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RAW MATERIAL ISSUES VSF Industry-Trends in Textiles & Nonwovens By Ajay Sardana Aditya Birla Group 6 th ASIAN TEXTILE CONFERENCE (ATEXCON) 5 th -6 th March 2012, Mumbai 1

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RAW MATERIAL ISSUES

VSF Industry-Trends in Textiles & NonwovensBy

Ajay Sardana

Aditya Birla Group

6th ASIAN TEXTILE CONFERENCE (ATEXCON)

5th-6th March 2012, Mumbai

1

Disclaimer

This presentation represents the view-point of thepresenter and not that of The Aditya BirlaGroup. The forward lookingstatements, predictions, estimates and projectionsare based on the presenter’s assessment of thecurrent global market condition and global economicenvironment. The actual happenings could differmaterially from those visualized in this presentation.If any forecast or prediction made in this presentationoccurs in future in part or whole it would be purelycoincidental. This presentation may not be reliedupon in real life business situations

2

Global Industry Scenario (All Fibres)

Offerings from Aditya Birla Group

Contents

Viscose Staple Fibre

3

Global Industry Scenario

Global Industry Scenario

•Global Fibre Scenario (2010)

•Global Cotton Scenario

•Past 5 year Trends of all Fibres

•Reasons for Share & Growth of Viscose

•Expected Growth & Demand for Viscose

All Textile Fibres

4

Source : Fibre Organon

All Fibre80 Mn T

Natural26.3 Mn T

33%

Manmade53.8 Mn T

67%

Silk0.15 Mn T

0.2%

Wool1 Mn T

1%

Cotton24 .5Mn T

31%

Synthetics50.2 Mn T

63%

Cellulosic3.6 Mn T

5%

Polyester37.3 Mn T

47%

Nylon4 Mn T

5%

Acrylic2 Mn T

2%

Olefin6 Mn T

7%

Others0.8 Mn T

1%Staple

2.55 Mn T3.2%

Tow0.7 Mn T

0.9%

Filament0.38 Mn T

0.5%

1. Jute , Ramie & Hemp – excluded in natural fibre production2. Lyocell – excluded in synthetic fibre production3. Natural Fibre s also includes Linen 0.5 Mn T

Global Fibre Scenario – Last Yr (2010)

5

China (25%)2010/11 2011/12(P) YOY %

Prodn 6 6.8 +13Yield 1200 1280 +6.7Acreage 5000 5300 +6China Govt. set cotton price at CNY 19,800/-under Cotton Reserve Program

India (22%)2010/11 2011/12(P) YOY %

Prodn 5.5 6..1 +11Yield 475 510 +7.%Acreage 11500 12000 +4%

Cotton exports kept under OGL (Open General License).Govt. to buy around 1/3rd (13.5Mn Bales) out of 35.5Mn Bales this year out of fear of a drop in clothing demand may lead to prices lower than MSP.

Pakistan (7%)2010/11 2011/12(P) YOY

%Prodn 1.8 2.2 +23Yield 560 640+14.3Acreage 3125 3370 +7.8

5-7% of nation’s crop is damaged by heavy rains and flooding in Sindh.

Brazil (8%)2010/11 2011/12(P) YOY

%Prodn 1.9 2 +4.4Yield 1410 1430 +1.4Acreage 1360 1400 +2.9

Uzbekistan (4%)2010/11 2011/12(P) YOY

%Prodn 1 1 +0Yield 740 740 +0Acreage 1350 1350 +0

China, India, USA , Pakistan, Brazil, Australia & Uzbekistan together account for 81% of world cotton production. Movements of cotton availability is critically influenced by ups/downs in these 7 countries.

Australia (4%)2010/11 2011/12(P) YOY

%Prodn 0.9 1.1 +13Yield 1460 1600 +9.6Acreage 640 660 +3.1

• Production in Million Tons• Acreage in Million Ha• Yield in Kg / Ha

Global Cotton Situation 2011/12

USA (7%)2010/11 2011/12(P) YOY

%Prodn 2.6 2.3 -10.9Yield 580 500 -13.8Acreage 4450 4600 +3.430% of domestic output will be lost due to draught in Texas , the biggest grower.

