technical textiles in india - imacs
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TECHNICAL TEXTILES IN INDIA – CURRENT A FUTURE MARKET SCENARIO
1. Introduction
Technical textiles refer to textile materials and
products used primarily for their technical
performance and functional properties rather than
their aesthetic or decorative characteristics. The
segment encompasses diverse products and
applications; based on product characteristics,
functional requirements and end-user applications;
technical textile products have been grouped into 12
categories as described in Error! Reference source
not found..
Technical textiles are predominantly man-made
fibre-based owing to their inherent advantages of
strength and versatility. Man-made fibres are
estimated to account for around 80% of the total
fibre consumption in the global technical textiles.
Majority of technical textiles are manufactured using
regular fibres or their specialty variants, whereas,
high performance fibres account for a mere 5% of
the total fibre consumption.
2. Global Technical Textile Industry outlook
Technical Textile is the sunrise segment of the global
Textile industry. With increasing competition and
diminishing margins in the production of
conventional textiles, textile manufacturers in
industrialised countries have switched over to
production of value-added technical textiles. As the
use of technical textiles is dictated by need, its
pricing normally offers good margins. The Technical
Textile industry is estimated to account for over 50%
of the total textile activity in certain industrialised
countries.
Global Technical Textile industry is estimated at US$
127 billion1 as of 2010. As evident from Exhibit 1,
Mobiltech, Indutech and Sportech are the largest
segments of global Industry, together accounting for
55% of the world market.
Exhibit 1: Value-wise share of each segment in global technical textile market (2010)
Sources: Report of the Expert Committee on Technical Textiles
(ECTT) Volume – I, ‘World Market Forecasts for 2010 of technical
textiles and industrial nonwovens’ by David Rigby Associates
The Industry has witnessed a Compound Annual
Growth Rate (CAGR) of over 3% from 2000 to 2010,
with Buildtech, Geotech, Oekotech and Indutech
being the fastest growing segments. Going forward,
the major growth areas for technical textiles in the
global context are projected to be medical and
personal hygiene, sports and leisure, environmental
protection, pollution control and filtration, garment
and shoe industry.
The US is the largest consumer of technical textiles,
followed by Western Europe and Japan. However,
Technical Textile industry in the developed world is
maturing in a significant way resulting in moderate
growth in these economies. In contrast, China, India
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
Agrotech, 6.4%
Meditech, 6.5%
Mobiltech, 23.0%
Packtech, 5.2%
Sportech, 15.0%
Buildtech, 7.3%
Clothtech, 6.5% Hometech,
6.9%
Protech, 5.4%
Geotech, 1.0%
Oekotech, 0.2%
Indutech, 16.9%
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of both production as well as consumption of
technical textiles. China, Japan, Korea, Taiwan and
India have great potential to make an impact in this
industry in the coming decade.
3. Indian Technical Textile industry
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
billion2 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
significant growth of 16% from 2001-02 to 2009-10
and, is expected to grow at a rate of 11% year-on-
year and reach a market size of US$ 15.1 billion by
the year 2012-13. Domestic consumption is expected
to increase to US$ 14.1 billion by the year 2012-13.
Exhibit 3: Market size of Indian Technical Textile industry
Sources: Baseline survey of the Technical Textile industry in India,
ECTT, IMaCS Analysis
2 The exchange rate used for all 2009-10 and 2012-
13 figures is assumed to be the same at US$ 1 = ` 46.35
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
Exhibit 4: Value-wise CAGR for various technical textile segments
from 2009-10 to 2012-13
Source: Baseline survey of the Technical Textile industry in India
Packtech, Clothtech and Hometech are the largest
segments of the Indian Industry, comprising around
65% of the Indian technical textile market, as evident
from Exhibit 3. Going forward, Sportech, Indutech,
Geotech, Oekotech, Packtech and Hometech are
expected to achieve high growth rates.
