Investor Guide.pdf - IMaCS
Investor Guide.pdf - IMaCS
Investor Guide.pdf - IMaCS
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2010<br />
<strong>Investor</strong> <strong>Guide</strong><br />
<strong>Investor</strong> Conference on Geotech and<br />
Meditech<br />
Organised by FICCI and Ministry of<br />
Textiles, Government of India<br />
ICRA Management Consulting Services Limited
CONTENTS<br />
1. The macroeconomic context ................................................................................................................ 1<br />
2. Introduction to Technical Textiles ....................................................................................................... 4<br />
3. Global Technical Textile Industry outlook ........................................................................................... 5<br />
4. Indian Technical Textile industry ......................................................................................................... 6<br />
5. Meditech ............................................................................................................................................... 8<br />
6. Geotech ............................................................................................................................................... 13<br />
7. Raw Materials ..................................................................................................................................... 16<br />
8. Technology.......................................................................................................................................... 18<br />
9. Project Profiles…………………………………………………………………………………………………………………………….. 19
DISCLAIMER<br />
This document has been prepared jointly by ICRA Management Consulting Services Limited (<strong>IMaCS</strong>)<br />
(“Author”) and Federation of Indian Chamber of Commerce and Industry (FICCI). The same may not be<br />
reproduced, wholly or in part in any material form (including photocopying or storing it in any medium<br />
by electronic means and whether or not transiently or incidentally to some other use of this document),<br />
modified or in any manner communicated to any third party except with the written approval of the<br />
Authors. This document is for information purposes only. While due care has been taken during the<br />
compilation of this document to ensure that the information is accurate to the best of the Author’s and<br />
FICCI’s knowledge and belief, the content is not to be construed in any manner whatsoever as a<br />
substitute for professional advice. The Author and FICCI neither recommend or endorse any specific<br />
products or services that may have been mentioned in this presentation and nor do they assume any<br />
liability or responsibility for the outcome of decisions taken as a result of any reliance placed in this<br />
document. Neither the Author nor FICCI shall be liable for any direct or indirect damages that may arise<br />
due to any act or omission on the part of the user due to any reliance placed or guidance taken from any<br />
portion of this presentation.
1. The macroeconomic context<br />
India offers one of the<br />
best growth opportunities,<br />
driven by demographics,<br />
reforms, and globalization<br />
sharpest growth rebounds, as evident from<br />
Exhibit 1; the sharp pace of recovery<br />
reflects the strength of India’s domestic<br />
demand-oriented model.<br />
India’s economic growth has been backed<br />
by the interplay of three key factors –<br />
demographics, reforms and globalization.<br />
Improvement in demographics as measured by<br />
declining age-dependency (the ratio of the<br />
dependent population size to the working-age<br />
population size) has been the most important<br />
factor supporting India’s growth story. The<br />
ratio of the elderly and children to the working<br />
age (aged 15-64 years) population has declined<br />
from 68.6% in 1995 to 55.6% in 2010,<br />
according to United Nations (UN) estimates.<br />
Rising supply of educated/skilled labor<br />
complements the demographic profile of the<br />
country. Morgan Stanley estimates that that<br />
only 7-9% of India’s population moving into<br />
India – the second fastest growing economy in the world after China –<br />
is transitioning to a higher sustainable growth rate. The country’s GDP<br />
growth has moved from a range of 6% in the early 2000s to 8-8.5%.<br />
Over the past 10 years, India’s ratio of savings to GDP has risen from<br />
24-25% to 33-36%. Similarly, its ratio of investment to GDP has risen<br />
from 24-25% to 35-38%. The country has witnessed one of the<br />
Exhibit 1: Industrial Production: India vs. Rest of the World<br />
Source: Morgan Stanley Research<br />
Exhibit 2: Trend in demographics<br />
Source: Morgan Stanley Research<br />
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the 15-plus age bracket is illiterate and this is expected to fall below 5% over the next 2-3 years.<br />
Exhibit 2: FDI inflows as percentage of GDP<br />
Further, structural reforms have<br />
improved the utilization of the<br />
working-age population. Over the<br />