Global Fibre Scenario (Past 5year Trend)

7

Overall Production

Source: Fibre Organon

VSF volumes constitute 4% of all textile fibres. VSF, though a relatively small part of the global textile fibre mix has shown maximum growth

in recent years

CAGR

(2005 to 2010)

Synthetics Staple 15.5 15.8 16.5 15.3 15.9 17.2 23% 21% 2%Synthetics Filament 24.5 25.9 28.3 27.4 28.9 33.1 36% 41% 6%Cotton 24.4 25.8 26.3 23.3 21.9 24.5 36% 31% 0.1%VSF * 2.0 2.2 2.7 2.4 2.8 3.2 3% 4% 10%Others 1.8 2.5 2.4 2.3 2.2 2.1 3% 3% 3%

Total 68 72 76 71 72 80.1 100% 100% 3.2%

2010Share % (2005)

Share % (2010)

Fibre 2005 2006 2007 2008 2009

* Includes TOW

In Mn Tons

Reasons for share & growth of Viscose

1961-1970 1970-1980

1980-1990

1990-1995

1995-2000

2000-2005

2005-2010

CAGR: 3.1%

CAGR: 0.2%

CAGR: -1% CAGR: -1% CAGR: -0.45%

CAGR: 6% CAGR: 10%

VSF production in line with global fibre consumption. Similar % share to Synthetics.

2 Key structural changes in Textile Industry globally:(a) Deeper penetration of Synthetics owing to dropping of prices. VSF manufacturers

did not reduce price to recapture market share. PSF continued to gain ground. (b) Stringent environmental regulations in US, Europe and Japan, forcing very

high investments in existing VSF plants. (c) Synthetics looked like more attractive diversification, even for VSF

manufacturers. Capacity shutdown started in US, Europe & Japan (affecting 45-50%capacities).

In 1989/91, fall of Soviet Union & economic and political turbulence of Eastern Europe claimed the other significant 30%, state owned facilities. Shutdown of VSF plants in this region.

China focuses on VSF; but primarily adversely affected imports from Taiwan, Indonesia. Arrested de-growth marginally

China’s growth story & results of global VSF facility shake-out & stabilization of industry consolidation 8

9

Expected Growth

Expected Growth & Demand For Viscose

•Global cotton production will show either very flat growth or stagnation and will no longer be able to meet global fibre demand.

• Textile clients must therefore look to a replacement, the only fibre being congruent and able to fill the growing cotton gap being Man Made Cellulosic Fibres segment.

•Viscose fibre show a strong growth momentum, strongest growth potential in emerging markets (China, India Turkey).

• Viscose fibres show clear advantages to replace cotton, especially for the clothing .

•In the last 5 years MMCF (Man Made Cellulosic Fibre) have already benefited from a lack of cotton availability.

10

Viscose Staple Fibre

About the Fibre

• Production Process• Product mix and Properties• Versatility and Applications• Environmental Friendly fibre

About the Industry

• Industry Growth• Industry Out look

11

Viscose Staple Fibre

About the Fibre

• Production Process• Product mix and Properties• Versatility and Applications• Environmental Friendly fibre

Production Process

12

Viscose Staple Fibre

Viscose Staple Fibre Production is

a complicated process and requires

high level of controls as compared

to other synthetic fibres on account

of significant variations in the

Natural inputs

13

Viscose Staple Fibre

About the Fibre

14

Product Mix and Properties

15

Viscose Staple Fibre

Comparative Properties of Different Man Made Cellulosic Fibres vis-à-vis Cotton

Cotton VSF Modal Excel

TenacityDry (gpd) 2.8-3.5 2.7 3.9 4.6Wet (gpd) 3.2 1.35 2.5 3.8

wet/dry 1.14 0.5 0.6-0.7 0.84Elongation % 8 20 15 13Moisture % 7.5 13 13 13

Initial wet modulus gpd

1.10 0.25 0.7-0.8 1.45

1. Properties of Modal and Excel, which are 2nd and 3rd generationcellulosic Fibres are superior to VSF.

2. Moisture absorption in Viscose ,Modal and Excel is higher than cottonmaking it more suitable by themselves or in blends with synthetic forapparel wear on account of comfort factor. 16

Versatility and Applications

17

Viscose Staple Fibre

18

Versatility and Applications

Blend Versatility

Viscose is the most versatile fibre among all the textile fibres. It is not only supplementary and complementary to cotton but also for blending with all other synthetic and natural fibres to produce value added yarns.

