Tech Textile -International Trend vibrant Gujarat

Technical TextilesInternational Trends

Vibrant GujaratVibrant Gujarat Presentation

Prepared by

www.gherzi.com

Page 1Vibrant Gujarat Conference 2010, India

India – November 20th, 2010

Gherzi Group

World leading consultancy for the Fibre Textile TechTex & Nonwoven and

Management &Organisation Corparate Finance Engineering

World leading consultancy for the Fibre, Textile, TechTex & Nonwoven and Garment industry with more than 900 full time employees

BOSSRestructuring and

Organisation p g g

BOSSH U G O B O S STurn-around

Strategy

Market Studies

M & A

Supply Chain

Operational ImprovementOperational Improvement

Product Development


International Trends in Technical Textiles

Agenda

1 T h i l T til M k t O i1 Technical Textile Market Overview 3

2 High Growth Applications 7

3 High Growth Technologies 12

4 Growth Opportunities 254 Growth Opportunities 25


Technical Textile Market Overview

$World markets for Technical Textiles are growing by 23 Bn US $ in 5 years withthe Asian share increasing to 45 %

World market for Technical Textiles

1995 2000 2005 2010Bn US$

120

140

93

110133

5463

73

60

80

100 78

59 % 58 %

55 %

57 %

3239

47 60

46

20

40

60 59 %

41%

58 %

42%

45%43%

320

A iRest of World

41%


Source: DRA, Gherzi analysis and research

Asia


Generally, emerging economies show the highest growth rates in TechnicalTextiles

T h i l T til L t t d b i

2005 2010 CAGR 05 / 10 [%]

Technical Textiles: Long term trend by region

Total: 127 2 M US$

Asia: 4 4 %Total: 106.8 M US$

Total: 127.2 M US$

Asia 48.4

59.9Asia: 4.4 %

America 30.034.8 America: 3.0 %

Europe

ROW

25.6 29.2

2.8 3.3

Europe: 2.7 %

ROW: 3.3 %


Source: IVGT


By 2010 China and India will have become major global players in Technical Textiles with China achieving a world market share of 26 % and India a share of 9 %

Technical Textiles production in ‘000 tons

China[‘000 tons]

India

20102002 20102002

5,000

6,000

2 000

3,000

4,000

4 105

6,065

0

1,000

2,000 4,105

1,3402,075


Source: Technical Textile International, Ministry of Textiles India, Gherzi analysis and estimates


Agenda






High Growth Applications

Geotech, Indutech & Buildtech are expected to be the highest growth TechTexapplications worldwide

Technical Textile long term trendTechnical Textile long term trend

M US $ 2005 2010 CAGR %

G %Geotech 927 1,202 5.3 %

Indutech 16,687 21,527 5,3 %

Buildtech 7,379 9,430 5.0 %

Source: DRA (excluding Oekotech)



Geotextiles are expected to grow on average by 5 % p.a. ‘till 2013. Emerging markets like Asia / Pacific show the highest growth rates

Demand of Geotextiles 2013 [Mm²]

/ fOthers

4.715 Mm²

[Mm²] 2008 2013 AGR [%]Asia / Pacific(2340 Mm²)

Western Europe (775 M ²)

Others (595 Mm²)

12.6 %

[Mm ] 2008 2013 AGR [%]

North America 865 1005 3,0

44.6 %

(775 Mm²)16.4 % Western

Europe 710 775 1,8

Asia / 1610 2340 7 821.3 % Pacific 1610 2340 7,8

Others 465 595 5,1

North America (1005 Mm²) Total 3.650 7.715 5,3

S G CS G


Source: The Freedonia Group, IMaCS analysis, Gherzi analysis


Successful Geotech companies in Europe are outgrowing the market

Major European Geotech companies (Sales in M€)j p p ( )

Naue GmbH (Germany) Huesker Geosynthetics (Germany)

140.0 109.2

115.7 90.7

Year: 2006 2008 2006 2008


Source: Unternehmensregister

Year: 2006 2008 2006 2008


The same holds true for leading Indutech & Buildtech companies in Europe

Growth of examples for Indutech & Buildtech in M€p

Habasit (CH) GKD

516.9

452.1

102 6

73.3

102.6

Year: 2006 2008 2006 2008


Source: Habasit, Unternehmensregister

Year: 2006 2008 2006 2008


Agenda






High Growth Technologies

Examples of high growth technologies

Nonwovens

Composite reinforcement



Generally, Nonwovens show the highest growth rate of all Technical Textiletechnologies

Worldwide Nonwoven production from 2002 to 2012 (Fc.)

2002 2007 2012 (Fc.)

