Technical Textiles in India - libvolume8.xyzlibvolume8.xyz/textile/btech/semester8/technical... · TECHNICAL TEXTILES IN INDIA – CURRENT A FUTURE MARKET SCENARIO 1.0% 1. Introduction

TECHNICAL TEXTILES IN INDIA – CURRENT A FUTURE MARKET SCENARIO

1. Introduction

Technical textiles refer to textile materials and

products used primarily for their technical

performance and functional properties rather than

their aesthetic or decorative characteristics. The

segment encompasses diverse products and

applications; based on product characteristics,

functional requirements and end-user applications;

technical textile products have been grouped into 12

categories as described in Error! Reference source

not found..

Technical textiles are predominantly man-made

fibre-based owing to their inherent advantages of

strength and versatility. Man-made fibres are

estimated to account for around 80% of the total

fibre consumption in the global technical textiles.

Majority of technical textiles are manufactured using

regular fibres or their specialty variants, whereas,

high performance fibres account for a mere 5% of

the total fibre consumption.

2. Global Technical Textile Industry outlook

Technical Textile is the sunrise segment of the global

Textile industry. With increasing competition and

diminishing margins in the production of

conventional textiles, textile manufacturers in

industrialised countries have switched over to

production of value-added technical textiles. As the

use of technical textiles is dictated by need, its

pricing normally offers good margins. The Technical

Textile industry is estimated to account for over 50%

of the total textile activity in certain industrialised

countries.

Global Technical Textile industry is estimated at US$

127 billion1 as of 2010. As evident from Exhibit 1,

Mobiltech, Indutech and Sportech are the largest

segments of global Industry, together accounting for

55% of the world market.

Exhibit 1: Value-wise share of each segment in global technical textile market (2010)

Sources: Report of the Expert Committee on Technical Textiles

(ECTT) Volume – I, ‘World Market Forecasts for 2010 of technical

textiles and industrial nonwovens’ by David Rigby Associates

The Industry has witnessed a Compound Annual

Growth Rate (CAGR) of over 3% from 2000 to 2010,

with Buildtech, Geotech, Oekotech and Indutech

being the fastest growing segments. Going forward,

the major growth areas for technical textiles in the

global context are projected to be medical and

personal hygiene, sports and leisure, environmental

protection, pollution control and filtration, garment

and shoe industry.

The US is the largest consumer of technical textiles,

followed by Western Europe and Japan. However,

Technical Textile industry in the developed world is

maturing in a significant way resulting in moderate

growth in these economies. In contrast, China, India

and other countries in Asia, America and Eastern

Europe are expected to experience healthy growth

in the near future. Asia is emerging as a powerhouse

1 Source: World Market Forecasts for 2010 of technical

textiles and industrial nonwovens’ by David Rigby Associates

Agrotech, 6.4%

Meditech, 6.5%

Mobiltech, 23.0%

Packtech, 5.2%

Sportech, 15.0%

Buildtech, 7.3%

Clothtech, 6.5% Hometech,

6.9%

Protech, 5.4%

Geotech, 1.0%

Oekotech, 0.2%

Indutech, 16.9%

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of both production as well as consumption of

technical textiles. China, Japan, Korea, Taiwan and

India have great potential to make an impact in this

industry in the coming decade.

3. Indian Technical Textile industry

India is emerging as a significant player in technical

textiles. The fast-paced economic growth leading to

infrastructure creation as well as higher disposable

income has made India a key market for the

technical textile products. Moreover, the country

has developed a foothold in the production of

technical textiles owing to its skilled and technical

manpower as well as abundant availability of raw-

material. More investments are underway in this

sector; as per the Ministry of Textiles, as on

September 2010, 26,163 applications for technical

textile projects with a project cost of US$ 14.5

billion2 were disbursed under Technology

Upgradation Fund Scheme (TUFS).

Indian Technical Textile industry is estimated at US$

11 billion2 (2009-10), with domestic consumption of

US$ 10.3 billion. The Industry has witnessed a

significant growth of 16% from 2001-02 to 2009-10

and, is expected to grow at a rate of 11% year-on-

year and reach a market size of US$ 15.1 billion by

the year 2012-13. Domestic consumption is expected

to increase to US$ 14.1 billion by the year 2012-13.

Exhibit 3: Market size of Indian Technical Textile industry

Sources: Baseline survey of the Technical Textile industry in India,

ECTT, IMaCS Analysis

2 The exchange rate used for all 2009-10 and 2012-

13 figures is assumed to be the same at US$ 1 = ` 46.35

Source: Baseline survey of the Technical Textile industry in India,

IMaCS Analysis

Exhibit 4: Value-wise CAGR for various technical textile segments

from 2009-10 to 2012-13

Source: Baseline survey of the Technical Textile industry in India

Packtech, Clothtech and Hometech are the largest

segments of the Indian Industry, comprising around

65% of the Indian technical textile market, as evident

from Exhibit 3. Going forward, Sportech, Indutech,

Geotech, Oekotech, Packtech and Hometech are

expected to achieve high growth rates.

