mr. pranay sahu | global nonwovens scenario
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Welspun Group I Textiles
GLOBAL SCENARIO NONWOVENS
GLOBAL NONWOVENS SCENARIO
Welspun Group | Textiles
Welspun Group I Textiles
Global consumption of Nonwovens
North America
Consumption of 2 million tonnes
CAGR : 5.4% (13-18)
South America
Consumption of 0.4 million tonnes
CAGR : 6.2% (13-18)
Europe
Consumption of 2.1 million tonnes
CAGR : 4.6% (13-18)
Asia
Consumption of 3.6 million tonnes
CAGR : 11.1% (13-18) Rest of the world
Consumption of 0.4 million tonnes CAGR : 2.4% (13-18)
(Total maket size 8 million tonnes)Source: Future of Global Nonwoven Market, Smithers Apex 2014
Welspun Group I Textiles
About Nonwovens
• World Nonwovens consumption in 2013 stood more than 7 Mn MT valued at US $ 33 Bn • It is projected to reach 11 Mn MT by 2018 valued at US $ 47.5 Bn (CAGR 7.5%)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
CAGR of 6.4% Projected CAGR of 7.5%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
5818 6001 63706854
73757936
85539188
988310637
11445
World Nonwoven Consumption
Consumption '000 MT
Welspun Group I Textiles
Global Consumption Trend
2008 2009 2010 2011 2012 2013
1556 1592 1640 1705 1795 1912
270 281 293 307 325 3471722 1739 1776 1834 1913 2000
1951 2059 23162641
29473241320 330
346366
395436
Geographic Nonwovens Consumption 2008-13, 000 tonnes
North America South America EuropeAsia RoW 27%
5%
30%
34%
5%
Global NW Consumption TrendNorth America South America EuropeAsia RoW
24%
4%
25%
41%
5%
Asian Consumption Increased by 8% over 5 years
FY 2008 5.8 Mn MT
FY 2013 7.9 Mn MT • Asia registered highest growth CAGR of 10.7% in
consumption of NW.• Asian NW consumption moved from US $ 7.5 Bn to
US $ 12.3 Bn.
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Welspun Group I Textiles
Why Nonwovens Growing
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Saves labour & time Cost (Energy/ resources/raw material)
Global Economics/Demographics
Global population changes for adult incontinence & baby products, Higher income
Environmental Issues- Regulatory pressure, Consumer
desires (Ex. Lenzing Tencel, PLA) , Retailer proactivity
Performance
Product differentiation/ customization
Welspun Group I Textiles
Nonwovens marketIndustry dynamic volatile and
competitiveFragmented, ripe for consolidation
Substitutes – Low, Increasing use of nonwovens at expense of other material
Suppliers – Forward
integration unlikely
Polymer market fundamentals to
remain weak
Barriers to entry- Product legislation, Innovation capacity & investment required.
Customers – Limited
backward integration.Very strong
relationships in hygiene
Nonwoven Industry dynamics
Welspun Group I Textiles
Sensitivities in Nonwoven Business
Raw material cost - Raw material cost represents 55-60% of sales. - Polypropylene and polyester key raw materials. - Prices dependent upon the price of crude oil and
manufacturing capacity and demand.- Industry usually follows ‘pass through’ mechanism.
Economics- Varies on factors such as economic conditions,
conditions specific to industry and specific to each company
- Other factors such as geographical, political etc.
Welspun Group I Textiles
Customer relationship - High degree of dependency on maintaining good relations
with key customers.- In hygiene market even one customer can account for as
much as 30% of sales.
Competition - Competition is intense & producers also faces competition
from global competition.- Competition based upon range & quality of products,
ability to deliver new product, geographical reach, reputation, price and client relationships.
Welspun Group I Textiles
Changes in technology- Important to maintain low cost position- Failure to continually invest to develop a steady stream of
successful new products and processes could increase the cost base and result in reduced competitiveness.
The supply/demand balance- Greatly effects both prices and profitability today on the
aggregate basis, the industry is oversupplied. - Expansion in capacities in China & India.
Legal and regulatory environment- There are many laws and regulations concerning products,
and their composition, use and disposal. These laws are becoming increasingly stringent.
Welspun Group I Textiles
5%5%
4%4%
4%2%
2%2%
2%1%
1%67%
FreudenbergDuPontKimberly-ClarkAhlstromPGIFiberwebJohns ManvilleFitesaGlatfelterAvgolSandlerOther
• Fragmented industry: Top 11 biggest players have market share less than 33% by value.
• Nearly 50% of all industry production of nonwovens is located in facilities in Western Europe, the US and Japan.