Technology Versatility

VSF can be run on all type of technologies like Ring, Open End, Air Jet due to its Natural advantages of being soft and clean fibre.

Application Versatility

VSF based yarns have large no. of applications ranging from non woven to knits, apparels, gum tapes, sewing threads, carpets, upholstery and so on so forth.

Viscose is the most preferred fibre for Non woven applications in Hygienic and moisture absorbent applications such as baby wipes, skin care wipes and Hospital Apparels

Of Natural Origin

Engineered Specifications

Skin Friendly – smooth

& soft

High Absorbency –

Comfort Properties

High LustreColour

Fastness

Blend Friendly

VSF - Product Properties Snapshot

19

Commodity VSF 64%

Spun Dyed6%Non Woven 22%

3rd Gen Lyocell 6%

2nd Gen Modal 2%

Break Up of Global VSF Pie-By Type

20Source: Business Intelligence

Environment Friendly Fibre

21

Viscose Staple Fibre

Viscose Staple Fibre-Environment Friendly Fibre

22

Greener Than SyntheticsAmong all the man made fibres, Cellulosic staple fibres are the greenest.The cellulosic staple fibres are the product of vegetable world just like cottonand match cotton characteristics that of hygiene, moisture and absorbency with furtheradvantages of uniformity, cleanliness, drape and luster. It is more biodegradable thancotton.

Greener Than Other Cellulosic FibresAmongst all cellulosic fibres based on viscose processes, Birla Cellulose heavy metal freefibre is greener than other viscose staple fibres-a product of intensive Research andDevelopment. This brand of Birla Cellulose is obviously more friendly to the skin and fortender skin of babies.

Pollution Reduction in Value ChainUse of pigments at spinning stage in Spun Dyed Fibres eliminates the need for subsequent dyeingof grey fibre. This avoids environment pollution at customers end while providing high colourfastness and perfect shade uniformity. Being AZO free, spun dyed fibres are safe product thatcarries the Oeko-Tex 100 Certification by BTTG , Manchester for free from harmful substances. It ismore friendly to the skin and less polluting to the environment.

23

Viscose Staple Fibre

About the Industry

• Industry Growth• Industry Out look

Industry Growth

24

Viscose Staple Fibre

24

Growth of VSF and PSF

• PSF availability stunted the VSF growth in 90’s• Since 2001 there has been an increasing demand of VSF• China is the driver of the growth.

VSF

PSF

25Source: Saurer Fiber Year , Fibre Organon

4000

6000

8000

10000

12000

14000

16000

15001600170018001900200021002200230024002500260027002800290030003100320033003400

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

Industry Outlook

26

Viscose Staple Fibre

26

• Since the introduction of highperforming synthetics 3 decadesago, the share of cellulosic inglobal fiber mix had beenprogressively declining

• In other words, VSF demand growth going forward will also increase at the same rate as oftotal fiber mix.

• In cellulosics, cotton which accounts for 81% of total cellulosics; in next 20 years will grow byonly 1%CAGR.

• This suggests that the demand for VSF would continue at 7% CAGR for next 20 years. Thisshould hold good until technological breakthroughs take place in synthetics to provide similarcomfort as provided by Cellulosics that are natural in origin.

Global Outlook For VSF Industry

27

0

500

1000

1500

2000

2500

3000

3500

0

10000

20000

30000

40000

50000

60000

70000

80000

1960 1970 1980 1990 2000 2010

Total: 16071 KTPA

Total: 73671 KTPA

Tota

l Fib

re (

KTP

A) V

SF (KTPA

)VSF: 1555 KTPAVSF: 2955 KTPA

1.32%

3.16%

• Past 50years data indicate thatwhile world’s fibre production has aCAGR of 3.16%, VSF has a CAGRof 1.32%.

