rajasthan perspective, riico & ficci seminar, sep 2010

Presentation

On

Prospects and Opportunities in Technical Textiles

Rajasthan perspective

Jaipur, September 13, 2010

Seminar on Emerging Opportunities in Technical Textiles

RIICO & FICCI

ICRA Management Consulting Services Limited

© IMaCS 2010

Printed 8-Sep-10 2

Objectives of the presentation

Present the scenario of Technical Textile industry with a focus on

Agrotech, Mobiltech and Geotech

Highlight the growth opportunities

Present the perspective of Rajasthan as a manufacturing base for

Agrotech, Mobiltech and Geotech

Draw attention to the possible ways to fast track the growth of

industry

© IMaCS 2010

Printed 8-Sep-10 3

432.8 483.2

603.3

0.0

200.0

400.0

600.0

800.0

2000 2005 2010

` T

hou

san

d c

rore

3%

Fig: Market size of global Technical Textile industry

Agrotech,

6.4% Meditech,

6.5%

Mobiltech,

23.0%

Packtech,

5.2%

Sportech,

15.0%

Buildtech,

7.3%

Clothtech,

6.5% Hometech,

6.9%

Protech, 5.4%

Geotech,

1.0%

Oekotech,

0.2% Indutech,

16.9%

Fig: Value-wise share of each segment in global technical textile

market (2010)

• US, Western Europe and Japan account for

over 50% of the market.

• Going forward, growth expected in medical

& personal hygiene, sports & leisure,

environmental protection, pollution control

& filtration.

Industry in developed world

maturing.

Asia, Latin America and Eastern

Europe expected to experience

higher growth in future.

Overview of global Technical Textile industry

Source: “World Market Forecasts for 2010 of technical textiles and industrial non-wovens” by David Rigby Associates (DRA)

© IMaCS 2010

Printed 8-Sep-10 4

15,196 19,130

41,756

70,151

-

20,000

40,000

60,000

80,000

2001-02 2003-04 2007-08 2012-13

` c

rore

11%

Fig: Market size of Indian Technical Textile industry

Fig: Value-wise share of each segment in Indian technical textile

market (2007-08)

• India emerging as significant

market for technical textiles.

• Packtech, Clothtech and

Hometech are the largest

segments, comprising around

65% of the market.

Overview of Indian Technical Textile industry

Agrotech,

553 , 1%

Meditech,

1,669 , 4%

Mobiltech,

3,183 , 8%

Packtech,

14,630 ,

35%

Sportech,

2,851 , 7%

Buildtech,

2,157 , 5%

Clothtech,

6,908 , 16%

Hometech,

5,025 , 12% Protech,

1,302 , 3%

Geotech &

Oekotech,

272 , 1% Indutech,

3,206 , 8%

Source: Baseline survey of the Technical Textile industry in India

© IMaCS 2010

Printed 8-Sep-10 5

Fig: Value-wise CAGR for various technical textile segments (from 2007-08 to 2012-13)

8%

8%

10%

13%

11%

8%

8%

12%

10%

11%

19%

11%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20%

Agrotech

Meditech

Mobiltech

Packtech

Sportech

Buildtech

Clothtech

Hometech

Protech

Geotech

Oekotech

Indutech

11% - CAGR

of technical

textiles

Sportech, Indutech, Geotech, Oekotech, Packtech and Hometech are the

segments with high growth potential.

5

Technical textiles are expected to grow at a CAGR of 11%


© IMaCS 2010

Printed 8-Sep-10 6

India produces technical textiles belonging to all 12 segments,

however, majority of the products are commoditised

However, technology-intensive products are majorly imported.

0% 20% 40% 60% 80% 100%

Agrotech

Meditech

Mobiltech

Packtech

Sportech

Buildtech

Clothtech

Hometech

Protech

Geotech & Oekotech

Indutech

Production

Imports

Fig: Segment-wise imports of various technical textile products as a percentage of market size (2007-08)


© IMaCS 2010

Printed 8-Sep-10 7

Overview of the Agrotech segment

553

811

-

200

400

600

800

1,000

2007-08 2012-13

` c

rore

8%

Fishing

nets

87%

Shade

nets

8%

Mulch

mats

2%

Crop

covers

2%

Anti-

hail/bird-

protection

nets

1%

Fig: Market size of Indian Agrotech segment Fig: Value-wise share of various products in Indian

Agrotech market (2007-08)

Fig: Volume-wise share of exports in the production of top

five products (2007-08)

44%

11%

100%

11%

14%

0% 40% 80% 120%

Shade nets

Mulch mats

Crop covers

Anti-hail/bird-protection

nets

Fishing nets


• Majority of demand is met by domestic

production.

• Exports account for around 12% of

domestic production, amounting to ` 67

crore.


