Transcript A presentation on India`s Approach to Technical Textiles & Value

India's approach to technical textiles
Shri. A.B.Joshi
Textile Commissioner
25-08-2011
Highlights of Indian Technical Textile Industry
 Technical textile is the fastest growing segment in textiles in India and it has
generated a lot on investor interest in recent past.
 The Indian Technical Textiles market has grown from Rs. 42,000 crores in 2007-08
to Rs. 57,000 crores in 2010-11 registering a CAGR of ~11%.
 There are over 3000 units manufacturing technical textiles, mostly in small scale
sector.
 About 2/3rd of the production is of commodity products, only 1/3rd is high-end.
 The pre-dominant segments are Packtech, Clothtech, Hometech and Sportech.
These segments primarily include commodity products and not very R&D intensive.
• Though India is the second largest textile economy after China, its contribution in
the global technical textile industry is only 9% to the total consumption.
Highlights of Indian Technical Textile Industry
 Unlike traditional textile industry in India, technical textile is an import
intensive industry.
 There are some large domestic players in this segment like SRF,
Entremonde Polycoaters, Kusumgar Corporates, Supreme Nonwovens
Pvt. Ltd., Garware Wall Ropes, Century Enka, Techfab India Ltd., Unimin,
etc.
 In addition, there are several multinational large players in technical
textiles like Johnson & Johnson, Du Pont, Procter & Gamble, 3M, SKAPs,
Kimberly Clark, Ahlstorm, Maccaferri, Strata, and Terram etc. who have
set up their manufacturing facilities in India.
 Large textile houses like Arvind Limited and Welspun are now focusing to
develop strong technical textiles businesses.
Highlights of Indian Technical Textile Industry
 The Indian technical textile industry has presence in all the 12 segments but
consumption pattern is different.
 India’s consumption level is different than global level. The top three
segments in the World vis-à-vis India are given below:
Global
India
Segment
% share
Segment
% share
Mobiletech
24
Packtech
35
Indutech
16
Clothtech
17
Sportech
15
Hometech
12
Others
45
Others
36
Total
100
Total
100
Segmentation of Indian Technical Textiles market
Packtech
35%
Oekotech
Geotech 0%
1%
Agrotech
1%
Protech
3%
Meditech
4%
Clothtech
17%
Buildtech
5%
Sportech
7%
Hometech
12%
Mobiltech
7%
Indutech
8%
Market size of Technical Textiles in India
20%
1,58,540
11%
21%
12%
15196
63,202
41,756
19130
Figures in bar chart are in Rs. crore
* Based on the past trend of growth and estimated end user segment growth, the sub-group on
technical textiles for 12th five year plan has projected the market size to Rs. 1,58,540 crore for the
year 2016-17 with a growth rate of 20% year on year basis.
Segment wise market size of Indian Technical Textile Industry
Segment
Clothtech
Packtech
Sporttech
Mobiltech
Buildtech
Hometech
Indutech
Meditech
Protech
Geotech
Agrotech
Oekotech**
Total
2011-12
Rs. in crore
9454
23710
4297
4689
2980
7831
4892
2298
1890
410
751
135
63,202
2016-17(P)
US $ mn
2149
5389
977
1066
677
1780
1112
522
430
93
171
31
14,364
Rs. in crore
23525
64083
9421
10281
6535
19486
11191
5719
5322
1108
1869
364
1,58,540
US $ mn
5347
14564
2141
2337
1485
4429
2543
1300
1210
252
425
83
36,032
* Projection by sub-group on technical textiles for 12th five year plan with a growth rate of 20%
year on year
** Oekeotech size has already been considered as a part of Geotech.
Key drivers for growth of technical textile Industry in India.
Growth of consuming industry:
 India has witnessed a high growth of its economy in last decade, which is expected to
continue in foreseeable future as well. With increase in investments in industry sectors,
higher consumption and growing exports, the industrial sector is poised for a considerable
growth. This will ultimately lead to increased demand of technical textiles products. Industry
segment contributes to nearly 28% of the overall GDP and has seen excellent growth in past.
In recent times, the industrial sector has seen higher investments across the board.
