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TECHNICAL TEXTILES IN INDIA CURRENT A FUTURE MARKET SCENARIO

1. Introduction Global Technical Textile industry is estimated at US$


1
127 billion as of 2010. As evident from Exhibit 1,
Technical textiles refer to textile materials and Mobiltech, Indutech and Sportech are the largest
products used primarily for their technical segments of global Industry, together accounting for
performance and functional properties rather than 55% of the world market.
their aesthetic or decorative characteristics. The
Exhibit 1: Value-wise share of each segment in global technical
segment encompasses diverse products and textile market (2010)
applications; based on product characteristics,
Buildtech, Clothtech,
functional requirements and end-user applications; 7.3% 6.5% Hometech,
technical textile products have been grouped into 12 6.9%
Protech, 5.4%
categories as described in Error! Reference source Sportech, Geotech,
15.0%
not found.. Packtech,
1.0%
Oekotech,
5.2% Indutech, 0.2%
16.9%
Mobiltech,
Technical textiles are predominantly man-made 23.0%
Agrotech,
fibre-based owing to their inherent advantages of 6.4%
Meditech,
strength and versatility. Man-made fibres are 6.5%
estimated to account for around 80% of the total
fibre consumption in the global technical textiles. Sources: Report of the Expert Committee on Technical Textiles
(ECTT) Volume I, World Market Forecasts for 2010 of technical
Majority of technical textiles are manufactured using
textiles and industrial nonwovens by David Rigby Associates
regular fibres or their specialty variants, whereas,
high performance fibres account for a mere 5% of The Industry has witnessed a Compound Annual
the total fibre consumption. Growth Rate (CAGR) of over 3% from 2000 to 2010,
with Buildtech, Geotech, Oekotech and Indutech
2. Global Technical Textile Industry outlook being the fastest growing segments. Going forward,
the major growth areas for technical textiles in the
Technical Textile is the sunrise segment of the global global context are projected to be medical and
Textile industry. With increasing competition and personal hygiene, sports and leisure, environmental
diminishing margins in the production of protection, pollution control and filtration, garment
conventional textiles, textile manufacturers in and shoe industry.
industrialised countries have switched over to
production of value-added technical textiles. As the
The US is the largest consumer of technical textiles,
use of technical textiles is dictated by need, its
followed by Western Europe and Japan. However,
pricing normally offers good margins. The Technical
Technical Textile industry in the developed world is
Textile industry is estimated to account for over 50%
maturing in a significant way resulting in moderate
of the total textile activity in certain industrialised
growth in these economies. In contrast, China, India
countries.
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
of both production as well as consumption of India have great potential to make an impact in this
technical textiles. China, Japan, Korea, Taiwan and industry in the coming decade.

3. Indian Technical Textile industry


Exhibit 2: Value-wise share of each segment in Indian technical
textile market in US$ million (2009-10)
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
2
billion 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 Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
significant growth of 16% from 2001-02 to 2009-10
and, is expected to grow at a rate of 11% year-on-
Exhibit 4: Value-wise CAGR for various technical textile segments
year and reach a market size of US$ 15.1 billion by from 2009-10 to 2012-13
the year 2012-13. Domestic consumption is expected
Overall CAGR 11%
to increase to US$ 14.1 billion by the year 2012-13. Indutech 11%
Oekotech 19%
Geotech 11%
Exhibit 3: Market size of Indian Technical Textile industry Protech 10%
Hometech 12%
Clothtech 8%
Buildtech 8%
Sportech 11%
Packtech 13%
Mobiltech 10%
Meditech 8%
Agrotech 8%

0% 5% 10% 15% 20%

Source: Baseline survey of the Technical Textile industry in India

Packtech, Clothtech and Hometech are the largest


Sources: Baseline survey of the Technical Textile industry in India, segments of the Indian Industry, comprising around
ECTT, IMaCS Analysis 65% of the Indian technical textile market, as evident
from Exhibit 3. Going forward, Sportech, Indutech,
Geotech, Oekotech, Packtech and Hometech are
2
The exchange rate used for all 2009-10 and 2012- expected to achieve high growth rates.
13 figures is assumed to be the same at US$ 1 = `
46.35

