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 billion 1 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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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%
2 | P a g e
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)
3 | P a g e
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
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.