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March 2, 2001 | Feedback |
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Sector Focus : Man-Made FibreMan-made fibres: State of the industry (2000-01) Fibres and intermediates: Tariffs, prices and landed costs
n.a.: Not available, 1 Market prices.
Notes: Source: CRIS INFAC
Man-made fibres: Budget impact Impact factors
Note: Figures in brackets indicate the closing share prices, on February 27, 2001 and February 28, 2001, respectively. pos= positive Source: CRIS INFAC A: The reduction in the effective customs duty on fibre intermediates, PTA, DMT, MEG and caprolactam (from 32.6 per cent to 24.8 per cent) and on polyester and nylon chips (from 44.04 per cent to 30 per cent), is expected to have a positive impact on the domestic polyester and nylon manufacturers. This is due to the expected decline in the domestic prices, in line with the decline in landed costs. However, for companies, such as Century Enka, the benefit of reduction in the customs duty on fibre intermediates would be partly offset by the expected reduction in polyester chip prices. (Polyetser chips account for around 24 per cent of total sales of Century Enka.) B: The reduction in the effective customs duty on fibre intermediates, PTA, DMT, MEG and caprolactam is expected to have a negative impact on domestic fibre intermediate producers, such as RIL, Bombay Dyeing and IPCL. This is due to the expected decline in the domestic prices, in line with the decline in landed costs. C: The reduction of surcharge on corporate tax, from 13 per cent to 2 per cent and the expected decline in interest rates, is expected to have a positive impact on producers. Rediff-CRISIL Budget Impact Analysis
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