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This segment is witnessing a significant thrust from
Though the country consumes products belonging to the Government owing to increasing awareness
all 12 categories of technical textiles, the share of about the benefits of the usage of shade nets, mulch
indigenous production varies drastically across mats, crop covers, anti-hail nets and bird-protection
products. India is a key producer of technical textile nets.
products including flexible intermediate bulk
containers (FIBCs), tarpaulins, jute carpet backing, Exhibit 5: Value-wise share of various products in Indian
Agrotech market (2009-10)
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 Source: Baseline survey of the Technical Textile industry in India,
Woven, Vardhman, Unimin, etc. The small scale IMaCS Analysis
segment also plays a key role, with production of
certain goods like canvas tarpaulin, carpet backing, National Horticulture Mission (NHM) has been
woven sacks, shoe laces, soft luggage, zip fasteners, actively promoting the usage of Agrotech products in
stuffed toys, fabrication of awnings, canopies and India through subsidies and annual plans for the
blinds, etc., being concentrated in the small scale states. NHM has included the Agrotech products
segment. aimed at plant protection under the Protective
th
Cultivation in the state-wise action plans. The XI
3.1. Agrotech plan envisages to expand the area under mulching
th
by 1,00,000 hectares. In addition, the XI plan aims
Agrotech includes technical textile products used in at providing assistance for procuring anti-hail nets in
agriculture, horticulture, fisheries and forestry. The the hail prone states like Jammu and Kashmir,
technical textile products covered under the Himachal Pradesh, and Uttar Pradesh.
segment include shade nets, mulch mats, crop
covers, fishing nets, anti-hail nets and bird- In line with these developments, the domestic
protection nets. consumption of this segment is expected to increase
Indian Agrotech market is estimated at US$ 136.4 to around US$ 153 million by 2012-13, growing at a
million in 2009-10, with domestic consumption of CAGR of around 8% over the next three year period.
US$ 119.3 million. As of 2009-10, fishing nets The consumption of mulch mats has the potential to
constituted around 84% of the segments market, grow at a CAGR of 51% from 2009-10 to 2012-13,
valued at US$ 114.1 million. 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 3.2. Meditech
NHM will continue to play a crucial role in increasing
the consumption of these products. Meditech products include textile materials used in
hygiene, health and personal care as well as surgical
Exhibit 6: Value-wise CAGR for Agrotech products (from 2009-10
to 2012-13) applications. The Meditech products are available in
woven, knitted and non-woven forms based on the
Overall CAGR: 8%
Anti-hail/bird-protection
20%
area of application. Increasingly, synthetic fibre is
nets
being used in the production of these products. It
Mulch-mats 51%
includes products like diapers, sanitary napkins,
Shade nets 6% disposables, contact lens, artificial implants, etc.
Fishing nets 5%
Technical textiles market under Meditech is
0% 10% 20% 30% 40% 50% 60% estimated at US$ 422.6 million in 2009-10. Surgical
dressing alone accounts for over 50% of the total
Source: Baseline survey of the Technical Textile industry in India,
technical textile consumption across Meditech
IMaCS Analysis
segment. Surgical sutures account for around 21% of
International trade the total Meditech consumption followed by contact
lenses and artificial implants as can be seen in
Majority of the demand for Agrotech products is
Exhibit 8.
satisfied by domestic production, with only around
4% of the fishing nets being imported.
Exhibit 8: Value-wise share of various products in Indian
Meditech market (2009-10)
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

Fishing nets 14%

Anti-hail/bird-protection
11%
nets

Crop covers 100%

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


Mulch mats 11%
IMaCS Analysis
Shade nets 44%
The demand for Meditech products is dependent on
0% 50% 100% 150%
the health and hygiene sector. The spend on
Source: Baseline survey of the Technical Textile industry in India,
healthcare segment is steadily on the rise in India,
IMaCS Analysis
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
3
Estimates based on the export and import data of 2007-08.