Increasing affordability of Consumer
 The income of Indian consumer is also growing very fast. This rise will enable them to make
more discretionary spent on technical textile products viz. Hometech, Clothtech, Mobiltech,
Sportech and Meditech. Per Capita income of Indian consumer has increased from Rs.
46,492 in the year 2009-10 to 54,527 in the year 2010-11 @ 17%
Increasing adaptability level / acceptance of products
 Not only the capacity of consumers to spend is growing, but also their willingness to spend
on products which were not used previously is increasing. Such products include wipes,
diapers, sanitary napkins, disposable sheets, pads, etc. With growing awareness, consumer
will realize, and be willing to pay for the superior functionality of such technical textile
products.
Government initiatives
Govt. of India in order to promote the filed of technical textiles has taken many steps in a
structured manner. Some the major schemes for technical textiles are :
1.Scheme
for
Growth
and
Development
of
Technical
Textiles
(SGDTT):
A Scheme for Growth and Development of Technical Textiles (SGDTT) was launched
during 2007-08 comprising of 3 components:
a) Baseline Survey of Technical Textile Industry in India,(Fund utilised- Rs. 54.49 lakhs)
The baseline survey of technical textile industry was carried out. The report contains details on raw
material, technology, machinery etc.
b)Creation
of
Awareness
(Fund
utilisedRs.
2.75
crore)
More than 60 no. of Seminars/ workshops /Training programmes were organized by Office of the
Textile
Commissioner
across
the
country
during
the
course
of
scheme.
c)Setting up of four Centres of Excellence (fund utilised-Rs. 46.609 crore.)
Four Centres of Excellence (COEs) were set up, i.e., BTRA for COE Geotech, SASMIRA for COE
Agrotech, NITRA for COE Protech and SITRA for COE Meditech. The COEs are working like one
stop shop to provide infrastructure support in terms of Facilities for testing with national and
international accreditation center, Development of Resource Centre with I.T. infrastructure, Facilities
for training, prototype development etc.
Government initiatives
Technology Mission On TechnicalTextiles (TMTT)
 Technology Mission on Technical Textiles (TMTT)
Govt. has recently
launched TMTT with two mini missions for a period of five years (from 2010-11 to
2014-15) with two Mini Missions.
 The aim of TMTT is to address the issues like lack of basic infrastructure in terms of
testing facilities, lack of market development support, skilled manpower, lack of
R & D, absence of regulatory measures, absence of specifications and standards for
technical textiles etc.The total fund outlay for TMTT is Rs 200 Crore.
 Mini Mission-I (financial outlay Rs.156 crore)
o Setting up of four new Centers of Excellence (COEs) in
Composites, Non-Wovens, Indutech: Four new COEs are being set
up.
o Up gradation of existing four COEs: The existing COEs will be
upgraded in line with new COEs i.e. with incremental facilities like
incubation centre and development of prototypes and provision for
appointment of consultants.
Government initiatives
Technology Mission On TechnicalTextiles (TMTT)
 Mini Mission-II (financial outlay Rs. 44 crore)
1)
2)
3)
4)
Support for Business Start Up.
Fund support for organizing workshops/ seminar
Support for Contract Research.
Market development support for sale to the institutional
buyers.
5) Identification of regulations required for promotion of
technical textiles.
6) Support for domestic & export market development of
technical textiles.
Progress of Technology Mission On Technical Textiles (TMTT)
Mini Mission-I
1. Setting up of new COEs
Three new COEs namely DKTE Society’s Textile and Engineering
Institute, Ichalkaranji, Maharashtra for Non –wovens, PSG College of
Technology, Coimbatore, Tamil Nadu for Indutech and Ahmedabad Textile
Industry’s Research Association (ATIRA), Ahmadabad, Gujarat. for
composites have been designated and they have started establishing the
facilities.The selection of COE:sportech is in process.
2. Upgradation of existing COEs:
Rs. 9.00 crore each has already been provided all the four existing COEs
and the COEs have started procurement of machineries/instruments for
upgradation
Progress of Technology Mission On Technical Textiles (TMTT)
Mini Mission-II
1. Support for business start-up: Technical Textiles is a new area and
entrepreneurs find it difficult to invest in this field due to lack of knowledge about
technology, raw material, process etc. Therefore, support for ‘business start-up’ is
provided under the Mini Mission II of the TMTT. The COE and other associations /
institutes / independent reputed consultants will be empanelled by the MOT /
Office of the Textile Commissioner who will prepare project reports and do the
hand holding of the potential entrepreneurs till the completion of the projects.