8%

8%

10%

13%

11%

8%

8%

12%

10%

11%

19%

11%

0% 5% 10% 15% 20%

Agrotech

Meditech

Mobiltech

Packtech

Sportech

Buildtech

Clothtech

Hometech

Protech

Geotech

Oekotech

IndutechOverall CAGR 11%

Exhibit 2: Value-wise share of each segment in Indian technical textile market in US$ million (2009-10)

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Though the country consumes products belonging to

all 12 categories of technical textiles, the share of

indigenous production varies drastically across

products. India is a key producer of technical textile

products including flexible intermediate bulk

containers (FIBCs), tarpaulins, jute carpet backing,

hessian, fishnets, surgical dressings, crop covers,

etc., which are typically commoditised. The

technology-intensive technical textile products such

as incontinence diapers, high altitude clothing, etc.,

are majorly imported with its imports accounting for

over 90% of the domestic consumption.

The Industry is characterised by the presence of

multi-nationals like Ahlstrom, Johnson & Johnson,

Du Pont, Procter & Gamble, 3M, SKAPs, Kimberly

Clark, etc., who have set up their manufacturing

plants in India, as well as large domestic players like

SRF, Entremonde Polycoaters, Kusumgarh

Corporates, Supreme Nonwovens, Garware Wall

Ropes, Century Enka, Techfab India, Pacific Non

Woven, Vardhman, Unimin, etc. The small scale

segment also plays a key role, with production of

certain goods like canvas tarpaulin, carpet backing,

woven sacks, shoe laces, soft luggage, zip fasteners,

stuffed toys, fabrication of awnings, canopies and

blinds, etc., being concentrated in the small scale

segment.

3.1. Agrotech

Agrotech includes technical textile products used in

agriculture, horticulture, fisheries and forestry. The

technical textile products covered under the

segment include shade nets, mulch mats, crop

covers, fishing nets, anti-hail nets and bird-

protection nets.

Indian Agrotech market is estimated at US$ 136.4

million in 2009-10, with domestic consumption of

US$ 119.3 million. As of 2009-10, fishing nets

constituted around 84% of the segment’s market,

valued at US$ 114.1 million.

This segment is witnessing a significant thrust from

the Government owing to increasing awareness

about the benefits of the usage of shade nets, mulch

mats, crop covers, anti-hail nets and bird-protection

nets.

Exhibit 5: Value-wise share of various products in Indian

Agrotech market (2009-10)


IMaCS Analysis

National Horticulture Mission (NHM) has been

actively promoting the usage of Agrotech products in

India through subsidies and annual plans for the

states. NHM has included the Agrotech products

aimed at plant protection under the Protective

Cultivation in the state-wise action plans. The XIth

plan envisages to expand the area under mulching

by 1,00,000 hectares. In addition, the XIth

plan aims

at providing assistance for procuring anti-hail nets in

the hail prone states like Jammu and Kashmir,

Himachal Pradesh, and Uttar Pradesh.

In line with these developments, the domestic

consumption of this segment is expected to increase

to around US$ 153 million by 2012-13, growing at a

CAGR of around 8% over the next three year period.

The consumption of mulch mats has the potential to

grow at a CAGR of 51% from 2009-10 to 2012-13,

and that of anti-hail nets and bird-protection nets at

20%. However, the growth of this segment depends

upon the performance of agriculture sector and, on

the awareness and acceptance of these products by

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the farming community. The subsidies extended by

NHM will continue to play a crucial role in increasing

the consumption of these products.

Exhibit 6: Value-wise CAGR for Agrotech products (from 2009-10 to 2012-13)


IMaCS Analysis

International trade

Majority of the demand for Agrotech products is

satisfied by domestic production, with only around

4% of the fishing nets being imported.

As far as exports are concerned, crop covers and

shade nets are the export-intensive products, as

evident from Exhibit 7. The major export markets

include Middle-East countries, the UK, Netherlands,

Italy, Belgium, Poland, New Zealand and Africa.

Exhibit 7: Volume-wise share of exports in the production of top five products3


IMaCS Analysis

3 Estimates based on the export and import data of 2007-08.

3.2. Meditech

Meditech products include textile materials used in

hygiene, health and personal care as well as surgical

applications. The Meditech products are available in

woven, knitted and non-woven forms based on the

area of application. Increasingly, synthetic fibre is

being used in the production of these products. It

includes products like diapers, sanitary napkins,

disposables, contact lens, artificial implants, etc.

Technical textiles market under Meditech is

estimated at US$ 422.6 million in 2009-10. Surgical

dressing alone accounts for over 50% of the total

technical textile consumption across Meditech

segment. Surgical sutures account for around 21% of

the total Meditech consumption followed by contact

lenses and artificial implants as can be seen in

Exhibit 8.


Meditech market (2009-10)


IMaCS Analysis

The demand for Meditech products is dependent on

the health and hygiene sector. The spend on

healthcare segment is steadily on the rise in India,

predominantly by the private sector, which is

expected to drive the demand for Meditech

products. Besides, government policies aimed at

boosting the supply in health and hygiene sector are

likely to positively impact the demand for Meditech

5%

6%

51%

20%

0% 10% 20% 30% 40% 50% 60%

Fishing nets

Shade nets

Mulch-mats

Anti-hail/bird-protection

nets

Overall CAGR: 8%

44%

11%

100%

11%

14%

0% 50% 100% 150%

Shade nets

Mulch mats

Crop covers

Anti-hail/bird-protection

nets

Fishing nets

5 | P a g e

products. Few of these policies include, National

Health Policy 2002, Rural Health Policy, policies

promoting manufacturing of medical devices and

various other policies working towards removing

hurdles for private and voluntary sector

participation.

