WELCOME TO PRESENTATION

1. WELCOME TO PRESENTATION

2. Ram Asrey Lal Director, Government of India, Ministry of Textiles, Regional Office of the Textile Commissioner, Noida 13.09.2010 Emerging Indian market trends in Technical Textiles

3. Presentation format • Present Status of the Technical Textile • Government Initiatives to promote this Industry.

4. Market size of Indian Technical Textile industry US$ 8.97 bn. (Rs.41,756 crore) Domestic US$ 8.35 bn. Export US$ 0.63 bn. (Rs.2,921 crore) (Rs.38,835 crore) (93%) (7%) Imports - US$ 0.86 bn (Rs. 4, 000 crore) ( which is approx. 10% of the market size.)

5. Market size of Technical Textiles 11% 70,151 21% 12% 41,756 19130 15196 Figures in bar chart are in Rs. crore

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

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

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 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

11. 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.

12. Indian market size of Packtech Major items Polyolefin sacks FIBC 13% Import intensive items 26753 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 8% 0.27% 13% Import intensive items 10225 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 12% Import intensive items 8748 Blinds HVAC Filters 49% 5025 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 5166 Airbags Seat belt webbing 23% 3183 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 11% Import intensive items 4761 Artificial turf 17% 2851 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 11% Import intensive items 5437 35% Glass battery separators 3206 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 8% Import intensive items 3232 16% Hoardings & Signages Floor & wall coverings 6% 2157 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 8% Import intensive items 2490 15% Artificial implants Hygiene products 10% 1669 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 10% Import intensive items 2075 26% High altitude clothing 22% 1302 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 8% Import intensive items 16% 811 8% Green house fabrics 553 304 Potential items for investment 261 Green house Mulch mats Figures in bar chart are in Rs. crore

22. Government initiatives Scheme for Growth and Development of Technical Textiles(SGDTT) • To tap the potential of technical textiles and to unleash the investments in this industry, the govt. has launched Scheme for Growth and Development of Technical Textiles (SGDTT) during 2007-08. • SGDTT comprises of 3 components: • Baseline survey of technical textile industry, • Creation of awareness • Setting up of Centres of Excellence (COEs)

23. Government initiatives • To strengthen the database of technical textiles industry, the ICRA Management Consultancy Services (IMaCS) was appointed to conduct the baseline survey at a cost of Rs 54.50 lakhs. • The agency has submitted the report and the same has been approved & placed in the exclusive website for technical textile : www.technotex.gov.in The report contains market size of 12 segments, potential of technical textiles and details of producers, importers and exporters of all categories of Technical Textiles. Baseline Survey Of Technical Textiles Industry in India

24. Government initiatives Creation of Awareness: • Seminars/training workshops/conferences on technical textiles are being organised by Office of the Textile Commissioner in association with TRAs / COEs / Textile Associations/reputed foreign associations in different parts of the country.

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

26. Government initiatives • Govt. has provided fund support of Rs.43.11 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 being created in COEs: Centre of Excellence (COE) • Facilities for testing and evaluation with national and international accreditation. • Resource centre with IT infrastructure. • Facilities for training of core personnel and regular training of personnel from the industry.

27. Government initiatives Integrated Skill Development Programme (ISDP) • Government of India has recently launched the Integrated Skill Development Programme (ISDP). Under ISDP, it is proposed that 22,000 personnel will be trained in technical textile sector with a cost of Rs. 18.30 Crores in the year 2010-11 & 2011-12. Fiscal duty concessions • Major machinery eligible for 5% concessional customs duty. • Excise duty on man-made fibre / yarn reduced to 8%. • Specified technical textile products are covered under Focus Product Scheme. Under this scheme, exports of these products are entitled for duty credit scrip equivalent to 2% of FOB value of exports.

28. Government initiatives Integrated Skill Development Programme (ISDP) • Government of India has recently launched the Integrated Skill Development Programme (ISDP). Under ISDP, it is proposed that 22,000 personnel will be trained in technical textile sector with a cost of Rs. 18.30 Crores in the year 2010-11 & 2011-12. Fiscal duty concessions • Major machinery eligible for 5% concessional customs duty. • Excise duty on man-made fibre / yarn reduced to 8%.

29. Regulatory framework in India Some of the technical textiles products require mandatory prescription for their use. MoT has already obtained nominations from the following five Ministries. The brief description of issues that require concerned Ministries attention for making appropriate regulatory framework in India are given below:

30. Regulatory framework in India • NITRA has been assigned task on formulation of regulations in respect of Protective Textiles with a financial outlay of Rs. 25 lakhs. NITRA will study the legislations/labour laws prevailing with respect to safety wear of industrial workers in European countries and suitability of such legislations in Indian context with respect to 64 Indian legislations. The study is expected to be completed in next six months. • IMaCS has been selected for preparation of Report & Presentation for facilitating interactions with the nodal officers of four user ministries for developing the regulations in Agrotech, Meditech, Protech & Geotech segment of technical textiles. The study will be carried out at the cost of Rs. 7.2 lakhs.

31. Standards • One of the major cause which is hampering the growth and development of technical textiles is non-availability of standards for technical textiles products. To quicken the process of standards formulation by BIS, Textile Commissioner has set up four committees in four segments of Protech, Agrotech, Geotech and Meditech. The Committees comprise of members from Industry, Technical Institutes, Government bodies with Director of respective COE as Convener. The Committees were constituted in October, 2009. • The Committees have been entrusted with the responsibility of formulation of Standards so that the same could be forwards to BIS for early finalisation and notification of standards. • Five reports of the committee containing recommendations/draft standards one each on Geotech, protech, Agrotech and two reports Meditech segment have been forwarded to BIS.

32. Government initiatives Technology Upgradation Fund Scheme (TUFS) • Technical textile machinery is covered under the Technology Upgradation Fund Scheme (TUFS) and eligible for 5% interest reimbursement. • In the Modified TUF Scheme applicable from 01.04.2007 specified machinery for manufacturing technical textiles are also eligible for additional 10% capital subsidy. (TUFS is presently under suspension) • Under TUFS, 423 Technical Textile units with a project cost of Rs. 2628.45 crore have already been sanctioned as on 31.12.2009 • From 01.04.2007 to till date, 429 technical textile units have been registered with this Office of the Textile Commissioner, Mumbai for availing 10% Capital Subsidy under TUFS for Technical Textiles with a proposed investment in machineries to the tune of Rs. 2256.86 crores (Approx).

33. 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 plant, telecommunication lines etc.) to the extent of 40% limited to Rs.40 crore. • 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)

34. Government initiatives Ministry of Textiles is proposing to launch technology Mission on Technical Textiles with following objectives: • Standardization, creating common testing facilities with national / international accreditation, indigenous development of prototypes and resource center with I.T. infrastructure. • Support for domestic & export market development of technical textiles Technology Mission on Technical Textiles (Proposed)

35. for more information on technical textiles Visit www.technotex.gov.in www.txcindia.gov.in