8%
8%
10%
13%
11%
8%
8%
12%
10%
11%
19%
11%
0% 5% 10% 15% 20%
Agrotech
Meditech
Mobiltech
Packtech
Sportech
Buildtech
Clothtech
Hometech
Protech
Geotech
Oekotech
IndutechOverall CAGR 11%
Exhibit 2: Value-wise share of each segment in Indian technical textile market in US$ million (2009-10)
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Though the country consumes products belonging to
all 12 categories of technical textiles, the share of
indigenous production varies drastically across
products. India is a key producer of technical textile
products including flexible intermediate bulk
containers (FIBCs), tarpaulins, jute carpet backing,
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
Woven, Vardhman, Unimin, etc. The small scale
segment also plays a key role, with production of
certain goods like canvas tarpaulin, carpet backing,
woven sacks, shoe laces, soft luggage, zip fasteners,
stuffed toys, fabrication of awnings, canopies and
blinds, etc., being concentrated in the small scale
segment.
3.1. Agrotech
Agrotech includes technical textile products used in
agriculture, horticulture, fisheries and forestry. The
technical textile products covered under the
segment include shade nets, mulch mats, crop
covers, fishing nets, anti-hail nets and bird-
protection nets.
Indian Agrotech market is estimated at US$ 136.4
million in 2009-10, with domestic consumption of
US$ 119.3 million. As of 2009-10, fishing nets
constituted around 84% of the segment’s market,
valued at US$ 114.1 million.
This segment is witnessing a significant thrust from
the Government owing to increasing awareness
about the benefits of the usage of shade nets, mulch
mats, crop covers, anti-hail nets and bird-protection
nets.
Exhibit 5: Value-wise share of various products in Indian
Agrotech market (2009-10)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
National Horticulture Mission (NHM) has been
actively promoting the usage of Agrotech products in
India through subsidies and annual plans for the
states. NHM has included the Agrotech products
aimed at plant protection under the Protective
Cultivation in the state-wise action plans. The XIth
plan envisages to expand the area under mulching
by 1,00,000 hectares. In addition, the XIth
plan aims
at providing assistance for procuring anti-hail nets in
the hail prone states like Jammu and Kashmir,
Himachal Pradesh, and Uttar Pradesh.
In line with these developments, the domestic
consumption of this segment is expected to increase
to around US$ 153 million by 2012-13, growing at a
CAGR of around 8% over the next three year period.
The consumption of mulch mats has the potential to
grow at a CAGR of 51% from 2009-10 to 2012-13,
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
NHM will continue to play a crucial role in increasing
the consumption of these products.
Exhibit 6: Value-wise CAGR for Agrotech products (from 2009-10 to 2012-13)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
International trade
Majority of the demand for Agrotech products is
satisfied by domestic production, with only around
4% of the fishing nets being imported.
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
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
3 Estimates based on the export and import data of 2007-08.
3.2. Meditech
Meditech products include textile materials used in
hygiene, health and personal care as well as surgical
applications. The Meditech products are available in
woven, knitted and non-woven forms based on the
area of application. Increasingly, synthetic fibre is
being used in the production of these products. It
includes products like diapers, sanitary napkins,
disposables, contact lens, artificial implants, etc.
Technical textiles market under Meditech is
estimated at US$ 422.6 million in 2009-10. Surgical
dressing alone accounts for over 50% of the total
technical textile consumption across Meditech
segment. Surgical sutures account for around 21% of
the total Meditech consumption followed by contact
lenses and artificial implants as can be seen in
Exhibit 8.
Exhibit 8: Value-wise share of various products in Indian
Meditech market (2009-10)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
The demand for Meditech products is dependent on
the health and hygiene sector. The spend on
healthcare segment is steadily on the rise in India,
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
5%
6%
51%
20%
0% 10% 20% 30% 40% 50% 60%
Fishing nets
Shade nets
Mulch-mats
Anti-hail/bird-protection
nets
Overall CAGR: 8%
44%
11%
100%
11%
14%
0% 50% 100% 150%
Shade nets
Mulch mats
Crop covers
Anti-hail/bird-protection
nets
Fishing nets
5 | P a g e
products. Few of these policies include, National
Health Policy 2002, Rural Health Policy, policies
promoting manufacturing of medical devices and
various other policies working towards removing
hurdles for private and voluntary sector
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.