Following Two consultants have been empanelled for doing hand holding of
potential entrepreneurs in starting the business under TMTT:
Sr. No.
Name of the Consultant
E-mail ID
Contact Person
Telephone Nos.
1
M/s. K's Technical &
Management Consultants
[email protected]
Shri RavishankarG.
91 265 2782245
91 9825244940
2
M/s. Technopak Advisors Pvt
Ltd
arindam.saha@techn
opak.com
Shri Arindam Saha
91 124 4541111
91 9810677443
Progress of Technology Mission On Technical Textiles (TMTT)
Mini Mission-II
2.Providing fund support for organizing workshops:
Technical Textiles are still at nascent stage and its awareness level is
very low. Hence National and International Conferences, Seminars,
Workshops and short term training programmes will be organised
across the country to dissipate the knowledge among stake holders
of technical textiles. The workshops/seminars/conference
organised across the country under this component till date are
given below:
S. No
1
2
3
Name of the event
In association
Place
with
Seminar
on
Protective SASMIRA
Coimbatore
Agrotextiles-Advantages
&
Future prospects
Seminar/Workshop
on FICCI - WRC, Kanpur
Protective Textile & Workwear Mumbai
Conference on Technical Textiles CII
Coimbatore
focus
on
Medical
and
infrastructure sectors
Date
07.06.2011
08.07.2011
26.07.2011
Progress of Technology Mission On Technical Textiles (TMTT)
Mini Mission-II
3.
Market development Support for marketing support to bulk
and institutional buyers etc: Under the component Buyers-sellers
meet will be organized across the country wherein the indigenous
manufacturers can showcase their products and institutional buyers
will be invited for enhancing their marketing competitiveness. This
event is being supported under this component.
Progress of Technology Mission On Technical Textiles (TMTT)
Mini Mission-II
4. Market development Support for export sales: There are many
reputed technical textile fairs organized abroad like TECHTEXTIL and
Industrial Fabrics Exhibition, Index etc., the participation in which will
improve the export potential of the indigenous manufacturers. Some of
the technical textile units are also participating in the exhibition of
application based fairs. The support includes participation in Technical
Textile fairs/Application based fairs by the Indian technical textile
manufacturers to exhibit their products. So far this office has approved
four units for their participation in International trade fair under this
component as given below:
S.No.
Name of the TT unit
Name of the trade fair
1
2
3
M/s Ginni Filaments Ltd
M/s Kusumgar Corporates Pvt Ltd.
M/s Hindoostan Technical Fabrics Ltd.
INDEX 11, Switzerland
TechTextil, Frankfurt, Germany
TechTextil, Frankfurt, Germany
4
M/s Thea-Tex Healthcare (India) Pvt. Ltd.
Hospitalar 2011, Brazil
Other Government initiatives
 Major
machinery required for the technical textiles has been placed in the
concessional custom duty list of 5 percent.
Specified
technical textile products are covered under focus product
scheme/green technology products/hi-tech products of Exim policy and are
entitled for duty credit scrip equivalent to 2% of FOB value of exports.
Technical textile machinery is covered under the Technology Upgradation Fund
Scheme (TUFS) and eligible for 5% interest reimbursement & 10% capital subsidy.
Under the Scheme for Integrated Textile Parks (SITP), the Government provides
assistance for creation of infrastructure in the parks to the extent of 40% limited to
Rs.40 crore(US$ 8.82 mn.).
Under Integrated Skill Development Scheme (ISDS), it is proposed to train 22,000
personnel in technical textile sector during the year 2010-11 & 2011-12.
In Textile sector FDI is permitted through automatic route without any limit on
the extent of foreign ownership. Thus there is no restriction on any amount of FDI
, with or without local partner. Government incentives are equally applicable to
FDI units
 For more information relating to technical textiles kindly
visit us at
www.technotex.gov.in
&
www.txcindia.gov.in
Thank you