Investment opportunities

Specific products / segment for investment opportunity

Segment / ProductPresent Indian
market size
Expected growth for
next 5 years (CAGR)
Value proposition
Geosynthetics / Geomembranes ~ US$ 10 mn 25% +
  • Geomembranes find major application in landfills, ash ponds, etc.
  • Issue of waste management has received increasing attention from public and government over the years. With strict environmental guidelines coming in force, landfill etc. utilizing geomembranes will become a norm
  • Currently all the demand is met through imports, which attracts an import duty of ~ 30%
  • Since domestic demand is not large enough as of now and the technology level is high, Indian investors need to explore possibilities of international partnership with buyback arrangements
Protective wear / Clothing for defense end-use ~ US$ 350 mn 15%
  • Indian armed forces have ~ 1.45 million active personnel and 2.20 million reserve personnel. Almost 25% of active are involved in high risk, counter insurgency & special operations in super high attitude areas and require protective clothing.
  • Despite a high demand, there are very few private Indian players engaged in manufacturing protective apparel for Defense use because of significant R&D investments, long trial / approval process and high technology input.
  • It is advisable for Indian business houses to initially go for a marketing partnership or technology transfer with international suppliers and then evaluate manufacturing in India.
Agro textiles / Shade nets ~ US$ 10 mn 20-25%
  • Indian farm yield for most of the agri products are mostly below the global averages. Protected cultivation has still not attained its expected potential which can boost the productivity. However, the working group on Horticulture and Plantation crops for 12th Five year plan has indicated a need of US$ 1,818 million for area expansion programmes in integrated project mode including protected cultivation.
  • India has a potential demand of shade nets to cover 100,000 Ha under shade nets, while current penetration is hardly 7-8%
  • The current market consumption is driven by largely by government subsidy schemes. But, the key success factor for a shade net manufacturer will be the requirement of engaging with farmers, famer groups, etc. at the grass root level to educate them about the benefits and handhold them for implementation
Automotive textiles / airbag fabric ~ US$ 12 mn 18-20%
  • The current production of passenger cars in India is ~ 3.1 mn units, out of which ~ 500,000 are exported. Since 2005-06, the production has grown at a CAGR of 16% whereas exports have grown by 19% CAGR
  • Increasing income and safety concerns have seen increase in domestic sales of cars with airbags in last few years. However the current market size is still small. The demand can grow tremendously by introduction of mandatory use just like seat belts, but that may still be few years away.
  • Successful investment would need excellent market and raw material linkages, while the domestic market demand alone may justify plant viability. Hence, this venture makes sense in partnership with an international player partnership with buyback arrangement.