Exhibit 9: Value-wise CAGR for Meditech products (from 2009-10
to 2012-13)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
International trade
Imports of technical textile component under
Meditech constitute about 28% of domestic
consumption under this segment, by value. Demand
for products such as artificial implants, technical
textile component of baby diapers and incontinence
diapers is met by imports; the non-woven material
required for medical applications (e.g. diapers) is
primarily imported. Majority of imports are from
Thailand, Singapore, Taiwan and China.
Exhibit 10: Volume-wise share of imports in the domestic
consumption of Meditech products (2009-10)3
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
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)
components, tyre cords, liners, etc.
Indian Mobiltech market is estimated at US$ 833.5
million (2009-10), with domestic consumption
accounting for around 99% of the market. In 2009-
10, Nylon cord was the largest segment comprising
57% share of the Mobiltech market, followed by seat
cover fabrics (14%) and helmets (10%), as seen in
Exhibit 11.
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
passenger cars segment has grown at a rate of
around 13% over the last five years, while the Indian
commercial vehicles segment has grown at a rate of
around 11% and, these segments are expected to
maintain similar growth levels over the next five
years.
Exhibit 11: Market size of various products in Indian Mobiltech market (2009-10)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
In line with the automotive segment, the domestic
consumption of Mobiltech segment is expected to
increase from around US$ 816.8 million in 2009-10
to around US$ 1,114.6 million by 2012-13, growing
at a CAGR of 10%. Airbags and helmets are expected
to achieve a significant growth rate, of around 25%
over the next few years, owing to increasing
government focus on the road safety measures. Seat
belt webbing, upholstery, automotive interior
carpets, headliners and NVH components are the
other products with significant growth potential.
Exhibit 12: Value-wise CAGR for Mobiltech products (from 2009-10 to 2012-13)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
International trade
Indian Mobiltech industry is majorly focussed on
domestic market with negligible exports. However,
the segment is import-intensive. Airbags, seat belt
webbing, nylon tyre cord and airline disposables are
the import-intensive products. Thailand, Malaysia,
Korea, Germany and China are the key suppliers of
these products to India.
Exhibit 13: Volume-wise share of imports in the domestic
consumption of top five products (2009-10)3
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
Product
Market size
(US$ million) % share
Nylon tyre cord 471.5 57.3%
Seat cover fabric / upholstery 118.0 14.4%
Helmets 84.1 10.2%
Insulation felts 67.7 8.2%
Automotive interior carpets 39.7 4.8%
Sunvisors / sunblinds 21.4 2.6%
Headliners (TT component) 8.3 1.0%
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%
Aircraft webbings 0.7 0.1%
TT usage in Railways 0.3 0.04%
Aircrafts upholstery 0.1 0.02%
4%
16%
24%
14%
17%
16%
16%
16%
16%
25%
14%
15%
12%
3%
0% 5% 10% 15% 20% 25% 30%
Nylon tyre cord
Seat belt webbing
Airbags (TT component)
Car body covers
Seat cover fabric / upholstery
Automotive interior carpets
Headliners (TT component)
Insulation felts
Sunvisors / sunblinds
Helmets
Airline disposables
Aircraft webbings
Aircrafts upholstery
TT usage in Railways
Overall CAGR: 10%
7%
23%
40%
59%
100%
0% 20% 40% 60% 80% 100% 120%
Seat cover fabric
Airline disposables
Nylon tyre cord
Seat belt webbing
Airbags
7 | P a g e
3.4. Packtech
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)
and wrapping fabrics together account for around
25% of the total market, as seen in Exhibit 14.
