Oil and petrochemicals major Reliance Industries is still betting big on polyester.

It is focusing on the non-apparel segment of the user industry (minuscule compared with that in developed countries) and cutting-edge research, in association with US polyester giant DuPont and leading research institutes.

With demand for polyester expected to surge, Reliance is also working on a closely-guarded plan to expand production capacity.

Domestic capacity, which will top 1.3 million tonne this year and has been growing at a compound annual growth rate of 34 per cent in the last 10 years, could be raised further. Reliance could also acquire capacity overseas.

Subodh Sapra, president, polyester group, at Reliance Industries guardedly said: "We are looking at acquisition opportunities everywhere, including China, but have not finalised on anything. There has to be a value proposition in the acquisition. Shareholder return is of primary importance."

Sapra is also unwilling to disclose the domestic expansion plan. "The only thing I can say now is that we have taken 20 years to produce one million tonne of polyester, but it will certainly not take another 20 to add our next one million."

With the non-apparel use of polyester restricted to 7 per cent compared with 40 per cent in China and 48 per cent in the rest of the world, Reliance views the non-apparel market as a major growth driver.

Sapra says polyester will find use in housing, road construction and in consumer sectors in a major way in the coming years.

Reliance is also investing 30 million in the Reliance Technology Centre, its research and development initiative in polyester at Patalganga in Maharashtra.

Already manned by 35 scientists, the number will double in the next year, Sapra says. Sapra added that Reliance would also closely work with global polyester giant DuPont in developing products and improving on processes.

"We will have access to DuPont's archives, which has years of research on polyester. Products developed by the two companies will be patented by both," he added.

Asked how quickly the R&D centre would yield results, Sapra said: "The RTC has begun to yield results since yesterday. We perceive a significant improvement to our product line and bottomline as a result of this initiative."

He added that the RTC has already set up several laboratory-scale pilots plants, but declined to say anything further.