years, India’s government has been<br />
initiating reforms to encourage<br />
private sector investment, which<br />
helps create the platform of<br />
employment for the working-age<br />
population. Globalization, as<br />
Source: Morgan Stanley Research<br />
reflected in the steady rise in exports<br />
to GDP and capital inflows to GDP has<br />
also helped accelerate the pace of<br />
growth. India has also benefited<br />
significantly from a rise in capital<br />
inflows. Gross FDI in India increased to 2.8% of GDP in 2009 from 0.9% in 2005.<br />
Going forward, it is estimated that India’s growth will accelerate to a sustainable 9-10% by 2013-15,<br />
after an average of 7.3% over the past 10 years. However, India’s sustainable lead in future will depend<br />
on the interplay of demographics, reforms, and globalization. According to UN estimates, India will<br />
account for almost 26% of the increase in global working-age population over the next 10 years. As per<br />
UN estimates, by 2020, India will contribute an additional 136 million people to the global labor pool. In<br />
comparison, China and the US will contribute 23 million and 11 million, respectively, while Japan’s and<br />
Europe’s working populations are estimated to decline by 8 zannual out-turn of tertiary graduates<br />
globally; increasing India’s tertiary-educated workforce size from 50-52 million in 2009 to 114 million by<br />
2020.<br />
Amidst these favourable factors, acceleration in growth demands opening up of productive<br />
opportunities through reforms and globlisation. Over the years, the pace of reforms is likely to pick up<br />
with the government initiating various measures. India’s budget confirmed government plans to<br />
implement the consolidated nationwide GST system from April 1, 2011 which will be an important<br />
milestone from a macro perspective.<br />
Further, the government plans to increase infrastructure spending to 8.4% of GDP in FY2012 from 7.5%<br />
of GDP in FY2009. The Planning Commission has estimated the infrastructure investments in FY2013-17<br />
will rise to a cumulative US$ 1 trillion compared with US$ 542 billion in FY2007-12. Key areas where<br />
infrastructure spending is rising include power, roads, and telecoms.<br />
Healthcare is the other sector receiving impetus through government reforms. The National Health<br />
Policy (NHP), 2002 has envisaged the development of an integrated network of evenly spread speciality<br />
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and super-speciality services through private investments. The government’s recent policy initiatives<br />
towards the healthcare sector reflect its stance of removing the hurdles towards private and voluntary<br />
sector playing a larger role. This has taken the form of reduction of customs duty on equipment, push to<br />
health insurance and other similar initiatives. This direction is expected to be maintained in the longer<br />
term.<br />
Given this context, FICCI along with Ministry of Textiles, Government of India has organised an <strong>Investor</strong><br />
Conference focusing on the investment potential in Geotech and Meditech segments of Technical<br />
Textiles. This document provides a brief introduction to the market, technology and project profiles of<br />
select products in these segments.<br />
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2. Introduction to Technical Textiles<br />
Technical textiles are predominantly man-made fibre-based owing to their inherent advantages of<br />
strength and versatility. Man-made fibres are estimated to account for around 80% of the total fibre<br />
consumption in the global technical textiles. Majority of technical textiles are manufactured using<br />
regular fibres or their specialty variants, whereas, high performance fibres account for a mere 5% of the<br />
total fibre consumption.<br />
Technical textiles refer to textile materials and products used primarily for their technical performance<br />
and functional properties rather than their aesthetic or decorative characteristics. The segment<br />
encompasses diverse products and applications; based on product characteristics, functional<br />
requirements and end-user applications; technical textile products have been grouped into 12<br />
categories as described in Exhibit 4.<br />
Exhibit 4: Technical Textile industry - an introduction<br />
Segment End-user application Products<br />
Agrotech<br />
Agriculture, horticulture and<br />
forestry<br />
Shade nets, mulch mats, crop covers, anti-hail nets, bird-protection<br />
nets, fishing nets<br />
Buildtech Building and construction<br />
Architectural membranes, hoardings & signages, tarpaulins, awnings<br />
& canopies, scaffolding nets, floor & wall coverings<br />
Clothtech<br />
Technical components of shoes<br />
and clothing<br />
Shoe laces, interlinings, zip fasteners, elastic narrow fabrics (tapes),<br />
velcro, labels, umbrella cloth, sewing threads<br />
Components of furniture, Fiberfil, mattress and pillow components, carpet backing cloth, stuff<br />
Hometech household textiles and floor toys, blinds, HVAC filters, filter cloth for vacuum cleaners, nonwoven<br />
