02.06.2013 Views

Investor Guide.pdf - IMaCS

Investor Guide.pdf - IMaCS

Investor Guide.pdf - IMaCS

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

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 />

1 | P a g e


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 />

2 | P a g e


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 />

3 | P a g e


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 />

4 | P a g e


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 />

5 | P a g e


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 />

6 | P a g e


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 />

7 | P a g e


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 />

8 | P a g e


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 />

9 | P a g e


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 />

10 | P a g e


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 />

11 | P a g e


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 />

12 | P a g e


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 />

13 | P a g e


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 />

14 | P a g e


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 />

15 | P a g e


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 />

16 | P a g e


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 />

17 | P a g e


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 />

18 | P a g e


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 />

19 | P a g e


) 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 />

20 | P a g e


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 />

21 | P a g e


END OF DOCUMENT

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!