• Production is growing strongly in developing countries such as China & India.
Major Producers
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Welspun Group I Textiles
Nonwoven Types
Disposable Nonwovens
• Hygieneo Feminine hygiene pads and linerso Baby diapers etc
• Wipeso Baby wipeso Home cleaning wipeso Industrial wipes etc
• Medicalo Surgical gowns & drapeso Instrument wrap & bandages etc
• Other Disposableso Softener sheets o Napkins & table cloths
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Welspun Group I Textiles
Nonwoven Types
Durable Nonwovens
• Work wears
• Interlinings & Shoe Inserts
• Synthetic leather
• Coating substrates
• Household applications like table
linens
• Upholstery liners & bedding material
• Wall coverings, floor coverings
• Filtration
• Automotive
• Geotextiles
• Agricultural etc.Source: Future of Global Nonwoven Market, Smithers Apex 2014
Welspun Group I Textiles
Nonwoven Market Mapping
Nonwoven World Market: US $ 33.1 Bn, 7.9 Mn MT
Disposables Durables
• US $12.5 Bn
• 3.5 Mn MT
• US $20.6 Bn
• 4.5 Mn MT
57%
3%
15%
7%
8%
10%Hygiene
Industrial Wipes
Personal Wipes
Home Wipes
Medical
Other
20%
1%
10%
13%
10%10%
2%
7%
3%
6%
3%
12%3%
Upholstry
Garments
Floor Coverings
Building
Geotextiles
Automotive
Agriculture
Coating Substrates
Air Filters
Liquid Filters
Interlinings
Other
Leather
Break-up FY 2013 in Value Terms
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Welspun Group I Textiles
Asia
2008 2014 2018 CAGR (13-18)Spunlaid 784 1740 2807 13.7%Drylaid 1054 1804 2524 9.1%Airlaid 79 85 101 3.5%
Wetlaid 34 48 62 6.5%
2008 2014 20180
500010000150002000025000
NW Consumption
NW Consump-tion
• Asia remains the global leader, with a market share of 40.8% and consumption of 3.6 million tonnes.
• The annual expected growth rate from 2013-18 is expected to be 11.1%.
Source: Future of Global Nonwoven Market, Smithers Apex 2014
‘000 tonnes
Welspun Group I Textiles
2008
2014
2018
0 500 1000 1500 2000 2500
HygieneMedicalPersonal WipesHomecare WipesIndustrial WipesOthers
2008
2014
2018
0 500 1000 1500 2000 2500
GarmentsInterliningsShoe/LeatherCoating substrates HouseholdFiltrationOthers‘000
tonnes
Disposable nonwovens
Total consumption – 1.2 million tonnesCAGR – 11.7% (2013-18)
Durable nonwovens
Total consumption – 2.4 million tonnesCAGR – 10.3% (2013-18)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Asia
Welspun Group I Textiles
• Europe has market share of 25.2% and consumption of 2.0 million tonnes.• The annual expected growth rate from 2013-18 is expected to be 4.6%
2008 2014 20180
100
200
300
400
RestPolandRussiaTurkey
Western Europe - CAGR : 4.5% (2013-18) Eastern Europe - CAGR : 4.8% (2013-18)
2008 2014 20180
500
1000
1500
2000 ScandinaviaBeneluxSpainItaly UKFrance Germany
2008 2014 2018 CAGR (13-18)
Spunlaid 873 1062 1296 4.6%
Drylaid 624 726 856 4.2%
Airlaid 123 155 192 5.5%
Wetlaid 48 63 77 5.0%
‘000 tonnes
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Europe
Welspun Group I Textiles
2008
2014
2018
0 200 400 600 800 100012001400
HygieneMedicalPersonal WipesHomecare WipesIndustrial WipesOthers
2008
2014
2018
0 100 200 300 400 500 600
GarmentsInterliningsShoe/LeatherCoating substrates HouseholdFiltrationOthers‘000
tonnes
Disposable nonwovens
Total consumption – 1.0 million tonnesCAGR – 4.0% (2013-18)
Durable nonwovens
Total consumption – 1.0 million tonnesCAGR – 5.2% (2013-18)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Europe
Welspun Group I Textiles
North America has a market share of 24.1% and consumption of 1.9 million tonnes.
2008 2014 20180
1000
2000
3000
NW Consumption
NW Consump-tion
‘000 tonnes
2008 2014 2018 CAGR (13-18)
Spunlaid 693 923 1184 6.1%
Drylaid 644 780 925 4.2%
Airlaid 120 148 180 4.5%
Wetlaid 64 65 70 1.7%
• North America here is defined as the USA and Canada.