coverings<br />
wipes, mosquito nets, furniture fabrics<br />
Packtech Packaging<br />
Polyolefin woven sacks, FIBC, leno bags, wrapping fabric, jute<br />
hessian and sacks, soft luggage products, tea bags (filter paper)<br />
Meditech Hygiene and medical<br />
Baby diapers, incontinence diapers, sanitary napkin, surgical sutures,<br />
disposables, surgical dressing, contact lens, artificial implants<br />
Nylon tyre cord, seat belt webbing, airbags, car body covers, seat<br />
Mobiltech<br />
Automobiles, shipping, railways<br />
and aerospace<br />
upholstery/fabric, automotive carpets, headliners, insulation felts<br />
(NVH components), sun visors/sunblind, helmets, airline disposables,<br />
webbings for aircrafts, aircraft upholstery, railways seating fabrics<br />
Bullet proof jackets, NBC suits, high altitude clothing, flame<br />
Protech Personal and property protection retardant apparel/fabric, high visibility clothing, chemical protection<br />
clothing, industrial gloves<br />
Sports composites, artificial turf, parachute fabrics, ballooning<br />
Sporttech Sport and leisure<br />
fabrics, sail cloth, sleeping bags, sport nets, sport shoes components,<br />
tents, swimwear<br />
Textile components of conveyor belts, drive belts, AGM glass battery<br />
Indutech<br />
Filtration, cleaning and other<br />
industrial usage<br />
separators, coated abrasives, composites, printed circuit boards,<br />
industrial brushes and cigarette filter rods, decatising cloth, bolting<br />
cloth, ropes & cordages, computer printer ribbon, paper making<br />
fabrics, filtration products<br />
Geotech<br />
Civil engineering, marine<br />
engineering<br />
Geotextiles, geogrids, geonets, geomembranes, geocomposites<br />
Oekotech Environmental protection Geosynthetic products used in landfill<br />
Source: Baseline survey of the Technical Textile industry in India<br />
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3. Global Technical Textile Industry outlook<br />
Technical Textile is the sunrise segment of the global Textile industry. With increasing competition and<br />
diminishing margins in the production of conventional textiles, textile manufacturers in industrialised<br />
countries have switched over to production of value-added technical textiles. As the use of technical<br />
textiles is dictated by need, its pricing normally offers good margins. The Technical Textile industry is<br />
estimated to account for over 50% of the total textile activity in certain industrialised countries.<br />
Global Technical Textile industry is estimated at US$ 127 billion 1 as of 2010. As evident from Exhibit 5,<br />
Mobiltech, Indutech and Sportech are the largest segments of global Industry, together accounting for<br />
55% of the world market.<br />
Exhibit 5: Value-wise share of each segment in global technical textile market (2010)<br />
Packtech,<br />
5.2%<br />
Buildtech,<br />
7.3%<br />
Sportech,<br />
15.0%<br />
Mobiltech,<br />
23.0%<br />
Clothtech,<br />
6.5% Hometech,<br />
6.9%<br />
Protech, 5.4%<br />
Indutech,<br />
16.9%<br />
Geotech,<br />
1.0%<br />
Oekotech,<br />
0.2%<br />
Agrotech,<br />
6.4%<br />
Meditech,<br />
6.5%<br />
Sources: Report of the Expert Committee on Technical Textiles (ECTT) Volume – I, ‘World Market Forecasts for 2010 of technical<br />
textiles and industrial nonwovens’ by David Rigby Associates<br />
The Industry has witnessed a Compound Annual Growth Rate (CAGR) of over 3% from 2000 to 2010,<br />
with Buildtech, Geotech, Oekotech and Indutech being the fastest growing segments. Going forward,<br />
the major growth areas for technical textiles in the global context are projected to be medical and<br />
personal hygiene, sports and leisure, environmental protection, pollution control and filtration, garment<br />
and shoe industry.<br />
The US is the largest consumer of technical textiles, followed by Western Europe and Japan. However,<br />
Technical Textile industry in the developed world is maturing in a significant way resulting in moderate<br />
growth in these economies. In contrast, China, India and other countries in Asia, America and Eastern<br />
Europe are expected to experience healthy growth in the near future. Asia is emerging as a powerhouse<br />
of both production as well as consumption of technical textiles. China, Japan, Korea, Taiwan and India<br />
have great potential to make an impact in this industry in the coming decade.<br />
1 Source: World Market Forecasts for 2010 of technical textiles and industrial nonwovens’ by David Rigby Associates<br />
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4. Indian Technical Textile industry<br />
India is emerging as a significant player in technical textiles. The fast-paced economic growth leading to<br />
infrastructure creation as well as higher disposable income has made India a key market for the<br />
technical textile products. Moreover, the country has developed a foothold in the production of<br />
technical textiles owing to its skilled and technical manpower as well as abundant availability of rawmaterial.<br />
More investments are underway in this sector; as per the Ministry of Textiles, as on September<br />
