CREATING VALUE CHAIN IN TECHNICAL TEXTILES

CREATING VALUE CHAIN IN TECHNICAL TEXTILES

ANUPAM DIKSHITCOO – PROJECTS

S. KUMARS NATIONWIDE LTD25TH AUGUST 2011

WHAT IS TECHNICAL TEXTILES• Any textiles where function comes first

and only then criteria like price and usually not aesthetics

• Used by other industries for their specific physical and functional properties their end products

• Not fashion oriented and not seasonal

FORMS• Fibres (such as for plastic or cement

reinforcement)• Yarn type products (such as sewing thread or

ropes)• Non-wovens (ex staple fibre or ex chips)• Non-spun products (such as wadding or filters)• Fabrics (woven, knitted, braided, stitch-bonded

or other)• Garments (fire retardant, bullet proof vest) • Made-up products (tarpaulins for trucks, filters,

tents and temporary buildings)

SECTORS

WORLD SECTOR-WISE SHARE

Mo-bil-

tech; 24%

In-dutech; 16%

Sporttech; 15%Buildtech; 7%

Clothtech; 7%

Hometech; 7%

Agrotech; 6%

Medtech; 6%

Packtech; 5%

Protech; 5% Geotech; 1% Okeotech; 1%

Total US$ 127 bn 2010

INDIA SECTOR-WISE SHARE

Packtech36%

Clothtech17%

Hometech12%

Mo-bil-

tech8%

Sporttech7%

In-dutech

6%

Buildtech4%

Medtech

4% Protech3%

Agrotech1%

Geotech1% Okeotech

1%

Total US$ 12 bn

GROWTH OF TEXTILESWorld Total

GLOBAL BREAK-UP

FIBRE BASES

RAW MATERIALS

TECHNOLOGIES

• Fabrics – Woven, Warp-Knit, Weft-Knit• Non-Wovens• Stitchbonding – Bi-Axial, Multi-Axial• Laminations – Film, Fabric, Membrane,

Leather or Non-Woven• Composites of above

NON-WOVENS GROWTHVALUE

NON-WOVENS ASIAQUANTITY

TRENDS• TT will continue to grow world-wide• Asia will become the major global player• India is yet at an emerging state in TT• Major growth technologies are :

Non-WovensReinforced Hi-Performance Composites GeotextilesFilterationFunctional Garments – FR, Hi-Vis, Sports,

Extreme Weather, Bullet-Proof….

SECTOR SELECTION

MARKET ATTRACTIVENESSCOMPANY

POTENTIAL & SYNERGY

LOW MEDIUM HIGH

HIGH IGNORE SECTOR ANALYZE SECTOR TARGET SECTOR

MEDIUM

IGNORE SECTOR ANALYZE SECTOR ANALYZE SECTOR

LOW IGNORE SECTOR IGNORE SECTOR IGNORE SECTOR

POTENTIAL SECTORS

• Geotech

• Medtech – Non-Woven

• Mobiltech

• Protech

GEOTECH (GT)

GT NORMS

GT SEGMENTS

GT DEMANDEXP YR 2013

INDIA GROWTH DRIVERS

POWER48%ROADS

24%

RAI-WAYS17%

PORTS8%

AIRPORTS4%

GOI INV PLAN 07-11TOTAL 160K CRS

CONCLUSIONS GT• Consumption will continue to be dominated

by Govt or Govt backed contractors• Lack of norms leading to subjectivity• Absence of regulation for usage, as against

US, EU, Japan & even China• Co-operation required by user ministries• Intl market restricted by entry barriers - high

quality norms, tender based buying & long-term guarantees & maintenance contracts - so focus on domestic & maybe near abroad

MEDTECH (MT)• Products can be segmented by :

Application Hygiene & Personal Care (Non-Sterile) Surgical & Medical Applications (Sterile)

Technology Carded/Spunlaced Cotton Wool – cotton balls,

dental buds, make-up pads, wound dressing etc Spunmelt Non-Woven – medical gowns, masks etc Spunlaced Non-Woven – wipes, dressings etc Woven – gowns, drapes, gauze etc

TYPES OF NON-WOVEN

SPUNMELT45%

CARDED

44%

AIR-LAID

7%

WET-LAID4%

WORLD QTY -’08

GROWTH IN SPUNMELT

1997 2002 2007 2012*0

500

1000

1500

2000

2500

3000

3500

4000

4500

SPUNMELTCARDEDAIR-LAIDWET-LAID

IN K.TONS

NON WOVEN MARKETS

PRODUCTS MT

INDIA MARKET

2002 2007 20120

50

100

150

200

250

300

350

400

K TonsMn US$

CONCLUSIONS MT

• High entry barrier due to heavy Capital Exp• High rate of technology upgradation requires

quick repeat capital investments• High volume machinery requires steady market,

usually a JV with an MNC user• Very high quality standards, esp for sterile goods

with intl agency approvals• Very few high quality machinery makers • Limited no. of raw-mat. makers• More margin finished goods than in r/m

