Transcript ICRA Management Consulting Services

Seminar on Emerging Opportunities in Technical Textiles
RIICO, Office of the Textile Commissioner & FICCI
Presentation
On
Prospects and Opportunities in Technical Textiles
Rajasthan perspective
Jaipur, September 13, 2010
ICRA Management Consulting Services Limited
Objectives of the presentation
Present the scenario of Technical Textile industry with a focus on
Agrotech, Mobiltech and Geotech
Highlight the growth opportunities
Present the perspective of Rajasthan as a manufacturing base for
Agrotech, Mobiltech and Geotech
Draw attention to the possible ways to fast track the growth of
industry
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Overview of global Technical Textile industry
` Thousand crore
Fig: Market size of global Technical Textile industry
800.0
3%
600.0
483.2
• US, Western Europe and Japan account for
over 50% of the market.
603.3
432.8
• Going forward, growth expected in medical
& personal hygiene, sports & leisure,
environmental protection, pollution control
& filtration.
400.0
200.0
0.0
2000
2005
2010
Fig: Value-wise share of each segment in global technical textile
market (2010)
Buildtech,
7.3%
Clothtech,
6.5%
Hometech,
6.9%
Protech, 5.4%
Sportech,
15.0%
Packtech,
5.2%
Indutech,
16.9%
Industry in developed world
maturing.
Asia, Latin America and Eastern
Europe expected to experience
higher growth in future.
Geotech,
1.0%
Oekotech,
0.2%
Mobiltech,
23.0%
Agrotech,
6.4%
Meditech,
6.5%
Source: “World Market Forecasts for 2010 of technical textiles
and industrial non-wovens” by David Rigby Associates (DRA)
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Overview of Indian Technical Textile industry
Fig: Market size of Indian Technical Textile industry
Fig: Value-wise share of each segment in Indian technical textile
market (2007-08)
80,000
70,151
` crore
60,000
11%
40,000
20,000
Buildtech,
2,157 , 5%
41,756
15,196
Sportech,
2,851 , 7%
19,130
2001-02
2003-04
2007-08
Clothtech,
6,908 , 16%
Hometech,
5,025 , 12%
2012-13
Packtech,
14,630 ,
35%
• India emerging as significant
market for technical textiles.
• Packtech, Clothtech and
Hometech are the largest
segments, comprising around
65% of the market.
Protech,
1,302 , 3%
Geotech &
Oekotech,
272 , 1%
Indutech,
3,206 , 8%
Agrotech,
553 , 1%
Mobiltech,
3,183 , 8%
Meditech,
1,669 , 4%
Source: Baseline survey of the Technical Textile industry in India
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Technical textiles are expected to grow at a CAGR of 11%
Fig: Value-wise CAGR for various technical textile segments (from 2007-08 to 2012-13)
Indutech
Oekotech
Geotech
Protech
Hometech
Clothtech
Buildtech
Sportech
Packtech
Mobiltech
Meditech
Agrotech
11%
19%
11%
11% - CAGR
of technical
textiles
10%
12%
8%
8%
11%
13%
10%
8%
8%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Source: Baseline survey of the Technical Textile industry in India
Sportech, Indutech, Geotech, Oekotech, Packtech and Hometech are the
segments with high growth potential.
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India produces technical textiles belonging to all 12 segments,
however, majority of the products are commoditised
Fig: Segment-wise imports of various technical textile products as a percentage of market size (2007-08)
Indutech
Geotech & Oekotech
Protech
Hometech
Clothtech
Production
Buildtech
Imports
Sportech
Packtech
Mobiltech
Meditech
Agrotech
0%
20%
40%
60%
80%
100%
Source: Baseline survey of the Technical Textile industry in India
However, technology-intensive products are majorly imported.
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Overview of the Agrotech segment
Fig: Value-wise share of various products in Indian
Agrotech market (2007-08)
Fig: Market size of Indian Agrotech segment
1,000
` crore
800
600
400
Mulch
mats
2%
Shade
nets
8%
8%
811
553
200
2007-08
Antihail/birdprotection
nets
1%
2012-13
Fig: Volume-wise share of exports in the production of top
five products (2007-08)
Fishing nets
Crop
covers
2%
Fishing
nets
87%
14%
Anti-hail/bird-protection
nets
11%
Crop covers
• Majority of demand is met by domestic
production.
100%
Mulch mats
11%
Shade nets
• Exports account for around 12% of
domestic production, amounting to ` 67
crore.