2010, 26,163 applications for technical textile projects with a project cost of US$ 14.5 billion 2 were<br />
disbursed under Technology Upgradation Fund Scheme (TUFS).<br />
Indian Technical Textile industry is estimated at US$ 11 billion2 (2009-10), with domestic consumption<br />
of US$ 10.3 billion. The Industry has witnessed a significant growth of 16% from 2001-02 to 2009-10<br />
and, is expected to grow at a rate of 11% year-on-year and reach a market size of US$ 15.1 billion by the<br />
year 2012-13. Domestic consumption is expected to increase to US$ 14.1 billion by the year 2012-13.<br />
Exhibit 6: Market size and growth of Indian Technical Textile industry<br />
Indutech<br />
Oekotech<br />
Geotech<br />
Protech<br />
Hometech<br />
Clothtech<br />
Buildtech<br />
Sportech<br />
Packtech<br />
Mobiltech<br />
Meditech<br />
Agrotech<br />
11%<br />
10%<br />
12%<br />
8%<br />
8%<br />
11%<br />
13%<br />
10%<br />
8%<br />
8%<br />
Sources: Baseline survey of the Technical Textile industry in India, ECTT, <strong>IMaCS</strong> Analysis<br />
Packtech, Clothtech and Hometech are the largest segments of the Indian Industry, comprising around<br />
65% of the Indian technical textile market, as evident from Exhibit . Going forward, Sportech, Indutech,<br />
Geotech, Oekotech, Packtech and Hometech are expected to achieve high growth rates.<br />
Though the country consumes products belonging to all 12 categories of technical textiles, the share of<br />
indigenous production varies drastically across products. India is a key producer of technical textile<br />
products including flexible intermediate bulk containers (FIBCs), tarpaulins, jute carpet backing, hessian,<br />
fishnets, surgical dressings, crop covers, etc., which are typically commoditised. The technology-<br />
2 The exchange rate used for all 2009-10 and 2012-13 figures is assumed to be the same at US$ 1 = ` 46.35<br />
11%<br />
Overall CAGR 11%<br />
19%<br />
0% 5% 10% 15% 20%<br />
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intensive technical textile products such as incontinence diapers, high altitude clothing, etc., are majorly<br />
imported with its imports accounting for over 90% of the domestic consumption.<br />
Exhibit 7: Value-wise share of each segment in Indian technical textile market in US$ million (2009-10)<br />
Source: Baseline survey of the Technical Textile industry in India, <strong>IMaCS</strong> Analysis<br />
The Industry is characterised by the presence of multi-nationals like Ahlstrom, Johnson & Johnson, Du<br />
Pont, Procter & Gamble, 3M, SKAPs, Kimberly Clark, etc., who have set up their manufacturing plants in<br />
India, as well as large domestic players like SRF, Entremonde Polycoaters, Kusumgarh Corporates,<br />
Supreme Nonwovens, Garware Wall Ropes, Century Enka, Techfab India, Pacific Non Woven, Vardhman,<br />
Unimin, etc. The small scale segment also plays a key role, with production of certain goods like canvas<br />
tarpaulin, carpet backing, woven sacks, shoe laces, soft luggage, zip fasteners, stuffed toys, fabrication<br />
of awnings, canopies and blinds, etc., being concentrated in the small scale segment.<br />
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5. Meditech<br />
Products<br />
Meditech products include textile materials used in hygiene, health and personal care as well as surgical<br />
applications. The Meditech products are available in woven, knitted and non-woven forms based on the<br />
area of application. Increasingly, synthetic fibre is being used in the production of these products. It<br />
includes products like diapers, sanitary napkins, disposables, contact lens, artificial implants, etc. A basic<br />
product segmentation for the Medical textiles is given in Exhibit 8.<br />
Current status of the sector<br />
Exhibit 8: Product segmentation of medical textiles<br />
As per the estimates given by David Rigdby Associates (DRA) the global medical textiles market is<br />
expected to cross the US$ 8 billion mark by 2010. This segment is expected to have a higher growth rate<br />
compared to the overall technical textile growth. USA and Europe combined account for over 63% of the<br />
market but the growth is expected to lie in Asia.<br />
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Source: DRA<br />
Exhibit 9: Global medical textiles market<br />
Technical textiles market in India under Meditech is estimated at US$ 422.6 million in 2009-10. The<br />
domestic consumption of the same is estimted at US$ 383.6 million in 2009-10. Surgical dressing alone<br />
accounts for over 50% of the total technical textile consumption across Meditech segment. Surgical<br />
sutures account for around 21% of the total Meditech consumption followed by contact lenses and<br />
artificial implants as can be seen in Exhibit 10.<br />
Exhibit 10: Value-wise share of various products in Indian Meditech market (2009-10)<br />
Source: Baseline survey of the Technical Textile industry in India, <strong>IMaCS</strong> Analysis<br />
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International trade<br />
Imports of technical textile component under Meditech constitute about 28% of domestic consumption<br />