• Now a stage appears to have reached when it may not decline further due to comfortconsiderations.

PUSH & PULL EFFECT

The advent of “Open End” and “Air jet MVS” technologies inyarn spinning and of “Airflow” and “Aero” technologies in wetprocessing led to not only the cost effectiveness in VSFspinning, but also in covering up of VSF limitations vis-à-viscotton in terms of “Pilling” and “Dimensional Stability” infinished fabrics.

The VSF fabrics and garments made from new technologies andsupported by fashion trends drastically increased the consumerpreference for such VSF fabrics in contrast to similar ones fromcotton, particularly in the fast growing knitting segment.

Upsurge in Global VSF Demand over Cotton

2828

PUSH EFFECT

Installation of “Spun lace” technology (which requires cleanfibre) for Non Woven disposables has also given fillip to the useof VSF vis-à-vis cotton in the Non Woven segment.

European Textile Companies are shifting their productionprogramme to viscose since Cotton yarn and fabrics are beingimported in Europe at much lower price from China, India andSEA countries.

Viscose Staple Fibre

2929

30

Upsurge in Global VSF Demand

Domestic Export New Technologies

Non Woven

Reasons • Global warming, fashion trend -more Bright colours

• Better knitting technology–OE & MVS machines

• Advent of “Airflow” & “Aero” technologies in wet processing

• Increase in demand for NW products

• Better dimensional stability of knitted fabric with Lycra

• Higher demand for Viscose Lycra knitted garments

• Significant investment in NW capacities leading to higher demand

• Higher demand for knitted fabrics

• Strengthening of local currencies

• Modern Lifestyle encouraging the use of disposable articles.

Offerings from Aditya Birla Group

31

• The Aditya Birla Group

• Group’s presence in Textiles

• Horizontal and Vertical Integration of VSF Industry

• Global Market Share and Growth

• Research and development

• Marketing leadership-Coverage of Entire Value Chain

31

32

Aditya Birla Group

Offerings from Aditya Birla Group

32

AB Group – Taking India to the World

33

A US $35 billion corporation, the Aditya Birla Group is in the League of Fortune 500. It is anchored by an extraordinary force of over 133,000 employees, belonging to 42 different nationalities.

This year the Group was declared among the top best employers in India by the Aon-Hewitt Survey and ranked second. It was also ranked among the top employers in the Asia Pacific Region.

Earlier, the Group has been adjudged among the top six great places for leaders to work in the Asia Pacific Region (The Hewitt Associates, The RBL Group and Fortune Magazine Study 2009).

33

The Aditya Birla Group – Presence in Textiles

Textiles’ Business is one of the key strengths of Aditya Birla Group in whichgroup is having Presence at all stages of the value chain from Plantation-Pulp-Fibers-Filaments-Yarns-Fabrics-Garments-Distribution-Retail

Plantations Plantations in Laos

Pulp In-house production of wood pulp in India, Canada and Sweden

Fibres Global leader in Rayon & major Acrylic Fibre producer

Filaments The 2nd largest player in Viscose Filament Yarn in India

Yarns Major producer of yarn. Operations in India, Indonesia,Thailand and Philippines having 5.5 lacs spindles

Fabrics Wide range of Fabrics produced in India

Garments A premier Branded Garments Player

Retail Distribution & Retail Outlets of Garments34

34

35

Horizontal and Vertical Integration of VSF Industry

Offerings from Aditya Birla Group

35

VSF

Pulp

CS2

Steam

H2SO4

Power

CausticOtherChem.

100%100%

Group facilities

100%(incl Group Facilities)

100%

Horizontal & Vertical Integration of VSF Industry

ABG’s success in VSF stands from Horizontal & Vertical Integration carefully built in the business.

36

81%

Offerings from Aditya Birla Group

37

Global Market Share and Growth

37

Pulp and fibre Business at a glance

38

SWEDEN(Pulp 597 TPD)

(345TPD fibre)

(140 TPD fibre)(Pulp 207 TPD)

(445 TPD fibre)

(376 TPD fibre)

CHINA(197 TPD)

Birla Cellulose Total VSF Capacity- 2053 TPD

Indian units- 930 TPD

(550 TPD fibre)

(Pulp 852 TPD)

Offerings from Aditya Birla Group

Technology / R&D Enhancing Product Portfolio

3939

40

ABG has always given an utmost importance to the Research and Development activities covering the entire value chain right from the pulp till the garment.