© IMaCS 2010

Printed 8-Sep-10 8

5%

6%

51%

20%

0% 20% 40% 60%

Fishing nets

Shade nets

Mulch mats

Anti-hail/bird-protection nets

Fig: Value-wise CAGR for Agrotech products (from 2007-08 to 2012-13)

• National Horticulture Mission (NHM) has included plant protection products under

Protective Cultivation in the state-wise action plans.

• The XIth plan aims at providing assistance for procuring anti-hail nets in the hail prone

states.

• Strong focus on usage of mulch mats by NHM.

Agrotech segment is expected to grow at a CAGR of 8% in value terms

Overall CAGR: 8%


© IMaCS 2010

Printed 8-Sep-10 9

Overview of the Mobiltech segment

3,183

5,166

-

1,000

2,000

3,000

4,000

5,000

6,000

2007-08 2012-13

` c

rore

10%

Fig: Market size of Indian Mobiltech segment

• Around 27% of the demand is met by

imports.

• Airbags, seat belt webbing, nylon tyre

cord and airline disposables are import-

intensive products.

• Negligible exports, at around ` 22

crore.

Table: Market size of top 5 products in Indian Mobiltech

market (2007-08)

Product

Market size

(` crore) % share

Nylon tyre cord 2,022 63.5%

Seat cover fabric/upholstery 402 12.6%

Helmets 250 7.9%

Insulation felts 232 7.3%

Automotive interior carpets 136 4.3%


Fig: Volume-wise share of imports in the domestic

consumption of top five products (2007-08)

7%

23%

40%

59%

100%

0% 40% 80% 120%

Seat cover fabric

Airline disposables

Nylon tyre cord

Seat belt webbing

Airbags

© IMaCS 2010

Printed 8-Sep-10 10

Fig: Value-wise CAGR for Mobiltech products

(from 2007-08 to 2012-13)

• Domestic consumption expected to

increase owing to booming automotive

segment.

• Increasing focus on road safety likely

to boost the airbags and helmets

market.

• Nylon tyre cord market expected to

remain stagnant with increasing

production of radial tyres.

Mobiltech segment is expected to grow at a CAGR of 10% in value

terms

4%

16%

24%

14%

17%

16%

16%

16%

16%

25%

14%

15%

12%

3%

0% 5% 10% 15% 20% 25% 30%

Nylon tyre cord

Seat belt webbing

Airbags (TT component)

Car body covers

Seat cover fabric/upholstery

Automotive interior carpets

Headliners (TT component)

Insulation felts

Sunvisors/sunblinds

Helmets

Airline disposables

Aircraft webbings

Aircrafts upholstery

TT usage in Railways


Overall CAGR: 10%

© IMaCS 2010

Printed 8-Sep-10 11

Woven

geotextiles

35%

Nonwoven

geotextiles

28%

Geogrids

15%

Geomembrane

22%

Overview of the Geotech segment

272

454

-

100

200

300

400

500

2007-08 2012-13`

cro

re 11%

Fig: Market size of Indian Geotech segment

Geosynthetics

89%

Agro-based

geotextiles

11%

Fig: Product-wise market size of Geotech segment (2007-08)


© IMaCS 2010

Printed 8-Sep-10 12

• Around 40% of the demand is met by

imports.

• Geogrids, Geocomposites, etc. form the

major share of imports.

• Majority of imports from Southeast Asia

(Malaysia), China, Taiwan and Europe.

Fig: Value-wise share of imports in the

domestic consumption of products (2007-08)

66%

60%

62%

56% 58% 60% 62% 64% 66% 68%

Geotextiles

Geogrids

Geomembrane,

Geocomposites

Geotech is import intensive with around 40% of the demand being met by imports


Fig: Value-wise share of exports in the

production of key products (2007-08)

66%

7%

81%

0% 20% 40% 60% 80% 100%

Geotextiles

Others

Agro-based geotextiles

•Exports account for over 30% (` 87

crore) of market size.

•Coir-based geotextiles are majorly

exported.

•Key export markets are Middle East

countries, UK, US, Germany, Italy.

© IMaCS 2010

Printed 8-Sep-10 13

Geotech segment is expected to grow at a CAGR of 11% in value terms

NHAI projects under NHDP – a key driver for Geotech

Increased thrust on rural infrastructure spending

Conservative views of major institutional users impedes domestic growth

11%

10%

6%

46%

0% 20% 40% 60%

Geotextiles

Geogrids/Others

Geomembrane,

Geocomposites

Agrotextiles

Fig: Value-wise CAGR for domestic consumption of Geotech products

(from 2007-08 to 2012-13)


