[Resolved]  Reliance Industries Limited, Polyester Poy Yarns — Quality of POY Yarns

Our company, Modern Textiles Industries (MONTEX), is located in Egypt and is one of Reliance Industries Limited clients for at least 10 years. We buy from Reliance POY polyester to use it on our texturizing machines.

We opened L/C 6027 in March 2008 for 44514.32 kg of POY 126 Den/ 36 F bright triloble, first quality as mentioned in their Commercial Invoice PY/[protected]/04.05.2008.

We recieved the goods in our company in June 2008. When we started using the POY we found out that it is not a first quality materials and almost one third of the the produced textured yarns have dye shade defect. In fact the materials we recieved from Reliance is a second quality and not first quality POY as mentioned in their Commercial Invoice and in our L/C 6027 part 45A.

As soon as we found out that the materials having a problem we sent e-mail to their General Manager Mr Mukund Kothari in October 7th, 2008 and informed him about the problem and asked him to send a technician from Reliance to check the problem in our factory. After three months they finally sent Mr Prakash Narayan, their General Manager PFY Business, to our factory in January 10th, 2009.

According to the tests Mr Prakash done on the POY in our factory he found that 30 to 40 % of the produced textured yarns are defected which proves what we mentioned to Mr Mukund in our mail in October 7th, 2008 that the materials we recieved from Reliance is a second quality materials and not a first quality materials which we were supposed to recieve from them according to their Commercial Invoice and to our L/C.

I talked to Mr Mukund in the phone in January 19th, 2009, and I said to him that your Commercial Invoice stated that the POY is a first quality and in our L/C we ordered first quality POY, however, what we recieved is a second quality POY as was tested by your engineer in our factory who found at least 30% of the production is defected. I explained to Mr Mukund that the POY which we recieved is not the POY which we ordered and paid our money for.

All what we asked from Mr Mukund is to ship Reliance's POY back to Reliance since it is not what we ordered and Reliance sends us our money back. We do believe that this is a fair solution to solve this problem.

We sent an e-mail to Mr Ambani, Reliance's Chairman, in January 19th, 2009 and said that we do believe and we are sure that he agrees with us that everyone should pay for his mistake. If Reliance sent us by mistake and not intentionally a second quality materials instead of first quality so the least Reliance can do is to take their materials and give us our money back.

When I mentioned that to Mr Mukund his answer to me was that Reliance can not do that and quoted from his words" you can make a legal case and let the lawyers talk". I am just wondering is that the way Reliance is running the business and deal with its clients???.

Many thanks for your cooperation and please if you have any question do not hesitate to contact me.

Best regards.

Mohamed Youssef Beshir, Ph.D.
CEO, Montex