Exhibit 14: Value-wise share of various products in Indian
Packtech market (2009-10)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
The demand for the industrial packaging products
like woven sacks, FIBCs, jute sacks, etc, which
comprise the maximum share of the Packtech
market, is mainly driven by the cement, fertiliser and
food industry. In the short term, the Packtech
industry is expected to achieve a growth of 13% year
on year and reach a market size of US$ 5.77 billion
by 2012-13.
Exhibit 15: Value-wise CAGR for Packtech products (from 2009-10 to 2012-13)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
Soft luggage, FIBC, tea-bags, leno bags and wrapping
fabric are the high growth potential areas as evident
from Exhibit 15. High export potential of FIBC and
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
domestic consumption by volume. Majority of
imports of soft luggage fabrics are from China, Hong
Kong and France, while that of tea bags are from
Germany, the UK and the US.
Indian Packtech industry is focused on the domestic
market with exports comprising only 5% share of the
overall market. FIBC, soft luggage products, jute
hessian and sacks are the export products, as
evident from Exhibit 17. The key export markets are
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
top three products (2009-10)3
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
composites, which include inflatable balls (footballs,
volleyball, basketballs, etc), cricket protective
equipments and boxing equipments, account for the
next highest share of around 16%, as seen in Exhibit
17.
Exhibit 17: Value-wise share of various products in Indian
Sportech market (2009-10)
Source: Baseline survey of the Technical Textile industry in India,
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
International trade
The imports in Sportech segment only constitute
about 2-3% of the domestic consumption by value.
The requirement for sail cloth, ballooning fabrics and
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
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
3.6. Buildtech
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.
Exhibit 20: Value-wise share of various products in Indian Buildtech market (2009-10)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
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
counters, etc. Demand for HDPE tarpaulin is
expected to increase in line with increase in road
freight transport.
Exhibit 21: Value-wise CAGR for Buildtech products (from 2009-10 to 2012-13)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
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.
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Exhibit 22: Volume-wise share of imports in the domestic
consumption of top five products (2009-10)3
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
Around 24% of the total production under Buildtech
segment is exported; floor and wall coverings are the
key export product, comprising almost 99% the total
segment exports by value. The key export markets
are UAE, South Africa, the US and the UK.
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
2009-10. Sewing threads alone account for around
60% of the technical textiles market under Clothtech
followed by labels with around 18% share, as seen in
Exhibit 23.
The market for Clothtech products is expected to
grow at a rate of 8.2% annually and reach a size of
US$ 2,206 million by 2012-13. Velcro, zip fasteners,
elastics and shoe laces are the high growth potential
areas as seen in Exhibit 24.
Exhibit 23: Value-wise share of various products in Indian Clothtech market (2009-10)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
High growth potential of soft luggage industry,
footwear industry, home furnishing and apparel
industry are likely to drive the growth of velcro, zip
fastener and elastics.
Exhibit 24: Value-wise CAGR for Clothtech products (from 2009-
10 to 2012-13)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
International trade
Majority of the demand for Clothtech products is
satisfied by domestic production with imports
accounting for mere 6% of the total domestic
consumption, however, there are certain products
that are import intensive. The entire demand for
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
About 5% of the total production under the
Clothtech segment is exported. Elastic and sewing
thread account for majority of exports in the
Clothtech segment. The key export markets are
Bangladesh and Sri Lanka.
3.8. Hometech
The Hometech segment of technical textiles
comprises of the textile components used in
household applications. These products range from
the blinds used in houses to the filter products used
in vacuum cleaners. They are an important
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.
Exhibit 26: Value-wise share of various products in Indian
Hometech market (2009-10)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
The market for Hometech products is expected to
grow at a rate of 11.7% annually and reach a size of
US$ 1,887.4 million by 2012-13. Heating Ventilating
and Air-conditioning (HVAC) Filters, filter fabrics,
nonwoven wipes, blinds, furniture fabrics and stuff
toys are the high growth potential areas, as seen in
Exhibit 27. Demand for HVAC filters will be driven by
the growth of commercial air-conditioning industry
on account of continued investments in segments
like IT/ITeS, Retail, Entertainment, Pharma,
Healthcare, Hospitality, Telecom and Banking. Rising
disposable income and changing lifestyle will drive
the demand for stuff toys and nonwoven wipes.