© IMaCS 2010

Printed 8-Sep-10 14

Agenda

Rajasthan Perspective

14

© IMaCS 2010

Printed 8-Sep-10 15

Economic drivers

Policy drivers

Market drivers

Drivers for investment

Market

drivers

Primary catchment

Secondary catchment

Tertiary catchment

Factors that favour investment in a state

© IMaCS 2010

Printed 8-Sep-10 16

82.4 91.8 88.6

111.6 117.3 128.6

153.3 176.4

201.7 219.8

0.0

50.0

100.0

150.0

200.0

250.0

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10

` T

ho

usa

nd

cro

re

Source: CMIE

Agricuture

20%

Forestry and

fishing

2%

Mining and

quarrying

3% Manufacturing

12%

Elelectricity,

gas and water

supply

3%

Construction

15%

Services

45%

Fig: Value-wise share of various sectors in state’s GSDP (2009-10)

CAGR

11.5%

Fig: Rajasthan’s GSDP

Progressing state economy offers conducive investment climate

© IMaCS 2010

Printed 8-Sep-10 17

Enabling industrial infrastructure

Well-developed

industrial

infrastructure

Focus on

infrastructure

development

Supporting

institutional

framework

Well-developed

educational

infrastructure

• Special purpose industrial parks, growth centres, theme parks, special economic zones for industrial growth

• Two integrated textile parks being established at Silora (Kishangarh)

BIP, RIICO,

RFC, DI

Vast talent

pool

Investment friendly policies.....

• Single-window system

• Rajasthan Industrial and Investment Promotion Policy - 2010

Investment-friendly policies and enabling industrial infrastructure

favour investments in the State

© IMaCS 2010

Printed 8-Sep-10 18

• Agriculture - main economic

activity of the State

• Proximity to agriculture-

dominated states

Statement of action plan for protected cultivation approved

for different states for 2010-11

Source: NHM

Primary catchment

Secondary catchment

Item Maximum

permissible cost*

Green house

structure

(` per sq mt)

Fan & pad system 1,465

Tubular structure 935

Wooden structure 515

Bamboo structure 375 Plastic mulching (` per ha) 20,000

Shade-net house

(` per sq mt)

Tubular structure 600

Wooden structure 410

Bamboo structure 300 Anti-bird/anti-hail nets (` per sq mt) 20 Cost of planting

material and inputs

(` per sq mt)

High-value vegetables 105

Flowers 500

*Refer NHM Operational Guidelines 2010 for details of pattern of

assistance

Policy support for Agrotech

Agrotech: Economic environment and policy initiatives support

investment

Select states Protected cultivation

Area

(ha)

Financial outlay

(` Lakh)

Rajasthan 29 314.3

Haryana 520 698.6

Uttar Pradesh 190 938.6

Punjab 297 500.5

Madhya Pradesh 119 475.6

Gujarat 1038 659.3

© IMaCS 2010

Printed 8-Sep-10 19

• Automotive sector identified as „specific

focus sector‟ by the Rajasthan Industrial

and Investment Promotion Policy - 2010

• Rajasthan focussing on becoming the

preferred destination for automotive

industry.

• Honda Motorcycles and Scooters India

Limited (HMSIL) and Honda Siel Car

India Limited (HSCIL) have already set

up manufacturing units in the state.

• Alwar and Jaipur enjoy close proximity

to country‟s major auto production hub –

Noida, Gurgaon, Daruheda.

Source: Rajasthan Economic Survey 2009-10, RIICO, BIP

Secondary catchment

Primary catchment

Mobiltech: Proximity to both automotive manufacturing is the key

driver for investments

© IMaCS 2010

Printed 8-Sep-10 20

• Significant thrust of Rajasthan Government on

strengthening state road network.

• Increased spending on road projects viz.

New project for strengthening and renewal of 2,847 km of

rural roads under RIDF-XV

Sanction of ` 636.4 crore for upgradation and

strengthening of 2,635 km of roads under PMGSY.

Proposal of ` 3,354 crore to GoI to connect 5,094

Dhanies/Magaras.

Increased

infrastructure spend

offers opportunity

for Geotech products

Source: Rajasthan Economic Survey 2009-10

Primary catchment

State Length of National Highway

Rajasthan 5,585

Haryana 1,512

Uttar Pradesh 6,774

Punjab 1,557

Madhya Pradesh 4,670

Gujarat 3,245

Cumulative 23,343

33% of the National

Highway length passes

through Rajasthan and

neighboring states

Secondary catchment

Geotech: Economic environment and infrastructure creation support

investment in Rajasthan

Source: Ministry of Road Transport & Highways

Table: State-wise length of National Highways

© IMaCS 2010

Printed 8-Sep-10 21

Triggers to boost the Technical Textile industry...

Awareness about benefits of technical textile products

amongst the private and institutional users

Initiatives taken Existing Gaps

Standards (focus Geotech)

Testing facilities

Technically trained personnel

Dedicated efforts are required for the

industry to realise its full potential

Domestic availability of high performance and specialty

fibers

Regulations promoting usage of technical textiles

© IMaCS 2010

Printed 8-Sep-10 22

Thank you

www.imacs.in

Contact:

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http://www.imacs.in/

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rajasthan perspective, riico & ficci seminar, sep 2010

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