INVESTMENT STRATEGIES FOR TECHNICAL TEXTILES

B. S. Pancholi & Dr S. K. Basu

Man made Textiles Research Association, MANTRA Surat

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INVESTMENT STRATEGIES FOR TECHNICAL TEXTILES

04/08/23

What is being discussed

IndexPart -1

1. Global scenario of spunbond applications

2. Investment Landscape of With Spunbond TT

3. Investment strategies for spunbond TT

4. Guidelines for Investment in TT (General)

Part-2

1. Factors limiting the scope of spunbond industry

2. Solutions for revival and uplifting of spunbond industry

3. How to differentiate to gain better marketability

4. How to explore New products and new markets

5. MANTRA-COE : Your partner for successful With Spunbond TT investment and growth

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Part-I1.Nonwoven –Global Scenario

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60% nonwovens usage is in disposable products

China today is producing over1 million tons of nonwovens.

Current nonwoven production level in India is only about 70,000 tons per

annum which was the same level in China, 15

years ago.

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2.Investment scope of Spunbond TT

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NICHE and CUSTOMIZED products have

High end application.

Tougher specification on quality as per customer demand and specific requirements

Require high investment not only for manufacturing but also R&D.

Require more time for application penetration in a country like India due to high price and low awareness on usage benefits.

Low volume market reach.

Difficult to match the more advanced international competition on quality and price

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Niche and Customized products

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Commodity products

COMMODITY PRODUCTS have

Low end and daily use application.

Easier to manage specification on quality.

Suitable for low investment for SMEs

High volume and low price items

Sold in high volume at Retail stores like Reliance, Bigbazaar, Bharti-Walmart

Can be produced by use of converting technology

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Characterestics NICHE products

Customized Products

Commodized products

Investment High High Low

Innovation(R&D) High High Low

Complexity High Medium Low

Market Volume Small Small Large

Marketing Expenses

High Medium Low

Profit Margin High Medium Low

Pay Back Period Long Long Short

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Commodity Spunbond TT products are good for investment because they are

Easy to manufacture with existing technical core competence.

Just you need converting machines to manufacture them

Require much lower investment with no big expenditure in knowhow and R&D for development.

Easy to market through rapidly growing retail stores in India.

High volume demand and assured of steady profits over a longer period of time.

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Some examples of commodity Spunbond TT products

Scrubs – dish washers, industrial washers, polishing scrubs, etc.

Packaging – shopping bags, packing liners, storage bags, storage crates, saree cases, etc.

Disposables – slippers, under garments, table covers, decorative sheets, wall papers, etc.

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2.Investment scope of With Spunbond TT

Some examples of commodity Spunbond TT products Medical Textiles – gowns, caps, masks, shoe

covers, drapes, bed linen, gloves, trey covers, hospital under pads, bandages, etc.

Hygiene – sanitary napkins, panty liners, maternity pads, baby diapers, adult diapers, sweat pads, breast pads, etc.

Wipes – wet wipes, baby wipes, dry wipes, industrial wipes, clinical wipes, body wipes, etc.

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Understand your core competence . Choose a subsector(E.g.. Meditech). Choose a product type ( Niche or commoditized) that suits your

investment capability ,Marketing strength and profitability goals. Analyze, consult and plan your investment using stepwise approach

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3. Investment strategy in Technical Textiles

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Stepwise Strategy for investment in Spunbond TTSTEP-1Collection and Analysis of information

STEP 2 Choose sub-sector and Product type based on analysis of core competence, market capability, investment strength and profit goals

STEP 3 Draw up a cost sheet to calculate the expected profit margin and payback period analysis ( Some consultants have ready cost sheets for most products)

STEP 4 Draw up a Project plan ( Take help from expert consultants if required) with milestones and make note of precautions to be taken before execution.

STEP 5 Execute the project as per plan ( Take help from expert consultants if required).

STEP 6. Formulate a marketing strategy and create a marketing team well before product is ready for distribution

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3. Investment Strategy in Technical Textiles

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Useful guidelines for wiser investment in TT JVs are least probable optionsDomestic Market is more lucrative than export markets Converter sector has good potentialIndian government support through technology mission is available for funding and infrastructure development.Expert guidance is available through centers of excellence created for TT by Indian Government through TRAs

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4.Guidelines for Investment in Technical Textiles

KEY SUCCESS FACTORS

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KSF for TT business Products are tailor made and vary

continuously. Support of qualified technical hand is a must

Process optimization with minimum trial is vital to be competitive in the market

Innovation is the key for success in this field

Supply to exact specification is mandatory

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4.Guidelines for Investment in Technical Textiles

TT business mantra

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Identify the segment Seek expert guidance Evaluate , Invest and innovate Create and develop market for TT. Reep the full benefits of the

emerging exciting sunrise business of TT.

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4. Guidelines for Investment in Technical Textiles

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1. Technology limitations

Most of the SB manufacturers went for SNGLEBEAM Technology which do not give the best uniformity in GSM and all related quality parameters.

2. Undifferentiated Products

A Majority of SB mfr produce the same type of product with same technology and same degree of quality with out any differentiation.