under this segment, by value. Demand for products such as artificial implants, contact lens, technical<br />
textile component of baby diapers and incontinence diapers is met by imports; the non-woven material<br />
required for medical applications (e.g. diapers) is primarily imported. Majority of imports are from<br />
Thailand, Singapore, Taiwan and China.<br />
Exhibit 11: Volume-wise share of imports in the domestic consumption of Meditech products (2009-<br />
10) 3<br />
Source: Baseline survey of the Technical Textile industry in India, <strong>IMaCS</strong> Analysis<br />
By value around 12% of the technical textiles produced under Meditech in India are exported. Surgical<br />
sutures and surgical dressings are the key export products, with their exports constituting over 86% of<br />
the total exports under this segment. The key export markets are Bangladesh, the UK, Sri Lanka and<br />
Netherlands.<br />
Future potential<br />
The demand for Meditech products is dependent on the health and hygiene sector. The spend on<br />
healthcare segment is steadily on the rise in India, predominantly by the private sector, which is<br />
expected to drive the demand for Meditech products.<br />
3 All the export import figures for 2009-10 have been derived from the 2007-08 data.<br />
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Exhibit 12: India’s Medical and Healthcare Expenditure as a %age of GDP<br />
6.00<br />
5.00<br />
4.00<br />
3.00<br />
2.00<br />
1.00<br />
0.00<br />
2004-05 2005-06 2006-07 2007-08 2008-09<br />
Source: <strong>IMaCS</strong> Analysis<br />
Government Private<br />
Exhibit 13: PFCE – Medical and Healthcare Services in US$ million<br />
Source: <strong>IMaCS</strong> Analysis<br />
The healthcare expenditure in India is low compared to the developed countries, which means that this<br />
expenditure will increase with the overall growth of the country. India is emerging as a medical tourism<br />
hub, which will further increase the expenditure in this segment. There is estimated to be a gap of over<br />
1 million hospital beds in India currently. Besides these, government policies aimed at boosting the<br />
supply in health and hygiene sector are likely to positively impact the demand for Meditech products.<br />
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Exhibit 14: Healthcare expenditure as percentage of GDP<br />
Source: The World Pharmaceutical Markets Fact Book 2009<br />
Few of these policies include, National Health Policy 2002, which aims at the development of integrated<br />
network of evenly spread speciality and super-speciality services through private investments; Rural<br />
Health Policy, policies promoting manufacturing of medical devices and various other policies working<br />
towards removing hurdles for private and voluntary sector participation.<br />
In line with these developments, Indian Meditech industry is expected to achieve a growth of 8-9% year<br />
on year, over the next three years. The market size of Meditech segment in India is expected to reach<br />
US$ 537.2 million by 2012-13. The domestic consumption of technical textiles under Meditech is<br />
expected to increase to around US$ 488.2 million by 2012-13. Incontinence diapers and contact lens are<br />
expected to achieve significant growth, followed by artificial implants, as evident from Exhibit 15.<br />
Exhibit 15: Value-wise CAGR for Meditech products (from 2009-10 to 2012-13)<br />
Source: Baseline survey of the Technical Textile industry in India, <strong>IMaCS</strong> Analysis<br />
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6. Geotech<br />
Products<br />
Geotech segment comprises of technical textile products used in geotechnical applications pertaining to<br />
soil, rock, earth, etc. Geotextiles refer to permeable fabric, woven or non-woven, used for<br />
confinement/separation, reinforcement, filtration and drainage applications. Geotech products find<br />
application in civil engineering (roads and pavements, slope stabilisation and embankment protection,<br />
tunnels, rail-track bed stabilisation, ground stabilisation and drainage, etc.), marine engineering (soil<br />
erosion control and embankment protection, breakwaters) and environmental engineering (landfills and<br />
waste management). Other specialised Geotech products comprise geogrids (synthetic filaments and<br />
tapes, etc., formed into a very open, grid like configuration having large apertures), geonets (extruded<br />
ribs set in net like fashion with small apertures), geomembranes (impermeable fabric as barrier) and<br />
geocomposites (products using two or more Geotextiles e.g. pre-fabricated drains).<br />
Current status of the sector<br />
Indian Geotech market is estimated at US$ 72 million (2009-10), with domestic consumption of US$ 50.1<br />
million. This includes the market for Oekotech products, which is estimated at US$ 20.7 million.<br />
Synthetic Geotech products (geosynthetics) account for around 90% of the total market, the balance<br />
comprising of agro-based Geotech products. Geotextiles comprise the largest share of Indian Geotech<br />
