What’s the trend in polyester prices?
Polyester prices have risen by around 25% in the last 12 months. In
viscose, prices have increased by around 30% in the past one year.
However, we have been able to raise yarn prices by 30-35%. Overall, we
have been able to improve our realisations as pricing power has come
back.
Has interest cost increased substantially?
In 2007, our interest cost was Rs150mn. This has gone up to Rs500mn now
due to a change in interest rate scenario. But, we get interest subsidy
under TUFs. So, our total cost of long-term fund was close to 1% prior
to the global financial crisis. This has now gone up to 3.5%. Since our
performance this year has improved, we can start fighting with the
bankers to reduce the rates.