3. ZERO innovation

No attempt or effort made to look for already tried and tested innovations or Value added conversions/products.

4. ZERO Marketing efforts

Traders take away maximum profits as no efforts by own marketing research and lack of interest in building own marketing Teams.

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Part-II5.Factors limiting the performance of

spunbond Industry

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Circle of influence for success

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Things you should do to

succeed in this business

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Influence for Success

FACTORS FOR BUSINESS SUCCESS

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UNCONTROLLED FACTORS FOR FAILURE TO SUCCEED

FACTORS TO TAKE CONTROL TO SUCCEED

Policies of MOT of State or central government

Join hands with organizations such as ITTA and COEs to be self supporting.

Saturated consumer demand in the market

Create/expand demand by focus on market research and marketing team building

Know and do trial marketing of already developed innovative products

Limitation of the technology already chosen for investment

Try Forward integration or Value addition to existing products

Non availability of reliable expertise and skill

Seek active participation and help from COEs like MANTRA,BTRA,ATIRA etc.,

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SUCCEES DEPENDS ON FOCUS

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Work on factors you Can do to succeed

Blame on other factorsNot in your control

Focus on factors In your control

Focus on factors not in your control

Success rate expands

Success rate Shrinks

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Technology limitations and undifferentiated products

Overcome the technology limitations and lack of differentiation by

converting single beam to double beam technology if you can afford to invest for future growth.

forward integration to add conversion machines for value added and differentiated products

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6.Solutions for revival and uplifting the spunbond industry

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Zero Innovation and Zero marketing.Learn from nature which continuously improved its production of trees, animals and humans with continuous evolution to produce highly differentiated creatures to adopt and survive against adverse environments for survival.

Nature follows “SURVIVAL OF FITTEST”. Test for fitness is readiness to change and differentiate for better survival over competitors.Innovate or perish: Look for value added products already marketed world wide. Be a trader of those products to begin with and become a manufacturer of the same later.Create and strengthen Marketing teams to do away with traders and make more profit margins from your existing products

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6. Solutions for revival and uplifting the spunbond industry

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SHOPPING BAGS CAN ALSO BE DIFFERENTIATED– bags should not be a commodity product, tailor made to

market needs, then only it is cost competitive– overcome the limitations of bags (seam strength) for new

applications– Make premium bags in shopping– Make bags with more fancy look and finishes– Lining is a big market, try to penetrate more

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7.How to differentiate in the market

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Differentiate through Value added finishing processes•Waterproof•Absorbency•Flame retardant property•Ultraviolet and gamma ray protection•Antibacterial•Soft product•Whitened product•Laminated products•Composites•Multi layered fabrics•Coated 24

7.How to differentiate in the market

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New Products and New Market

•The products that have less penetration or at basic quality level is treated under new product.

•Knowhow for manufacturing and market for new products are

available.•Some examples are shown hereafter.

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8. How to explore new products and new markets

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Current market Potential market• Isolation gowns• Surgical gowns• Surgical mask• Caps• Shoe covers

• Surgical drapes and

covers• Medical packaging:

porosity allows gas sterilization

• Trey covers• Inspection covers• Pillow covers• Bed covers• Stretcher covers

Medical Applications

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Present Practice – Linen Based Medical Textiles

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Properties that favor SB application in medical application are,

• Breathability,• Resistance to fluid penetration,• Lint free structure,• Sterilizability,• Impermeability to bacteria

Medical Applications

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Properties that support are,1.High weight to strength ratio2.Dry feel3.Cost effective4.Comfortable5.Hydrophilic/hydrophobic

Hygeiene Applications

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New Products – Hygiene

Surgical Tapes

Diaper and sanitary napkin industry is looking for soft, textile look and also laminated nonwovens. They need more thickness/gsm and high rupture strength/gsm and low gsm fabrics. 04/08/23

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Hygiene Market

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New Market - Hospitals

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In Agriculture

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New Market - Agriculture

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New Product – Upholstery

Looking for coated, tailorable or sealable, bulky but strong, special laminated, FR finish, etc. products.

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New Market– Coated Fabrics

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New Market – Raincoats

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New Market – Bed Cover in Coaches

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New Market – Pillow Covers

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New Market – Car seat Cover

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New Market - Packaging

Storage for– cloth-Bangles-Small spares-Medicines-Documents

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New Market - Packaging

Mailing Envelopes

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New Market - Household Applications

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New market – Home My Home

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New Market – Hotel Industry

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New Market- Ultrasonic Quilting

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Printed Fabrics

Above 40 gsm can be printed

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New Market–

Hotels/Hospitality

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Ot h e rs, 35

M ed i ca l/ h ygi e

ne, 65

World

Source:Edison Investment Research / Industry

--Med ical IHygien e,

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Others,

90

IndiaHuge application possibilities beside packaging

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New Market – Disposable Undergarments

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New Market - Apatented

Disposable Slipper

All limitations of nonwoven slippers are rectified, retail price can be Rs.15/pair.

Manufacturing cost no more that Rs. 5 - 7/pair.

Sell in Railway stations, hotels, hospitals, spa and at all hygiene areas.

