Emerging Indian market trends in Technical Textiles and nonwovens

1. Emerging Indian market trends in Technical Textiles and nonwovens Smt. Shashi Singh Joint Textile Commissioner New Delhi 12-11-2008

2. Presentation format • Present Status of the Technical Textile and Non-Woven Industry in India. • Government Initiatives to promote this Industry.

3. Market size of Indian Technical Textile industry US$ 8.95 bn. (Rs.40,284 crore) Domestic US$ 8.35 bn. Export US$ 0.60 bn. (Rs.37,571 crore) (Rs.2,713 crore) (93%) (7%)

4. Market size of Technical Textiles 10% 64202 20% 12% 40284 19130 15196 Figures in bar chart are in Rs. crore

5. Technical Textile industry : share in global market India contributes 8% to global market size of technical textiles. Expected to increase to 10% by 2010.

6. Growth of technical textiles in the World vis-à-vis Indian technical textiles India is expected to register higher rate of growth.

7. Consumption of technical textiles in India

8. Technical textile industry of India 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:

9. Technical textile industry of India • 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:

10. Technical textile industry of India • 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.

11. Triggers for growth

12. Indian market size of Packtech Major items Polyolefin sacks FIBC 12% Import intensive items 25913 Soft luggage products 38% 14630 13% Potential items for investment 3198 4086 Leno bags Figures in bar chart are in Rs. crore

13. Indian market size of Clothtech Major items Labels Zip fasteners 7% 0.27% 13% Import intensive items 9665 Umbrella cloth 6833 6908 5395 Potential items for investment Umbrella cloth Interlining nonwoven Figures in bar chart are in Rs. crore

14. Indian market size of Hometech Major items Mattress & pillow components Fibre fill 10% Import intensive items 5360 Blinds HVAC Filters 34% 3297 17% 1030 Potential items for investment 758 Stuffed toys Figures in bar chart are in Rs. crore

15. Indian market size of Mobiltech Major items Nylon tyre cord Upholstery 10% Import intensive items 5144 Airbags Seat belt webbing 23% 3187 9% Potential items for investment 1382 1169 Airbags Seat belt webbing Figures in bar chart are in Rs. crore

16. Indian market size of Sporttech Major items Sports nets Sports composites 13% Import intensive items 5645 Artificial turf 18% 3009 8% 1534 Potential items for investment 1310 Artificial turf Figures in bar chart are in Rs. crore

17. Indian market size of Indutech Major items Fibre glass items Ropes & Cordages 6% Import intensive items 3848 32% Glass battery separators 2927 8% 962 819 Potential items for investment Glass battery separators Figures in bar chart are in Rs. crore

18. Indian market size of Buildtech Major items Tarpaulins Hoardings & Signages 4% Import intensive items 2615 16% Hoardings & Signages Floor & wall coverings 6% 2141 1051 1182 Potential items for investment Roofing felts Figures in bar chart are in Rs. crore

19. Indian market size of Meditech Major items Surgical dressings Surgical sutures 6% Import intensive items 2244 15% Artificial implants Hygiene products 10% 1660 778 933 Potential items for investment Surgical dressings / disposables (nonwoven) Artificial implants Figures in bar chart are in Rs. crore

20. Indian market size of Protech Major items High altitude clothing Fire retardant fabrics 11% Import intensive items 2387 29% High altitude clothing 22% 1430 Potential items for investment 520 348 High altitude clothing Fire retardant fabrics Figures in bar chart are in Rs. crore

21. Indian market size of Agrotech Major items Fishing nets Mulch mats 5% Import intensive items 17% 742 8% Green house fabrics 576 304 Potential items for investment 261 Green house Mulch mats Figures in bar chart are in Rs. crore

22. Nonwovens • 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.

23. Import of nonwoven fabrics(quantity) Source : Monthly Statistics of the Foreign Trade of India, DGCIS, Kolkata.

24. Import of Nonwoven machinery 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.

25. Government initiatives • 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. Technology Upgradation Fund Scheme (TUFS) Fiscal duty concessions • Major machinery eligible for 5% concessional customs duty. • Excise duty on man-made fibre / yarn reduced to 8%.

26. Government initiatives • 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. Baseline survey

27. Government initiatives • Govt. has designated 4 COEs for Geotech, Agrotech, Protech and Meditech segments. Centre of Excellence (COE)

28. Government initiatives • 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: Centre of Excellence (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.

29. Government initiatives • 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 ‘transfer of knowledge’ to encourage investment in the ‘high-end’ technical textile items. • During current year also such workshops are being held. Training workshop

30. Government initiatives • 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. Scheme for Integrated Textile Parks (SITPs)

31. Government initiatives • 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. FDI Policy

32. Government initiatives • 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

33. Government initiatives • 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

34. Government initiatives • 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. Special Economic Zone (SEZ) Policy

35. Government initiatives • 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. Technology Mission on Technical Textiles (Proposed)

36. Potential for technical textiles • 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.

37. For information on technical textiles : visit www.txcindia.com

38. Thank You