1. CREATING VALUE CHAIN IN TECHNICAL TEXTILES ANUPAM DIKSHIT COO – PROJECTS S. KUMARS NATIONWIDE LTD 25 TH AUGUST 2011

2. WHAT IS TECHNICAL TEXTILES Any textiles where function comes first and only then criteria like price and usually not aesthetics Used by other industries for their specific physical and functional properties their end products Not fashion oriented and not seasonal

3. FORMS Fibres (such as for plastic or cement reinforcement) Yarn type products (such as sewing thread or ropes) Non-wovens (ex staple fibre or ex chips) Non-spun products (such as wadding or filters) Fabrics (woven, knitted, braided, stitch-bonded or other) Garments (fire retardant, bullet proof vest) Made-up products (tarpaulins for trucks, filters, tents and temporary buildings)

4. SECTORS

5. WORLD SECTOR-WISE SHARE Total US$ 127 bn 2010

6. INDIA SECTOR-WISE SHARE Total US$ 12 bn

7. GROWTH OF TEXTILES World Total

8. GLOBAL BREAK-UP

9. FIBRE BASES

10. RAW MATERIALS

11. TECHNOLOGIES Fabrics – Woven, Warp-Knit, Weft-Knit Non-Wovens Stitchbonding – Bi-Axial, Multi-Axial Laminations – Film, Fabric, Membrane, Leather or Non-Woven Composites of above

12. NON-WOVENS GROWTH VALUE

13. NON-WOVENS ASIA QUANTITY

14. TRENDS TT will continue to grow world-wide Asia will become the major global player India is yet at an emerging state in TT Major growth technologies are :  Non-Wovens  Reinforced Hi-Performance Composites  Geotextiles  Filteration  Functional Garments – FR, Hi-Vis, Sports, Extreme Weather, Bullet-Proof….

15. SECTOR SELECTION MARKET ATTRACTIVENESS COMPANY POTENTIAL & SYNERGY LOWMEDIUMHIGH IGNORE SECTORANALYZE SECTORTARGET SECTOR MEDIUM IGNORE SECTORANALYZE SECTOR LOW IGNORE SECTOR

16. POTENTIAL SECTORS Geotech Medtech – Non-Woven Mobiltech Protech

17. GEOTECH (GT)

18. GT NORMS

19. GT SEGMENTS

20. GT DEMAND EXP YR 2013

21. INDIA GROWTH DRIVERS

22. CONCLUSIONS GT Consumption will continue to be dominated by Govt or Govt backed contractors Lack of norms leading to subjectivity Absence of regulation for usage, as against US, EU, Japan & even China Co-operation required by user ministries Intl market restricted by entry barriers - high quality norms, tender based buying & long- term guarantees & maintenance contracts - so focus on domestic & maybe near abroad

23. MEDTECH (MT) Products can be segmented by :  Application  Hygiene & Personal Care (Non-Sterile)  Surgical & Medical Applications (Sterile)  Technology  Carded/Spunlaced Cotton Wool – cotton balls, dental buds, make-up pads, wound dressing etc  Spunmelt Non-Woven – medical gowns, masks etc  Spunlaced Non-Woven – wipes, dressings etc  Woven – gowns, drapes, gauze etc

24. TYPES OF NON-WOVEN

25. GROWTH IN SPUNMELT IN K.TONS

26. SPUNLAID MARKET

27. NON WOVEN MARKETS

28. PRODUCTS MT

29. INDIA MARKET

30. CONCLUSIONS MT High entry barrier due to heavy Capital Exp High rate of technology upgradation requires quick repeat capital investments High volume machinery requires steady market, usually a JV with an MNC user Very high quality standards, esp for sterile goods with intl agency approvals Very few high quality machinery makers Limited no. of raw-mat. makers More margin finished goods than in r/m

31. MOBILTECH (MbT) Applications in cars, bikes, trucks, buses, trains, metros, planes, ships …… any tptn device Components – abt 30 kg per car :  In-cabin - upholstery, door panels, carpets, headliner, seatbelt, airbags ……  Outside – hood acoustic liner, filters, tyre cords, wheel-arch liner, trunk liner, under shield, cable wrappers …… Products –  Non-woven acoustic liner, carpets, headliners  Decorative woven fire retardant interior fabrics  Nylon/ Polyester tyre cord  High tenacity polyester narrow width seat belts

32. PRODUCTS

33. INDIA VEHICLE MARKET

34. AIRBAGS

35. MADE-UP AIRBAG

36. GROWTH OF AIRBAGS

37. TYRE CORD

38. SEATBELTS

39. CONCLUSIONS MbT Though some sectors have good potential and synergy like interior fabrics, liners & seat-belt sectors like tyre cord & airbags were low There is more potential in made-up product than in only the component Component market is dominated with SME sector which is difficult to compete on price Front end tie-up with auto industry critical Slowdown expected in auto industry both domestic & exports esp high end cars Market can grow exponentially with changes in regulations for FR fabric, airbags, rear seatbelt

40. PROTECH (PT) Covers all types of protective clothing ranging from high quality industrial work-wear to high performance products like bullet-proof vests, high altitude clothing etc Made from standard fibres/blends or from specialized technical fibres like high tenacity fine denier filament, aramides, carbon etc Covered by very high performance standards under harsh usage conditions One of the largest users are defense forces followed by hazardous industries

41. CHIEF FUNCTIONS Foul Weather Protection High Visibility Fire Retardant Anti Static High Altitude Clothing Nuclear Biological Chemical (NBC) Protection Dust Protection Slash Protection Bullet Proof Vests

42. WORLD MARKET

43. WORLD MKT SEGMENTS

44. INDIA MKT SEGMENTS

45. PRODUCTS

47. USES IN DEFENCE The biggest user of Protech is defence forces – military, para-military, police & fire brigade Products include :  Uniforms  Foul Weather Clothing (FWC) incl Extreme Cold Climate Clothing (ECC)  Ballistic protection – vehicles & personnel  Fire Proof/Retardant clothing  Nuclear-Biological-Chemical protection suits  Multi-Spectral Camouflage – objects & personnel  Parachute fabrics & cords  Tents, Sleeping bags & Packs

48. USES IN INDIAN INDUSTRY Currently Protech is an under-developed market in industry due to low regulation, missing norms and even lesser implementation This is changing with world-class cos & multi- national cos setting intl stds for worker safety SME sector virtual non-users of Protech Pressure from workers & customer compliance has a major role in pushing for Protech Higher quality workforce require better uniforms FWC for outdoor workers potentially a huge mkt Both purchase & rental model exist but latter is a new development in India

49. CONCLUSIONS PT Defence forces will continue to dominate the Indian market in the near future Extensive refurbishment of defence forces underway providing much needed protection to personnel & market for high qlty products Better norms reqd to avoid only L1 purchasing Significant import substitution possible Industry usage is increasing but can grow faster with adoption of world class stds Barriers in access to special fibres/technology exist so JV with suppliers critical

50. RECOMMENDATIONS Raw Materials : Encourage dev of high-grade fibre, yarn & rolled-goods capacities Policy Changes : Must make usage compulsory over a defined time. Multi-ministry Empowered Group (EG) must be set-up to recommend policy changes Education : Centres of Excellence (COE) need to be further strengthened to encourage training at supervisor & worker level. Standards : Efforts to establish clearer stds & testing meths of intl level have to be strengthened. Funding : Competition from US, EU & China, where cost of funds is 3% to 5%, TUF benefit inadequate. Increase subvention, for limited period of 5 yrs, to at least 10% to encourage investments

51. THANK YOU