R&D activities are carried out at our following World class Research and Development centers

• Pulp Research and Development center – Harihar

• Birla Research Institute - Nagda

• Textiles Research & Development Centre (TRADC) – Kharach

• Birla Yarn R&D Centre - PT Elegant Indonesia.

Technology / R&D Enhancing Product Portfolio

40

Birla Cellulose Offerings

41

Birla Cellulose Products

42

1st generation Cellulose fibre

Product range

Denier : 0.9D to 12D

Cut length : 32mm to 120mm

Luster : Bright bleached, Semi dull & Dull

Value Cross-section GPD 2.7 – 2.9CN/Tex 24.5 – 26

19 – 22 0.513

Property

Tenacity

Elongation % Wet-Dry tenacity ratio % Moisture Regain % 43

Viscose Plus an innovation of Birla Cellulose

Product range

Denier : 1.2D & 1.5D

Cut length : 32mm to 44mm

Luster : Bright bleached, Semi dull and Dull (on demand)

Value Cross-sectionTenacity GPD 2.8 – 2.95 cN/tex 25 – 26.5

19 – 210.54 - 0.56

13

Property

Elongation %Wet-Dry tenacity ratioMoisture Regain % 44

Unique features

Viscose Plus an innovation of Birla Cellulose with a clear focus to improve

fibre strength and performance

Benefits of Viscose Plus are:

Improved strength

Excellent efficiency in high speed warping and weaving

Excellent dimensional stability of fabric

Fuller fabric

Higher BISFA modulus

Enhanced durability

45

Spun shades is the colored fibre of Birla Cellulose

It has a global share of 48%

Use pigments instead of Dyes

Available in 150 shades with 38 standard shades. Shades are also customized as

per customer’s requirement.

Product range

Denier : 1.3D to 12D

Cut length : 32mm to 120mm

Value GPD 2.55 – 2.7cN/Tex 23 – 24.5

19 – 22.5 5013

Property

Tenacity

Elongation % Wet-Dry tenacity ratio Moisture Regain % 46

Stock Dyed Fibre / Piece dyeing

Uniformity Ensured in large lots

Fabric/ Garment Printing

Pigments

Comparison of Fibre Cross Section

47

Unique AttributesSr.No Attributes Spunshades Other dyed routes

1 Wash Fastness (1-5) Higher (4-5) Lower (3-4)

2 Rub Fastness (1-5) Higher (4-5) Lower (4)

3 Light Fastness (1-8) Higher (6-8) Lower (5)

4 Fastness to iron(1-5) Higher (4-5) Lower (4)

5 Fastness to Bleach Does not bleach Most dyes strip

6 Stability of color during process Higher Lower

7Uniformity - Within LotUniformity - Between lot

ExcellentBatch differencesPatchy possibility

8 Shade Repeatability Excellent Matching nuances

9 Effluent Load saving High Loss

10 First Grade packing High Lower

11Dimensional StabilityPilling rating

Better Lower

12 Eco Certification Okeo Tex 100 Depends on dyes used48

2nd generation Cellulose fibre with a high wet modulus

Product range

Denier : 0.9D and 1.2D

Cut length : 38 mm

Luster : Bright bleached

Property Modal Micro- Modal Cross-section

Denier 1.2D 0.9D

TenacityGPD 3.7 – 4.0 3.6 – 3.8

CN/Tex 33.5 – 35 32.6 – 34.1

Elongation % 13 – 16 13 – 16

Wet-Dry tenacity ratio 0.6 – 0.65 0.6 – 0.65

Moisture Regain % 13 1349

Unique features

Birla Modal has been developed with unique in house technology

It has exceptional properties and follows the Modal Standards defined

by The International Bureau for the Standardization of Man made

fibres, BISFA

BISFA has defined Modal as a high wet modulus fibre of Viscose genre

which satisfies a minimum value of tenacity at 5% elongation when wet

Has a unique soft feel and good dimensional stability

Retains freshness even after repeated washes

Excellent blend-ability with Cotton

50

Property Value Cross-section

Tenacity (GPD) 4.0 - 4.4

Elongation % 12 - 14

Wet-Dry tenacity ratio 0.84

Moisture Regain % 11-13

3rd Generation Birla Cellulose fibre

Product range

Denier : 1.2D & 1.5D

Cut length : 32mm & 44mm

Popular Applications are Denims, Garment washed apparels, Trousers

and Bed linen

51

Unique Features

Birla Excel is manufactured through a solvent spun technology

100% Eco friendly fibre manufacturing.