In line with these developments, Indian Meditech

industry is expected to achieve a growth of 8-9%

year on year, over the next three years. The

domestic consumption of technical textiles under

Meditech is expected to increase from around US$

379.4 million in 2009-10 to around US$ 488.2 million

by 2012-13. Incontinence diapers and contact lens

are expected to achieve significant growth, followed

by artificial implants, as evident from Exhibit 9.

Exhibit 9: Value-wise CAGR for Meditech products (from 2009-10

to 2012-13)


IMaCS Analysis

International trade

Imports of technical textile component under

Meditech constitute about 28% of domestic

consumption under this segment, by value. Demand

for products such as artificial implants, technical

textile component of baby diapers and incontinence

diapers is met by imports; the non-woven material

required for medical applications (e.g. diapers) is

primarily imported. Majority of imports are from

Thailand, Singapore, Taiwan and China.

Exhibit 10: Volume-wise share of imports in the domestic

consumption of Meditech products (2009-10)3


IMaCS Analysis

By value around 12% of the technical textiles

produced under Meditech in India are exported.

Surgical sutures and surgical dressings are the key

export products, with their exports constituting over

86% of the total exports under this segment. The key

export markets are Bangladesh, the UK, Sri Lanka

and Netherlands.

3.3. Mobiltech

Mobiltech includes technical textile products used in

automotive and automotive components (including

aircrafts and railways). These products can be

broadly classified into two categories – visible

components, including seat upholstery, carpets, seat

belts, headliners, etc. and, concealed components,

including noise vibration and harness (NVH)

components, tyre cords, liners, etc.

Indian Mobiltech market is estimated at US$ 833.5

million (2009-10), with domestic consumption

accounting for around 99% of the market. In 2009-

10, Nylon cord was the largest segment comprising

57% share of the Mobiltech market, followed by seat

cover fabrics (14%) and helmets (10%), as seen in

Exhibit 11.

The demand for majority of Mobiltech products is

dependent on the growth of both passenger cars

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and commercial vehicles segments. The Indian

passenger cars segment has grown at a rate of

around 13% over the last five years, while the Indian

commercial vehicles segment has grown at a rate of

around 11% and, these segments are expected to

maintain similar growth levels over the next five

years.

Exhibit 11: Market size of various products in Indian Mobiltech market (2009-10)


IMaCS Analysis

In line with the automotive segment, the domestic

consumption of Mobiltech segment is expected to

increase from around US$ 816.8 million in 2009-10

to around US$ 1,114.6 million by 2012-13, growing

at a CAGR of 10%. Airbags and helmets are expected

to achieve a significant growth rate, of around 25%

over the next few years, owing to increasing

government focus on the road safety measures. Seat

belt webbing, upholstery, automotive interior

carpets, headliners and NVH components are the

other products with significant growth potential.

Exhibit 12: Value-wise CAGR for Mobiltech products (from 2009-10 to 2012-13)


IMaCS Analysis

International trade

Indian Mobiltech industry is majorly focussed on

domestic market with negligible exports. However,

the segment is import-intensive. Airbags, seat belt

webbing, nylon tyre cord and airline disposables are

the import-intensive products. Thailand, Malaysia,

Korea, Germany and China are the key suppliers of

these products to India.


consumption of top five products (2009-10)3


IMaCS Analysis

Product

Market size

(US$ million) % share

Nylon tyre cord 471.5 57.3%

Seat cover fabric / upholstery 118.0 14.4%

Helmets 84.1 10.2%

Insulation felts 67.7 8.2%

Automotive interior carpets 39.7 4.8%

Sunvisors / sunblinds 21.4 2.6%

Headliners (TT component) 8.3 1.0%

Airbags (TT component) 4.0 0.5%

Seat belt webbing 3.1 0.4%

Car body covers 2.5 0.3%

Airline disposables 0.8 0.1%

Aircraft webbings 0.7 0.1%

TT usage in Railways 0.3 0.04%

Aircrafts upholstery 0.1 0.02%

4%

16%

24%

14%

17%

16%

16%

16%

16%

25%

14%

15%

12%

3%

0% 5% 10% 15% 20% 25% 30%

Nylon tyre cord

Seat belt webbing

Airbags (TT component)

Car body covers

Seat cover fabric / upholstery

Automotive interior carpets

Headliners (TT component)

Insulation felts

Sunvisors / sunblinds

Helmets

Airline disposables

Aircraft webbings

Aircrafts upholstery

TT usage in Railways

Overall CAGR: 10%

7%

23%

40%

59%

100%

0% 20% 40% 60% 80% 100% 120%

Seat cover fabric

Airline disposables

Nylon tyre cord

Seat belt webbing

Airbags

7 | P a g e

3.4. Packtech

Packtech includes several flexible packaging

materials used for industrial, agricultural, consumer

and other goods. It ranges from synthetic bags used

for industrial packaging to jute sacks used for

packing food grains.

Indian Packtech market is estimated at US$ 3,952

million (2009-10), with domestic consumption

accounting for over 95% of the market. Woven sacks

comprise of the largest segment in Packtech (around

50% share), followed by jute hessian and sacks

(including food grade jute bags) with around 25%

share. Flexible Intermediate Bulk Container (FIBC)

and wrapping fabrics together account for around

25% of the total market, as seen in Exhibit 14.


