Home / Knowledge / News / Textiles / Raj Rayon Industries slips into loss as rising costs pinch
Raj Rayon Industries slips into loss as rising costs pinch
16
Jan '14
Raj Rayon Industries Ltd, formerly known as Raj Rayon Ltd, has been feeling the pinch of rising input costs in the past two quarters. The company, engaged in manufacturing of Polyester Texturised Yarn (PTY), Partially Oriented Yarn (POY), & Fully Drawn Yarn (FDY), reported a loss of Rs 4,180.7 lakh in quarter ended September 2013 and of Rs 347.32 lakh in the previous one.

The company, like the other polyester yarn makers, has been hit hard by sharp surge in costs of raw materials like Purified Terephthalic Acid (PTA) and Monoethylene Glycol (MEG) during the period. The prices of these basic raw materials for polyester yarn registered a steep rise during the period, impacting yarn and fabric prices.

Unlike cotton yarn exporters, the synthetic yarn companies like Raj Rayon, which exports its yarn to around 14 countries, failed to gain from rupee depreciation due to price pressure in raw materials. Price of PTA jumped to an average Rs 72.67 per Kg in the quarter ended September 2013 as against Rs 60.27 per Kg in the year ago period. Similarly, the price of MEG stood at an average Rs 70.07 per Kg in Jul-Sep 2013 as against Rs 57.77 per Kg a year earlier.

The company’s PTY, POY & FDY plants were running partially due to negative margins and Raj Rayon also temporarily suspended production at its Continuous Polymerisation Plant (CP Plant), the commercial production of which had commenced from July 1, 2013.

Apart from the rising input costs, the company also saw its finance costs almost doubling to Rs 1,398.91 lakh in Q2 FY14 from Rs 749.80 lakh in the year ago period. Raj Rayon has approached its bankers for Corporate Debt Restructuring (CDR).

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 22nd Jul 2017

Govt constitutes GST Feedback and Action Room

The Government of India has constituted a Feedback and Action Room...

Textiles | On 22nd Jul 2017

India’s cotton textile exports fell in FY17: Tamta

The overall export of cotton textiles from India declined in 2016-17...

Textiles | On 22nd Jul 2017

Stella McCartney, Bolt Threads partner for eco fashion

Fashion designer Stella McCartney has partnered with Bolt Threads for ...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X