19 Mar 2010

GROWTH POTENTIAL AND PROSPECTS IN INDIA

Reliance Industries Limited

one of the most promising and faster growing areas for global and indian textile industry

indispensible part of human life

encompasses immense range and diversity of raw materials, processes, products and applications

accounts for over one-quarter of all textile consumption in weight terms

plays crucial role in indian economy and infrastructural development

19 Mar 2010

technical textiles are defined as textile materials and products used primarily for their technical performance and functional properties rather than their aesthetic or decorative characteristics

depending on the product characteristics, functional requirements and end-use applications, these have been grouped into 12 segments

19 Mar 2010

agrotech (agriculture, horticulture and forestry) buildtech (building and construction) clothtech (shoes and clothing) geotech (geotextiles, civil engineering) hometech (furniture, upholstery, interior

furnishing, household textiles, floor covering) indutech (filteration, cleaning and other industrial

uses) medtech (medical, healthcare and hygiene) mobiltech (automobiles, shipping, railways and

aerospace) oekotech (environmental protection) packtech (packaging) protech (person and property protection) sporttech (sport and leisure)

19 Mar 2010

world market for technical textiles at 21 mn tonnes (us$ 120 bn) during 2007-08 is expected to increase to 26 mn tonnes (us$139 bn) by 2012 with a cagr of 4 - 5 % depending on the area of application

fibre consumption in technical textiles was 22 % of total fibres consumed in 2005

the drivers for future growth are expected to be asian countries like china and india. the growth in asia is expected to be 6.5 percent while it would be merely 2.2 percent in developed countries

sector-wise higher growth rates are for indutech, buildtech, medtech, geotech, packtech and agrotech. but protech is important in view of safety.

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Textle consumption

78%

Technical textiles22%

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19 Mar 2010

20052005 20102010 CAGR % CAGR % (VOL.)(VOL.)

QUANTITYQUANTITY(mn TONNES)(mn TONNES)

19.68319.683 23.77423.774 3.83.8

VALUEVALUE(bn US$)(bn US$)

106.899106.899 127.287127.287 3.43.4

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REGION / REGION / COUNTRYCOUNTRY

20052005 20052005 20102010 20102010 05 - 1005 - 10

VOL. (mn VOL. (mn T)T)

VALUE VALUE (US$ bn)(US$ bn)

VOL. (mn VOL. (mn T)T)

VALUE VALUE (US$ bn)(US$ bn)

CAGR % CAGR % (VOL.)(VOL.)

EUROPE EUROPE (WEST)(WEST)

4.1074.107 23.96823.968 4.7604.760 21.04721.047 3.03.0

EUROPE EUROPE (EAST)(EAST)

0.6660.666 4.5834.583 0.8170.817 5.2255.225 4.24.2

AMERICA AMERICA (NORTH)(NORTH)

4.7744.774 23.71023.710 5.5915.591 27.56127.561 3.23.2

AMERICA AMERICA (SOUTH)(SOUTH)

1.0041.004 6.3486.348 1.2301.230 7.2557.255 4.14.1

ASIAASIAINDIAINDIA

8.0918.0911.5731.573

48.40148.4014.9054.905

10.15610.1562.0752.075

65.15665.1566.7746.774

5.05.05.85.8

OCEANIAOCEANIA 0.1160.116 0.5780.578 0.1410.141 0.7120.712 3.93.9

TOTALTOTAL 19.68319.683 106.89106.8999

23.77423.774 127.28127.28 3.873.87

USA 23%

Western Europe22%

China13%

Japan7%

India3%

Rest of World32%

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19 Mar 2010

SECTORSECTOR 20052005 20052005 20102010 20102010 CAGR %CAGR % CAGR %CAGR %VOLUMEVOLUME VALUEVALUE VOLUMEVOLUME VALUEVALUE VOLUMEVOLUME VALUEVALUE

AGROTECHAGROTECH 16151615 65686568 19581958 80798079 3.553.55 3.843.84BUILDTECHBUILDTECH 20332033 72967296 25912591 93259325 4.634.63 4.734.73CLOTHTECCLOTHTEC

HH14131413 70147014 16561656 83068306 2.952.95 3.193.19

GEOTECHGEOTECH 319319 927927 413413 12031203 4.944.94 4.984.98HOMETECHHOMETECH 24992499 76227622 28532853 87788778 2.702.70 2.662.66INDUTECHINDUTECH 26242624 1668716687 32573257 2152821528 3.983.98 4.854.85MEDTECHMEDTECH 19281928 66706670 23802380 82388238 4.434.43 4.334.33

MOBILTECHMOBILTECH 28282828 2686126861 33383338 2928229282 3.023.02 1.341.34PACKTECHPACKTECH 29902990 53295329 36063606 66306630 3.523.52 4.204.20PROTECHPROTECH 279279 58735873 340340 68576857 3.633.63 2.822.82SPORTTECSPORTTEC