Packtech market (2009-10)


IMaCS Analysis

The demand for the industrial packaging products

like woven sacks, FIBCs, jute sacks, etc, which

comprise the maximum share of the Packtech

market, is mainly driven by the cement, fertiliser and

food industry. In the short term, the Packtech

industry is expected to achieve a growth of 13% year

on year and reach a market size of US$ 5.77 billion

by 2012-13.

Exhibit 15: Value-wise CAGR for Packtech products (from 2009-10 to 2012-13)


IMaCS Analysis

Soft luggage, FIBC, tea-bags, leno bags and wrapping

fabric are the high growth potential areas as evident

from Exhibit 15. High export potential of FIBC and

high domestic growth potential in the soft luggage

industry are the primary reasons for strong growth

expected in these product categories. The increasing

acceptance of leno bags for packing vegetables like

onions and potatoes is expected to drive its growth.

International trade

Indian Packtech industry is self reliant as less than

1% of the total domestic consumption by value is

imported; However soft luggage products and tea

bag filters are the key import products, with imports

accounting for 20% and 10% respectively, of their

domestic consumption by volume. Majority of

imports of soft luggage fabrics are from China, Hong

Kong and France, while that of tea bags are from

Germany, the UK and the US.

Indian Packtech industry is focused on the domestic

market with exports comprising only 5% share of the

overall market. FIBC, soft luggage products, jute

hessian and sacks are the export products, as

evident from Exhibit 17. The key export markets are

the UK, the US, Germany, Spain, France, Egypt, UAE,

Saudi and Japan.

8 | P a g e

Exhibit 16: Volume wise share of Exports in the production for

top three products (2009-10)3


IMaCS Analysis

3.5. Sportech

Sportech segment comprises of technical textile

products used in sports and leisure such as, sports

composites, sports footwear, artificial turf,

parachute fabrics, ballooning fabrics, sport nets,

tents, swimwear, etc.

Sportech market is estimated at US$ 755.1 million in

2009-10 with sports footwear component

comprising around 80% share of the market. Sport

composites, which include inflatable balls (footballs,

volleyball, basketballs, etc), cricket protective

equipments and boxing equipments, account for the

next highest share of around 16%, as seen in Exhibit

17.


Sportech market (2009-10)


IMaCS Analysis

The Sportech market is expected to grow at a rate of

almost 11% year on year and reach a size of US$

1027.2 million by 2012-13. This can be attributed to

the significant growth expected in footwear

components and sports composites, as seen in

Exhibit 19. Artificial turf is also expected to achieve

significant growth, at around 15% year on year, over

the next three years.

Exhibit 18: Value-wise CAGR for Sportech products (from 2009-

10 to 2012-13)


IMaCS Analysis

International trade

The imports in Sportech segment only constitute

about 2-3% of the domestic consumption by value.

The requirement for sail cloth, ballooning fabrics and

artificial turf is entirely met by imports. Other

products with significant import volumes are

sleeping bags and tents.

Exports comprise only about 8% of the production in

the Sportech segment. Sports composites, sleeping

bags, sports nets and tents are the main Sportech

products being exported from India. Sports

composites account for around 80% of the exports in

Sportech segment. The key export markets are the

US, the UK and Australia.

9 | P a g e

Exhibit 19: Volume wise share of Exports in the production for

Sportech products (2009-10)3


IMaCS Analysis

3.6. Buildtech

Buildtech segment comprises of textiles or

composite materials used in the construction of

permanent and temporary buildings as well as

structures like, architectural membranes, hoardings

and signages, tarpaulins, awnings, scaffolding nets,

etc.

Indian Buildtech market is estimated at US$ 547.1

million (2009-10), over 50% of which is contributed

by tarpaulins and around 40% by the floor and wall

coverings. Hoardings and signages account for 8%

share of the buildtech market, as seen in Exhibit 20.

Exhibit 20: Value-wise share of various products in Indian Buildtech market (2009-10)


IMaCS Analysis

The market for Buildtech products is expected to

grow at a rate of 8.5% annually and reach a size of

US$ 697.3 million by 2012-13. Architectural

membranes, awnings and canopies, High Density

Polyethylene (HDPE) tarpaulins and scaffolding nets

are the high growth potential areas, as evident from

Exhibit 21. Booming construction activity and

increase in awareness are expected to drive the

demand for scaffolding nets; whereas the demand

for awnings and canopies would be driven by

increase in number of hotels, fast food places, sale

counters, etc. Demand for HDPE tarpaulin is

expected to increase in line with increase in road

freight transport.

Exhibit 21: Value-wise CAGR for Buildtech products (from 2009-10 to 2012-13)


IMaCS Analysis

International trade

Imports comprise around 20% (by value) of the total

domestic consumption under the Buildtech segment

Around 95% of the flex fabric used for hoardings and

signage and around 90% of the architectural

membranes are being imported, as seen in Exhibit

23. Other products with significant import volumes

are awnings and canopies, cotton canvas tarpaulin

and floor and wall covering. Majority of products are

imported from China, Germany, Australia, Korea and

Taiwan.

10 | P a g e


consumption of top five products (2009-10)3


IMaCS Analysis

Around 24% of the total production under Buildtech

segment is exported; floor and wall coverings are the

key export product, comprising almost 99% the total

segment exports by value. The key export markets

are UAE, South Africa, the US and the UK.