MOBILTECH (MbT)• Applications in cars, bikes, trucks, buses, trains,

metros, planes, ships …… any tptn device

• Components – abt 30 kg per car : In-cabin - upholstery, door panels, carpets, headliner,

seatbelt, airbags …… Outside – hood acoustic liner, filters, tyre cords, wheel-arch

liner, trunk liner, under shield, cable wrappers ……

• Products – Non-woven acoustic liner, carpets, headliners Decorative woven fire retardant interior fabrics Nylon/ Polyester tyre cord High tenacity polyester narrow width seat belts

PRODUCTS

INDIA VEHICLE MARKET

AIRBAGS

MADE-UP AIRBAG

GROWTH OF AIRBAGS

TYRE CORD

SEATBELTS

CONCLUSIONS MbT• Though some sectors have good potential and

synergy like interior fabrics, liners & seat-belt sectors like tyre cord & airbags were low

• There is more potential in made-up product than in only the component

• Component market is dominated with SME sector which is difficult to compete on price

• Front end tie-up with auto industry critical• Slowdown expected in auto industry both

domestic & exports esp high end cars• Market can grow exponentially with changes in

regulations for FR fabric, airbags, rear seatbelt

PROTECH (PT)• Covers all types of protective clothing ranging

from high quality industrial work-wear to high performance products like bullet-proof vests, high altitude clothing etc

• Made from standard fibres/blends or from specialized technical fibres like high tenacity fine denier filament, aramides, carbon etc

• Covered by very high performance standards under harsh usage conditions

• One of the largest users are defense forces followed by hazardous industries

CHIEF FUNCTIONS

• Foul Weather Protection• High Visibility• Fire Retardant• Anti Static • High Altitude Clothing• Nuclear Biological Chemical (NBC) Protection• Dust Protection• Slash Protection• Bullet Proof Vests

WORLD MARKET

WORLD MKT SEGMENTS

FOUL WEATHER

55%

FIRE RET14%CHEMICAL

9%

SLASH7%

DUST4%

BALLISTICS4%

MASKS3%

HI VIS3%

HARNESSES1%

NBC0%

Tot $ 6.86 Bn ’10

INDIA MKT SEGMENTS

HIGH ALT 51%

BAL-LISTIC20%

FIRE RET20%

HI VIS5%

NBC2%

CHEM1% INDL GLOVES

1%

Tot $325 Mn ’10

PRODUCTS

PRODUCTS

USES IN DEFENCE• The biggest user of Protech is defence forces

– military, para-military, police & fire brigade

• Products include : Uniforms Foul Weather Clothing (FWC) incl Extreme Cold Climate

Clothing (ECC) Ballistic protection – vehicles & personnel Fire Proof/Retardant clothing Nuclear-Biological-Chemical protection suits Multi-Spectral Camouflage – objects & personnel Parachute fabrics & cords Tents, Sleeping bags & Packs

USES IN INDIAN INDUSTRY• Currently Protech is an under-developed market

in industry due to low regulation, missing norms and even lesser implementation

• This is changing with world-class cos & multi- national cos setting intl stds for worker safety

• SME sector virtual non-users of Protech• Pressure from workers & customer compliance

has a major role in pushing for Protech• Higher quality workforce require better uniforms• FWC for outdoor workers potentially a huge mkt• Both purchase & rental model exist but latter is a

new development in India

CONCLUSIONS PT• Defence forces will continue to dominate the

Indian market in the near future• Extensive refurbishment of defence forces

underway providing much needed protection to personnel & market for high qlty products

• Better norms reqd to avoid only L1 purchasing• Significant import substitution possible• Industry usage is increasing but can grow

faster with adoption of world class stds• Barriers in access to special fibres/technology

exist so JV with suppliers critical

RECOMMENDATIONS• Raw Materials : Encourage dev of high-grade fibre,

yarn & rolled-goods capacities• Policy Changes : Must make usage compulsory over a

defined time. Multi-ministry Empowered Group (EG) must be set-up to recommend policy changes

• Education : Centres of Excellence (COE) need to be further strengthened to encourage training at supervisor & worker level.

• Standards : Efforts to establish clearer stds & testing meths of intl level have to be strengthened.

• Funding : Competition from US, EU & China, where cost of funds is 3% to 5%, TUF benefit inadequate. Increase subvention, for limited period of 5 yrs, to at least 10% to encourage investments

THANK YOU