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products. Few of these policies include, National primarily imported. Majority of imports are from
Health Policy 2002, Rural Health Policy, policies Thailand, Singapore, Taiwan and China.
promoting manufacturing of medical devices and
various other policies working towards removing Exhibit 10: Volume-wise share of imports in the domestic
hurdles for private and voluntary sector consumption of Meditech products (2009-10)3

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.
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
Exhibit 9: Value-wise CAGR for Meditech products (from 2009-10
to 2012-13) 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)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
components, tyre cords, liners, etc.

International trade Indian Mobiltech market is estimated at US$ 833.5


Imports of technical textile component under million (2009-10), with domestic consumption
Meditech constitute about 28% of domestic accounting for around 99% of the market. In 2009-
consumption under this segment, by value. Demand 10, Nylon cord was the largest segment comprising
for products such as artificial implants, technical 57% share of the Mobiltech market, followed by seat
textile component of baby diapers and incontinence cover fabrics (14%) and helmets (10%), as seen in
diapers is met by imports; the non-woven material Exhibit 11.
required for medical applications (e.g. diapers) is
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 Exhibit 12: Value-wise CAGR for Mobiltech products (from 2009-
10 to 2012-13)
passenger cars segment has grown at a rate of
around 13% over the last five years, while the Indian Overall CAGR: 10%

commercial vehicles segment has grown at a rate of TT usage in Railways 3%


Aircrafts upholstery 12%
around 11% and, these segments are expected to
Aircraft webbings 15%
maintain similar growth levels over the next five
Airline disposables 14%
years. Helmets 25%
Sunvisors / sunblinds 16%
Exhibit 11: Market size of various products in Indian Mobiltech Insulation felts 16%
market (2009-10)
Headliners (TT component) 16%

Market size Automotive interior carpets 16%

Product (US$ million) % share Seat cover fabric / upholstery 17%

Nylon tyre cord 471.5 57.3% Car body covers 14%


Airbags (TT component) 24%
Seat cover fabric / upholstery 118.0 14.4%
Seat belt webbing 16%
Helmets 84.1 10.2%
Nylon tyre cord 4%
Insulation felts 67.7 8.2%
Automotive interior carpets 39.7 4.8% 0% 5% 10% 15% 20% 25% 30%
Sunvisors / sunblinds 21.4 2.6%
Source: Baseline survey of the Technical Textile industry in India,
Headliners (TT component) 8.3 1.0% IMaCS Analysis
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% International trade
Aircraft webbings 0.7 0.1% Indian Mobiltech industry is majorly focussed on
TT usage in Railways 0.3 0.04% domestic market with negligible exports. However,
Aircrafts upholstery 0.1 0.02% the segment is import-intensive. Airbags, seat belt
webbing, nylon tyre cord and airline disposables are
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis the import-intensive products. Thailand, Malaysia,
Korea, Germany and China are the key suppliers of
In line with the automotive segment, the domestic these products to India.
consumption of Mobiltech segment is expected to
increase from around US$ 816.8 million in 2009-10 Exhibit 13: Volume-wise share of imports in the domestic
consumption of top five products (2009-10)3
to around US$ 1,114.6 million by 2012-13, growing
at a CAGR of 10%. Airbags and helmets are expected
Airbags 100%
to achieve a significant growth rate, of around 25%
over the next few years, owing to increasing Seat belt webbing 59%

government focus on the road safety measures. Seat Nylon tyre cord 40%
belt webbing, upholstery, automotive interior Airline disposables 23%
carpets, headliners and NVH components are the
Seat cover fabric 7%
other products with significant growth potential.
0% 20% 40% 60% 80% 100% 120%

