INDIA: An emerging market & global manufacturing hub for technical textiles

In the Indian scenario, technical textiles is one of the fastest growing seg-ments of the textile industry, registering a double-digit growth year on year. This article elaborates the current scenario of techni-cal textiles and highlights India’s growth potential in this sunrise sector.Global technical textiles market is expected to rise to $220 billion by 2025

The global market for technical textiles is pegged at $165 billion in 2018. Mobiltech, Indutech and

By Sanjay Arora, Anubha Sehgal & Swati Jain, Wazir Advisors Pvt. Ltd.

Technical textiles refer to textile materials primarily used for their technical performance

and functional properties. Based on product characteristics, functional requirements

and end-user applications; technical textiles products have been classifi ed into 12

categories, viz., Agrotech (Agro-textiles), Buildtech (Construction Textiles), Clothtech (Clothing

Textiles), Geotech (Geo-textiles), Hometech (Domestic Textiles), Indutech (Industrial Textiles),

Mobiltech (Textiles used in transport; automotive and aerospace), Oekotech (Ecological Pro-

tection Textile), Packtech (Packaging Textiles), Protech (Protective Textiles), Sportech (Sports

Textiles) and Meditech (Medical Textiles). Technical textiles is a large and growing sector that

supports a vast array of industries. The demand for a variety of these products has increased

as a result of their rising base of applications in end-use industries such as automotive, con-

struction, healthcare, protective clothing, agriculture, sports, etc.

Figure 1: Segmentati on of Global Technical Texti les Market (2018)

Data Source: Wazir Analysis

24 l THE TEXTILE MAGAZINE l APRIL 2019

TECHNICAL TEXTILE

This edition presented by

TM-Apr-19-final-1.indd 24 26-04-2019 14:04:29

Sportech are the largest segments of the global industry, together account-ing for 52% of the market. Europe and China together account for more than 50% of global technical textile production while India ac-counts for approximately 5% of the production.

There has been a shift in the way technical textiles’ demand is being perceived. Conventionally, North America and Europe have been the major markets for technical textiles. However, the industry in the devel-oped countries is matur-ing in a significant way. Recently, the demand from Asia Pacific has eclipsed the global demand for technical textiles accounting for ap-proximately 40% of the total consumption.

In developing econo-mies like China and India, technical textiles are expected to emerge as a growing production as well as consumption base. The improvement in technology, rising demand from various industries and increasing support from government

policies are anticipated to fuel the market growth in this sector.

The global market for technical textiles is expected to grow at a CAGR of 4% and attain a size of $220 billion by 2025. Growth of end user industry in some specific segments are also driving the usage of techni-cal textiles globally. Some of the examples include the below: • Mobiltech: Mobiltech was

the leading application segment and accounted for 22% of total market in 2018. The automotive industry is strong in many Asian countries such as China, Japan, India, Korea, Thailand and Taiwan. Growing demand for high performance materials from automo-tive industry is expected to remain a key driving fac-tor for this segment over the coming years.

• Meditech: Increasing infrastructure spending especially in the develop-ing regions such as Asia Pacific and Central & South America owing to

Figure 2: Major Markets for Technical Textiles

Data Source: Wazir Analysis

25 l THE TEXTILE MAGAZINE l APRIL 2019

TECHNICAL TEXTILE

TM-Apr-19-final-1.indd 25 26-04-2019 14:04:30

government initiatives is presumed to be a major regional driver. Growing population, increasing ac-cess to medical treatment is estimated to drive the medical & pharmaceuti-cal industry, which in turn is expected to aid the Meditech segment.

• Protective Textile: North America accounts for over half of the total market of Protech. Stringent regula-tory guidelines coupled

with high level of safety awareness in the industry are expected to drive the growth over the coming years.Globally technical textiles

market features large re-search and development in-vestments made by market players that have resulted in novel products and innova-tion. Major players such as Ahlstorm Corporation, Du-Pont, Asahi Kasei, Freuden-berg, etc., have been taking

enthusiastic steps to create new applications in terms of customer demand and provisions.

Indian technical textile sector has the potential to reach $50 billion market by 2025

India is emerging as a significant player in the technical textiles industry and contributes to approxi-mately 10% of global con-sumption. India’s technical textiles market is valued at

$17 billion, which has been growing a CAGR of 12% since the last five years.

India is the net importer of technical textile products. India exported techni-cal textile products worth $1,737 million in 2017-18, while the imports for the same stood at $2,126 mil-lion. India is a key exporter of certain commoditized products such as sacks & bags, flexible intermediate bulk containers (FIBCs), jute carpet backing, hessian, etc. The technology-inten-sive products such as air-bags, tyre cord fabric, glass fibre, etc., are imported to a large extent.

India has emerged as a key market for technical textile products. The Indian technical textile industry is expected to grow at a CAGR of 16% to reach $50 billion by 2025. Some of the key factors that will drive the growth of technical textiles industry in India are:1. Rising consumer aware-

ness: With rising dispos-able incomes and chang-ing lifestyles, areas like

Figure 3: Segmentati on of Indian Technical Texti les Market in 2017-18

Data source: DGCI&S

Figure 4: India’s Exports of Technical Texti les (Values in US$ Million)

Figure 5: India’s Imports of Technical Texti les (Values in US$ Million)

Data source: DGCI&S

26 l THE TEXTILE MAGAZINE l APRIL 2019

TECHNICAL TEXTILE

This edition presented by

TM-Apr-19-final-1.indd 26 26-04-2019 14:04:31

health and hygiene have become a prime concern for consumers. This has led to an increase in the consumption of medi-cal textiles such as facial wipes, dental floss, sani-tary napkins, diapers, etc. Also, with an increasing focus on the importance of sports and fitness, the consumption of Sportech products such as ac-tivewear, sports footwear and sports equipment has risen.

