CREATING VALUE CHAIN IN
TECHNICAL TEXTILES
ANUPAM DIKSHIT
COO – PROJECTS
S. KUMARS NATIONWIDE LTD
25TH 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
Total US$ 127 bn 2010
Protech, 5%
Geotech, 1%
Packtech, 5%
Okeotech, 1%
Mobiltech, 24%
Medtech, 6%
Agrotech, 6%
Indutech, 16%
Hometech, 7%
Clothtech, 7%
Sporttech, 15%
Buildtech, 7%
INDIA SECTOR-WISE SHARE
Total US$ 12 bn
Buildtech
4%
Medtech
4%
Indutech
6%
Protech
3%
Agrotech
1%
Geotech
1%
Okeotech
1%
Packtech
36%
Sporttech
7%
Mobiltech
8%
Hometech
12%
Clothtech
17%
GROWTH OF TEXTILES
World 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 GROWTH
VALUE
NON-WOVENS ASIA
QUANTITY
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-Wovens
Reinforced Hi-Performance Composites
Geotextiles
Filteration
Functional Garments – FR, Hi-Vis,
Sports, Extreme Weather, Bullet-Proof….
SECTOR SELECTION
HIGH
MEDIUM
LOW
COMPANY POTENTIAL &
SYNERGY
MARKET ATTRACTIVENESS
LOW
MEDIUM
HIGH
IGNORE SECTOR
ANALYZE SECTOR
TARGET SECTOR
IGNORE SECTOR
ANALYZE SECTOR
ANALYZE SECTOR
IGNORE SECTOR
IGNORE SECTOR
IGNORE SECTOR
POTENTIAL SECTORS
• Geotech
• Medtech – Non-Woven
• Mobiltech
• Protech
GEOTECH (GT)
GT NORMS
GT SEGMENTS
GT DEMAND
EXP YR 2013
INDIA GROWTH DRIVERS
PORTS
8%
AIRPORTS
4%
GOI INV PLAN 07-11
TOTAL 160K CRS
RAIWAYS
17%
ROADS
24%
POWER
47%
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 & longterm 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
AIR-LAID
7%
CARDED
44%
WET-LAID
4%
WORLD QTY -’08
SPUNMELT
45%
GROWTH IN SPUNMELT
IN K.TONS
4500
4000
3500
3000
SPUNMELT
2500
CARDED
2000
AIR-LAID
WET-LAID
1500
1000
500
0
1997
2002
2007
2012*
NON WOVEN MARKETS
PRODUCTS MT
INDIA MARKET
400
350
300
250
K Tons
200
Mn US$
150
100
50
0
2002
2007
2012
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
MASKS
3%
Tot $ 6.86 Bn ’10
BALLISTICS
4%
HI VIS
3%
DUST
4%
HARNESSES
1%
NBC
0%
SLASH
7%
CHEMICAL
9%
FIRE RET
14%
FOUL WEATHER
55%
INDIA MKT SEGMENTS
HI VIS
5%
NBC
2%
CHEM
1%
Tot $325 Mn ’10
INDL GLOVES
1%
FIRE RET
20%
BALLISTIC
20%
HIGH ALT
51%
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 & multinational 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