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New Market - Linings

Antistatic SB

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9.MANTRA-COE - Your partner for a successful investment in Spunbond TT

MANMADE TEXTILE RESEARCH ASSOCIATION : 32 Years TRA

experience, COE partner for Agrotech products.COE in Coating

and lamination in Phase -1 and COE in Nonwovens

(spunlace/Needlpunch/Chemical/Thermal Bonding Technology) by

Govt of Gujarat.Having 500 mm Spunbond machines under ISDS

scheme of MOT.

Strong R&D data base and testing services capability well suited

for Non-woven technical textiles whose raw materials are derived

from synthetic and manmade fibres.

Well qualified and well experienced staff who have extensive

experience to handle all types of manmade textile based products

and processes.

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Centre of Excellence in Technical Textiles

(sponsored by Govt. of Gujarat)

Phase ICoating and Lamination

Pilot plant facilities Coating machine Hot melt laminating machine Narrow width machine

Testing Lab To test raw materials and finished product

Product display centre

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9. MANTRA-COE

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Has the state of art Pilot plant for Coating and lamination

Matex multilabo coating machine Cavitec hot melt laminating machine

9. MANTRA-COE

Product Development

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9. MANTRA-COE

Plasma machine

This machine is installed at MANTRA under DST project

In collaboration with IPR, Gandhinagar

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9. MANTRA-COE

Plasma technology is widely

applicable for the surface

modification of textiles & can

improve functionality of textile

materials, such as 1. improves

coating adhesion 2. Pre-treatment

process 3. Dyeing & Printing

4. Finishing.

Thus reduces the consumption of dye

& chemicals

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Fully equipped Testing laboratory for quality evaluation of all types of TT products

Technical Textile Lab

9.MANTRA-COE

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MANTRA has well-organized sample studio to show case the

technical textile samples

9.MANTRA-COE

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NONWOVEN PLANTS:

Recently MANTRA has commissioned a NONWOVEN 500mm pilot plant machines

under the partial grant-in-aid by the Govt of Gujarat. which can produce

maximuml Nonwoven products.

Nonwoven pilot plant

Spunlace technology

Needlepunch technology

Chemical bonding

Thermal bonding

Centre of Excellence in Technical Textiles (sponsored by Govt. of Gujarat)

Phase II

9.MANTRA-COE

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9. MANTRA-COE

Pilot plant Facilities COE in Agrotech MANTRA has purchased industrial scale Raschael machine for the

products to be used in Agriculture, mainly in shading purpose.

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9.MANTRA-COE

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MANTRA COE – Phase III

Gujarat government sanctioned a project, “TT Product

Development & Application Center in Medical & Hygiene “ to

establish a COE- Phase III by MANTRA.

COE will be housed in a dedicated facility at Surat.

COE will have projectile weaving machines and different converting

machineries to produce the following products on a pilot scale

9.MANTRA-COE

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9. MANTRA-COE

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MANTRA COE – Phase IIIConverting Machines & Its Products

I. Under pad

9. MANTRA-COE

- Spunbond Nonwoven as Topsheet (Permeable) Hydrophilic- PE Film as Back Sheet- Pulp (Imported)- Hot melt adhesive- SAP (Imported)

Sizes: (1) 60 x 40 cm (2) 60 x 60 (3) 60 x 90 cm

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I. Sanitary napkin (ultrathin)

9.MANTRA-COE

(25 micron, 45gsm)

(22 micron, 23gsm)

(Hydrophillic 14gsm)

(Silicon)

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I. Wet wipes (single piece)

9. MANTRA-COE

- Spunlace fabric (45 gsm) (100%) PE or PE/viscose or 100% viscose or Bamboo spunlace) - Laminated paper (4.5 gm) (2 layer/3 layer) - Re-sealable sticker - Formulated ingredients (liquid)Cutting-folding-wetting-stacking-packaging.

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9.MANTRA-COE


I. Bouffant Cap Making Machine

Raw materials - PP Spunbonded Nonwoven fabric (25 gsm) - Elastic band/tape

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SUMMARY

Technical Textile sector has high growth potential for investment. Selection of subsector and product type depends on core

competence, investment capability, profitability goals. 6 Step approach shall be followed for a sure successful investment. Fundamental guidelines and some critical issues need to be

addressed for a wise investment decisions. Add value and build your own marketing teams to reap profits instead

of dependence on traders. Innovate and find new market to differentiate and evolve from herd

mentality MANTRA-COE can be your Partner for a successful investment and

making best of existing production units for production efficiency, innovation and penetration of new markets

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END-NOTE TO REMEMBER FOR EVER

With growth in economy and enhancement of life style, the

consumption of Technical Textiles products is bound to increase.

In the absence of indigenous production, the imports will

increase and India will loose investment and employment

opportunities.

Invest wisely in With Spunbond TT sector to have long and

assured profitable business04/08/23

True Guidance can be like a small lamp in

a Tunnel. It may not show us everything at

once, but it will give us enough light to

take our next step safely.

Theme / Message

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Presentations & Public Speaking

INVESTMENT STRATEGIES FOR TECHNICAL TEXTILES