COEs perception

Predominant demand and supply scenario

ATIRA: Predominant supply and demand markets for composites are Industrial filtration, geo textiles and thermal insulation. Most of the advanced technical textiles are made of highly advanced fibres modified to meet the end use application criteria. Mostly these fibres and sometimes the whole products are being imported in India.

DKTE: Nonwoven material has wide range of application in all the twelve sub-segments of Technical Textiles. In FY 2010-11, Spunbond showed recorded growth over 9% where as overall nonwovens grew by 6%.

Asian market of nonwovens in 2011 was 2.6 million tones, out of which only China contributed about 68% and Japan stood second with 10% of the total production.

India consumes hardly 130 gram per capita nonwoven material where as it is predicted by 2020 this will grow at 500 gram per capita with the rate of 13% per year. Looking at changing life style and population, huge domestic potential lies in near future.

PSG: For Indutech segment, the predominant demand is for Belts (Power Transmission, Material Conveyor), Tyre Cord Fabric, Coated Fabrics, Coated Abrasives, \ Sound absorption and Acoustic materials, Automobile Carpets, AGM Glass Battery Separator, Paper Making Felts, Filtration Textile products, Ropes & Cordages.

SITRA: Surgeons’ wear, operating drapes & hospital linen, wound dressings/bandages, sutures, vascular grafts, artificial ligaments & tissue scaffolds, hernia meshes, soft wipes, face masks, 3D Spacer fabrics as well as a whole range of personal care disposables include Sanitary napkins/tampons/panty liners for fem care, makeup removers & nail polish removers, balls and buds for cosmetic applications, baby diapers, adult incontinence diapers/under pads, – just to mention a few are all meditech products which have a demand in the market. Of the various end products within Medical Textiles, it will be of interest to note that sanitary napkins and surgical dressings contribute to two-thirds of the total market size. In times to come, both production and consumption of Medical Textiles is likely to increase and to sustain the momentum of growth, certain pro-active measures may require to be put in place.

WRA: Today more than 40% of total manufacturing activities of many industrialized countries comprise of technical textiles. Technical Textiles on its own merit has an important place in material science along with micro – electronics and bio-technology. CAGR of technical textiles in the west is 2.4% where as it is 6.5% in India & China as predicted by David Rigby’s Survey. Various MNC’s and globally accepted brands like Nike, Adidas, Reebok, Crocodile, La Coste, Target, Spencer, etc introduced efficient sportwear and accessories and linked its functional properties to the fashion aspects of such products.

Being a labour intensive sector about 15 million employment was generated in EU in 2005 – over 5% of the EU labour force. US, Hongkong, China, U.K have strong presence in Sportech market. Sports have boosted the manufacturing industry in accelerating economics of countries like India and China. Major products of sportech sector are dominated by sports apparel which constitutes around 50% of the total demand.

2. Measures for encouraging the growth of opportunities in these markets

ATIRA: Factors like the global economic change, strong government support, introduction of appropriate legislation, development of tests and standards and widespread recognition of the need for more trained personnel, etc. also playing a valuable role in driving the industry to the farthest destination.

PSG: Availability of data on quantum of requirement, product specification, awareness of these products, incentives for manufacturing, market segment, consumption details, financial support for new business start ups, etc. are major areas for growth of opportunities

3. Potential segment of Technical Textiles in India?

ATIRA: Considering the global economic and industrial climate, dry and wet filtration of the industrial pollutants is going to play a major part. If the government of India makes legislation for using geogrids to make roads and highways to improve their life cycle then the field of geotextiles will be very promising and lucrative.

DKTE: Disposal hygiene products and medical segment like personal care, baby diaper and sanitary napkins, packaging industry, automotive industry, industrial applications like filters, civil engineering applications like Geotech material for road construction and erosion control.

WRA: Use of sporting gear is proportional to the per capita purchase power. Besides, sports are treated as a recreational activity in India. With the rise in income, spending on recreational and leisure activities also will rise. It is predicted that expenditure on sports will grow with a CAGR of 8.9% from US$ 1 billion in 2005 to US$ 6 billion in 2025. Sports and leisure activities including adventure sports etc are gaining prominence in India as the country is competing with a growing number of athletes and sports personnel in the national and international sports events. Government of India and many corporate sponsors are providing adequate funds and other support for the sports and welfare of the sportspersons.

India is among the largest sports goods manufacturers of inflatable balls, hard balls like cricket balls, cricket bats, etc. It has a large textile industry with good downstream manufacturing facilities. With the growth of organized retailing, when international brands have entered the Indian market, it will be but natural that indigenous consumers will demand similar branded products from the domestic sportech industries. Since various centres have come up with sport equipment and accessories, sportech products belonging to technical textiles are bound to be developed sooner. Technology has been percolating down from the global sportech manufacturers to Indian manufacturers. Many of the multinationals engaged in the business relating to sportech are setting up facilities in India due to the advantage of low cost of production, skilled and cheap labour, etc.

