Sustainable fashion in trend

Textile industry is moving towards sustainable development by using recycled polyester.

This is leading to the production of recycled polyester filament using products from landfill
and waste PET bottles and other PET waste. The demand for recycled polyester filament is
growing in apparel, fashion, and retail industries moving towards development and
production of new products.

Developed countries around the world are supporting the idea of using recycled polyester in
various industries. Brands are increasingly incorporating recycled polyester filament yarns
made from plastic bottles in the apparel products.

In an effort to support and level-up recycling, manufacturers in the developed nations are
focusing on opening plastic bottle processing facility to produce recycled polyester. The
demand for high grade recycled polyester is growing as the apparel brands are overcoming
the technical issues associated with recycled polyester including matching pastel shades and
levelling in dyeing.

However, with China’s ban on import of plastic waste, which includes around 2.5 million ton of PET
waste used in production of recycled polyester including filament and staple fiber has increased the
price of both recycled and virgin fiber. Moreover, countries previously exporting plastic waste to
china are redirecting recyclable waste to Thailand, Malaysia, and Vietnam.

Price volatility of raw materials.

Growing raw material prices and increasing production cost following the high crude oil
prices are impacting the polyester filament market. The cost of raw materials including
petrochemicals such as PTA and DMT refined from crude oil are constantly increasing,
resulting in the high prices of synthetic yarns.

According to the International Energy Agency (IEA), there is a high risk of oil prices increase
rapidly in the coming months. Moreover, IEA also found that impact on Iran from further US
sanctions and supply problem in Libya and Venezuela are likely to affect OPEC’s drive to
increase the production and ease prices.

The cost of synthetic fiber is constantly rising in Asia. China with world’s polyester filament
production capacity also lifted the price of polyester filament yarn with upward fluctuation
in crude oil prices. Moreover, fiber suppliers are reluctant to reduce the price if demand
remains strong. Increase in crude oil prices in India is leading to sharp rise in petrochemical
cost hitting polyester filament yarn industry.

The International Cotton Advisory Committee has also stated that the recovery in cotton production
will continue in coming years, with growth expected to reach 11%. It also expects boost in cotton
demand due to the rise in oil prices, affecting synthetic fiber prices including nylon and polyester.
Versatility design and application.
Polyester textile filament is a main category of polyester filament finding wide usage in
textile and fabrics production used to produce apparel, footwear, and home furnishing. The
demand for polyester filament is growing rapidly compared to natural filament in apparel
production owing to its durability, wrinkle resistance, minimal shrinkage, and high color
retention.

Northeast Asia is the focal point of world’s polyester filament yarn production, with demand
largely driven by textile industry in India and China. Polyester filament is overtaking cotton
as the dominant fiber in home furnishing industry with new interior designing concepts and
growing urbanization, especially in developing countries.

Polyester filament demand in home furnishing and apparel industry will continue to be
strong in the coming years. Polyester filament yarn is largely used as a substitute to cotton
yarn owing to the short supply and high cotton prices, and constant improvement in
manufacturing technologies of polyester filament.

Widespread application in home furnishing.

The product has wide range of application in carpets, cushioning, furniture covers, curtains
and mattresses. Growing population in emerging economies is increasing the need for
developed commercial spaces, infrastructure and residential complexes which is further
augmenting the demand for home furnishing products. The global polyester fiber market is
positively influenced through these factors by its widespread application in home furnishing,
carpets and textiles materials which is likely to grow the segment at 6% CAGR over the
forecast timeframe.

Indian Players are investing aggressively in

synthetic textile industry
Reacting to rising popularity of Polyester textiles across the globe, many Indian players have
announced recent expansions in this segment. India’s largest Textile and apparel giant,
Arvind has recently added polyester knitted fabric to its portfolio and currently offering
100% Polyester, Poly Spandex etc. In line with the global trend, majority of the textile
players are orienting themselves towards synthetic fiber based active wear/sportswear and
performance wear fabrics. Bhilosa Industries, Mumbai which is a major Polyester texturized
yarn, is also planning to double its capacity to produce 3,000 Tonnes per day in the near
future. Gimatex Industries, Mumbai has added Tencel modal and Cotton modal yarns in its
product offerings. Earlier they were producing mélange yarn, viscose yarn, cotton compact
yarn etc.
 Indian textile players need to gear up to attain
competitiveness in this sector
In spite of the tremendous opportunities available in synthetic textiles sector, Indian players
need to master know-how of processes involved in synthetic textiles manufacturing. Major
problem existing with the Indian manufacturers is the lack of scale, low manpower
efficiency and lesser focus on research and innovation activities. Challenges are also being
faced during processing of synthetic textiles. Following interventions should be taken by the
various stakeholders in order to strengthen the synthetic textile industry of India:
 Developing Exhibition and Display Centres similar to China, Korea & Taiwan
 Alignment/coordination with buyers to understand product requirements and support
innovation
 Enhancing focus on sustainability within the textile and apparel chain
 Government’s role:
 Right blend of policies for both exports as well as domestic consumption
 Better coordination between the Government and industry agencies
 Promotion of Indian manmade textile sector in the global arena
 Thrusting R&D and Educational institutions to take responsibility in the industry
development
 Introduction of fibre neutral policies
In a nutshell, polyester is the fibre of future and global textile players have already started
aligning their businesses accordingly. Indian textile industry remains largely cotton focused
and needs to improve its positioning in synthetic textiles trade on global level. India’s MMF
production remained almost stagnant during last few years. Comparing y-o-y, MMF exports
also declined slightly while imports saw double digit growth. However, opportunities in this
sector are huge for India. Overall business sentiment of synthetic textiles in India seems
improving and the sector is expected to witness notable growth in future. With increasing
government supporting and changing mindsets, many textile companies have done capacity
expansion in this sector and many others are planning to do so. Hence, it can be expected
that India may enhance its export competitiveness and supplier image of its synthetic
textiles sector in the near future.