Transcript Slide 1

EMERGING OPPORTUNITIES
IN
TECHNICAL TEXTILES
“
At the outset, I would like to thank Rajasthan State
Industrial Development & Investment Corporation Limited
for inviting me to speak at a Seminar on “Emerging
Opportunities in Technical Textiles” in Rajasthan.
It is always a pleasure to participate in a function in the
Home State, and that too the one organized by a State
Government Agency, which played a leading role in
establishment of blended yarn spinning segment in
Rajasthan, among other industries.
Before I introduce you the word of “Technical Textiles”,
which I have been asked to do, I would like to briefly
touch upon the present status of the textile industry. …..
Shri R.L. Toshniwal
CMD - Bansawra Syntex Ltd.
As all of you know, I am connected with the textile industry for nearly 60 years.
I went to study Textiles in the year 1950. It was the most prominent industry in 1950’s, and in 1960’s,
India had attained 20% of the country share in the textiles. On account of various Government
regulations, the Industry suffered the most, and was reduced from 20% to 2.5% of the world trade in
1990’s. In the year 2001, it was then the Technological Upgradation Funds Scheme was introduced, to
bring new investments in the Textile Industry. Under TUFS, 5% subsidy was given to all along with 10%
years’ repayment period. This has brought in new investments in Textile Industry of more than Rs. 1
Lac Crore, and the Industry has again become vibrant. Of course, even then, the Government’s
regulations were disturbing the Industry in many ways.
In the recent past, Government has allowed lot of cotton to be exported out of the country, and this
has brought once again problems to the Textile Industry. Fortunately, Government has realized this
mistake, and regulated the cotton export to some extent.
The Industry is once again becoming vibrant. At this juncture, the TUF has been taken away, which
has resulted into lot of problems in the Industry. I do hope that Government will bring back the TUF
urgently, and will help in bringing the Textile Industry to its past glory and future growth.
I would like to focus on the products namely Technical Textiles. Things are going to change on account
of high technology segments, and Government’s attention to promote Technical Textiles. To put it in
different words, like IT Industry, Technical Textiles is also belonging to new economics using new age
technology and applications, and is a charming world with full of opportunities for those who are
technologically well equipped to come forward in the field of Technical Textiles.
Everyone in the august gathering is aware to some extent what is “Technical Textiles.” In fact, if one
tries to define “Technical Textiles,” there is every possibility that there could be a slip here and there.
To understand the subject better, I venture to define “Technical Textiles” as textile materials and
products, manufactured for technical performance and functional properties, rather than normal
apparel use, bed linen or decoration use. Based on the characteristics of the products, functional
requirements and end-use, Technical Textile products have been classified into 12 segments as
follows : “
Agro – tech
GEO – tech
Agriculture, horticulture and forestry
Geotextiles, civil engineering
BUILD – tech
HOME – tech
Building and construction
Components of furniture, household textiles
and floor coverings
CLOTH – tech
INDU – tech
Technical components of shoes and clothing
Filtration, cleaning and other industrial usage
MEDI – tech
PACK – tech
Hygiene and medical
Packaging
MOBIL – tech
PRO – tech
Automobiles, shipping, railways and
aerospace
Personal and property protection
OEKO – tech
SPORT – tech
Environmental protection
Sport and leisure
Some of the common products of technical textiles are seat-belts, airbags, nylon tier
cord fabrics, seat covers, car-body covers, automobile interiors carpets, helmets,
insulation felts, sanitary napkins, diapers, surgical dressings, healthcare textiles,
footwear components, sleeping bags, balloning fabrics, parachute fabrics, fire-retardant
fabrics, fire-retardant upholstery, ballistic protective clothing, bullet-poof jackets, hoses,
ropes, dry belts, computer ribbons, battery separators, filters, decatising cloth, bolting
cloth, applications in construction industry, shoe laces, narrow-width fabrics, hoardings,
awnings, canvas, tarpaulin, etc.