Demand for blinds would be driven by increasing
construction activity and increasing popularity of
blinds.
Exhibit 27: Value-wise CAGR for Hometech products (from 2009-
10 to 2012-13)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
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International trade
Value-wise around 13% of the total consumption is
imported. As per volume, 67% of HVAC filters
consumed are imported whereas the value-wise
import of nonwoven wipes is 80% of the total
consumption. Majority of imports are from Germany
and Netherland (HVAC filters) and China. Majority of
wipes are imported from China and Singapore.
Exhibit 28: 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 exports in the Hometech segment are not very
significant; value-wise around 6% of the production
is exported. Fiberfil, which exports 9% of its
production volume and furniture fabrics, which
exports about 14% of its production value are the
only products with significant exports. The key
export markets are the US and Argentina.
3.9. Protech
Protech is an ensemble of textile products and
related material used in the manufacture of various
protective clothing for the personnel working in
hazardous environment. The protective clothing
includes garments and related paraphernalia for
protection from harmful chemical environment,
extreme temperature environments, low visibility,
ballistic protection, etc.
Indian Defence Forces with a total strength of
around 1.5 million individuals comprising the army,
navy and air force, is one of the largest consumers of
protective textiles. The usage of protective textiles in
defence comprises bullet proof jackets, NBC
(Nuclear, Biological, Chemical) suits, high altitude
clothing and fire retardant apparel.
Technical textiles market under Protech is estimated
to be US$ 338.5 million in the year 2009-10. High
altitude clothing, bullet-proof jackets and fire
retardant fabrics account for 44%, 21% and 17% of
the Protech market, respectively, as seen in Exhibit
29.
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 demand for Protech products is dependent on
improvements in worker safety practices, fire
protective standards for construction and increase in
defence sector spending on protective clothing. With
increasing terror threats, the usage of bullet proof
jackets and other protective clothing is expected to
rise. For instance, orders to procure 20,000 bullet
proof jackets on an emergent basis were placed in
January 2009 by the Ministry of Home Affairs for
Central Police Organisation, including the National
Security Guards and the Central Reserve Police
Force.
The market for Protech products is expected to grow
at a rate of 9.8% annually and reach a size of US$
447.7 million by 2012-13. High growth is expected in
the fire retardant fabric, high visibility clothing
material and chemical protective clothing, as evident
from Exhibit 30.
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Exhibit 30: Value-wise CAGR for Protech products (from 2009-10
to 2012-13)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
International trade
Indian Protech industry is import intensive with
imports accounting for around 60% of the domestic
consumption of protective technical textiles. High
altitude clothing comprises around 90% of the total
imports in this segment. The production technology
for high altitude clothing is restricted to Ordinance
Factories of India which have limited capacity for
manufacturing high altitude clothing thus, resulting
in imports. The demand for high visibility
clothing/reflective wear is also primarily met by
imports because of price competitive imported
products.
Exhibit 31: Volume-wise share of imports in the domestic
consumption of top three products (2009-10)3
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
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.
3.10. Geotech
Geotech segment comprises of technical textile
products used in geotechnical applications
pertaining to soil, rock, earth, etc. Geotextiles refer
to permeable fabric, woven or non-woven, used for
confinement/separation, reinforcement, filtration
and drainage applications. Geotech products find
application in civil engineering (roads and
pavements, slope stabilisation and embankment
protection, tunnels, rail-track bed stabilisation,
ground stabilisation and drainage, etc.), marine
engineering (soil erosion control and embankment
protection, breakwaters) and environmental
engineering (landfills and waste management).
Other specialised Geotech products comprise
geogrids (synthetic filaments and tapes, etc., formed
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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Oekotech4 products, which is estimated at US$ 20.7
million. Synthetic Geotech products (geosynthetics)
account for around 90% of the total market, the
balance comprising of agro-based Geotech products.
