Everflow Petrofils Ltd (EPL), a manufacturer and exporter of yarns and fibres of polyester and cotton, works towards providing eco-friendly yarns and fibres. EPL MD Pinkesh Jain talks about market trends for yarns and fibres and the current scenario for MMF (man-made fibres) in India and China with Fibre2Fashion.
What do you expect from the upcoming Budget for the yarn industry?
Man-made fibres (MMF) have a skewed excise duty structure which discriminates against MMF vis-a-vis cotton. It is 12 per cent for MMF and zero per cent for cotton. The world over there is no such distinction (e.g. in China, Pakistan, Bangladesh, Sri Lanka, Thailand). MMF, which are used by lower and middle classes in India for being affordable and durable, have to bear the brunt of high excise duty. The skewed excise duty structure has resulted in deceleration of growth. So, the government should reduce the excise duty on MMF or yarn value chain to 6 per cent in the first instance to avoid an inverted duty structure and CENVAT accumulation.
The customs duty structure, on the other hand, should be a cascading structure, i.e. the duty differential should be progressive at each stage of the value chain.
What was the growth of EPL last fiscal? What is the next target?
The EPL Group has achieved a turnover of Rs 654.60 crore in the year 2013-14 and is projected to be Rs 820 crore in 2014-15, i.e. a growth of 25.5 per cent. There are many more products that will be introduced soon.
Are there any branding plans for expansion of business?
Our motto is: Turning waste into wealth. We attend most textile fairs, and present our products which are eco-friendly. Our company brand name - MC is at the 29th place among the top 100 textile brands of China. We believe in "put your expenses more in building up your quality". Quality is the best way to beat competition, and expand your brand with less expenses.
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