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Post Budget Scenario


Petrochemicals

Budget offers
Rationalisation in import duty of fibre intermediates. Import duty on DMT, MEG, PTA and Caprolactum reduced to 20% from the current 25%.

Reduction in import duty on polyester chips from 35% to 25%.

The impact
Manufacturers of these downstream products could see a squeeze on their realizations as import prices decline. This however, will benefit the manufacturers of synthetic fibre and yarn.

Also, reduction in polyester chips will benefit PET manufacturers.

Reliance is integrated along the petrochem chain all the way to fibres and filaments. Consequently, the impact of reduction in fibre intermediate duties maybe insignificant. The company also may not be significantly impacted from reduction in polyester chip duties as it manufactures PET.