Geotextiles comprise the largest share of Indian
Geotech market, with a share of 63% in 2009-10 of
which, woven geotextiles comprised 35%, as seen in
Exhibit 32.
The consumption of Geotech products is driven by
investments in the Infrastructure sector. Continued
thrust on infrastructure development in India augurs
well for this segment. However, the Industry has not
realised its full potential owing to lower than
expected penetration of geotextiles in various
infrastructure projects. A classic example of this is
the road projects in India.
Road sector is the largest consumer of Geotextiles in
the Indian market, whereas, demand from other
sectors (power, ports, airports, railways, etc.) is
largely project specific. Government had planned an
investment of around US$ 5.55 billion5 in roads
(excluding PMGSY) during 2006-07 to 2010-11. In
case Geotech products were used in all these road
projects, the consumption of Geotextiles in NHAI
road projects alone could be to the extent of US$
22.2 million5 per annum.
However, the consumption of geotextiles in India is
very low as compared to its potential. Conservative
views of major institutional users have been a key
impeding factor for the growth of this segment in
the domestic market. Moreover, the segment has
been suffering from issues related to lack of
awareness about economic benefits of Geotech
products amongst all institutional buyers, lack of
adequate testing facilities and non-availability of
trained technical personnel.
4 The details of the Oekotech application under
technical textiles have been explained in the next section. 5 Exchange rate used US$ 1 = ` 45
The Geotech segment in India is set to witness a
change owing to certain recent developments in the
road sector that are likely to provide the necessary
boost to the consumption of Geotextiles in roads.
Design, Build, Finance and Operate (DBFO) model
has been introduced in road contracts wherein the
private sector undertakes the responsibility for
operation and maintenance of the project road as
well as for building specified improvement schemes
(where appropriate). Under this model contractors
get liberty to design independently and, are
responsible for the maintenance of project roads.
Thus, in order to ensure longevity of construction at
optimal cost they would prefer geotextiles.
Moreover, successful control trials have been
conducted by Central Road Research Institute (CRRI)
for use of Jute geotextiles in roads, which is likely to
boost their use under the Pradhan Mantri Gram
Sadak Yojana (PMGSY).
In addition, the Office of Textile Commissioner and
industry experts are making targeted efforts to boost
the consumption of Geotextiles. Bureau of Indian
Standards (BIS) has approved the standards on Coir
Bhoovastra (Jute Geotextiles and Coir Geotextiles)
and, have published two standards viz. IS 15868
(part 1 to 6 – 2008) and IS 15869 -2008. BIS has also
formulated the standard for geosynthetics made
from polyolefin or polyester material for highways.
Moreover, promotion of the use of geomembrane as
lining for canals, ponds and reservoirs by NHM is
likely to boost the consumption of geomembranes.
In view of the above mentioned developments, an
optimistic estimate of the potential market size for
Geotech products that could be achieved in 2012-13
can be placed at around US$ 164 million. In
addition, the Office of Textile Commissioner and
industry experts are making targeted efforts to boost
the consumption of Geotextiles.
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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
Bureau of Indian Standards (BIS) has approved the
standards on Coir Bhoovastra (Jute Geotextiles and
Coir Geotextiles) and, have published two standards
viz. IS 15868 (part 1 to 6 – 2008) and IS 15869 -2008.
BIS has also formulated the standard for
geosynthetics made from polyolefin or polyester
material for highways. Moreover, promotion of the
use of geomembrane as lining for canals, ponds and
reservoirs by NHM is likely to boost the consumption
of geomembranes.
In view of the above mentioned developments, an
optimistic estimate of the potential market size for
Geotech products that could be achieved in 2012-13
can be placed at around US$ 164 million. The
achievement of this market size, however, is subject
to a higher adoption rate for Geotech products by
various stakeholders implementing road and other
infrastructure projects in India. In case the
challenges faced by this segment are not addressed
to the fullest, a realistic estimate of market size that
the Geotech segment could achieve in 2012-13 is
about US$ 98 million.
