IndianOil petro hub boosts Panipat's polyester blanket market
New Delhi   09-Mar-2012

The IndianOil petrochemical complex in Panipat has become the catalyst of diversification for businesses based in the region. The petro hub, which became operational in mid-2010, has given a boost to the polar blanket industry - a polyester product - having a potential to attract around Rs 80 crore business annually in the city of textile.

"There are around 8-10 units manufacturing polar blankets in Panipat and deriving business from IndianOil’s Naphtha Cracker plant. The plant is expected to fuel polyester business worth Rs 10,000 crore out of which the polar blanket segment can contribute around 8-10 percent revenue to the polyester market," said Pawan Garg, president of All India Association of the Shoddy Yarn.

"Daily business of the shoddy yarn in Panipat is around Rs 1.5 crore and around a quarter of the business is coming from the polar blanket segment. These blankets are produced for 7-8 months in a year clocking an annual turnover of Rs 80-90 crore," said Mr Garg. Polar blankets are very soft and light best suited for babies and senior citizens. It is better than yarn spun blankets in quality and price. The production cost is also comparatively low giving stiff competition to other types of blankets. Polar blankets now cost Rs 100.

POLY JOBS

"Since the inception of the plant and the emergence of polar blankets, the prices have gone down and might cost even lesser in the future," Mr Garg said. He expects the segment to grow by around 15-20 percent after the petrochemical complex becomes fully operational by April 2012.

The spinning yarn industry in Panipat employs around 45,000-50,000 people. "Around 10 percent jobs are generated by the polar blanket segment," Surinder Rewari, president of the Panipat Yarn Association said. "Around one quarter of the spinning yarn business would get direct competition from this polyester blanket. It also gives an opportunity to traditional businessmen to diversify their business provided they take it as an innovation in the industry," Mr Rewari added. "The polar blanket segment is an automation-oriented industry. Therefore, job creation in polar blanket industry is less in comparison to the spinning yarn business," Mr Rewari further added.

EXPORT QUALITY

Vishnu Goel, president of the North India Shody Mill Association said that polar blankets are yet to enter the export market. At present, it would cater to the domestic market only.

He said that the yarn industry can compensate this competition by enhancing its business in the export market where Indian yarn products are in high demand. He said that if the Inland Container Depots (ICD), Babarpur in Panipat - chapter of the Container Corporation of India (CCI) - which provides facility to export products made in Panipat but is unable to import products directly to Panipat.

Because of this, Panipat businessmen are forced to import from CCI, New Delhi. Mr Goel said there is an urgent need to enhance facilities at ICD, because in coming days the petro hub at Panipat is going to add many more export-oriented industries in its fold like auto components, woven sacks and polyester. "At present, Panipat businessmen are importing around 300 containers from CCI, New Delhi, which is an added burden on the Panipat industry" said Sukhmal Jain, member of the Haryana Chamber of Commerce and Industries and vice president (VP) of the Panipat Exporters Association. "If this (import) facility is added to ICD, Panipat, it would help local businessmen in cutting cost and compete with not just polar but mink blankets (imported from China) as well," said Mr Jain. He concluded that it would also help polar blanket business to cater to the export market.