Swot Analysis
Strength
- Experienced promoters with over 30 years of experience in the industry
- Successfully implemented various expansion schemes in the past with in-house expertise
- Consistently achieved capacity utilisation over 100% in respect of POY & FDY
- Locational advantage being the company is situated in Surat City . Surat City it self a big market of Polyester Industry capturing more than 90% of sale of man made fibre products.
- Products are well accepted in the market both nationally & internationally
- With the implementation of the proposed project, the company will reap the benefits of economies of scale due to optimum utilisation of the existing facilities.
- Professional set up of organisation with qualifies and experienced employees.
- Strong marketing network throughout the country.
- One of the cost – efficient polyester manufacturer.
Challenges
- The prices of raw materials and finished goods move in tandem with international prices, which, in turn, have positive correlation with the prices of petrochemical products.
- Company is in medium size as compare to market leaders like Reliance Industries Limited
- The company is exposed to various financial risk emanated from foreign exchange currency risk.
Opportunities
- Polyester is the fibre of the future, finding varies applications across home furnishing, apparel industry, automotive industry, sportswear, technical textiles etc.
- Our Product mix spread over five important Polyester products :- Pet Chips , POY , FDY , Texturised Yarn & Carpet Yarn
- With no major capacity increase being created in the recent past / being planned in the near future, the existing players are well positioned to take advantage of the emerging scenario where demand is expected to exceed supply.
- Potential growth in domestic demand for POY due to increase in share of non-cotton fabric in total fabric production on account of lower availability of cotton, reduction in the excise duty on non-cotton yarns, and higher cotton yarn exports.
Threats
- India has concluded / is in the process of concluding Free Trade Agreements (FTA) with a number of countries like Sri Lanka, Thailand, China, etc. This will lead to lower tariffs all round and may affect Indian textile units, including FIL.
- Post WTO, when India would be exposed to international competition. FIL’s position is expected to be vulnerable vis-à-vis those companies with global size and modern facilities.
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