HH11531153 1605216052 13821382 1906219062 3.403.40 3.213.21

OEKOTECHOEKOTECH 287287 10391039 400400 13891389 6.456.45 5.675.67TOTALTOTAL 1968119681 106899106899 2377423774 127288127288 3.593.59 3.803.80

Other Fabrics2%

Woven fabrics73%

Non woven Fabrics

20%

Knitted Fabrics5%

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19 Mar 2010

FIBRE FIBRE TYPETYPE

20002000 20052005 20102010 CAGR %CAGR %

NATURALNATURAL 34623462 38393839 44474447 2.542.54

MAN-MAN-MADE/ MADE/

INORGANICINORGANIC

1325213252 1584315843 1932719327 3.853.85

TOTALTOTAL 1671416714 1968219682 2377423774 3.593.59

POLYESTER - 25 % POLYOLEFINS - 25 % GLASS - 15 % JUTE, COIR, ETC. - 14 % COTTON - 7 % VISCOSE - 3 % OTHER CELLULOSICS - 3 % POLYAMIDE - 7 % ARAMID AND CARBON FIBRES - 1 %

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fabric - 67 % unspun fibres - 24 % yarns - 09 %

fibre products include fibre reinforced concrete and composites, cushioning, fillings, insulation & sports equipments, toys

yarn products include sutures, ropes, fishing gears, shoe laces, swings

fabrics can be woven, knitted and non-woven and cover all sectors of technical textiles

19 Mar 2010

Fabric67%

Unspun fibres24%

Yarn Type Products

9%

19 Mar 2010

INDIGENOUS PRODUCTION OF TECHNICAL TEXTILES IS LIMITED AND SCATTERED MAINLY IN SMALL & MEDIUM SECTORS

THE DEMAND FOR MANY ITEMS IS MET THROUGH IMPORTS e.g. DEFENCE AND POLICE

LARGE UNTAPPED POTENTIAL EXISTS FOR POTENTIAL INVESTORS

SOME OF THE PRODUCTS CAN BE PRODUCED BY MINOR ALTERATION IN EXISTING SET UP

19 Mar 2010

in many developed countries (e.g. usa and japan) technical textiles account for over 35 percent of the textile industry’s output as against 19 % for china and 5 % for india

primarily active in the clothtech, packtech and sporttech sectors

limited to commodity products very little presence in high tech segments there is a general perception that

technical textiles are predominantly produced in large scale sector but it is true only to limited extent

19 Mar 2010

indigenous production and ‘value for money’ pricing concept will explode the market

India, the fourth largest economy in terms of purchasing power parity (ppp) (after usa, china & japan) is a growing market of one billion plus people, of which 300 million people are middle class consumers

the consumption of disposable segment of technical textiles is directly related to the disposable income

considering the above, over all growth of technical textiles is estimated at 14 percent per annum with appropriate policy regime and accordingly the market size for technical textiles will increase from rs. 37100 crores in 2007-08 to rs. 62420 crores in 2012-13 (icra study) at a cagr of 11 %

19 Mar 2010

the value addition in technical textiles is steadily shifting from raw materials and intermediate products to downstream industries where india has a strong base

low cost skilled labour is highly competitive as compared to developed countries

decentralised sector’s contribution in technical textiles is significant for their growth in india

indian textile industry is fundamentally strong which can be useful in commodity markets of technical textiles through cost competitive structure

in the high niche market, india has advantage of network of r&d institutions for developing new technologies

19 Mar 2010

dominance of decentralised sector – inadequate resources and finance

absence of regulatory legislation absence of required standards on quality of

products and codes of practices deterrants for entrepreneurs:

doubt about future market potential of technical textiles in view of absence of regulation and needed consumtion

huge capital costs involved for machinery, raw materials and equipment

sustained promotional efforts and substantial investment needed for market development

limited experience in production and use of technical textiles

outdated existing regulatory mechanism

19 Mar 2010

lack of basic infrastructure, skilled manpower, testing facilities, training & educational facilities

negligible investment in r&d on technical textiles lack of comprehensive database on technical

textiles lack of awareness and benefits of using technical

textiles among users hesitation in accepting world proven cost effective

technologies poor understanding of product properties in regard

to its constructability, durability, structural integrity, functional utility, fibre composition and its installation and handling

19 Mar 2010

import intensive nature making their cost prohibitive

no quality benchmark for technology for technical textiles

non-availability of main raw materials i.e. specialty fibres at competitive and affordable prices

limited demand in view of absence of required standards and regulations

lack of awareness of benefits of using technical textiles

little emphasis on health, safety and environmental aspects

hesitation in adopting latest world proven efficient and cost effective technologies

little understanding among users about the type of product and its properties regarding constructability, durability, structural integrity, survivability and functional utility

19 Mar 2010

19 Mar 2010

SlSl. . NNo.o.