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


IMaCS Analysis

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

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)
Source: Baseline survey of the Technical Textile industry in India,
and wrapping fabrics together account for around IMaCS Analysis
25% of the total market, as seen in Exhibit 14.
Soft luggage, FIBC, tea-bags, leno bags and wrapping
fabric are the high growth potential areas as evident
Exhibit 14: Value-wise share of various products in Indian
from Exhibit 15. High export potential of FIBC and
Packtech market (2009-10)
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
Source: Baseline survey of the Technical Textile industry in India,
domestic consumption by volume. Majority of
IMaCS Analysis
imports of soft luggage fabrics are from China, Hong
Kong and France, while that of tea bags are from
The demand for the industrial packaging products
Germany, the UK and the US.
like woven sacks, FIBCs, jute sacks, etc, which
comprise the maximum share of the Packtech
Indian Packtech industry is focused on the domestic
market, is mainly driven by the cement, fertiliser and
market with exports comprising only 5% share of the
food industry. In the short term, the Packtech
overall market. FIBC, soft luggage products, jute
industry is expected to achieve a growth of 13% year
hessian and sacks are the export products, as
on year and reach a market size of US$ 5.77 billion
evident from Exhibit 17. The key export markets are
by 2012-13.
the UK, the US, Germany, Spain, France, Egypt, UAE,
Saudi and Japan.

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Exhibit 16: Volume wise share of Exports in the production for Source: Baseline survey of the Technical Textile industry in India,
top three products (2009-10)3 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)
Source: Baseline survey of the Technical Textile industry in India,
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
Source: Baseline survey of the Technical Textile industry in India,
composites, which include inflatable balls (footballs,
IMaCS Analysis
volleyball, basketballs, etc), cricket protective
equipments and boxing equipments, account for the
International trade
next highest share of around 16%, as seen in Exhibit
The imports in Sportech segment only constitute
17.
about 2-3% of the domestic consumption by value.
Exhibit 17: Value-wise share of various products in Indian The requirement for sail cloth, ballooning fabrics and
Sportech market (2009-10) 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.

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Exhibit 19: Volume wise share of Exports in the production for
Sportech products (2009-10)3 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
Source: Baseline survey of the Technical Textile industry in India, counters, etc. Demand for HDPE tarpaulin is
IMaCS Analysis expected to increase in line with increase in road
freight transport.
3.6. Buildtech
Exhibit 21: Value-wise CAGR for Buildtech products (from 2009-
10 to 2012-13)
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. Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
Exhibit 20: Value-wise share of various products in Indian
Buildtech market (2009-10)

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

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Exhibit 22: Volume-wise share of imports in the domestic Exhibit 23: Value-wise share of various products in Indian
consumption of top five products (2009-10)3 Clothtech market (2009-10)

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

Around 24% of the total production under Buildtech High growth potential of soft luggage industry,
segment is exported; floor and wall coverings are the footwear industry, home furnishing and apparel
key export product, comprising almost 99% the total industry are likely to drive the growth of velcro, zip
segment exports by value. The key export markets fastener and elastics.
are UAE, South Africa, the US and the UK.
Exhibit 24: Value-wise CAGR for Clothtech products (from 2009-
10 to 2012-13)
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 Source: Baseline survey of the Technical Textile industry in India,
2009-10. Sewing threads alone account for around IMaCS Analysis
60% of the technical textiles market under Clothtech
followed by labels with around 18% share, as seen in
Exhibit 23. International trade
Majority of the demand for Clothtech products is
The market for Clothtech products is expected to satisfied by domestic production with imports
grow at a rate of 8.2% annually and reach a size of accounting for mere 6% of the total domestic
US$ 2,206 million by 2012-13. Velcro, zip fasteners, consumption, however, there are certain products
elastics and shoe laces are the high growth potential that are import intensive. The entire demand for
areas as seen in Exhibit 24. taffeta fabric used for umbrellas is met be imports.
Other products with significant import volumes are

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interlining, elastic and velcro. Majority of imports
are from Hong Kong and China.