To put the things in different perspective, Technical Textiles could be broadly classified
into 4 categories. The purpose of making this classification is to throw light on the
growth prospects of Technical Textiles, to which I shall refer after some time.
The 4 broad categories are as follows:
Usage in the field of Meditech
Usage for Protective purposes
Usage due to deep inroads into the Construction industry
Usage for Industries purposes
Meditech
Usage due to improved economic condition
in the field of Meditech like diapers, hygiene
products, swaps, cloth tissues, disposable
napkins, hospital care products, personal
care products, etc.
Protective purposes
Usage for protective purposes like fireretardant fabrics for upholstery, curtain and
bullet-proof jackets, etc.
Construction industry
Usage due to deep inroads into the
construction industry because of marvels of
technological excellence. Technical Textiles are
being increasingly used in the construction of
airports, flyovers, bridges, walls of the
building, waterfront walls, construction of
roads, etc.
The applications of geo-synthetics are mindboggling, and new areas are being identified
for use of Technical Textiles in replacement of
traditional materials.
Industries Purpose
Usage for industrial purposes, like filtration,
packaging, conveyor belts, fabrics for tyre
manufacture, etc.
Technical Textiles and its market
The world market for Technical Textiles is estimated at 24 billion kg, valued at US$ 127
Billion and has a healthy growth rate. Amongst all the segments of the Technical
Textiles, Mobiltech, Indutech, Sporttech - are the more prominent ones, which
collectively account for 56% of the global market size. Technical Textiles account for
40% of textile consumption in many developed countries, which is another indicator
of how the Technical Textiles have captured the market. The total likely market size in
India was estimated at Rs 220 Billion in 2002-2003, and this was then revised to Rs
418 Billion in 2008-2009. As on date, there are 3000 units manufacturing Technical
Textiles in the country, of which about 90% are in the SME Sector. The present total
production may be only about 20% of the requirement, and thus, there is a huge
demand gap for setting up Technical Textiles.
Government Support
Government has identified Technical Textiles as a major thrust area for growth and
expansion. The major components of Government support are:
Under TUFS, a provision has been made for grant of interest subsidy reimbursement
at 5% on specific Technical Textile machinery and additional benefit of 10% as
upfront capital subsidy in respect of selected items of machinery.
Government also gives duty credit scrip equivalent to 2% of FOB value of exports to
promote export of Technical Textile products under the Focus Product Scheme.
Government has also set up 4 Centres of Excellence for provision of support /
infrastructure to manufacturers of technical textiles at one place. The Centres are:
Centres of Excellence
 BRTA and ATIRA for Geo-Tech
 SASMIRA and MANTRA for Agro-Tech
 NITRA and IIT-Delhi for Pro-Tech
 SITRA for Medi-Tech
Centres of Excellence (Contd.)
There are numerous types of specialty fibres required for the manufacture of Technical
Textiles. Currently, such specialty fibres are not being produced indigenously.
Government has appreciated that to well entrench the Technical Textile Industry in the
Country, such specialty fibres should be made available domestically, at least those
fibres, which will have large consumption.
Hence, Government has under its consideration a two-prong attack.
The Government is considering the introduction of a Special Incentive Package for the
setting up of manufacturing facilities in the Country to strengthen the raw material
base, ie: specialty fibres.
Centres of Excellence
(Contd.)
Customs duty CVD on speciality fibres, which have no indigenous angle, may be
abolished. The incentives under TUFS may be substantially liberalized particularly
capital subsidy.
In the realm of non-fiscal measures, support will come through standardization of
specific segments of Technical Textiles.
Government has also supported in the setting up of All India Association of Technical
Textiles, which is a joint forum of the Industry and Government to discuss the issues
facing the Industry and to find solutions for the same. A Technology Mission on
Technical Textiles is being set up and this will give a big boost to the industry.