3.7. Clothtech

The Clothtech segment of technical textiles majorly

comprises of textile components used for specific

functional applications in garments and shoes. These

components are largely hidden e.g. interlinings in

shirts, sewing threads, shoe laces, labels, hook and

loop fasteners (velcro), etc. Fabrics like umbrella

cloth are also classified under the Clothtech

segment.

Technical textiles market under Clothtech is

estimated to be US$ 1,743.5 million in the year

2009-10. Sewing threads alone account for around

60% of the technical textiles market under Clothtech

followed by labels with around 18% share, as seen in

Exhibit 23.

The market for Clothtech products is expected to


US$ 2,206 million by 2012-13. Velcro, zip fasteners,

elastics and shoe laces are the high growth potential

areas as seen in Exhibit 24.

Exhibit 23: Value-wise share of various products in Indian Clothtech market (2009-10)


IMaCS Analysis

High growth potential of soft luggage industry,

footwear industry, home furnishing and apparel

industry are likely to drive the growth of velcro, zip

fastener and elastics.

Exhibit 24: Value-wise CAGR for Clothtech products (from 2009-

10 to 2012-13)


IMaCS Analysis

International trade

Majority of the demand for Clothtech products is

satisfied by domestic production with imports

accounting for mere 6% of the total domestic

consumption, however, there are certain products

that are import intensive. The entire demand for

taffeta fabric used for umbrellas is met be imports.

Other products with significant import volumes are

11 | P a g e

interlining, elastic and velcro. Majority of imports

are from Hong Kong and China.


consumption of top four products (2009-10)3


IMaCS Analysis

About 5% of the total production under the

Clothtech segment is exported. Elastic and sewing

thread account for majority of exports in the

Clothtech segment. The key export markets are

Bangladesh and Sri Lanka.

3.8. Hometech

The Hometech segment of technical textiles

comprises of the textile components used in

household applications. These products range from

the blinds used in houses to the filter products used

in vacuum cleaners. They are an important

component in the mattress and pillows as well. They

are made of both natural and synthetic fibres.

Technical textiles market under Hometech is

estimated to be US$ 1,353.3 million (2009-10).

Furniture fabric alone constitutes 37% of the

technical textile usage under the Hometech

segment. Fiberfil and pillow and mattress

components together constitute over 30% followed

by blinds with a share of around 13% and stuffed

toys with a share of 10%, as seen in Exhibit 26.


Hometech market (2009-10)


IMaCS Analysis

The market for Hometech products is expected to


US$ 1,887.4 million by 2012-13. Heating Ventilating

and Air-conditioning (HVAC) Filters, filter fabrics,

nonwoven wipes, blinds, furniture fabrics and stuff

toys are the high growth potential areas, as seen in

Exhibit 27. Demand for HVAC filters will be driven by

the growth of commercial air-conditioning industry

on account of continued investments in segments

like IT/ITeS, Retail, Entertainment, Pharma,

Healthcare, Hospitality, Telecom and Banking. Rising

disposable income and changing lifestyle will drive

the demand for stuff toys and nonwoven wipes.

Demand for blinds would be driven by increasing

construction activity and increasing popularity of

blinds.

Exhibit 27: Value-wise CAGR for Hometech products (from 2009-

10 to 2012-13)


IMaCS Analysis

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International trade

Value-wise around 13% of the total consumption is

imported. As per volume, 67% of HVAC filters

consumed are imported whereas the value-wise

import of nonwoven wipes is 80% of the total

consumption. Majority of imports are from Germany

and Netherland (HVAC filters) and China. Majority of

wipes are imported from China and Singapore.


consumption of top four products (2009-10)3


IMaCS Analysis

The exports in the Hometech segment are not very

significant; value-wise around 6% of the production

is exported. Fiberfil, which exports 9% of its

production volume and furniture fabrics, which

exports about 14% of its production value are the

only products with significant exports. The key

export markets are the US and Argentina.

3.9. Protech

Protech is an ensemble of textile products and

related material used in the manufacture of various

protective clothing for the personnel working in

hazardous environment. The protective clothing

includes garments and related paraphernalia for

protection from harmful chemical environment,

extreme temperature environments, low visibility,

ballistic protection, etc.

Indian Defence Forces with a total strength of

around 1.5 million individuals comprising the army,

navy and air force, is one of the largest consumers of

protective textiles. The usage of protective textiles in

defence comprises bullet proof jackets, NBC

(Nuclear, Biological, Chemical) suits, high altitude

clothing and fire retardant apparel.

Technical textiles market under Protech is estimated

to be US$ 338.5 million in the year 2009-10. High

altitude clothing, bullet-proof jackets and fire

retardant fabrics account for 44%, 21% and 17% of

the Protech market, respectively, as seen in Exhibit

29.


Protech market (2009-10)


IMaCS Analysis

The demand for Protech products is dependent on

improvements in worker safety practices, fire

protective standards for construction and increase in

defence sector spending on protective clothing. With

increasing terror threats, the usage of bullet proof

jackets and other protective clothing is expected to

rise. For instance, orders to procure 20,000 bullet

proof jackets on an emergent basis were placed in

January 2009 by the Ministry of Home Affairs for

Central Police Organisation, including the National

Security Guards and the Central Reserve Police

Force.