• The annual expected growth rate from 2013-18 is expected to be 5.4%
Source: Future of Global Nonwoven Market, Smithers Apex 2014
North America
Welspun Group I Textiles
2008
2014
2018
0200
400600
8001000
12001400
1600
HygieneMedicalPersonal WipesHomecare WipesIndustrial WipesOthers
2008
2014
2018
0 50 100150200250300350400450
GarmentsInterliningsShoe/LeatherCoating substrates HouseholdFiltrationOthers‘000
tonnes
Disposable nonwovens
Total consumption – 1.1 million tonnesCAGR – 5.4% (2013-18)
Durable nonwovens
Total consumption – .89 million tonnesCAGR – 5.4% (2013-18)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
North America
Welspun Group I Textiles
2008 2014 20180
500
1000
1500
NW Consumption
NW Consump-tion
‘000 tonnes
2008 2014 2018 CAGR (13-18)
Spunlaid 141 180 212 4.3%
Drylaid 115 155 208 7.3%
Airlaid 11 28 42 11.4%
Wetlaid 1 2 3 10.1%
South America is positioned fourth and has slowly lost its market share from 4.7% to 4.1%. Its consumption is at 0.3 million tonnes.The annual expected growth rate from 2013-18 is expected to be 6.2%.
Source: Future of Global Nonwoven Market, Smithers Apex 2014
South America
Welspun Group I Textiles
2008
2014
2018
0 50 100 150 200 250
HygieneMedicalPersonal WipesHomecare WipesIndustrial WipesOthers
2008
2014
2018
0 20 40 60 80 100 120 140 160
GarmentsInterliningsShoe/LeatherCoating substrates HouseholdFiltrationOthers
‘000 tonnes
Disposable nonwovens
Total consumption – .14 million tonnesCAGR – 7.7% (2013-18)
Durable nonwovens
Total consumption – .22 million tonnesCAGR – 6.7% (2013-18)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
South America
Welspun Group I Textiles
PP Polymer39%
PET Polymer5%PE Polymer
2%Other Polymer
1%
PP16%
PET17%
Rayon10%
BICO3%
Wood pulp8%
other fibre0%
PP Polymer; 47.7
PET Polymer; 0.2PE Polymer ; 0.8Other Polymer; 1.3
PP; 9.2
PET; 11.6
Rayon; 9.9
BICO; 3.9
Wood pulp; 14.7other fibre; 0.6
PP Polymer33%
PET Polymer10%
PE Polymer 3%
Other Polymer0%
PP21%
PET21%
Rayon10%
BICO1%
Wood pulp2%
other fibre0%
Nonwovens Disposable Durable
• Polypropylene is the most widely used both in polymer & fibre form.• Raw materials mainly dominated by polymers & synthetic fibre.• Other raw materials like cotton, PLA (Polylactic acid) etc growing @10.8% per annum &
expected to grow @12.5%.
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Materials for Nonwoven
Welspun Group I Textiles
• Decreasing basis weight resulting reduced raw material costs, shipping, waste disposal & ware house cost.
• Permanently hydrophilic polypropylene/polyesters• New sustainable materials – PLA and Kenaf• Bicomponent fibres
- Utilizes the property of two fibres - Exploits capabilities of both polymers - Brings out multifunctional properties
2008-13, 5.5% decrease in basis weight
2008-13, hygiene dropped 6%Personal care wipes dropped 5.3
Kenaf
Materials Trends
Welspun Group I Textiles
Processes• Innovative SpunMelt• Carding – High speed/High volume processing• Coform - New innovative/combined processes
Post-processes• Surface treatments• Coating/laminations
Major Process Trends
Welspun Group I Textiles
Composite Nonwovens refers to a category of materials which consist of a resinous matrix reinforced by an embedded nonwoven fabric
Thinsulate© from 3M consits normal & micro fibres
• Layered Composites - multi-card process - multi- forming box - multi- beam spunbond process - combination of various forming process
• Composites made by lamination - made up from two or more layers of nonwovens - made up from atleast one nonwoven & at least one different layer (reinforcemet, film)
Spunbond +Spunlace
Product Innovations
Welspun Group I Textiles
EMBRYONIC GROWING MATURE AGING
SALE
S
TIME
Durables
Automotive
Wipes
Filters
Industrial
Personal careHealth careMedical
Interlinings
Carpet backings
N. Am...
W. E
u...Jap
an Asia
S. Am...
S. Afr.
..0
20
40
60
80
100Feminine care Baby careMedical fabricsIndustrial fabrics Apparel
Mar
ket P
enet
ratio
n %
Source: Company data, Fiberweb and Edison Investment Research
Potential for growth
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