44%
0%
40%
80%
120%
Source: Baseline survey of the Technical Textile industry in India
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Agrotech segment is expected to grow at a CAGR of 8% in value terms
Fig: Value-wise CAGR for Agrotech products (from 2007-08 to 2012-13)
Overall CAGR: 8%
Anti-hail/bird-protection nets
20%
Mulch mats
51%
Shade nets 6%
Fishing nets 5%
0%
20%
40%
60%
Source: Baseline survey of the Technical Textile industry in India
• National Horticulture Mission (NHM) has included plant protection products under
Protective Cultivation in the state-wise action plans.
• The XIth plan aims at providing assistance for procuring anti-hail nets in the hail prone
states.
• Strong focus on usage of mulch mats by NHM.
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Overview of the Mobiltech segment
Fig: Market size of Indian Mobiltech segment
Table: Market size of top 5 products in Indian Mobiltech
market (2007-08)
6,000
` crore
5,000
10%
4,000
3,000
2,000
Product
Nylon tyre cord
Seat cover fabric/upholstery
Helmets
Insulation felts
Automotive interior carpets
5,166
3,183
1,000
2007-08
2012-13
Market size
(` crore)
% share
2,022
63.5%
402
12.6%
250
7.9%
232
7.3%
136
4.3%
Source: Baseline survey of the Technical Textile industry in India
Fig: Volume-wise share of imports in the domestic
consumption of top five products (2007-08)
Airbags
• Around 27% of the demand is met by
imports.
100%
Seat belt webbing
• Airbags, seat belt webbing, nylon tyre
cord and airline disposables are importintensive products.
59%
Nylon tyre cord
40%
Airline disposables
23%
Seat cover fabric
• Negligible exports, at around ` 22 crore.
7%
0%
40%
80%
120%
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Mobiltech segment is expected to grow at a CAGR of 10% in value
terms
Fig: Value-wise CAGR for Mobiltech products
(from 2007-08 to 2012-13)
Overall CAGR: 10%
• Domestic consumption expected to
increase owing to booming automotive
segment.
TT usage in Railways 3%
Aircrafts upholstery
• Increasing focus on road safety likely
to boost the airbags and helmets
market.
• Nylon tyre cord market expected to
remain stagnant with increasing
production of radial tyres.
12%
Aircraft webbings
15%
Airline disposables
14%
Helmets
25%
Sunvisors/sunblinds
16%
Insulation felts
16%
Headliners (TT component)
16%
Automotive interior carpets
16%
Seat cover fabric/upholstery
17%
Car body covers
14%
Airbags (TT component)
24%
Seat belt webbing
Nylon tyre cord
16%
4%
0%
5%
10% 15% 20% 25% 30%
Source: Baseline survey of the Technical Textile industry in India
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Overview of the Geotech segment
` crore
Fig: Market size of Indian Geotech segment
500
400
300
200
100
-
11%
454
272
2007-08
2012-13
Fig: Product-wise market size of Geotech segment (2007-08)
Agro-based
geotextiles
11%
Geomembrane
22%
Geosynthetics
89%
Woven
geotextiles
35%
Geogrids
15%
Nonwoven
geotextiles
28%
Source: Baseline survey of the Technical Textile industry in India
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Geotech is import intensive with around 40% of the demand being met by
imports
Fig: Value-wise share of imports in the
domestic consumption of products (2007-08)
Geomembrane,
Geocomposites
• Around 40% of the demand is met by
imports.
62%
Geogrids
• Geogrids, Geocomposites, etc. form the
major share of imports.
60%
Geotextiles
• Majority of imports from Southeast Asia
(Malaysia), China, Taiwan and Europe.
66%
56%
58%
60%
62%
64%
66%
68%
• Exports account for over 30% (` 87
crore) of market size.
Fig: Value-wise share of exports in the
production of key products (2007-08)
Agro-based geotextiles
Others
Geotextiles
• Coir-based geotextiles are majorly
exported.
81%
7%
• Key export markets are Middle East
countries, UK, US, Germany, Italy.
