creating value chain in technical textiles
DESCRIPTION
CREATING VALUE CHAIN IN TECHNICAL TEXTILES. ANUPAM DIKSHIT COO – PROJECTS S. KUMARS NATIONWIDE LTD 25 TH AUGUST 2011. WHAT IS TECHNICAL TEXTILES. Any textiles where function comes first and only then criteria like price and usually not aesthetics - PowerPoint PPT PresentationTRANSCRIPT
CREATING VALUE CHAIN IN TECHNICAL TEXTILES
ANUPAM DIKSHITCOO – PROJECTS
S. KUMARS NATIONWIDE LTD25TH AUGUST 2011
WHAT IS TECHNICAL TEXTILES• Any textiles where function comes first
and only then criteria like price and usually not aesthetics
• Used by other industries for their specific physical and functional properties their end products
• Not fashion oriented and not seasonal
FORMS• Fibres (such as for plastic or cement
reinforcement)• Yarn type products (such as sewing thread or
ropes)• Non-wovens (ex staple fibre or ex chips)• Non-spun products (such as wadding or filters)• Fabrics (woven, knitted, braided, stitch-bonded
or other)• Garments (fire retardant, bullet proof vest) • Made-up products (tarpaulins for trucks, filters,
tents and temporary buildings)
SECTORS
WORLD SECTOR-WISE SHARE
Mo-bil-
tech; 24%
In-dutech; 16%
Sporttech; 15%Buildtech; 7%
Clothtech; 7%
Hometech; 7%
Agrotech; 6%
Medtech; 6%
Packtech; 5%
Protech; 5% Geotech; 1% Okeotech; 1%
Total US$ 127 bn 2010
INDIA SECTOR-WISE SHARE
Packtech36%
Clothtech17%
Hometech12%
Mo-bil-
tech8%
Sporttech7%
In-dutech
6%
Buildtech4%
Medtech
4% Protech3%
Agrotech1%
Geotech1% Okeotech
1%
Total US$ 12 bn
GROWTH OF TEXTILESWorld Total
GLOBAL BREAK-UP
FIBRE BASES
RAW MATERIALS
TECHNOLOGIES
• Fabrics – Woven, Warp-Knit, Weft-Knit• Non-Wovens• Stitchbonding – Bi-Axial, Multi-Axial• Laminations – Film, Fabric, Membrane,
Leather or Non-Woven• Composites of above
NON-WOVENS GROWTHVALUE
NON-WOVENS ASIAQUANTITY
TRENDS• TT will continue to grow world-wide• Asia will become the major global player• India is yet at an emerging state in TT• Major growth technologies are :
Non-WovensReinforced Hi-Performance Composites GeotextilesFilterationFunctional Garments – FR, Hi-Vis, Sports,
Extreme Weather, Bullet-Proof….
SECTOR SELECTION
MARKET ATTRACTIVENESSCOMPANY
POTENTIAL & SYNERGY
LOW MEDIUM HIGH
HIGH IGNORE SECTOR ANALYZE SECTOR TARGET SECTOR
MEDIUM
IGNORE SECTOR ANALYZE SECTOR ANALYZE SECTOR
LOW IGNORE SECTOR IGNORE SECTOR IGNORE SECTOR
POTENTIAL SECTORS
• Geotech
• Medtech – Non-Woven
• Mobiltech
• Protech
GEOTECH (GT)
GT NORMS
GT SEGMENTS
GT DEMANDEXP YR 2013
INDIA GROWTH DRIVERS
POWER48%ROADS
24%
RAI-WAYS17%
PORTS8%
AIRPORTS4%
GOI INV PLAN 07-11TOTAL 160K CRS
CONCLUSIONS GT• Consumption will continue to be dominated
by Govt or Govt backed contractors• Lack of norms leading to subjectivity• Absence of regulation for usage, as against
US, EU, Japan & even China• Co-operation required by user ministries• Intl market restricted by entry barriers - high
quality norms, tender based buying & long-term guarantees & maintenance contracts - so focus on domestic & maybe near abroad
MEDTECH (MT)• Products can be segmented by :
Application Hygiene & Personal Care (Non-Sterile) Surgical & Medical Applications (Sterile)
Technology Carded/Spunlaced Cotton Wool – cotton balls,
dental buds, make-up pads, wound dressing etc Spunmelt Non-Woven – medical gowns, masks etc Spunlaced Non-Woven – wipes, dressings etc Woven – gowns, drapes, gauze etc
TYPES OF NON-WOVEN
SPUNMELT45%
CARDED
44%
AIR-LAID
7%
WET-LAID4%
WORLD QTY -’08
GROWTH IN SPUNMELT
1997 2002 2007 2012*0
500
1000
1500
2000
2500
3000
3500
4000
4500
SPUNMELTCARDEDAIR-LAIDWET-LAID
IN K.TONS
NON WOVEN MARKETS
PRODUCTS MT
INDIA MARKET
2002 2007 20120
50
100
150
200
250
300
350
400
K TonsMn US$
CONCLUSIONS MT
• High entry barrier due to heavy Capital Exp• High rate of technology upgradation requires
quick repeat capital investments• High volume machinery requires steady market,
usually a JV with an MNC user• Very high quality standards, esp for sterile goods
with intl agency approvals• Very few high quality machinery makers • Limited no. of raw-mat. makers• More margin finished goods than in r/m
MOBILTECH (MbT)• Applications in cars, bikes, trucks, buses, trains,
