VFY demand to remain stable: VP Mktg, Indian Rayon (ABG)
Viscose Filament Yarn (VFY) is also known as Rayon Yarn or Rayon Filament Yarn. Obtained from nature i.e. wood or cotton pulp, this natural fibre, owing to the silky appearance and feel, can be used to make fabrics for clothing, home textiles and embroidery etc. Current market of VFY is facing raw material prices ruling firm and a tight supply. To make out more about its market scenario during year ahead, News team at Fibre2fashion conversed with Mr Shailendra Pandey, VP Mktg, Indian Rayon the VFY unit of Aditya Birla Nuvo. Indian Rayon, a major player in the Indian viscose filament yarn business, is the second largest producer of VFY in India with a 38 per cent domestic market share.
Narrating about present domestic market, Mr Pandey opines that the market is quite stable and has been good since two months. He further attributed the reason that India imports approx 1500-2000 tons every month from China and in last two months the prices in China have been quite high and the supply been tight. So there was less material available. This in turn, from domestic suppliers' perspective, invoked good demand amongst their customers. “Overall VFY is a cut life product as compared to polyester and other fibres, as it is for high end use. Though supplies are not very large, VFY has made its own niche amongst the end user,” claims he.
Regarding factors behind the cost of raw material ruling firm and its upshots on his business, the officer explains that wood pulp (raw material for VFY) has gone costlier, rising from 1300-1400$ per metric ton to over 2500$ per metric ton in last six months. The unit has been able to recover part of that cost by increase in prices on VFY, last two months. However, the price raised is not to the extent of cost of pulp prices endured, he adds. Mr Pandey notices the increased prices have been well absorbed by users. According to him, similar is the case in global VFY prices too.
Amongst two areas of application of VFY i.e. embroidery and high end fabrics used for saris or dress material, around 40% of total VFY production is consumed in embroidery in India and is likely to grow as trend for embroidered fabrics is continued. VFY used in fabrics for this high end women wear is also to witness growth as consumers of fabrics go for variety products.
In our discussion ahead, the VP also draws a parallel picture of VFY made saris to polyester made saris. He explains that former are better than the later on various attributes of drape and feel, therefore are also costlier than polyester. And the segment, in his opinion, will grow henceforth too. He admits that to some extent the market of VFY made fabrics is lost to polyester-mades as there is segment of consumers who purchase on the back of affordability too. However, sector for polyester made fabrics will continue stagnant deprived of remarkable growth.
Leaving a forecast note for 2011, he predicts “the VFY demand is expected to remain stable”.
Fibre2fashion News Desk - India