International trade
Around 40% of the domestic demand for Geotech
products is met by imports. Geosynthetics, including
geogrids, geotextiles, geocomposites are the import
intensive products. Malaysia, China, Taiwan and
Europe are the major suppliers of these products to
India.
Exhibit 33:Value-wise share of imports in the domestic
consumption of Geotech products (2009-10)3
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
India is also an exporter of certain Geotech products,
with exports accounting for around one-third of the
market in 2009-10. Coir-based geotextiles produced
in India are majorly exported to Middle-East
countries, the UK, the US, Germany, Italy, and select
European countries.
3.11. Oekotech
Oekotech segment involves technical textile
products used in environmental engineering. Landfill
waste management is the key application, which
refers to the use of geosynthetic products to secure
landfills against leakage of municipal or hazardous
waste. Other areas include secondary protection in
chemical/oil industries (ground covers and the like
66%
60%
62%
56% 58% 60% 62% 64% 66% 68%
Geotextiles
Geogrids
Geomembrane, Geocomposites
16 | P a g e
around process tanks for secondary containment).
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
and government activity on hazardous waste in
accordance with Supreme Court Guidelines, the
states are expected to create scientific landfill sites.
The Twelfth Finance Commission has recommended
devolution of grants for Urban Local Bodies (UCB),
with US$ 55.6 million5 exclusively for setting-up of
solid waste management systems in urban areas.
Consequently, many urban bodies are starting
process of developing landfills (granting landfill,
initiating ground preparation etc) for municipal
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.
Indian Indutech market is estimated at US$ 854.4
million (2009-10), about 35% of which is contributed
by composites and around 27% by the ropes and
cordages, as seen in Exhibit 34.
Exhibit 34: Market size of various products in Indian Indutech
market (2009-10)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
The market for Indutech products is expected to
grow at a rate of 11% annually and reach a size of
US$ 1,173 million by 2012-13. Fiber-glass products
(including AGM glass battery separators) are
expected to lead the growth in demand of Indutech
technical textiles in India, as evident from Exhibit 35.
Exhibit 35: Value-wise CAGR for Indutech products (from 2009-10 to 2012-13)
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
International trade
Imports account for around one third of the total domestic consumption in this segment. Printed circuit boards, AGM battery separators and other
17 | P a g e
applications of fibre glass constitute majority of the imports. Majority of the imports are from China, Taiwan, Thailand, Germany, Italy, Japan, Korea and Indonesia.
Exhibit 36: Volume-wise share of imports in the domestic
consumption for Indutech products (2009-10)3
Source: Baseline survey of the Technical Textile industry in India,
IMaCS Analysis
Exports of Indutech products account for around 35% of the total production. Almost 40-45% of the domestic production of fibre glass and conveyor and drive belts is exported. The key export markets are Middle-East countries, the US, Africa, Cambodia, Iran and Taiwan.
4. Triggers for the growth of Technical Textile
industry
With the Indian economy poised for substantial
growth in the coming decade, the Indian Textile
industry largely depends on technical textiles to
accelerate the growth. There are several areas
where consumption of Technical Textiles is set to
increase viz., India is now the global hub for small
cars; Trillions of US$ investment is envisaged in
infrastructure – roads, ports, airports etc.,
Though Government has taken several initiatives to
drive the growth of technical textiles in India and the
market has not exploited its full potential, till date.
The Industry is facing certain key issues that are
impeding its growth.
Inadequate awareness about the benefits of
technical textiles among end-users, primarily in
sectors like Meditech, Agrotech and Geotech,
which is hampering the potential demand of
technical textiles in India
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
to address these issues as well as to accelerate the
growth of Indian Technical Textile industry, including
subsidies and incentives to boost the domestic
production of technical textiles and specialty fibres
(under the Draft National Fibre Policy) as well as\
setting up of centres of excellence to provide
technology support. However, to realise the full
potential of this Industry, dedicated joint efforts are
required by both, Government and the Industry.
