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IRIL is one of the leading diversified conglomerates having interests in readymade garments, rayon/yarn, carbon black, textiles, and insulators. The company recently acquired Madura Garments and exited from seawater magnesia business in this year. The cement division was also hived off to Grasim Industries. VFY, textiles, carbon black, insulators and now garments, are the mainstay of IRIL's business. VFY is presently facing stiff competition from polyester. The vast gap in VFY and PFY prices has adversely affected the mature VFY industry. The prospects are bleak in the near future. The company's strategy would be to concentrate on volumes and increase margins by cost control. Demand for carbon black is dependent upon the fortunes of the tyre industry. But the automobile sector continues to reel under the pressure of economic recession. Recent policy announcements for insulator business along with continuing emphasis on rural electrification should boost demand in this sector.
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