Indian Oil Visions to Diversify the Textile Business for Offsetting Future Risks
- Journalist: Francis Stokes
In an attempt to bounce back from the persisting market uncertainties, Indian Oil Corporation Limited (IOCL) is looking forward to expanding its petrochemical division by integrating it with the textile business. As per the chairman of IOCL, this initiative is a calculated approach for safeguarding the future growth potential, pertaining to shifting lifestyle and demands of the people in the long run. Furthermore, this endeavour will assist the company to elevate to greater heights by augmenting significant capacity expansions and by diversifying its reach in the niche petrochemical business with huge focus on integration into textiles. As of the current situation, India’s consumption of petrochemicals is on tragic lows following negative price margins with complete Asia strategizing ways to combat oversupply in times of dragging market fundamentals. The vision of IOCL to target textile is being considered as a pragmatic step towards stability as commodities such as VSF (Viscose Staple Fibre) and VFY (Viscose Filament Yarn) are among the ones that rarely experience hovering lows due to their high seasonal demand.