The market for Protech products is expected to grow

at a rate of 9.8% annually and reach a size of US$

447.7 million by 2012-13. High growth is expected in

the fire retardant fabric, high visibility clothing

material and chemical protective clothing, as evident

from Exhibit 30.

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Exhibit 30: Value-wise CAGR for Protech products (from 2009-10

to 2012-13)


IMaCS Analysis

International trade

Indian Protech industry is import intensive with

imports accounting for around 60% of the domestic

consumption of protective technical textiles. High

altitude clothing comprises around 90% of the total

imports in this segment. The production technology

for high altitude clothing is restricted to Ordinance

Factories of India which have limited capacity for

manufacturing high altitude clothing thus, resulting

in imports. The demand for high visibility

clothing/reflective wear is also primarily met by

imports because of price competitive imported

products.


consumption of top three products (2009-10)3


IMaCS Analysis

Further, the country also imports raw materials like

fire retardant fibres, chemicals and special fabrics

which are processed into products in India. Majority

of imports are from the US, Korea, China and

Western Europe.

Around 7% of the production in Protech segment is

exported, which mainly comprises of industrial

gloves. Around 80% of the industrial gloves

produced are exported. The key export markets are

Afghanistan, Sri Lanka, France, Netherland and the

UK.

3.10. Geotech

Geotech segment comprises of technical textile

products used in geotechnical applications

pertaining to soil, rock, earth, etc. Geotextiles refer

to permeable fabric, woven or non-woven, used for

confinement/separation, reinforcement, filtration

and drainage applications. Geotech products find

application in civil engineering (roads and

pavements, slope stabilisation and embankment

protection, tunnels, rail-track bed stabilisation,

ground stabilisation and drainage, etc.), marine

engineering (soil erosion control and embankment

protection, breakwaters) and environmental

engineering (landfills and waste management).

Other specialised Geotech products comprise

geogrids (synthetic filaments and tapes, etc., formed

into a very open, grid like configuration having large

apertures), geonets (extruded ribs set in net like

fashion with small apertures), geomembranes

(impermeable fabric as barrier) and geocomposites

(products using two or more Geotextiles e.g. pre-

fabricated drains).

Indian Geotech market is estimated at US$ 72

million (2009-10), with domestic consumption of

US$ 50.1 million. This includes the market for

14 | P a g e

Oekotech4 products, which is estimated at US$ 20.7

million. Synthetic Geotech products (geosynthetics)

account for around 90% of the total market, the

balance comprising of agro-based Geotech products.

Geotextiles comprise the largest share of Indian

Geotech market, with a share of 63% in 2009-10 of

which, woven geotextiles comprised 35%, as seen in

Exhibit 32.

The consumption of Geotech products is driven by

investments in the Infrastructure sector. Continued

thrust on infrastructure development in India augurs

well for this segment. However, the Industry has not

realised its full potential owing to lower than

expected penetration of geotextiles in various

infrastructure projects. A classic example of this is

the road projects in India.

Road sector is the largest consumer of Geotextiles in

the Indian market, whereas, demand from other

sectors (power, ports, airports, railways, etc.) is

largely project specific. Government had planned an

investment of around US$ 5.55 billion5 in roads

(excluding PMGSY) during 2006-07 to 2010-11. In

case Geotech products were used in all these road

projects, the consumption of Geotextiles in NHAI

road projects alone could be to the extent of US$

22.2 million5 per annum.

However, the consumption of geotextiles in India is

very low as compared to its potential. Conservative

views of major institutional users have been a key

impeding factor for the growth of this segment in

the domestic market. Moreover, the segment has

been suffering from issues related to lack of

awareness about economic benefits of Geotech

products amongst all institutional buyers, lack of

adequate testing facilities and non-availability of

trained technical personnel.

4 The details of the Oekotech application under

technical textiles have been explained in the next section. 5 Exchange rate used US$ 1 = ` 45

The Geotech segment in India is set to witness a

change owing to certain recent developments in the

road sector that are likely to provide the necessary

boost to the consumption of Geotextiles in roads.

Design, Build, Finance and Operate (DBFO) model

has been introduced in road contracts wherein the

private sector undertakes the responsibility for

operation and maintenance of the project road as

well as for building specified improvement schemes

(where appropriate). Under this model contractors

get liberty to design independently and, are

responsible for the maintenance of project roads.

Thus, in order to ensure longevity of construction at

optimal cost they would prefer geotextiles.

Moreover, successful control trials have been

conducted by Central Road Research Institute (CRRI)

for use of Jute geotextiles in roads, which is likely to

boost their use under the Pradhan Mantri Gram

Sadak Yojana (PMGSY).

In addition, the Office of Textile Commissioner and

industry experts are making targeted efforts to boost

the consumption of Geotextiles. Bureau of Indian

Standards (BIS) has approved the standards on Coir

Bhoovastra (Jute Geotextiles and Coir Geotextiles)

and, have published two standards viz. IS 15868

(part 1 to 6 – 2008) and IS 15869 -2008. BIS has also

formulated the standard for geosynthetics made

from polyolefin or polyester material for highways.

Moreover, promotion of the use of geomembrane as

lining for canals, ponds and reservoirs by NHM is

likely to boost the consumption of geomembranes.