66%
0% 20% 40% 60% 80% 100%
Source: Baseline survey of the Technical Textile industry in India
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Geotech segment is expected to grow at a CAGR of 11% in value terms
NHAI projects under NHDP – a key driver for Geotech
Increased thrust on rural infrastructure spending
Conservative views of major institutional users impedes domestic growth
Fig: Value-wise CAGR for domestic consumption of Geotech products
(from 2007-08 to 2012-13)
Agrotextiles
46%
Geomembrane,
Geocomposites
6%
Geogrids/Others
10%
Geotextiles
11%
0%
20%
40%
60%
Source: Baseline survey of the Technical Textile industry in India
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Agenda
Rajasthan Perspective
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Factors that favour investment in a state
Drivers for investment
Market
drivers
Policy
drivers
Economic
drivers
Primary catchment
Market
drivers
Secondary catchment
Tertiary catchment
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Progressing state economy offers conducive investment climate
Fig: Rajasthan’s GSDP
` Thousand crore
250.0
CAGR
11.5%
200.0
201.7
219.8
176.4
153.3
150.0
100.0
82.4
91.8
88.6
2000-01
2001-02
2002-03
128.6
111.6
117.3
2003-04
2004-05
50.0
0.0
2005-06
2006-07
2007-08
2008-09
2009-10
Fig: Value-wise share of various sectors in state’s GSDP (2009-10)
Services
45%
Agricuture
20%
Manufacturing
12%
Construction
15%
Forestry and
fishing
2%
Mining and
quarrying
3%
Elelectricity,
gas and water
supply
3%
Source: CMIE
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Investment-friendly policies and enabling industrial infrastructure
favour investments in the State
Investment friendly policies.....
• Single-window system
• Rajasthan Industrial and Investment Promotion Policy - 2010
Enabling industrial infrastructure
• Special purpose industrial
parks, growth centres, theme
parks, special economic zones
for industrial growth
• Two integrated textile parks
being established at Silora
(Kishangarh)
BIP, RIICO,
RFC, DI
Well-developed
industrial
infrastructure
Supporting
institutional
framework
Focus on
infrastructure
development
Well-developed
educational
infrastructure
Vast talent
pool
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Agrotech: Economic environment and policy initiatives support
investment
Primary catchment
• Agriculture - main economic
activity of the State
Secondary catchment
• Proximity to agriculturedominated states
Policy support for Agrotech
Item
Statement of action plan for protected cultivation approved
for different states for 2010-11
Select states
Rajasthan
Haryana
Uttar Pradesh
Punjab
Madhya Pradesh
Gujarat
Source: NHM
Protected cultivation
Area Financial outlay
(ha)
(` Lakh)
29
314.3
520
698.6
190
938.6
297
500.5
119
475.6
1038
659.3
Fan & pad system
Tubular structure
Wooden structure
Bamboo structure
Plastic mulching (` per ha)
Tubular structure
Shade-net house
Wooden structure
(` per sq mt)
Bamboo structure
Anti-bird/anti-hail nets (` per sq mt)
Cost of planting
material and inputs High-value vegetables
(` per sq mt)
Flowers
Green house
structure
(` per sq mt)
Maximum
permissible cost*
1,465
935
515
375
20,000
600
410
300
20
105
500
*Refer NHM Operational Guidelines 2010 for details of pattern of
assistance
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Mobiltech: Proximity to automotive manufacturing hub is the key
driver for investments
• Alwar and Jaipur enjoy close proximity
to country’s major auto production hub –
Noida, Gurgaon, Daruheda.
Secondary catchment
• Automotive sector identified as ‘specific
focus sector’ by the Rajasthan Industrial
and Investment Promotion Policy - 2010
Primary catchment
• Rajasthan focussing on becoming the
preferred destination for automotive
industry.
• Honda Motorcycles and Scooters India
Limited (HMSIL) and Honda Siel Car
India Limited (HSCIL) have already set
up manufacturing units in the state.
Source: Rajasthan Economic Survey 2009-10, RIICO, BIP
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Geotech: Economic environment and infrastructure creation support
investment in Rajasthan
• Significant thrust of Rajasthan Government on
strengthening state road network.
• Increased spending on road projects viz.
Increased
infrastructure spend
offers opportunity
for Geotech products
 New project for strengthening and renewal of 2,847 km of
rural roads under RIDF-XV
 Sanction of ` 636.4 crore for upgradation and
strengthening of 2,635 km of roads under PMGSY.
 Proposal of ` 3,354 crore to GoI to connect 5,094
Dhanies/Magaras.
Primary catchment
Source: Rajasthan Economic Survey 2009-10
33% of the National
Highway length passes
through Rajasthan and
neighboring states
Table: State-wise length of National Highways
State
Rajasthan
Haryana
Uttar Pradesh
Punjab
Madhya Pradesh
Gujarat
Cumulative
Length of National Highway
5,585
1,512
6,774
1,557
4,670
3,245
23,343
Secondary catchment
Source: Ministry of Road Transport & Highways
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Triggers to boost the Technical Textile industry...
Initiatives taken
Existing Gaps
Awareness about benefits of technical textile products
amongst the private and institutional users
Standards (focus Geotech)
Testing facilities
Technically trained personnel
Domestic availability of high performance and specialty
fibers
Regulations promoting usage of technical textiles
Dedicated efforts are required for the
industry to realise its full potential
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