30 6

15.1 Bn US$

20.9 BnUS$

30.6 Bn US$

Bn US$


Source: INDA, Edana estimates


Amongst all regions China shows the highest growth in Nonwoven production

[in kt] 1997 2002 2007 2012 (est.) CAGR [97/12]

Nonwoven production Outlook by region

Europe 781 1.263 1.659 2.339 7.6 %

China 211 478 1.136 2.068 16.4 %

Other Asia Pacific 308 405 573 777 6.4 %

North America 897 1.184 1.491 1.845 4.9 %

So th America 101 172 254 419 9 9 %South America 101 172 254 419 9.9 %

Japan 298 298 338 388 1.8 %

Middle East 63 120 174 272 10 2 %Middle East 63 120 174 272 10.2 %

ROW 29 47 126 304 17.0 %

Total 2.688 3.967 5.751 8.412 7.9 %


Source: Inda, Edana, Gherzi estimates


Compared to China Indian Nonwoven production is underdeveloped

Asia’s growth of Nonwoven production

[tons] 1.095.000 t 1.909.000 t 3.031.000 t

3.000.000 India

2.000.000

China1.000.000

China

[year]


Source: ANNA, KNIC, TNFIA, CNTA, Gherzi estimates


In 2012 the world Nonwoven production (~ 8.4 million tons) will split by process as follows

Nonwovens segmented by application

Wet laid4%

Air laid Pulp8%World Nonwoven production

2012: ~ 8.4 Mn tons

Spunlaid48%

2012: 8.4 Mn tons

48%Carded

40%


Source: INDA estimates, Gherzi estimates


Spunbond is the fastest growing Nonwoven technology

Development of Nonwoven technologies from 1997 to 2012 (Fc.)

40394000

4500[kt]

Spunbond(ex chips)

2621

3396

2500

3000

3500

16051453

1889

2507

1500

2000

2500

283159 293 406694

942

1453

500

1000

126 186 217 283159

0

Spunbond Carded Air laid Wet laid

1997 201220072002


Source: INDA estimates

Spunbond Carded Air laid Wet laid


Carded NW production by bonding technology shows the highest growth in hydro-entangled (spunlace) Nonwovens

Development of Nonwoven carded production from 1997 to 2012 (est.)

1600

1800[kt]

1115

1562

1200

1400

1600

Spunlace1083

664778

1115

780782

751800

1000

p(ex carded

fleece)

168

331

610621

200

400

600

168

0

Needle punch Spunlace Thermal / Resin

1997 201220072002


Source: INDA estimates

Needle punch Spunlace Thermal / Resin


Nonwoven technology has allowed for exceptional company growth in Europe

Example: Pegas (CZ)Example: Pegas (CZ)

2010 (exp.) 2003

138 M€

50 M€

Source: Pegas

50 M€



Examples of high growth technologies

Nonwovens

Composite reinforcement



Definitions

Composites are mainly produced by resin impregnation of sometimes pre impregnatedComposites are mainly produced by resin impregnation of – sometimes pre-impregnated (‘prepreg’) – fibre structures

The fibres give strength to the composite structure without adding undue weight

Composites can be segmented into ‘low performance’ (using chopped glass or glass mats asComposites can be segmented into low performance (using chopped glass or glass mats as reinforcement) and ‘high performance’ (using fabrics of glass, polyester, aramide or carbon as reinforcement)

S T h i l T til M k t


Source: Technical Textile Markets


On a world scale above average growth is expected especially for the wind energy and aerospace segments

World market growth by application% CAGR

2005 - 2010Wind energy10

World market growth by application

Aerospace9

8

7

Electrical /Electronic

Pipe&

Tank*

World average growth2005 2010

Transpor-tation

ConstructionOthers

7

6

5

2005 - 2010Consumergoods

Marine

4

3

2

World market2005 in kt

1

00 1000 2000 3000 4000 5000 6000


Source: E-Composites

* driven also by canal revamping

S t th ( lti i l i li t) d t t th tt ti f


Saertex company growth (multiaxial specialist) demonstrates the attractiveness ofthe high performance composite reinforcement segment

Example: Saertex (D)

2001 2004 2006 2008 2009 (est.)

CAGR 21.2 %

125M€

133.5 M€ 140 M€

30 M€55M€


Source: INDA, Gherzi estimates


Agenda






Conclusion & Growth Opportunities

Technical Textiles will continue to grow worldwide – especially in the emerging markets

Climate changes leading to floods, hurricanes, etc. favour the worldwide use of Geotextiles which is one of the strongest growing Technical Textile segmentsg g g g

A i ill b j l b l l i T h i l T til d t th hi h thAsia will become a major global player in Technical Textiles due to the high growth rates of local markets and increasing installation of local state-of-the-art production capacity

Compared to China India still lags behind especially in Nonwoven production


Conclusion & Growth Opportunities

New manufacturing technologies show above average growth rates

o Nonwoveno Multi-axial technologyo Multi-axial technologyo etc.

Textile reinforcement of high performance composites (such as with carbon fibres) isbecoming more and more important in respect to reducing weights (such as in air-planes and cars) or stemming from the demand from new sectors like wind energyplanes and cars) or stemming from the demand from new sectors like wind energy

Internationally, composite reinforcements and Nonwovens have been the foundation for exceptional growth


Thank you very much for your attention!Q & A

• Thank you very much for your attention!

Questions are welcome!


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Tech Textile -International Trend vibrant Gujarat