Exhibit 37: Triggers to boost the Technical Textile industry
5. IMaCS - An introduction
ICRA Management Consulting Services Limited
(IMaCS) is a multi-line management and
development consulting firm headquartered in India.
It has an established track record of over 15 years in
consulting across various sectors and countries.
IMaCS has completed about 1000 consulting
Awareness about benefits of technical textile products
amongst the private and institutional users
Initiatives taken Existing Gaps
Standards (focus Geotech)
Testing facilities
Technically trained personnel
Domestic availability of high performance and specialty
fibers
Regulations promoting usage of technical textiles
18 | P a g e
assignments and has worked in over 35 countries
across the globe.
IMaCS is a wholly-owned subsidiary of ICRA Limited
(ICRA), one of India’s leading credit rating agencies.
IMaCS operated as a division of ICRA till March 2005,
when it was de-merged from ICRA and became a
standalone company.
The main driver for IMaCS’ growth has been a
growing need for unbiased professional views on
adopting best business practices arising from
economic deregulation, growing international trade
& integration, and the increasing need to be globally
competitive.
Our clientele includes banks, financial institutions,
non-banking financial companies, manufacturing and
services organizations, governments, government-
owned organizations, debt and equity investors,
regulators, and multilateral agencies. We have
executed assignments for multilateral agencies such
as The World Bank, World Bank Institute (WBI),
Commonwealth Development Corporation (CDC),
United Nations Development Programme (UNDP),
United States Agency for International Development
(USAID), Department for International Development
(DfID), African Development Bank (AfDB), Asian
Development Bank (ADB) and International Finance
Corporation (IFC).
Through the process of carrying out several
assignments over the last decade and half, IMaCS
has accumulated considerable analytical and
consulting expertise, backed by the following
capabilities:
An extensive and organised database on several
sectors.
Knowledge of key factors of success in different
projects and program.
An ability to research emerging trends in the
economy, as well as in specific sectors, based on
primary and secondary data.
Insights into different programme and
organisational processes.
Ability to carry out economic analysis and build
quantitative and financial models to project
future performance and identify imperatives.
Ability to identify the various types of risks and
suggest appropriate strategies to mitigate the
same.
IMaCS’ Business Groups and Practice Areas The different business groups and practice areas
within IMaCS form our matrix of service offerings.
Multi-disciplinary teams are used on most
assignments. The diversity of experience in IMaCS
teams helps it to adopt a creative and cross-
functional approach to problem solving, which has
not only been very successful in practice, but has
also been well appreciated by all our clients.
Mr.B V Rajesh, Head – Retail and Consumer Markets and Ms.Priyanka
Talreja and Ms.Shachi Bajoria were part of the team that prepared the
Baseline Survey of Technical Textiles for the Office of the Textile
Commissioner, Government of India, in the year 2009.
GROUP ICRA
Credit
Rating
ICRA Management
Consulting Services
Limited
Management
ConsultingIT
(Software)
BPO
ICRA Limited ICRA Techno
Analytics Ltd.ICRA Online Ltd.
ICRA Techno
Analytics Inc.
Energy
Strategy
Risk
Banking &
Insurance Infrastructure Corporate
Enhancing Competitiveness/Market Assessment/Improving Effectiveness
Credit Risk/Market Risk/Operational Risk/EWRM/Risk Analytics/Software
Transaction
AdvisoryM&A/Due Diligence/Project Advisory/Bid Advisory/Financial Restructuring
Policy &
RegulationRegulatory Economics/PPP Models/Governance
Government/
Multilaterals
Business
groups
Process
ConsultingCost Reduction/Process Re-engineering/Organisation Design
IMaCS - We focus on six practice areas…
Development
Consulting
Investment Climate/Institutional Strengthening/Capacity Building
/Poverty Alleviation/Sustainable Development
Practice Areas
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