Centres of Excellence
(Contd.)
The industry on its part has been repeatedly requesting Government to make
enactments for compulsory use of fire retardant fabrics in hotel industry, cinema
halls, and other public Institutions. Road building should use geo-textiles, as its
specification in the PWD Contracts. Where the application of Technical Textiles is
useful for the Nation, it can be made by Law, and this will increase the use of
Technical Textiles.
Statutory support from Government will go a long way to promote Technical Textiles
in India. Equally important is the need to hold buyers-sellers meet. Since technical
textile is a nascent industry and its products are just being introduced in the
country, it is necessary that the user industry should be enlightened on the plus
points of Technical Textiles, which will induce the user-industries to switch over to
Technical Textiles in a big way.
POTENTIAL FOR TECHNICAL TEXTILES
The signals given by Government are quite strong and it is clear that the technical
textile movement is not a ripple, but has the potential to become a major
industrial segment of the country.
The improved economic conditions in the country will generate a good demand
for Meditech, while the increased concerns for fire accidents and aggression of
terrorists will boost demand for Protech. The industrialization of the country will
generate more demand for Indutech and Packtech, while parameters likecost
consideration, longer life etc. will promote the usage in Builtech and Geotech.
TECHNICAL TEXTILES IN RAJASTHAN
Technical Textiles uses largely Synthetic Yarn and Synthetic Fibres. Rajasthan is
not alien to man-made fibres. Rajasthan was the first State in the Country to
promote Blended Yarn Industry in a big way, which has resulted as Bhilwara
being the largest Centre for production of suiting material, and today, it is
producing nearly 80 Million meters per month of such material. If this story is
repeated for Technical Textiles in Rajasthan, Rajasthan may become one of the
leading States to produce Technical Textiles.
TECHNICAL TEXTILES IN RAJASTHAN
(Contd.)
How this can happen? In my view, one of the ways to promote the Industry is
to make investment easy and attractive. When I say “easy,” the Government
should come forward for venture capital by way of equity participation for
Unites going in for Technical Textiles. When I say “remunerative,” the
Government should come forward with interest subsidy of 5% from the State
Government for the period of first 5 years. This will help in making the Industry
viable. In the first 2 to 3 years, it will be a struggle for such Industry, as the
market for Technical Textiles needs to be self-developed.
TECHNICAL TEXTILES IN RAJASTHAN
(Contd.)
Other fiscal benefits such as State Electricity Duty, Sales Tax Exemption, etc, may
also be given for the first 5 years.
This is not going to cost much to the State Government, but it will bring in long
term benefits to the State. Rajasthan has already taken some lead in Technical
Textiles. Rajasthan Spinning & Weaving Mills Limited in their Bhilwara – Melba
Units is already producing 50% of fabrics being used in the Automobile Industry
in the Country.
TECHNICAL TEXTILES IN RAJASTHAN
(Contd.)
My own Units (Banswara Group) have taken a lead in producing Foul Water
Fabrics for use in the high altitude where winds are strong for protection of Arm
Forces. We have also started producing high quality Laminated Jacquard fabrics
for Ladies’ Hand Bags. We are in the process of putting up Sport Textiles in our
Plants at Banswara.
Since 90% of the Technical Textiles is in the SME Sectors, and Rajasthan excels in
the SME Sectors, I am sure, Government will accept my suggestions of Equity
Participation, and interest free subsidy for the first 5 years, and many new
Investors will come forward for the same.
TECHNICAL TEXTILES IN RAJASTHAN
(Contd.)
To sum up, Technical Textile Segment in India, in Rajasthan in particular, has
tremendous potential to attract investment and is expected to register a
promising growth.
At my age, if I have ventured into Technical Textiles, at the younger age, it
should be entirely attractive for people to come up in Technical Textiles.
I wish every success to all those who aspire to become manufacturers of
Technical Textiles, and start their Plants in Rajasthan.
Thank you !