It is the strongest amongst Cellulose fibres

Birla Excel imparts excellent color depth and luster to fabrics/garments

Birla Excel fabrics are most durable and dimensionally stable

Can withstand alkali treatment

It has unique property of fibrillation while in wet condition. 52

Eco-friendly Soft feel

Vibrant color depth

Highly Uniform

Breathable&

Highly absorbent

Static Dissipation

Unique Features

53

Birla Purocel

•Birla Purocel is the non-woven fibre offering from

Birla Cellulose.

•Made from completely natural and renewable

resource wood pulp, Birla Purocel is

biodegradable and eco-friendly.

• Engineered for non-woven.

• Ideal choice for hygiene applications.

• Birla Purocel exhibits a range of benefits in non-

woven applications.

Regular Fibre Purocel Fibre

The cross section of Birla Purocel is specially

engineered with less serration, is bean shaped

and influences the desired attributes of

softness, bulk and purity

54

Marketing LeadershipCoverage of Entire Value Chain

Offerings from Aditya Birla Group

5555

Marketing Leadership-Coverage of entire Value Chain

Our marketing efforts are not merely limited to

direct customers but to cover entire textile value

chain.

Our efforts has been directed to ultimate consumer

by Developing New Applications / Products andencompassing the entire value chain to facilitate

production of value added final products as per the

market needs

Aim is not merely to increase market share in an existing market but to “Increase Market Size” itself

5656

Yarn Stage

Fabric Stage

Garment Stage

Encompass entire Value ChainStriking Strategic Alliances with Value Chain Partners

Intimate Apparel

Non-Wovens

Rajvir Industries Ltd

ABG Products-Kara TM,Puretta, Prim

57

58

Viscose Fibre Applications

Textile Segment

59

Trouser SegmentViscose Polyester blend for Cotton

look and feel

Poly-Modal blend for premium

ladies work-wear

Cotton x Excel Bottom-weights for unique

suede effect, bounce & handle

Viscose / Modal 70/30 blend for softer feel

Soft denims or gabardines with pure

Cotton warp and pure Excel weft

Pure Viscose Mélange with

Lycra for excellent drape

and softer feel.

Cotton Viscose blends for softer

feel and lustrous appearance

Cotton-Modal and 100% Modal Knits are preferred

products across the globe for being Soft, luxurious

and having best skin-sensory characteristics

Knitwear

Shirting Segment

Cotton Viscose in 70/30 blend for softer and lustrous

appearance.

Cotton-Modal Blend for Fashionable and stylish look.

Cotton-Excel for soft flowing drape better unique wear-

comfort.

100% Excel, cotton excel, Viscose x PTY, CV or pure

Viscose Prints

Home textile

Cotton/Modal blends high

lusture, high lusture silky look and

softer feel.

100% Modal is known cool and comfort

fabric for Home textiles.

Nonwoven Segment

64

Viscose in Nonwoven Applications

Viscose Fibre finds applications in various nonwoven streams like•Wipes, •Baby diapers, •Household wipes, •Medical products , •Oil filters,•Automobiles,•Geo textiles•Buildings

Automotive Buildings

Home FurnishingsGeo Textile

pp

Nonwoven Industry: Key Take Away

Non-Woven Consumption by Region and by Technology:

• NW global production was 7.1MnT in 2010.China is now the single largest producer of NW in the world with 27% share. Europe accounts for 25% share and NAFTA 21% share. The rest is spread across the other regions.

• Dry-laid / Carded accounts for 43% of NW production with Spun-laid (47%), Air-laid (8%) and Wet laid (2%) accounting for the balance.

