Smt' Shashi Singh

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.
• Indias 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 RD intensive.
• The technology by and large is traditional. Not
  many projects are based on state-of-the-art-techno
  logy.
• High-end products are mostly imported.
• Large untapped potential exist for potential
  investors.

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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
Import intensive items
13
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
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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
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.

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Government initiatives
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.

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Government initiatives
Centre of Excellence (COE)

• Govt. has designated 4 COEs for Geotech,
  Agrotech, Protech and Meditech segments.

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Government initiatives
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.

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

30
Government initiatives
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.

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Government initiatives
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.

32
Government initiatives
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.

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Government initiatives
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.

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Government initiatives
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.

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Government initiatives
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.

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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.

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• For information on technical textiles
• visit
• www.txcindia.com

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Thank You