metros, planes, ships …… any tptn device
• Components – abt 30 kg per car : In-cabin - upholstery, door panels, carpets, headliner,
seatbelt, airbags …… Outside – hood acoustic liner, filters, tyre cords, wheel-arch
liner, trunk liner, under shield, cable wrappers ……
• Products – Non-woven acoustic liner, carpets, headliners Decorative woven fire retardant interior fabrics Nylon/ Polyester tyre cord High tenacity polyester narrow width seat belts
PRODUCTS
INDIA VEHICLE MARKET
AIRBAGS
MADE-UP AIRBAG
GROWTH OF AIRBAGS
TYRE CORD
SEATBELTS
CONCLUSIONS MbT• Though some sectors have good potential and
synergy like interior fabrics, liners & seat-belt sectors like tyre cord & airbags were low
• There is more potential in made-up product than in only the component
• Component market is dominated with SME sector which is difficult to compete on price
• Front end tie-up with auto industry critical• Slowdown expected in auto industry both
domestic & exports esp high end cars• Market can grow exponentially with changes in
regulations for FR fabric, airbags, rear seatbelt
PROTECH (PT)• Covers all types of protective clothing ranging
from high quality industrial work-wear to high performance products like bullet-proof vests, high altitude clothing etc
• Made from standard fibres/blends or from specialized technical fibres like high tenacity fine denier filament, aramides, carbon etc
• Covered by very high performance standards under harsh usage conditions
• One of the largest users are defense forces followed by hazardous industries
CHIEF FUNCTIONS
• Foul Weather Protection• High Visibility• Fire Retardant• Anti Static • High Altitude Clothing• Nuclear Biological Chemical (NBC) Protection• Dust Protection• Slash Protection• Bullet Proof Vests
WORLD MARKET
WORLD MKT SEGMENTS
FOUL WEATHER
55%
FIRE RET14%CHEMICAL
9%
SLASH7%
DUST4%
BALLISTICS4%
MASKS3%
HI VIS3%
HARNESSES1%
NBC0%
Tot $ 6.86 Bn ’10
INDIA MKT SEGMENTS
HIGH ALT 51%
BAL-LISTIC20%
FIRE RET20%
HI VIS5%
NBC2%
CHEM1% INDL GLOVES
1%
Tot $325 Mn ’10
PRODUCTS
PRODUCTS
USES IN DEFENCE• The biggest user of Protech is defence forces
– military, para-military, police & fire brigade
• Products include : Uniforms Foul Weather Clothing (FWC) incl Extreme Cold Climate
Clothing (ECC) Ballistic protection – vehicles & personnel Fire Proof/Retardant clothing Nuclear-Biological-Chemical protection suits Multi-Spectral Camouflage – objects & personnel Parachute fabrics & cords Tents, Sleeping bags & Packs
USES IN INDIAN INDUSTRY• Currently Protech is an under-developed market
in industry due to low regulation, missing norms and even lesser implementation
• This is changing with world-class cos & multi- national cos setting intl stds for worker safety
• SME sector virtual non-users of Protech• Pressure from workers & customer compliance
has a major role in pushing for Protech• Higher quality workforce require better uniforms• FWC for outdoor workers potentially a huge mkt• Both purchase & rental model exist but latter is a
new development in India
CONCLUSIONS PT• Defence forces will continue to dominate the
Indian market in the near future• Extensive refurbishment of defence forces
underway providing much needed protection to personnel & market for high qlty products
• Better norms reqd to avoid only L1 purchasing• Significant import substitution possible• Industry usage is increasing but can grow
faster with adoption of world class stds• Barriers in access to special fibres/technology
exist so JV with suppliers critical
RECOMMENDATIONS• Raw Materials : Encourage dev of high-grade fibre,
yarn & rolled-goods capacities• Policy Changes : Must make usage compulsory over a
defined time. Multi-ministry Empowered Group (EG) must be set-up to recommend policy changes
• Education : Centres of Excellence (COE) need to be further strengthened to encourage training at supervisor & worker level.
• Standards : Efforts to establish clearer stds & testing meths of intl level have to be strengthened.
• Funding : Competition from US, EU & China, where cost of funds is 3% to 5%, TUF benefit inadequate. Increase subvention, for limited period of 5 yrs, to at least 10% to encourage investments
THANK YOU