Transcript Indian emerging market trends in Technical Texitles
Smt. Shashi Singh Joint Textile Commissioner New Delhi 12-11-2008
Present Status of the Technical Textile and Non Woven Industry in India.
Government Initiatives to promote this Industry.
Domestic US$ 8.35 bn.
(Rs.37,571 crore)
(93%) US$ 8.95
bn.
(Rs.40,284 crore)
Export US$ 0.60 bn.
(Rs.2,713 crore)
(7%)
16000 14000 12000 10000 8000 6000 4000 2000 0 14267 8952
10%
64202 3377
12%
4251 15196 19130 2001-02 2003-04
20%
40284 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
India contributes 8% to global market size of technical textiles.
Expected to increase to 10% by 2010.
World technical textiles Indian Technical textiles 2007 116 8.95
India is expected to register higher rate of growth .
(US $ Billion)
2010 CAGR (%) 127 3.16
12.13
9.77
World India
India’s share in World’s consumption (%)
2007
(US$ Billion)
2010
116 127 8.95
12.13
7.7
9.6
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:
Segment Mobiletech Global (2007) % share 24 Indutech Sporttech Others
Total
16 15 45
100
Segment Packtech India (2007) % share 36 Clothtech Hometech Others
Total
17 8 39
100
There are about 1500 technical textile units in the country.
MNCs, large scale units, SSI units and cottage units all are present in this industry.
SSI sector has significant presence in converting activity.
Some of the large scale units are given below: Segment Manufacturers
Mobiletech SRF, Century Enka and Nirlon, Bhilwara Textile Mills and Shamken, IFB Auto Liv India, Abhishek Auto and Bond Safety Belt Meditech Protech Johnson & Johnson, Procter & Gamble, Kimberly Clark, 3M India, Ginni Filaments, Ahlmstrong (under construction).
Rajasthan Spg. & Wvg. Mills, Digjam Mills, Jayashree Textiles, Kusumgar Corporates, Entremonde Polycoaters, Tata Advanced Material.
Non-woven Ginni Filaments, Uni Products, Supreme Nonwoven, Unimin, Fibreweb, Ahlmstrong (under construction)
Production capacity is primarily focussed on commodity products / not very R&D intensive.
The technology by and large is traditional. Not many projects are based on state-of-the-art technology.
High-end products are mostly imported.
Large untapped potential exist for potential investors.
Growing awareness Buoyant economy – increase in disposable income, retail culture Increased demand of ‘ growth drivers ’ of technical textiles Favaourable demographics Government initiatives
7000 6000 5758 5000 4000 12% 3251 25913 3000 38% 2000 1000 0 711 13% 908 3198 4086 14630 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
Polyolefin sacks FIBC
Import intensive items
Soft luggage products
Potential items for investment
Leno bags
2500 2000 1500 2148 1199 13% 1518 0.27% 1535 7% 9665 1000 6833 6908 500 5395 0 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
Labels Zip fasteners
Import intensive items
Umbrella cloth
Potential items for investment
Umbrella cloth Interlining nonwoven
1400 1191 1200 1000 10% 800 733 5360 600 34% 400 3297 200 168 17% 229 758 1030 0 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
Mattress & pillow components Fibre fill
Import intensive items
Blinds HVAC Filters
Potential items for investment
Stuffed toys
1400 1200 1000 10% 1143 800 708 5144 600 400 23% 260 9% 307 3187 200 1169 1382 0 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
Nylon tyre cord Upholstery
Import intensive items
Airbags Seat belt webbing
Potential items for investment
Airbags Seat belt webbing
1400 1200 1000 13% 1254 800 669 5645 600 400 291 8% 18% 341 3009 200 1310 1534 0 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
Sports nets Sports composites
Import intensive items
Artificial turf
Potential items for investment
Artificial turf
900 800 700 600 500 400 300 200 100 0 32% 182 8% 214 819 962 650 6% 2927 855 3848 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
Fibre glass items Ropes & Cordages
Import intensive items
Glass battery separators
Potential items for investment
Glass battery separators
700 600 500 476 4% 581 400 300 234 6% 263 16% 2141 2615 200 100 1051 1182 0 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
Tarpaulins Hoardings & Signages
Import intensive items
Hoardings & Signages Floor & wall coverings
Potential items for investment
Roofing felts
600 500 400 300 200 369 6% 173 10% 207 15% 1660 499 2244 100 778 933 0 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
Surgical dressings Surgical sutures
Import intensive items
Artificial implants Hygiene products
Potential items for investment
Surgical dressings / disposables (nonwoven) Artificial implants
600 530 500 11% 400 318 2387 300 29% 200 100 77 22% 116 520 348 1430 0 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
High altitude clothing Fire retardant fabrics
Import intensive items
High altitude clothing
Potential items for investment
High altitude clothing Fire retardant fabrics
180 160 140 120 100 80 60 40 20 0 58 8% 67 261 17% 304 128 5% 576 165 742 2001-02 2003-04 2007-08 2012-13 (Proj.)