Exhibit 25: Volume-wise share of imports in the domestic


consumption of top four products (2009-10)3

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


IMaCS Analysis

The market for Hometech products is expected to


Source: Baseline survey of the Technical Textile industry in India,
grow at a rate of 11.7% annually and reach a size of
IMaCS Analysis US$ 1,887.4 million by 2012-13. Heating Ventilating
and Air-conditioning (HVAC) Filters, filter fabrics,
About 5% of the total production under the nonwoven wipes, blinds, furniture fabrics and stuff
Clothtech segment is exported. Elastic and sewing toys are the high growth potential areas, as seen in
thread account for majority of exports in the Exhibit 27. Demand for HVAC filters will be driven by
Clothtech segment. The key export markets are the growth of commercial air-conditioning industry
Bangladesh and Sri Lanka. on account of continued investments in segments
like IT/ITeS, Retail, Entertainment, Pharma,
Healthcare, Hospitality, Telecom and Banking. Rising
3.8. Hometech disposable income and changing lifestyle will drive
the demand for stuff toys and nonwoven wipes.
The Hometech segment of technical textiles Demand for blinds would be driven by increasing
comprises of the textile components used in construction activity and increasing popularity of
household applications. These products range from blinds.
the blinds used in houses to the filter products used
in vacuum cleaners. They are an important Exhibit 27: Value-wise CAGR for Hometech products (from 2009-
10 to 2012-13)
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.
Source: Baseline survey of the Technical Textile industry in India,
Exhibit 26: Value-wise share of various products in Indian IMaCS Analysis
Hometech market (2009-10)

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International trade defence comprises bullet proof jackets, NBC
Value-wise around 13% of the total consumption is (Nuclear, Biological, Chemical) suits, high altitude
imported. As per volume, 67% of HVAC filters clothing and fire retardant apparel.
consumed are imported whereas the value-wise
import of nonwoven wipes is 80% of the total Technical textiles market under Protech is estimated
consumption. Majority of imports are from Germany to be US$ 338.5 million in the year 2009-10. High
and Netherland (HVAC filters) and China. Majority of altitude clothing, bullet-proof jackets and fire
wipes are imported from China and Singapore. retardant fabrics account for 44%, 21% and 17% of
the Protech market, respectively, as seen in Exhibit
Exhibit 28: Volume-wise share of imports in the domestic 29.
consumption of top four products (2009-10)3
Exhibit 29: Value-wise share of various products in Indian
Protech market (2009-10)

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


IMaCS Analysis

The exports in the Hometech segment are not very


Source: Baseline survey of the Technical Textile industry in India,
significant; value-wise around 6% of the production
IMaCS Analysis
is exported. Fiberfil, which exports 9% of its
production volume and furniture fabrics, which The demand for Protech products is dependent on
exports about 14% of its production value are the improvements in worker safety practices, fire
only products with significant exports. The key protective standards for construction and increase in
export markets are the US and Argentina. defence sector spending on protective clothing. With
3.9. Protech increasing terror threats, the usage of bullet proof
jackets and other protective clothing is expected to
Protech is an ensemble of textile products and rise. For instance, orders to procure 20,000 bullet
related material used in the manufacture of various proof jackets on an emergent basis were placed in
protective clothing for the personnel working in January 2009 by the Ministry of Home Affairs for
hazardous environment. The protective clothing Central Police Organisation, including the National
includes garments and related paraphernalia for Security Guards and the Central Reserve Police
protection from harmful chemical environment, Force.
extreme temperature environments, low visibility,
ballistic protection, etc. The market for Protech products is expected to grow
at a rate of 9.8% annually and reach a size of US$
Indian Defence Forces with a total strength of 447.7 million by 2012-13. High growth is expected in
around 1.5 million individuals comprising the army, the fire retardant fabric, high visibility clothing
navy and air force, is one of the largest consumers of material and chemical protective clothing, as evident
protective textiles. The usage of protective textiles in from Exhibit 30.

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Source: Baseline survey of the Technical Textile industry in India,
Exhibit 30: Value-wise CAGR for Protech products (from 2009-10 IMaCS Analysis
to 2012-13)
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.
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis 3.10. Geotech

International trade Geotech segment comprises of technical textile


Indian Protech industry is import intensive with products used in geotechnical applications
imports accounting for around 60% of the domestic pertaining to soil, rock, earth, etc. Geotextiles refer
consumption of protective technical textiles. High to permeable fabric, woven or non-woven, used for
altitude clothing comprises around 90% of the total confinement/separation, reinforcement, filtration
imports in this segment. The production technology and drainage applications. Geotech products find
for high altitude clothing is restricted to Ordinance application in civil engineering (roads and
Factories of India which have limited capacity for pavements, slope stabilisation and embankment
manufacturing high altitude clothing thus, resulting protection, tunnels, rail-track bed stabilisation,
in imports. The demand for high visibility ground stabilisation and drainage, etc.), marine
clothing/reflective wear is also primarily met by engineering (soil erosion control and embankment
imports because of price competitive imported protection, breakwaters) and environmental
products. engineering (landfills and waste management).
Other specialised Geotech products comprise
Exhibit 31: Volume-wise share of imports in the domestic geogrids (synthetic filaments and tapes, etc., formed
consumption of top three products (2009-10)3 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