2. Escalating expenditure on Defence and security: As India is on the way to be-come a global power, it is increasing its focus on up-grading its defence and security measures. These has led to increasing demand of bullet proof jackets and gloves, shoes, high altitude clothing, etc. Government’s increasing

focus in this sector is also pushing growth in the technical textiles industry.

3. Scope of import substitu-tion: Although India at present imports a signifi-cant amount of technical textiles products, further investments in technology intense product segment can help in substituting imported products by the domestic product.

4. Product & process in-novation: With constantly evolving technology, inno-vations in various sectors enables the use of techni-cal textiles. For instance, evolving manufacturing processes has led to the creation of “smart fabrics” with interesting physical properties. These fabrics can further lead to the production of new prod-ucts and improvement of the existing ones.

5. Growing manufacturing industry: The growing manufacturing sectors including automobiles, construction, etc., has led to an increase in consumption of techni-cal textile products. For example, the automobile sector is expected to grow at 12% CAGR to produce over 75 mil-lion vehicles by 2025. Components such as tyre cord, seat belts, insula-tion felts, etc., are all part of Mobiltech and hence, the growth of automo-tive industry would also enable the growth of the Mobiltech industry.

6. Government support: Support from central and state governments in the form of textile parks, research centers, international collabora-tion with foreign insti-

tutes and laboratories, training facilities, etc., is also playing a signifi-cant role in the sector’s progress. Various State Governments have also announced their textile policies aimed at at-tracting investments in their States. Moreover, attractive FDI policies for the investor can also at-tract more investments in technical textile sector.

Attractive segments for investment in India

While the overall Indian technical textiles market is growing, segments like Mo-biltech, Indutech, Sportech and Hometech are showing high growth potential.

Moreover, India has all the ingredients to emerge as a prominent global player in this sector. Owing to its skilled and technical manpower, competitive

Table 1: Key Growing Segments (Values in US$ Million)

Data Source: ICRA Baselines Survey & Wazir Analysis

28 l THE TEXTILE MAGAZINE l APRIL 2019

TECHNICAL TEXTILE

This edition presented by

TM-Apr-19-final-1.indd 28 26-04-2019 14:04:33

manufacturing costs, exist-ing infrastructure to support new technologies, etc., the country can develop a foot-hold in the production of technical textiles. Also, the government, in a response to capture the potential posed by technical textiles, has developed a number of policies aimed to promote the development of the domestic technical textiles sector.How can India march ahead in this sector

The domestic market for technical textiles has not exploited its full potential, till date. The industry is facing certain key issues such as lack of indigenous availability of specialized raw materials, limited tech-nology, absence of product development and R&D sup-port, etc., that are imped-ing its growth. Moreover, inadequate awareness about the benefits of tech-nical textiles among end-users is also hampering the demand in this sector.

India’s technical textiles industry is still in the in-fancy stage. The estimated growth in this sector offers truckloads of opportunities for manufacturers to cater

to the growing domestic market as well as compete globally. In order to grow in this sector, India cannot solely depend on fiscal incentives and policy sup-port. The following meas-ures need to be undertaken and prioritized to facilitate growth of the Indian tech-nical textile industry:1. Attracting investments:

To achieve scale in the manufacturing sector, the most important thing that Indian technical textile industry needs is large scale domestic as well foreign investment on a regular basis.

2. Forming international partnership: Establishing partnership with interna-tional players would not only enhance financial in-vestments but also enable knowledge and technol-ogy partnership into the country. The partnership can be in the form of a JV for Greenfield project, marketing tie-up, tech-nology tie-up, buyback arrangement, etc.

3. Focusing on R&D: It be-comes imperative to focus on research and develop-ment so that the emerg-ing technology can be

imbibed in the industry to achieve breakthrough in-ventions. The government is also taking appreciable measures to promote R&D initiatives by setting up Center of Excellences for different technical textiles segments.

4. Focus on training & education: Indian technical textile industry needs requisite technical knowhow and the skilled manpower required for manufacturing of high end technical textile products. Hence, skilling initiatives need to be taken to develop man-power at both technical and managerial levels. Steps should be taken for the inclusion of techni-cal textiles in curriculum of various universities / institutions at gradu-ate and post-graduate levels.

5. Implementation of standards: The stakehold-ers of technical textiles sector need to implement the Indian Standards in their area of activity and adopt the BIS certification scheme in promoting the quality of their product. Establishing standards

will help in developing products of global stand-ards and better outreach to global buyers.

6. Regulatory mechanism to increase consump-tion of technical textiles: Globally, the usage of many items of techni-cal textiles is mandatory, as it is in the interest of society at large and leads to social and economic benefit. In India also such regulations should be implemented for usage of fire retardant fabrics in public places, protec-tive clothing for industrial workers, and usage of geosynthetics for erosion control and agro textiles for sand dune stabiliza-tion in desert. India is poised for

growth in the technical tex-tile consumption along with the country’s overall eco-nomic growth and leap to-wards modernization. Also, the country’s manufactur-ing competitiveness makes it a preferable production base. With the appropriate measures, the industry has the potential to tap into the huge domestic and global market.

w

30 l THE TEXTILE MAGAZINE l APRIL 2019

TECHNICAL TEXTILE

This edition presented by

TM-Apr-19-final-1.indd 30 26-04-2019 14:04:34