Figures in bar chart are in Rs. crore
Major items
Fishing nets Mulch mats
Import intensive items
Green house fabrics
Potential items for investment
Green house Mulch mats
There are about 50 units of nonwovens in the country. Only 7 with European machinery, remaining 43 with Chinese machinery.
The consumption of non-woven in India is estimated to be one lakh MT in 2007-08 and expected to increase to 1.8 lakh MT in 2012-13.
Currently, about 30% of demand is met through imports. However, capacities coming up in India will reduce imports.
Source : Monthly Statistics of the Foreign Trade of India, DGCIS, Kolkata.
Source : Monthly Statistics of the Foreign Trade of India, DGCIS, Kolkata.
• Sharp increase in imports of nonwoven machinery during 2006-07. Domestic production likely to increase substantially now. Cost –competitiveness.
Technology Upgradation Fund Scheme (TUFS)
Technical textiles covered under TUFS. Under modified TUFS, w.e.f. 01-04 2007, the 10% capital subsidy has been made applicable along with 5% interest reimbursement for specified technical textile machinery.
The subsidy under TUFS works out to about 20-25% of project cost.
280 applications with project cost of US$ 355 Mn. have been sanctioned upto 31-03-2008.
Registration has been given to 104 eligible units under 10% capital subsidy under TUFS.
Fiscal duty concessions
Major machinery eligible for 5% concessional customs duty.
Excise duty on man-made fibre / yarn reduced to 8%.
Baseline survey
Govt. has selected ICRA Management Consultancy Services (IMaCS) for doing the baseline survey at the cost of Rs.54.50 lakh.
Interim report has been submitted on 10-11-2008 which is under examination and will be placed in public domain shortly.
Centre of Excellence (COE)
Govt. has designated 4 COEs for Geotech, Agrotech, Protech and Meditech segments.
Name of the designated agency
BTRA & ATIRA SASMIRA, MANTRA and Navsari Agriculture University NITRA & IIT, Delhi SITRA & AC College of Technology
Segment
Geotech Agrotech Protech Meditech
Centre of Excellence (COE)
Govt. will provide fund support of Rs.11 crore for setting up essential facilities and the COE has to bear the recurring expenditure and manage the COE on commercially sustainable basis.
The essential facilities to be created in COE: • • • Facilities for testing and evaluation with national and international accreditation.
Resourse centre with IT infrastructure.
Facilities for training of core personnel and regular training of personnel from the industry.
Training workshop
Six training workshops
were organised during the last year.
Internationally reputed consultants
were invited to speak on manufacturing technologies, raw materials, global market scenario and future directions, standard test methods, etc .
Objective of the workshop was to facilitate to encourage investment in the ‘
transfer of knowledge
’ ‘
high-end
’ technical textile items.
During current year also such workshops are being held.
Scheme for Integrated Textile Parks (SITPs)
Government provides fund support for creation of common infrastructure (i.e., compound wall, roads, drainage, water supply, electricity supply including captive power plant, effluent treatment, telecommunication lines etc.) to the extent of 40% limited to Rs.40
crore.
30 parks have been approved under SITP.
Technical Textiles /non-wovens can come in any such park or can come together to have its own separate park to get the benefit of infrastructure support.
FDI Policy
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.
Special Economic Zone (SEZ) Policy
Technical textile units with focus on exports can take the benefit of SEZ policy.
SEZs deemed to be foreign territory for the purpose of trade operations, duties and tariffs.
The main aim of SEZ Policy is to enhance foreign investment and promote exports from the India.
Special Economic Zone (SEZ) Policy
Incentive and facilities offered to the units in SEZs.
Duty free import / domestic procurement of goods for development, operation and maintenance of SEZ units.
100% Income Tax exemption on export income for SEZ units for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
Special Economic Zone (SEZ) Policy
Incentive and facilities offered to the units in SEZs (Contd...) Exemption from Central Sales Tax.
Exemption from Service Tax Single window clearance for Central and State level approvals.
Exemption from State Sales Tax and other levies as extended by the respective State Government.
Technology Mission on Technical Textiles (Proposed)
TMTT proposed to have four Mini-Missions to provide support to manufacturing units of technical textiles capacity building of raw material, machinery, infrastructure; standardization, product development, common testing facilities with international accreditation; domestic and export market development; Human Resource Development.
Due to the buoyancy in the economy and Government initiatives the production and consumption of technical textile and non-woven items in India is increasing very rapidly.
The turbulence in conventional textile industry have also encouraged diversification in technical textiles.
For information on technical textiles : visit