Recovery in crude oil prices is set to benefit synthetic yarn manufacturers in India because of their ability to pass on the increase to consumers, that is, fabric manufacturers. Since synthetic yarn is a derivative of crude oil, manufacturers have been able to raise their product prices. Synthetic yarn has become costlier by five per cent to seven per cent in the last two months along with a jump in cotton yarn prices. Changing consumer preferences, like the needs of sportswear firms, have resulted in an increasing demand for synthetic yarn in India. Looking at the vast potential, Indian synthetic yarn and fabric manufacturers have also started exploring overseas markets for exports.

Consumer preferences have changed over the last few years. Demand for synthetic yarn and fabric has increased as against 60:40 cotton-to-synthetic yarn consumption in India two years ago, the ratio has now changed to 55:45. This is going to continue further and catch up with the global standard of 40:60 of cotton-to-synthetic. Going ahead, demand for polyester fibers is expected to remain firm, led by healthy demand expected in the domestic apparel industry. India’s better demographics, expected increase in per capita income, increasing urbanisation and expanding organised market would be the key drivers for raising the domestic demand for apparels.