RIL's business outlook projects petro prices to remain strong

Mumbai, July 20 (UNI) Reliance Industries Ltd (RIL) today said that petrochemical prices during the first quarter of the current fiscal remained strong, primarily backed by firm crude oil and naphtha prices.

The company's statement further said that margins for majority of petrochemical products were lower compared to previous year mainly on account of higher feedstock prices.

The domestic demand for both polyester and polymer products remained robust during the quarter, with polyester demand logging a growth of 17 per cent and polymers recording a growth of 14 per cent as compared to the corresponding previous quarter, it said.

Reliance is the world's largest producer of polyester fibre and yarn with a combined capacity of two million tonnes after the recent commissioning of 550,000 tonnes per year new polyester capacity.

It has a domestic market share of 56 per cent in, poly filament yarn (PFY), polyester staple fibre (PSF) and polyethyelene (PET).

During the quarter, production volumes of PFY, PSF and PET increased by 29 per cent to 361,000 tonnes due to commissioning of polyester facilities at Hazira and Patalganga. The recently commissioned polyester facilities are operating at high utilisation rates and production is being absorbed in domestic and international markets. Reliance has maintained its focus on speciality products, 56 per cent of PSF production and 32 per cent of PFY production represented niche products. With the integration of Trevira, Reliance has now the most diversified portfolio in polyester across commodity, specialty and niche products.

During the quarter, the company commissioned a 730,000 tonnes per annum terapthalic acid (PTA) plant at Hazira in July 2006.

During the period, RIL's production volumes of polypropelene(PP), polyethyelene (PE) and polyvinyl chloride (PVC) decreased one per cent to 469,000 tonnes primarily due to scheduled maintenance shutdown of cracker and downstream plants at Hazira.

The release said the company operates one of the world's largest and most efficient, multi-feed cracker at its Hazira petrochemicals complex. During the quarter, Reliance produced 162,000 tonnes of ethylene, representing a decrease of 24 per cent over corresponding previous period and 77,000 tonnes of propylene, representing a decrease of 23 per cent.

The decrease in production is due to the planned shut down of cracker plant during the quarter. During the same period, Linear Alkyl Benzene (LAB) production was 30,000 tonnes, higher by three per cent as compared to the corresponding previous quarter. The company has a market share of 28 per cent in LAB in the country. The Butadiene plant at Hazira produced 17,000 tonnes. The production was lower due to the shut down of cracker, the release added.

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