market, with a share of 63% in 2009-10 of which, woven geotextiles comprised 35%, as seen in Exhibit<br />
16.<br />
Exhibit 16: Product-wise market share of Geotech segment (2009-10)<br />
Source: Baseline survey of the Technical Textile industry in India, <strong>IMaCS</strong> Analysis<br />
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International trade<br />
Around 40% of the domestic demand for Geotech products is met by imports. Geosynthetics, including<br />
geogrids, geotextiles, geocomposites are the import intensive products. Malaysia, China, Taiwan and<br />
Europe are the major suppliers of these products to India.<br />
Exhibit 17:Value-wise share of imports in the domestic consumption of Geotech products (2009-10)<br />
Source: Baseline survey of the Technical Textile industry in India, <strong>IMaCS</strong> Analysis<br />
India is also an exporter of certain Geotech products, with exports accounting for around one-third of<br />
the market in 2009-10. Coir-based geotextiles produced in India are majorly exported to Middle-East<br />
countries, the UK, the US, Germany, Italy, and select European countries.<br />
Future potential<br />
The consumption of Geotech products is driven by investments in the Infrastructure sector. Continued<br />
thrust on infrastructure development in India augurs well for this segment. However, the Industry has<br />
not realised its full potential owing to lower than expected penetration of geotextiles in various<br />
infrastructure projects. A classic example of this is the road projects in India.<br />
Road sector is the largest consumer of Geotextiles in the Indian market, whereas, demand from other<br />
sectors (power, ports, airports, railways, etc.) is largely project specific. Government had planned an<br />
investment of around US$ 5.55 billion 4 in roads (excluding PMGSY) during 2006-07 to 2010-11. In case<br />
Geotech products were used in all these road projects, the consumption of Geotextiles in NHAI road<br />
projects alone could be to the extent of US$ 22.2 million4 per annum.<br />
However, the consumption of geotextiles in India is very low as compared to its potential. Conservative<br />
views of major institutional users have been a key impeding factor for the growth of this segment in the<br />
domestic market. Moreover, the segment has been suffering from issues related to lack of awareness<br />
about economic benefits of Geotech products amongst all institutional buyers, lack of adequate testing<br />
facilities and non-availability of trained technical personnel.<br />
4 Exchange rate used US$ 1 = ` 45<br />
Geomembrane,<br />
Geocomposites<br />
Geogrids<br />
Geotextiles<br />
60%<br />
62%<br />
66%<br />
56% 58% 60% 62% 64% 66% 68%<br />
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The Geotech segment in India is set to witness a change owing to certain recent developments in the<br />
road sector that are likely to provide the necessary boost to the consumption of Geotextiles in roads.<br />
Design, Build, Finance and Operate (DBFO) model has been introduced in road contracts wherein the<br />
private sector undertakes the responsibility for operation and maintenance of the project road as well<br />
as for building specified improvement schemes (where appropriate). Under this model contractors get<br />
liberty to design independently and, are responsible for the maintenance of project roads. Thus, in order<br />
to ensure longevity of construction at optimal cost they would prefer geotextiles. Moreover, successful<br />
control trials have been conducted by Central Road Research Institute (CRRI) for use of Jute geotextiles<br />
in roads, which is likely to boost their use under the Pradhan Mantri Gram Sadak Yojana (PMGSY).<br />
In addition, the Office of Textile Commissioner and industry experts are making targeted efforts to boost<br />
the consumption of Geotextiles. Bureau of Indian Standards (BIS) has approved the standards on Coir<br />
Bhoovastra (Jute Geotextiles and Coir Geotextiles) and, have published two standards viz. IS 15868 (part<br />
1 to 6 – 2008) and IS 15869 -2008. BIS has also formulated the standard for geosynthetics made from<br />
polyolefin or polyester material for highways. Moreover, promotion of the use of geomembrane as<br />
lining for canals, ponds and reservoirs by NHM is likely to boost the consumption of geomembranes.<br />
In view of the above mentioned developments, an optimistic estimate of the potential market size for<br />
Geotech products that could be achieved in 2012-13 can be placed at around US$ 164 million. The<br />
achievement of this market size, however, is subject to a higher adoption rate for Geotech products by<br />
various stakeholders implementing road and other infrastructure projects in India. In case the challenges<br />
faced by this segment are not addressed to the fullest, a realistic estimate of market size that the<br />
Geotech segment could achieve in 2012-13 is about US$ 98 million.<br />
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7. Raw Materials<br />
The diapers are typically made of the absorbent material of cellulose with poly-beads to convert<br />