In view of the above mentioned developments, an

optimistic estimate of the potential market size for

Geotech products that could be achieved in 2012-13

can be placed at around US$ 164 million. In

addition, the Office of Textile Commissioner and

industry experts are making targeted efforts to boost

the consumption of Geotextiles.

15 | P a g e

Exhibit 32: Product-wise market share of Geotech segment (2009-10)

Source: Baseline survey of the Technical Textile industry in India, IMaCS Analysis

Bureau of Indian Standards (BIS) has approved the

standards on Coir Bhoovastra (Jute Geotextiles and

Coir Geotextiles) and, have published two standards

viz. IS 15868 (part 1 to 6 – 2008) and IS 15869 -2008.

BIS has also formulated the standard for

geosynthetics made from polyolefin or polyester

material for highways. Moreover, promotion of the

use of geomembrane as lining for canals, ponds and

reservoirs by NHM is likely to boost the consumption

of geomembranes.

In view of the above mentioned developments, an

optimistic estimate of the potential market size for

Geotech products that could be achieved in 2012-13

can be placed at around US$ 164 million. The

achievement of this market size, however, is subject

to a higher adoption rate for Geotech products by

various stakeholders implementing road and other

infrastructure projects in India. In case the

challenges faced by this segment are not addressed

to the fullest, a realistic estimate of market size that

the Geotech segment could achieve in 2012-13 is

about US$ 98 million.

International trade

Around 40% of the domestic demand for Geotech

products is met by imports. Geosynthetics, including

geogrids, geotextiles, geocomposites are the import

intensive products. Malaysia, China, Taiwan and

Europe are the major suppliers of these products to

India.

Exhibit 33:Value-wise share of imports in the domestic

consumption of Geotech products (2009-10)3


IMaCS Analysis

India is also an exporter of certain Geotech products,

with exports accounting for around one-third of the

market in 2009-10. Coir-based geotextiles produced

in India are majorly exported to Middle-East

countries, the UK, the US, Germany, Italy, and select

European countries.

3.11. Oekotech

Oekotech segment involves technical textile

products used in environmental engineering. Landfill

waste management is the key application, which

refers to the use of geosynthetic products to secure

landfills against leakage of municipal or hazardous

waste. Other areas include secondary protection in

chemical/oil industries (ground covers and the like

66%

60%

62%

56% 58% 60% 62% 64% 66% 68%

Geotextiles

Geogrids

Geomembrane, Geocomposites

16 | P a g e

around process tanks for secondary containment).

The various geosynthetic products used are

Geotextiles, geosynthetic clay liners, geo grids, geo\

membranes and various specialized geocomposites.

Other potential Oekotech application areas of

geosynthetic products such as landscaping (golf

courses, ponds, etc.), mine rehabilitation, tunnel

linings, etc. do not represent recurring usage

currently in India.

The market size of Oekotech segment is estimated at

US$ 20.7 million (2009-10). Owing to increasing

spend on municipal waste disposal in accordance

with Municipal Solid Wastes (Management &

Handling) Rules, 2000, as well as greater awareness

and government activity on hazardous waste in

accordance with Supreme Court Guidelines, the

states are expected to create scientific landfill sites.

The Twelfth Finance Commission has recommended

devolution of grants for Urban Local Bodies (UCB),

with US$ 55.6 million5 exclusively for setting-up of

solid waste management systems in urban areas.

Consequently, many urban bodies are starting

process of developing landfills (granting landfill,

initiating ground preparation etc) for municipal

bodies while common regional landfills are also

being constructed. With greater spends on landfills,

the market for Oekotech is expected to increase at

19% year on year to reach a size of US$ 34.5 million

by 2012-13.

3.12. Indutech

Indutech includes technical textile products used in

the manufacturing sector such as, conveyor belts,

drive belts, cigarette filter rods, decatising cloth,

bolting cloth, AGM (Absorption Glass Mat) glass

battery separators, ropes and cordages, composites,

filtration products, industrial brushes, etc.

Indian Indutech market is estimated at US$ 854.4

million (2009-10), about 35% of which is contributed

by composites and around 27% by the ropes and

cordages, as seen in Exhibit 34.

Exhibit 34: Market size of various products in Indian Indutech

market (2009-10)


IMaCS Analysis

The market for Indutech products is expected to

grow at a rate of 11% annually and reach a size of

US$ 1,173 million by 2012-13. Fiber-glass products

(including AGM glass battery separators) are

expected to lead the growth in demand of Indutech

technical textiles in India, as evident from Exhibit 35.

Exhibit 35: Value-wise CAGR for Indutech products (from 2009-10 to 2012-13)


IMaCS Analysis

International trade

Imports account for around one third of the total domestic consumption in this segment. Printed circuit boards, AGM battery separators and other

17 | P a g e

applications of fibre glass constitute majority of the imports. Majority of the imports are from China, Taiwan, Thailand, Germany, Italy, Japan, Korea and Indonesia.


consumption for Indutech products (2009-10)3


IMaCS Analysis

Exports of Indutech products account for around 35% of the total production. Almost 40-45% of the domestic production of fibre glass and conveyor and drive belts is exported. The key export markets are Middle-East countries, the US, Africa, Cambodia, Iran and Taiwan.