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4
Oekotech products, which is estimated at US$ 20.7 The Geotech segment in India is set to witness a
million. Synthetic Geotech products (geosynthetics) change owing to certain recent developments in the
account for around 90% of the total market, the road sector that are likely to provide the necessary
balance comprising of agro-based Geotech products. boost to the consumption of Geotextiles in roads.
Geotextiles comprise the largest share of Indian Design, Build, Finance and Operate (DBFO) model
Geotech market, with a share of 63% in 2009-10 of has been introduced in road contracts wherein the
which, woven geotextiles comprised 35%, as seen in private sector undertakes the responsibility for
Exhibit 32. operation and maintenance of the project road as
well as for building specified improvement schemes
The consumption of Geotech products is driven by (where appropriate). Under this model contractors
investments in the Infrastructure sector. Continued get liberty to design independently and, are
thrust on infrastructure development in India augurs responsible for the maintenance of project roads.
well for this segment. However, the Industry has not Thus, in order to ensure longevity of construction at
realised its full potential owing to lower than optimal cost they would prefer geotextiles.
expected penetration of geotextiles in various Moreover, successful control trials have been
infrastructure projects. A classic example of this is conducted by Central Road Research Institute (CRRI)
the road projects in India. for use of Jute geotextiles in roads, which is likely to
boost their use under the Pradhan Mantri Gram
Road sector is the largest consumer of Geotextiles in Sadak Yojana (PMGSY).
the Indian market, whereas, demand from other
sectors (power, ports, airports, railways, etc.) is In addition, the Office of Textile Commissioner and
largely project specific. Government had planned an industry experts are making targeted efforts to boost
5
investment of around US$ 5.55 billion in roads the consumption of Geotextiles. Bureau of Indian
(excluding PMGSY) during 2006-07 to 2010-11. In Standards (BIS) has approved the standards on Coir
case Geotech products were used in all these road Bhoovastra (Jute Geotextiles and Coir Geotextiles)
projects, the consumption of Geotextiles in NHAI and, have published two standards viz. IS 15868
road projects alone could be to the extent of US$ (part 1 to 6 2008) and IS 15869 -2008. BIS has also
5
22.2 million per annum. formulated the standard for geosynthetics made
from polyolefin or polyester material for highways.
However, the consumption of geotextiles in India is Moreover, promotion of the use of geomembrane as
very low as compared to its potential. Conservative lining for canals, ponds and reservoirs by NHM is
views of major institutional users have been a key likely to boost the consumption of geomembranes.
impeding factor for the growth of this segment in
the domestic market. Moreover, the segment has In view of the above mentioned developments, an
been suffering from issues related to lack of optimistic estimate of the potential market size for
awareness about economic benefits of Geotech Geotech products that could be achieved in 2012-13
products amongst all institutional buyers, lack of can be placed at around US$ 164 million. In
adequate testing facilities and non-availability of addition, the Office of Textile Commissioner and
trained technical personnel. industry experts are making targeted efforts to boost
the consumption of Geotextiles.