fluid into gel. The non-woven material is placed on top for dry feeling. The spunbond non-woven<br />
fabric used in diapers is 20-25 GSM and accounts for close to 12-15% by weight of the diaper. The<br />
key suppliers of non-woven for baby diapers in India are Unimin India Ltd. and Fiberweb Pvt. Ltd.<br />
and the rest all is imported.<br />
The non-woven fabric of 18-20 GSM, accounts for around 11-12% by weight of the sanitary napkin.<br />
The nonwoven fabric for this is primarily imported.<br />
The medical disposables like caps, masks and shoe covers are 100% technical textile products madeup<br />
from PP spunbond or SMS non-woven fabric. Spunlace material is also used in this manufacture<br />
of surgical disposables. The key raw material supplier for surgical disposables in India is Ahlstom<br />
Fibre Composites Pvt. Limited. Ahlstrom has one the largest investments for SMS Medical Fabrics in<br />
India. The sales of Ahlstom have grown by 100% y-o-y. DuPont is another multinational company<br />
which supplies raw material fabric to surgical disposable converters in India<br />
The raw material used for surgical suture includes bovine intestine tissues, PGA, monofilament<br />
nylon, monofilament polyethylene and silk.<br />
The raw materials for surgical dressings are cotton fibre, viscose and acrylic. Grasim Industries is the<br />
major manufacturer of regular viscose staple fibre whereas Century Rayon and Indian Rayon and<br />
Industries Ltd. are the major manufacturers of viscose filament yarn. Major suppliers of acrylic<br />
staple fibre are Indian Acrylics Ltd., Pasupati Acrylon Ltd., Indian Petrochemicals Corporation Ltd.,<br />
Vardhaman Acrylics Ltd., etc.<br />
Soft Contact Lenses are made from a water absorbing polymer called HEMA (Hydroxy Ethyl Metha<br />
Acrylate). These are not produced in India.<br />
The artificial cornea is made using following materials:<br />
1. Poly methyl methacrylate (PMMA)<br />
2. Poly 2-hydroxythyl methacrylate hydrogels (PHEMA)<br />
3. Poly vinyl alcohol (PVA)<br />
The mechanical heart valve consists of Ultra high molecular weight-polyethylene (UHMW-PE) disc,<br />
Low density polyethylene plastic with knitted polyester sewing ring and a metallic housing.<br />
Most textile grafts for large and medium artery replacement and meshes, are made of either PET<br />
(polyethylene terephthalate, commercial name Dacron) or PTFE (polytetrafluoro ethylene,<br />
commercial name Teflon).<br />
The artificial kidney membrane or dialysers are 100% technical textile products made primarily of<br />
polysulphone and polyacetate. There are no manufacturers manufacturing the fabric for artificial<br />
kidneys in India.<br />
The technical textile component in joints is Ultra High Molecular Weight High Density Polyethylene<br />
(UHMWHDPE) material. Polyethylene Teraphthalate (PET) is primarily used for manufacturing<br />
artificial ligaments.<br />
Geotextiles are manufactured from polypropylene, polyester or polyethylene which can be either<br />
woven or non-woven. Manufacturing process for Woven products includes Weaving / Knitting and<br />
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Coating (PVC). Products can be - woven multi-filament, woven slit-film monofilament and woven<br />
slit-film multifilament. The non-woven Geotextiles can be made from heat bonding or needlepunching.<br />
Geogrids are knitted, while Geonets and Geomembranes are extruded from HDPE. The<br />
key suppliers of basic polymers in India Reliance Industries Ltd.(including IPCL), GAIL (India) Ltd.,<br />
Haldia Petro and IOC.<br />
The key manufacturers of polypropylene staple fibre/filament are:<br />
Neomer Alembic<br />
Zenith Fibres Ltd.<br />
Arora Fibres Ltd<br />
Gujarat Filaments<br />
The key manufactureres of Polypropylene filament yarn in India are:<br />
Jindal Polyester Limited<br />
Parasrampuria Industries<br />
Shree Rajasthan Syntex Ltd.<br />
Filatex India Ltd.<br />
Rajasthan Petro Synthetics Ltd<br />
Sumeet Industries Ltd.<br />
Shree Shyam Filaments<br />
Garware Wall Ropes Ltd.<br />
Parasrampuria Synthetics<br />
Filaments India Ltd.<br />
Chetak Spintex Ltd.<br />
Sanghi Filaments Ltd.<br />
Alembic Chemical Works Ltd.<br />
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8. Technology<br />
The raw material for the medical disposables is PP spunbond non-woven fabric. These products are<br />
made on Taiwanese or Chinese fully automatic machines. The machines are made by companies in<br />
China and Taiwan under the tag of non-woven converting machine manufacturers. The leading nonwoven<br />
converting machine manufacturers are:<br />
NCM Non-woven Converting Machinery Co. Ltd.<br />
Chang Hong Machinery Co. Ltd.<br />
Dong Guan PNL Non-woven Converting Machinery Co. Ltd<br />
BroadFair Non-woven Converting Machinery Co. Ltd.<br />
Heart valves, vascular grafts and meshes are manufactured using warp-knitting process on Double<br />
Raschel Warp knitting machines.<br />
Most units in Geotech use Sulzer looms for manufacturing Woven Geotextiles. Knitting machines<br />
from Karl Mayer are also used. Nonwoven needle-punching lines from Hunter, Dilo Group and<br />