4. Triggers for the growth of Technical Textile

industry

With the Indian economy poised for substantial

growth in the coming decade, the Indian Textile

industry largely depends on technical textiles to

accelerate the growth. There are several areas

where consumption of Technical Textiles is set to

increase viz., India is now the global hub for small

cars; Trillions of US$ investment is envisaged in

infrastructure – roads, ports, airports etc.,

Though Government has taken several initiatives to

drive the growth of technical textiles in India and the

market has not exploited its full potential, till date.

The Industry is facing certain key issues that are

impeding its growth.

Inadequate awareness about the benefits of

technical textiles among end-users, primarily in

sectors like Meditech, Agrotech and Geotech,

which is hampering the potential demand of

technical textiles in India

Absence of defined standards and regulations

promoting usage of products made from

technical textiles, which leads to lack of

sufficient demand for technical textiles.

Lack of indigenous availability of specialised

raw-materials hampering cost competitiveness

Lack of skilled manpower for new technologies

like nonwovens

Lack of technology/consultancy support to

manufacturers of technical textiles

The Ministry of Textiles has made concerted efforts

to address these issues as well as to accelerate the

growth of Indian Technical Textile industry, including

subsidies and incentives to boost the domestic

production of technical textiles and specialty fibres

(under the Draft National Fibre Policy) as well as\

setting up of centres of excellence to provide

technology support. However, to realise the full

potential of this Industry, dedicated joint efforts are

required by both, Government and the Industry.

Exhibit 37: Triggers to boost the Technical Textile industry

5. IMaCS - An introduction

ICRA Management Consulting Services Limited

(IMaCS) is a multi-line management and

development consulting firm headquartered in India.

It has an established track record of over 15 years in

consulting across various sectors and countries.

IMaCS has completed about 1000 consulting

Awareness about benefits of technical textile products

amongst the private and institutional users

Initiatives taken Existing Gaps

Standards (focus Geotech)

Testing facilities

Technically trained personnel

Domestic availability of high performance and specialty

fibers

Regulations promoting usage of technical textiles

18 | P a g e

assignments and has worked in over 35 countries

across the globe.

IMaCS is a wholly-owned subsidiary of ICRA Limited

(ICRA), one of India’s leading credit rating agencies.

IMaCS operated as a division of ICRA till March 2005,

when it was de-merged from ICRA and became a

standalone company.

The main driver for IMaCS’ growth has been a

growing need for unbiased professional views on

adopting best business practices arising from

economic deregulation, growing international trade

& integration, and the increasing need to be globally

competitive.

Our clientele includes banks, financial institutions,

non-banking financial companies, manufacturing and

services organizations, governments, government-

owned organizations, debt and equity investors,

regulators, and multilateral agencies. We have

executed assignments for multilateral agencies such

as The World Bank, World Bank Institute (WBI),

Commonwealth Development Corporation (CDC),

United Nations Development Programme (UNDP),

United States Agency for International Development

(USAID), Department for International Development

(DfID), African Development Bank (AfDB), Asian

Development Bank (ADB) and International Finance

Corporation (IFC).

Through the process of carrying out several

assignments over the last decade and half, IMaCS

has accumulated considerable analytical and

consulting expertise, backed by the following

capabilities:

An extensive and organised database on several

sectors.

Knowledge of key factors of success in different

projects and program.

An ability to research emerging trends in the

economy, as well as in specific sectors, based on

primary and secondary data.

Insights into different programme and

organisational processes.

Ability to carry out economic analysis and build

quantitative and financial models to project

future performance and identify imperatives.

Ability to identify the various types of risks and

suggest appropriate strategies to mitigate the

same.

IMaCS’ Business Groups and Practice Areas The different business groups and practice areas

within IMaCS form our matrix of service offerings.

Multi-disciplinary teams are used on most

assignments. The diversity of experience in IMaCS

teams helps it to adopt a creative and cross-

functional approach to problem solving, which has

not only been very successful in practice, but has

also been well appreciated by all our clients.

Mr.B V Rajesh, Head – Retail and Consumer Markets and Ms.Priyanka

Talreja and Ms.Shachi Bajoria were part of the team that prepared the

Baseline Survey of Technical Textiles for the Office of the Textile

Commissioner, Government of India, in the year 2009.

GROUP ICRA

Credit

Rating

ICRA Management

Consulting Services

Limited

Management

ConsultingIT

(Software)

BPO

ICRA Limited ICRA Techno

Analytics Ltd.ICRA Online Ltd.

ICRA Techno

Analytics Inc.

Energy

Strategy

Risk

Banking &

Insurance Infrastructure Corporate

Enhancing Competitiveness/Market Assessment/Improving Effectiveness

Credit Risk/Market Risk/Operational Risk/EWRM/Risk Analytics/Software

Transaction

AdvisoryM&A/Due Diligence/Project Advisory/Bid Advisory/Financial Restructuring

Policy &

RegulationRegulatory Economics/PPP Models/Governance

Government/

Multilaterals

Business

groups

Process

ConsultingCost Reduction/Process Re-engineering/Organisation Design

IMaCS - We focus on six practice areas…

Development

Consulting

Investment Climate/Institutional Strengthening/Capacity Building

/Poverty Alleviation/Sustainable Development

Practice Areas

19 | P a g e

Documents

Technical Textiles in India - libvolume8.xyzlibvolume8.xyz/textile/btech/semester8/technical... · TECHNICAL TEXTILES IN INDIA – CURRENT A FUTURE MARKET SCENARIO 1.0% 1. Introduction