SITRA: The size of Indian healthcare industry, during 2007-08, was pegged at US$17 billion and the same was projected to grow at more than 17 % per annum to touch a whopping US$ 36 billion by 2012-13, translating to a contribution of some 8% of GDP, the factors responsible to this phenomenal rise being the ones of increasing per capita spending on healthcare products, greater exposure to international products in this area, importance and awareness of healthcare insurance and medical tourism. Of this, the share of revenue generation by Private hospitals was put at US$ 29.3 billion, up by a near US$ 16.3 billion from the 2007-08 level of US$ 12.9 billion.

In a related development, Medical Textiles business, in all probability, was expected to reach US$ 616 million during 2012-13 which is almost the double its size of US$ 331 million for 2007-08.

4. “Advantage India” for investors in India's technical textiles sector

ATIRA: Indian population could cater as the largest consumer of the technical textiles in direct or indirect ways if approached properly, especially with large part of the society comprising of middle class families with rising income year on year.

PSG: Strong raw materials fiber base for natural and synthetic fiber. Availability of technical man power, domestic consumption and COEs are other key advantages

WRA: Growth of technical textiles in industrailised western countries has been stagnating at 2.4% per year where as the CAGR in Asian countries particularly China and India is forecasted as 6.5%. India with its strong downstream textile industry has strong potential to grab a substantial share of the world market for technical textiles in the new decade. Growth of organized retailing, over 250 million of middle class population with disposable income, low cost of manufacturing and availability of skilled manpower at relatively cheaper costs are the obvious advantages India has over its competitors in this sector.

SITRA: In the last three years the Indian Textiles Industry has witnessed several transitions from a global recession to unprecedented price volatility. During the two years of economic slowdown, the industry showed significant resilience in making a rapid turnaround, assisted by a series of fiscal stimuli and Plan Schemes of the Government.

  1. Capital subsidy under Restructured Technology Up-gradation Funds Scheme (TUFS) for Technical textile machinery
  2. Textiles parks under Scheme for Integrated Textile Parks (SITP)
  3. About 14 functional special economic zones (SEZs) for textile-related activities which provide for duty-free imports and domestic procurement for 100% exports
  4. Integrated Skill Development Scheme (ISDS) to address the skill gaps in various segments of the textiles value chain.
  5. Technology Mission on Technical Textiles (TMTT) for creating new COEs with facilities like testing & evaluation of products, Resource Centre with I.T. Infrastructure, incubation unit, recurring expenditure support for hiring international experts; and provide support for new investments in the sector, contract research
  6. Foreign Direct Investment is permitted through automatic route without any limit

Moreover, income of Indian consumer has been on the rise; the per capita income has seen an increase from US$ 845 in the year 2009-10 to US$ 991 in 2010-11. The 'affordability factor' brought about by this upsurge is a good enough reason to expect more discretionary spending on technical textile products. With its one billion plus population, the Indian market offers profitable and assorted opportunities for foreign exporters with the right products, services, and commitment.

Research and Development

Technical textile is a knowledge-based sector. Currently, the majority of the market share in technical textiles is captured by less R&D-intensive segments such as packtech, clothtech, hometech and sportech. Segments such as geotech, oekotech, agrotech, etc. demonstrate ample opportunities for investments in R&D. To encourage R&D, the government is providing assistance to the extent of US$ 0.04 million under TMTT scheme.

North East Regional projects in Geotech and Agrotech

Geotextiles are used most commonly in the transportation market for construction of roadways because of their separation, reinforcement, and filtration functions. Geotextiles are also used for hill and slope protection, and for river bank erosion control. While traditional, existing efforts towards maintaining developed infrastructure through relaying and repairs is significant, these efforts insufficiently address the challenges to infrastructure in the Northeast region of India. The government is thus promoting usage of geotextile in the Northeast states with a budgeted expenditure of US$ 90.91 million.

Agriculture is a key driver for India’s economy. However, agricultural activities are carried out mostly under natural conditions of temperature and humidity. As a result of the absence of control factors, the country’s producers face various challenges including unsatisfactory yield, marred quality of produce, damages to the produce, regional limitation on cultivation, and seasonal limitation on cultivation. Use of agrotextile products like shadenets, bird protection nets, windshields, etc. can help in addressing the problems that the agriculture sector is facing. Given the significant vulnerability of the agricultural sector in the Northeast, Government of India has proposed a scheme with proposed expenditure of US$ 10 million to promote the application and use of agrotextiles in this region of the country.

Skill development

Conducting joint promotion and training exercise with institutions, such as involved in extension activities for farmers like agricultural universities, co-operatives, agrochemical and fertilizer manufacturers, financial institutions/banks, on usage of Agro-textiles, provides ample opportunities for stakeholders for skill exchange and knowledge transfer.

Integrated Textile Parks and Technical Textiles parks

Scheme for Integrated Textile Parks has been started by the Ministry of Textiles, Government of India. The purpose of the scheme is seeking green field investments in textiles sector on a Public Private Partnership (PPP) basis with the objective of setting up of world class infrastructure for textiles industry. It is estimated that the scheme would leverage an investment of over US$ 1,636 billion and provide employment to 4,00,000 textile workers. The product mix in these parks includes technical textiles which has been a thrust sector for Ministry of Textiles.