Non Wovens by Fibre and % share of VSF.

• No major structural change evident in blend composition during 2011. VSF average blend in wipes substrate stands at 25-30%.

• FY’Q1 saw some reverse substitution (increase in VSF blend in Europe) mainly due to low price differential between PES & VSF. Situation is back to normal level now.

66

• VSF accounted for 0.375MT in the NW segment in 2010 – 5.3% of the NW world

• 11.6% of total VSF production gets into NWs, additionally TENCEL. In CY2010, 0.033MnT (33KTPA) of Tencel have gone into NW.

Nonwovens Production – By Region

67

NAFTA Europe China RoW2008 1.55 1.73 1.35 1.562010 1.52 1.79 1.88 1.91

0

0.5

1

1.5

2

2.5

Prod

uctio

n (M

n To

ns)

- NAFTA & Europe recovering from slowdown in 2009 & just about reached pre-recession production levels in 2010- China continues to grow at double digit rates and is now the largest production region in the world- Main contributors to RoW are Far eastern & Latin American countries

INDA/EDANA Estimates

Nonwovens Production by Technology

68

North America- Nonwovens Applications(1.52 Mn Tons)

Disposable68%

Durable32%

Hygiene30%

Wipes25%

Medical14%

Filtration15%

Other16%

Furnishings & Bedding

17%

Building Const10%

Geotextiles16%

Automotive10%

Interlining/Shoe5%

Other18%

Electronics5%

Coatings / Laminates

7%Floor Covering

12%

1,033,600 Tons486,400 Tons

69

North America – Raw Materials(Total – 1.52 Mn Tons)

Viscose / Rayon Usage ~ 70,000 Tons per annum 70

Europe–Regional Distribution of NW Production

2008 2009 2010

Benelux 124.0 105.9 121.9

France 165.2 156.2 163.5

Germany 436.9 412.4 446.4

Italy 345.3 312.1 335.2

Scandinavia 178.5 159.2 168.8

UK & Ireland 82.2 70.3 74.3

Spain 84.7 89.7 105.0

Turkey 97.6 102.6 131.5

Others 211.3 209.4 238.2

Benelux7%

France9%

Germany25%

Italy19%

Scandinavia 10%

UK & Ireland4%

Spain6%

Turkey7%

Others13%

2010 – 1.79 Mn Tons

71

Nos in ‘000 Tons

Europe – NW Applications (2010) Total – 1.79 Mn T

Disposable59%

Durable41%

Furnishings & Bedding

12%

Building Const30%

Geotextiles19%

Automotive10%

Interlining/Shoe7%

Other12%

Coatings / Laminates

6%

Floor Covering4%

Hygiene54%

Medical5%

Wipes27%

Filtration12%

Others2%

1,056,000 Tons734,000 Tons

72

Europe – Raw Materials (Total – 1.85 Mn Tons)

StapleFibre

ResinsPP37%

PET7%

PE/Nylon2%

PP9%

PET21%

Viscose7%

Bico/Others6%

Wood Pulp11%

73

Asia NW production by Technology 2010

Nos in MT Japan Korea Taiwan China India Total

Chemical bonded

19883 30173 2569 98000 150625

Thermal bonded

36105 27943 6100 94000 164148

Needle punched

75776 79479 43761 480000 75250 754266

Spunlace 32955 8086 50810 162000 17500 271,351

Spunlaid 86690 75089 26939 953000 71750 1213468

Other / Dry laid

24176 1580 19775 76000 10500 132031

Wetlaid 37835 2504 16000 56339

Chemical bonded

5%Thermal bonded

6%Needle

punched28%

Spunlaced10%

Spunlaid44%

Other / Dry laid5%

Wetlaid2%

Asia has the largest production capacity for Spunlace - most relevant technology for VSF74

Nos in MT

Working with Domestic Brands

7575

Working with International Brands

76

77

• Design Studio set up at Kharach.

• Creating consumer interest &generating trade by showcasingVSF based Apparels & Made-ups

• Taking Business closer to EndConsumers

Design Studio - Retail Extension of Birla Cellulose

77

77

78

Thank You

78