4
The details of the Oekotech application under
technical textiles have been explained in the next
section.
5
Exchange rate used US$ 1 = ` 45

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

Source: Baseline survey of the Technical Textile industry in India, IMaCS Analysis
Europe are the major suppliers of these products to
Bureau of Indian Standards (BIS) has approved the India.
standards on Coir Bhoovastra (Jute Geotextiles and
Exhibit 33:Value-wise share of imports in the domestic
Coir Geotextiles) and, have published two standards
consumption of Geotech products (2009-10)3
viz. IS 15868 (part 1 to 6 2008) and IS 15869 -2008.
BIS has also formulated the standard for
Geomembrane,
geosynthetics made from polyolefin or polyester Geocomposites
62%

material for highways. Moreover, promotion of the


Geogrids 60%
use of geomembrane as lining for canals, ponds and
reservoirs by NHM is likely to boost the consumption
Geotextiles 66%
of geomembranes.
56% 58% 60% 62% 64% 66% 68%
In view of the above mentioned developments, an Source: Baseline survey of the Technical Textile industry in India,
optimistic estimate of the potential market size for IMaCS Analysis
Geotech products that could be achieved in 2012-13
can be placed at around US$ 164 million. The India is also an exporter of certain Geotech products,
achievement of this market size, however, is subject with exports accounting for around one-third of the
to a higher adoption rate for Geotech products by market in 2009-10. Coir-based geotextiles produced
various stakeholders implementing road and other in India are majorly exported to Middle-East
infrastructure projects in India. In case the countries, the UK, the US, Germany, Italy, and select
challenges faced by this segment are not addressed European countries.
to the fullest, a realistic estimate of market size that
the Geotech segment could achieve in 2012-13 is 3.11. Oekotech
about US$ 98 million.
Oekotech segment involves technical textile
International trade products used in environmental engineering. Landfill
Around 40% of the domestic demand for Geotech waste management is the key application, which
products is met by imports. Geosynthetics, including refers to the use of geosynthetic products to secure
geogrids, geotextiles, geocomposites are the import landfills against leakage of municipal or hazardous
intensive products. Malaysia, China, Taiwan and waste. Other areas include secondary protection in
chemical/oil industries (ground covers and the like

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around process tanks for secondary containment). Exhibit 34: Market size of various products in Indian Indutech
market (2009-10)
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 Source: Baseline survey of the Technical Textile industry in India,
and government activity on hazardous waste in IMaCS Analysis
accordance with Supreme Court Guidelines, the
states are expected to create scientific landfill sites. The market for Indutech products is expected to
The Twelfth Finance Commission has recommended grow at a rate of 11% annually and reach a size of
devolution of grants for Urban Local Bodies (UCB), US$ 1,173 million by 2012-13. Fiber-glass products
with US$ 55.6 million5 exclusively for setting-up of (including AGM glass battery separators) are
expected to lead the growth in demand of Indutech
solid waste management systems in urban areas.
technical textiles in India, as evident from Exhibit 35.
Consequently, many urban bodies are starting
process of developing landfills (granting landfill,
Exhibit 35: Value-wise CAGR for Indutech products (from 2009-
initiating ground preparation etc) for municipal 10 to 2012-13)
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.
Source: Baseline survey of the Technical Textile industry in India,
Indian Indutech market is estimated at US$ 854.4 IMaCS Analysis

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


by composites and around 27% by the ropes and International trade
cordages, as seen in Exhibit 34. Imports account for around one third of the total
domestic consumption in this segment. Printed
circuit boards, AGM battery separators and other

16 | P a g e
applications of fibre glass constitute majority of the Inadequate awareness about the benefits of
imports. Majority of the imports are from China, technical textiles among end-users, primarily in
Taiwan, Thailand, Germany, Italy, Japan, Korea and sectors like Meditech, Agrotech and Geotech,
Indonesia.
which is hampering the potential demand of
Exhibit 36: Volume-wise share of imports in the domestic technical textiles in India
consumption for Indutech products (2009-10)3 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


Source: Baseline survey of the Technical Textile industry in India, to address these issues as well as to accelerate the
IMaCS Analysis
growth of Indian Technical Textile industry, including
subsidies and incentives to boost the domestic
Exports of Indutech products account for around
production of technical textiles and specialty fibres
35% of the total production. Almost 40-45% of the
domestic production of fibre glass and conveyor and (under the Draft National Fibre Policy) as well as\
drive belts is exported. The key export markets are setting up of centres of excellence to provide
Middle-East countries, the US, Africa, Cambodia, Iran technology support. However, to realise the full
and Taiwan. potential of this Industry, dedicated joint efforts are
required by both, Government and the Industry.

