTA and EG. The company |
| manufactures PET chips from purchased raw | | | | used most of the output captively to make |
| materials. Most of the PET is captively used to make | | | | polyester fibers. The plant was closed in 2000 due to |
| bottle resins for export. Pepsi Co. U.S.A. was a | | | | financial difficulties. |
| partner in this plant but has divested its stake at a | | | | Shree Synthetics at Ujjain manufactures PET from |
| nominal price to joint venture partner Indian Organic | | | | purchased DMT and ethylene glycol. Most of the PET |
| Chemicals. The plant expanded PET melt capacity in | | | | is used captively to make polyester fibers. |
| 2002-03.Garden Silk Mills at Surat, Gujarat | | | | Somani Swiss Industries at Bhiwadi, Rajasthan |
| manufactures PET melt chip from purchased PTA | | | | manufactures PET from purchased raw materials. |
| and ethylene glycol. The PET is used captively for | | | | The PET is used captively to make polyester yarn. |
| polyester fibers.Garware Polyester at Aurangabad, | | | | Ems Inventa supplied technology for the POY |
| Maharashtra manufactures PET from captive | | | | plant.South Asian Petrochem (SAP) at Haldia, West |
| purchased DMT and purchased PTA and EG. The PET | | | | Bengal manufactures PET melt chip with Zimmer |
| is used captively to make polyester film, of which | | | | technology. Zimmer will take a 5% stake in the |
| Garware Plastics is the largest manufacturer in India. | | | | venture, estimated at Rs 4.25 billion (about US$ 100 |
| Garware purchased an idled DMT plant and moved it | | | | million). The plant purchases PTA from Mitsubishi and |
| from the Czech Republic. It was rebuilt and expanded | | | | ethylene glycol to produce polyester solid state resin. |
| at Aurangabad.Capacity for film was increased from | | | | Startup occurred in mid-2003.Terene Fibresat Bombay |
| 25,000 mt/y in 1995 to 50,000 mt/y in 1997, when a | | | | manufactured PET from transferred PTA and |
| continuous polycondensation plant was established. | | | | ethylene glycol. Most of the PET was used captively |
| The company is a major exporter of polyester | | | | to make polyester fibers. The company's name was |
| film.Hindustan Photo Films at Bhulandshahr | | | | changed from ICI (India) to Terene Fibre (India) in |
| manufactures PET melt from purchased DMT and | | | | 1993-1994 when ICI and Reliance Industries Ltd. (RIL) |
| ethylene glycol. The PET melt is used captively for | | | | made a strategic alliance to create a jointly owned |
| polyester film.India Polyfibres at Bara Banki | | | | (50% each) venture. This is in effect a tolling |
| manufactures PET from PTA and ethylene glycol. | | | | arrangement as RIL provides the raw material, |
| Most of the PET is used captively to make polyester | | | | schedules production, and markets the entire output. |
| fibers on a conversion basis for Reliance Industries. | | | | Terene Fibers is now a part of the Reliance group. |
| The company is now a part of the Reliance | | | | To improve efficiency, the plant at Bombay was |
| group.Indian Organic Chemicals at Madras | | | | closed and the equipment moved to Hazira.Welspun |
| manufactures PET from purchased DMT/PTA and | | | | Polyester at Silvassa started production of PET in |
| ethylene glycol. Most of the PET is used captively to | | | | 1999 for captive use to make polyester |
| make polyester fibers.Indo-Rama Synthetics at | | | | yarn.FOREIGN TRADEAbout 4-5,000 tons were |
| Nagpur, Maharashtra manufactures PET from | | | | imported in 2000-03. Exports are negligible compared |
| purchased PTA and ethylene glycol. The PET is used | | | | to production.DERIVATIVE & USEMost PET has been |
| captively to make polyester fibers. A recent | | | | used for polyester fiber manufacture. Reliance, South |
| expansion added 150 t/d solid stating capacity. The | | | | Asian Petrochemicals, Elque Polyesters, Ester |
| company has further plans to increase PET capacity | | | | Industries, Futura Polymers, Jindal Polyester, |
| at Nagpur to 586,000 mt/y by 2006.J K Corp Ltd. - | | | | Parasrampuria Synthetics, and Pearl Polymers |
| see Reliance.JCT Ltd. at Hoshiarpur, Punjab | | | | manufacture bottle grade resins.MTZ, Ester, Flex, |
| manufactures PET from purchased DMT/PTA and | | | | Polyplex, Jindal, SRF, Hindustan Photo, Venlon |
| EG. The JCT polyester business has been acquired by | | | | Polyester, and Garware are using PET melt for |
| Reliance Industries. Reliance group's Terene Fibers has | | | | polyester film manufacture. Total Indian polyester film |
| made the acquisition.Jindal Polyester at Bulandshahr, | | | | capacity will grow from 182,000 mt/y in 2002 to |
| Uttar Pradesh and Nashik, Maharashtra manufactures | | | | 273,000 mt/y by 2005 with major expansions |
| PET from purchased raw materials. The Bulandshahr | | | | planned by Jindal and SRF.ANALYSIS & |
| plant was expanded in 1999, and Nashik will expand in | | | | OUTLOOKWith the polyester business growing |
| 2004. Most of the output is used captively for | | | | around 9% per annum, and the use of PET in |
| polyester fibers and film production.Modern Petrofils | | | | packaging growing around 24% per annum, and |
| at Baroda, Gujarat manufactures PET from | | | | polyester films at over 10% per annum, the future is |
| purchased PTA and EG. The PET is used captively to | | | | bright. However, most of the producers who have |
| make polyester fibers. Modern Petrofils is a subsidiary | | | | put up small capacity plants suffer from the view |
| of Modern Syntex.Modipon at Ghaziabad, Uttar | | | | point of production economics. They also face |
| Pradesh manufactures PET from purchased DMT and | | | | severe problems of working capital. Many of them |
| ethylene glycol. Most of the PET is used captively to | | | | are likely to sell out to the bigger players. |