According to Crisil Ratings, the Indian viscose spun yarn (VSY) industry’s revenue is expected to increase 10%–12% to an all-time high of more than $2.5 billion in 2023–2024 as a result of persistently robust demand.
According to a Crisil analysis of companies that produce viscose spun yarn, even if yarn prices fall, total profitability is anticipated to increase by 200–300 basis points.
According to a press release from AHimank Sharma, director of Crisil Ratings, the volume of viscose spinners is predicted to increase by 15% on-year this fiscal, helped by a continuation of domestic demand and a resurgence of export demand in the second half. Segmental growth will be in the low double digits overall.
The government has introduced a Quality Control Order despite the removal of the anti-dumping duty on viscose fibre. The government is picky when it comes to granting the BIS licences of foreign producers, particularly those from China, Thailand, and Indonesia. As a result, a lot of viscose yarn is imported in place of viscose fibre, which drives up the cost of local yarn. He claimed that “the spinners are having a really hard time managing import competition.”