Exhibit 37: Triggers to boost the Technical Textile industry


4. Triggers for the growth of Technical Textile
industry Initiatives taken Existing Gaps
Awareness about benefits of technical textile products
amongst the private and institutional users

Standards (focus Geotech)


With the Indian economy poised for substantial
Testing facilities
growth in the coming decade, the Indian Textile
industry largely depends on technical textiles to Technically trained personnel

accelerate the growth. There are several areas Domestic availability of high performance and specialty
fibers

where consumption of Technical Textiles is set to


Regulations promoting usage of technical textiles
increase viz., India is now the global hub for small
cars; Trillions of US$ investment is envisaged in
infrastructure roads, ports, airports etc., 5. IMaCS - An introduction
ICRA Management Consulting Services Limited
Though Government has taken several initiatives to (IMaCS) is a multi-line management and
drive the growth of technical textiles in India and the development consulting firm headquartered in India.
market has not exploited its full potential, till date. It has an established track record of over 15 years in
The Industry is facing certain key issues that are consulting across various sectors and countries.
impeding its growth. IMaCS has completed about 1000 consulting

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assignments and has worked in over 35 countries consulting expertise, backed by the following
across the globe. capabilities:

An extensive and organised database on several


GROUP ICRA
sectors.
Knowledge of key factors of success in different
projects and program.
Credit Management IT BPO
Rating Consulting (Software) An ability to research emerging trends in the
economy, as well as in specific sectors, based on
primary and secondary data.
ICRA Limited ICRA Management ICRA Techno ICRA Online Ltd. Insights into different programme and
Consulting Services Analytics Ltd.
Limited organisational processes.
ICRA Techno Ability to carry out economic analysis and build
Analytics Inc.
quantitative and financial models to project
future performance and identify imperatives.
IMaCS is a wholly-owned subsidiary of ICRA Limited
Ability to identify the various types of risks and
(ICRA), one of Indias leading credit rating agencies.
suggest appropriate strategies to mitigate the
IMaCS operated as a division of ICRA till March 2005,
same.
when it was de-merged from ICRA and became a
standalone company. IMaCS Business Groups and Practice Areas
The different business groups and practice areas
The main driver for IMaCS growth has been a
within IMaCS form our matrix of service offerings.
growing need for unbiased professional views on
Multi-disciplinary teams are used on most
adopting best business practices arising from
assignments. The diversity of experience in IMaCS
economic deregulation, growing international trade
teams helps it to adopt a creative and cross-
& integration, and the increasing need to be globally
functional approach to problem solving, which has
competitive.
not only been very successful in practice, but has
also been well appreciated by all our clients.
Our clientele includes banks, financial institutions,
non-banking financial companies, manufacturing and
Practice Areas IMaCS - We focus on six practice areas
services organizations, governments, government-
Strategy Enhancing Competitiveness/Market Assessment/Improving Effectiveness
owned organizations, debt and equity investors,
regulators, and multilateral agencies. We have Risk Credit Risk/Market Risk/Operational Risk/EWRM/Risk Analytics/Software

executed assignments for multilateral agencies such


Process
as The World Bank, World Bank Institute (WBI), Consulting
Cost Reduction/Process Re-engineering/Organisation Design

Commonwealth Development Corporation (CDC), Transaction M&A/Due Diligence/Project Advisory/Bid Advisory/Financial Restructuring
United Nations Development Programme (UNDP), Advisory

United States Agency for International Development Policy &


Regulation Regulatory Economics/PPP Models/Governance

(USAID), Department for International Development


Development Investment Climate/Institutional Strengthening/Capacity Building
(DfID), African Development Bank (AfDB), Asian Consulting /Poverty Alleviation/Sustainable Development

Development Bank (ADB) and International Finance Business Banking & Government/
groups Energy Infrastructure Corporate
Corporation (IFC). Insurance Multilaterals

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


Through the process of carrying out several Talreja and Ms.Shachi Bajoria were part of the team that prepared the
assignments over the last decade and half, IMaCS Baseline Survey of Technical Textiles for the Office of the Textile
Commissioner, Government of India, in the year 2009.
has accumulated considerable analytical and

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