Trutzschler are used. In India, the leading machinery vendors are represented by ATE and Voltas.<br />
Exhibit 18: List of International suppliers for the technology used in Geotech and Meditech segment<br />
Spinning Technologies<br />
Technology Applications Manufacturers<br />
DREF Spinning Meditech Fehrer, Austria<br />
Weaving Technologies<br />
Technology Applications Manufacturers<br />
Projectile Weaving Geotech Juegens, Germany<br />
Sultex, Switzerland<br />
Texilmach, Russia<br />
Circular Weaving Meditech Frederick Enterprises Co. Ltd.,<br />
Taiwan<br />
Karl Mayer, Germany<br />
Lohia, India<br />
Sima, Italy<br />
Starlinger, Austria<br />
Three Dimensional (3D)<br />
Weaving<br />
Meditech Multi-axail warp kit(MWK) by<br />
Liba<br />
ParaGlass structural core<br />
laminate by Parabeam<br />
Multiphase Weaving Geotech Sultext, Switzerland<br />
Techmashexport, Russia<br />
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Knitting Technologies<br />
Technology Applications Manufacturers<br />
Circular Knitting Meditech Artex Group, USA<br />
Berney Knitting Machinery Co.<br />
Inc., USA<br />
ITM Ltd. South, USA<br />
Monarch Knitting Machinery<br />
Corp., USA<br />
Textram Inc., USA<br />
Pai Lung Machinery Mills Co.<br />
Ltd., Taiwan<br />
Keum Young Machinery Mill Co.<br />
Ltd., Korea<br />
Texmac Inc, USA<br />
Karl Mayer, Germany<br />
Flat Knitting Meditech Shima Seiki, Japan<br />
Stiger, Germany<br />
Kauo Heng, Taiwan<br />
Elex International, India<br />
SuoHwan Machinery Co.,<br />
Taiwan<br />
Brother Industries Ltd., Japan<br />
Keum Young Machinery Mill Co.<br />
Ltd., Korea<br />
Stoll H GmbH & Co., Germany<br />
Protti SpA, Italy<br />
Universal Maschinenfabrik,<br />
Germany<br />
Warp Knitting<br />
a) Tricot Machines Geotech LIBA, Germany<br />
Cummins Machinery<br />
Corporation, USA<br />
ITM Ltd. South, USA<br />
Karl Mayer, Germany<br />
Jakob Muller AG Frick, USA<br />
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) Raschel Machines Geotech, Meditech Cummins Machinery<br />
Corporation, USA<br />
ITM Ltd. South, USA<br />
Karl Mayer, Germany<br />
Cornez SpA, Italy<br />
Jakob Muller AG, USA<br />
Arlin Industries, USA<br />
LIBA, Germany<br />
c) Multiaxial Knitting Geotech, Meditech American LIBA Inc., USA<br />
Cummins Machinery<br />
Corporation, USA<br />
Fillattice SpA, Italy<br />
Fletcher International Inc., UK<br />
Jakob Muller AG, USA<br />
Mayer Textile Corp., USA<br />
d) Spacer Fabrics Knitting Meditech LIBA, Germany<br />
Cummins Machinery<br />
Corporation, USA<br />
Comez SpA, Italy<br />
Karl Mayer, Germany<br />
Jakob Muller AG, USA<br />
Braiding Technologies<br />
Technology Applications Manufacturers<br />
Braiding Machinery Meditech Barney Knitting Machinery Co.<br />
Inc., USA<br />
Fletcher International Inc.,<br />
Spain<br />
Lamb Knitting Machinery Corp.,<br />
USA<br />
United Textile Machinery Corp.,<br />
USA<br />
Karl Mayer, Germany<br />
Exhibit 19: Details of machines used for the manufacturing of nonwovens<br />
S.No Machines<br />
Suppliers<br />
1 Erko-<br />
Trutzschler<br />
GmbH,<br />
Germany<br />
Process Capacities Applications<br />
Opening, blending & mixing<br />
machines, Airlay cards<br />
25T/day Wipes, Cotton pads, Surgical<br />
gowns,<br />
Geotextiles,<br />
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S.No Machines<br />
Suppliers<br />
2 Fleissner<br />
GmbH,<br />
Germany<br />
3 Fong’s, Hong<br />
Kong<br />
Process Capacities Applications<br />
Opening, blending & mixing<br />
machines, Needling<br />
Technology<br />
Fibre production plants,<br />
Spunlace lines, Driers<br />
100-<br />
1200gsm,<br />
6.5mts<br />
wide.<br />
Geotextiles<br />
25T/day Wipes, Cotton pads, Surgical<br />
gowns, Drapes<br />
Complete bleaching line 25T/day Cotton bleaching<br />
4 Gavazzi , Italy Cake opener to Bale press 25T/day Fibers into Bales<br />
5 Fleissner Belt<br />
Ovens,<br />
Germany<br />
6 Falu,<br />
Switzerland<br />
Thermobonding & Fusion<br />
lines, Hot ovens, Low speed<br />
winders<br />
Conversion machines<br />
Cotton pads 240<br />
cotton<br />
pads per<br />
3mts wide Nonwovens, Coating<br />
applications, Industrial wipes,<br />
min<br />
Cotton Swabs 2700<br />
cotton<br />
swabs<br />
De-makeup cotton pads<br />
Cotton swabs<br />
7 Bouda, Austria Conversion machines<br />
Zig-zag cotton Medical purpose<br />
Cotton rolls Medical purpose<br />
Cotton balls Medical poupose.<br />
8 Andritz Kusters Laminating & finishing<br />
technical textiles, nonwovens.<br />
9 Bastian,<br />
Germany<br />
10 Shaoyang<br />
Textile<br />
Machinery Co.<br />
Ltd., China<br />
11 Hanwei<br />
Machinery<br />
Manufacturing<br />
Co. Ltd., China<br />
calendars rollers<br />
High speed winders 3.2 Mts Nonwovens, Boppfilms, etc.<br />
High strength PET fibers 300T/<br />
annum<br />
Spunbond line, 3.2mts<br />
wide, 3.2<br />
MS, 10-<br />
150gsm<br />
Diapers, Adult diapers,<br />
Sanitary Napkins, Pull up<br />
diapers.<br />
Diapers 400<br />
pcs/min<br />
Lady napkins 350<br />
pcs/min<br />
anti-cut gloves, rope,<br />
Geotextiles, Medical textiles,<br />
Hygiene,<br />
Baby diapers, adult diapers<br />
Sanitary napkins<br />
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