TT SECTORTT SECTOR NO LAW NO LAW (2006-07) (2006-07)

NO LAW NO LAW AT CAGRAT CAGR

NO LAW NO LAW (2011-(2011-

12)12)

WITH WITH LAW AT LAW AT CAGRCAGR

WITH WITH LAW(2011LAW(2011-12)-12)11 AGROTECHAGROTECH 417.77417.77 88 613.84613.84 88 613.84613.84

22 BUILDTECBUILDTECHH

1415.431415.43 1515 2846.942846.94 1515 2846.942846.9433 CLOTHTECCLOTHTEC

HH7988.737988.73 1212 14078.814078.8

771212 14078.814078.8

7744 GEOTECHGEOTECH 1688.911688.91 1515 3397.003397.00 68.9868.98 23269.223269.28855 HOMETECHOMETEC

HH1628.741628.74 1616 3420.913420.91 1616 3420.913420.91

66 INDUTECHINDUTECH 1253.351253.35 1212 2208.832208.83 1212 2208.832208.8377 MOBILTECMOBILTEC

HH1613.531613.53 1515 3245.393245.39 1515 3245.393245.39

88 MEDTECHMEDTECH 1280.321280.32 1212 2256.362256.36 2020 3185.853185.8599 OEKOTECHOEKOTECH 69.9169.91 1212 123.21123.21 68.1768.17 940.33940.331100

PACKTECHPACKTECH 5785.935785.93 2020 14397.214397.255

2020 14397.214397.25511

11PROTECHPROTECH 1027.111027.11 1717 2251.892251.89 25.4525.45 3191.323191.32

1122

SPORTTECSPORTTECHH

1906.361906.36 1212 3359.663359.66 1212 3359.663359.66TOTALTOTAL 26076.0926076.09 14.9414.94 52200.152200.1

3324.5724.57 74758.474758.4

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textile policy of government of india recognised growth prospects of technical textiles and accords priority for their development

constitution of expert committee on technical textiles (ectt)

setting up of a steering committee on growth and development of technical textiles (scgdtt)

government launched technology mission on technical textiles in the xi th five year plan to identify major constraints for improving their production and consumption in india

baseline survey on technical textiles was conducted

19 Mar 2010

identified agrotech, protech, geotech & buildtech and medtech as key areas for growth and development in india

coverage of technical textiles under technology upgradation fund scheme (tufs)

setting up of 12 excellence centres (ecs) for technical textiles – already started ecs for geotech & buildtech; agrotech; medtech; and protech

de-reservation of sanitary napkins / baby diapers basic custom duty for major machineries on

technical textiles reduced from 10 to 5 % 10 % capital subsidy for new projects 5 % interest subsidy on loans under tufs 14 special economic zones to attract fdi and duty

free imports and domestic procurement for 100 % exports

gujarat state is providing 10 % investment subsidy on technical textile projects

19 Mar 2010

application areas identification of application areas having

strong potential in the domestic market i.e geotech (including buildtech), medtech, agrotech, protech and mobiltech

initial selection of products for which technical know-how, production facilities and raw materials already exist

indigenization of value added products of relatively easier technology capable of quick assimilation

development of technical textiles in high tech applications of aerospace, defence, etc. with public/private initiatives, joint ventures with mncs

urgent quality standards for identified products and their installation

19 Mar 2010

raw material use of indegeneously available fibres and

import of high performance fibres fibres (natural or man-made) use based

on durability, survivability and integrity requirements considering health, safety and environmental impacts

providing fiscal incentives to specialty fibres to make them cost competitive and easilt affordable

amending existing regulation (drugs & cosmetics act) to cover newly developed manmade fibre products e.g. antimicrobial fibres, super absorbant fibres, non toxic/non allergic fibres, breathable fibres, antistatic fibres, etc.

19 Mar 2010

THRUST NEEDED FOR SPECIALTY FIBRES NEED FOR LONG LASTING PERFORMANCE

PROPERTIES COMPATIBILITY, DURABILITY, STRUCTURAL

INTEGRITY AND SURVIVABILITY UNIFORMITY OF PROPERTIES IN ALL

DIRECTIONS THE STANDARDS NORMALLY COVER LONG

TERM DURABILITY WHICH IS NOT PROVIDED BY OTHER FIBRES

AS PER STANDARDS, THE PERFORMANCE AND FUNCTIONAL CHARACTERISTICS MUST BE CONTROLLED WITHIN NARROW LIMITS (AVERAGE VALUE + 2 X STANDARD DEVIATION) TO HAVE UNIFORMITY IN ALL DIRECTIONS TO PREVENT THEIR FUNCTIONAL FAILURE

