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Indo Rama sees increase in export of man-made textiles

Our Bureau

NEW DELHI, May 22

INDO Rama Synthetics (India) Ltd (IRSL) has said that it would be able to maintain the export growth recorded by the company during fiscal 2000-01 in the current year as well despite the declining export realisations resulting out of stiffer competition in some of its export markets.

``Our export realisations have come down by 7-8 per cent due to stiffer competition, but at the same time the rupee has also devalued. This has helped us to record good growth rates in rupee terms,'' Mr O.P. Lohia, Managing Director, IRSL, told newsperso ns after announcing the company results for fiscal 2000-01.

IRSL's total exports during fiscal 2000-01 stood at Rs 603 crore, including deemed exports of Rs 220 crore. Mr Lohia admitted that the recent currency crisis in Brazil and Turkey had affected the company's yarn exports to these two countries in the last two months.

``Despite all these hiccups, we will be able to maintain our export growth rate during this year as a lot of avenues still exist for increasing export of man-made textile items from India,'' Mr Lohia said.

He pointed out that the proportion of man-made fibres in the textiles export basket was only about 10 per cent even though the current domestic consumption rate of man-made fibres was almost equal to that of cotton.

``If one were to look at the changing consumption pattern today, man-made fibre constitutes nearly 47 per cent as against 53 per cent of cotton. In 2-3 years, the consumption rate of man-made textiles would exceed cotton,'' Mr Lohia said, while claiming that in the coming decade man-made fibres would be used to increase textile exports from the country.

He also said that polyester prices during the current year ``may more or less remain steady.'' Mr Lohia said that increase in prices of partially oriented yarn (POY) from an expected surge in Asian demand for polyester might be restricted by the addition of new capacities that are being contemplated in China.

``Some addition of capacity in China is being talked about. The question is whether it will happen or not. With no significant capacity addition other than that planned in China, the capacity utilisation of domestic units will have to go up to meet the e xpected demand,'' he said.