19 Mar 2010

manufacturing facilities re-orientation of production facilities and

training of manpower products which can be manufactured on

existing machinery be identified and marketing efforts be made

incentives for state of the art machinery for high potential high tech products

developing proper product-mix capacity building of raw materials,

machinery, infrastructure and production

19 Mar 2010

r&d and quality assurance investment in r&d and quality management as

well as product development needed latest world class testing facilities needed national standards at par with international

developments needed on urgent basis especially for specifications of products and codes of practices for installation, use and maintenance of technical textile products

certification and accreditation of testing facilities and production as per international standards

19 Mar 2010

domestic and export market development of technical textiles

regulatory framework in the interest of environment, health and safety

assistance for international / national exhibitions, fairs, seminars, etc.

incentives for certification / accreditation to international standards

incentives for substitution of traditional textiles by technical textiles

mandatory use of geotech, buildtech medtech for health, safety, environment and efficient utilisation of public funds

mandatory use of fr textiles in public places, buildings, uniform fabrics, etc.

19 Mar 2010

in case of geotech / buildtech projects, the approval and implementation should include design parameters also and the priciple used should be f –d—b—o--t:

finance design build operate transfer

fiscal measures such as reduction of excise/custom duty/sales tax/service tax

19 Mar 2010

considerable reduction of cost of projects (materials, design, installation and evaluation)

minimum subsequent repairs / maintenance;

prevention of environmental pollution leading to sustainable development

most efficient utilization of resources better designs and longer project service

life increased safety of life and property alternate and best technological

applications for a specific end use19 Mar 2010

geotech geotextiles and geogrids for reinforcement of

base and subbase in pavement structures geotextiles for subsurface drainage, subgrade

separation and stabilisation, protection (cushioning), permanent erosion control, pavement overl;ays, slope protection and silt fence geotextiles for sediment control

geosynthetic clay liners gabions for prevention of soil erosion geogrids for mse systems geosynthetic mats geonets and geocomposites for waste

containment geocomposites / geocells / geomembranes /

geofoams prefabricated geosynthetic edge and vertical

drains geosynthetics for waste containment

19 Mar 2010

BUILDTECH geo-membranes for waterproofing of roofs controlled permeability textiles for concrete

formwork lining fibers for reinforceed concrete synthetic fibre insulation blanket reflective vapour breathable textile substrate as

radiant barrier in building envelope house wraps vapor breathable textile substrate as mineral

wool insulation facing for buildings technical textiles as honeycombs for landscaping architectural fabric/ tensile structures (temporary

and permanent) hoardings for buildings

19 Mar 2010

protect bullet proof fabric/jacket protective clothing for agricultural workers protective clothing for mechanical /chemical /

nuclear / biological protection hi-visibility / high altitude warning clothing protective clothing for dust protection protective clothing for acoustic protection protective clothing for biological protection protective clothing for electric arc welding fire retardant upholstery, curtains, bednets,

beddings, uniform fabrics, bed linens, etc.

19 Mar 2010

Agrotech crop covers greenhouse covers row covers poly-house films/membranes shade-nets mulch mats baler twines polyester/pp/hdpe nets for fishing waterproof lining

19 Mar 2010

Meditech extracorporeal devices

artificial kidney, liver, lung, heart pacer non-implantable textile materials

absorbent pad, bandages, compression bandages, plasters, absorbent gauges, lint and wadding

implantable textile materials tendons, ligaments, cartilage, skin, contact lenses,

cornea, joints, vascular grafts, heart valves healthcare and hygiene products

surgical gowns, caps, gloves , masks; surgical covers drapes, aprons; beddings (blankets, sheets, pillow covers); clothing (uniform); incontinence/baby/adult diapers; cloth wiper, surgical hosiery, sanitary napkins, medical mattress, sterilization wraps, head and shoe covers, panty shield, wadding; wipes

19 Mar 2010

other technical textiles hometech (fiberfill, blinds, stuffed toys, carpet

backing fabric) mobiltech (seat belts, exhaust filters, airbags,

tyre cord fabric, seat cover, headliners, insulation felts, interior carpets)

packtech (flexible intermediate bulk containers, soft luggage products, sackings)

indutech (synthetic tarpaulins, awnings, tents, conveyor belts, hoses, ropes, cordages, drive belts, webbings, slings, tapes, computer ribbons, battery separators, industrial filters)

sporttech (sports nets, sports footwear, sports composites, sleeping bags, artificial turfs, ballooning fabric, parachute fabric)

clothtech (sewing threads, interlinings, zip fasteners, tapes, velcro)

oekotech (environmental control-bags/filters, municipal wates – geosynthetics)

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19 Mar 2010

THANK YOU