1. EMERGING OPPORTUNITIES TECHNICAL TEXTILES IN

2. “ At the outset, I would like to thank Rajasthan State Industrial Development & Investment Corporation Limited for inviting me to speak at a Seminar on “Emerging Opportunities in Technical Textiles” in Rajasthan. It is always a pleasure to participate in a function in the Home State, and that too the one organized by a State Government Agency, which played a leading role in establishment of blended yarn spinning segment in Rajasthan, among other industries. Before I introduce you the word of “Technical Textiles”, which I have been asked to do, I would like to briefly touch upon the present status of the textile industry. ….. Shri R.L. Toshniwal CMD - Bansawra Syntex Ltd.

3. As all of you know, I am connected with the textile industry for nearly 60 years. I went to study Textiles in the year 1950. It was the most prominent industry in 1950’s, and in 1960’s, India had attained 20% of the country share in the textiles. On account of various Government regulations, the Industry suffered the most, and was reduced from 20% to 2.5% of the world trade in 1990’s. In the year 2001, it was then the Technological Upgradation Funds Scheme was introduced, to bring new investments in the Textile Industry. Under TUFS, 5% subsidy was given to all along with 10% years’ repayment period. This has brought in new investments in Textile Industry of more than Rs. 1 Lac Crore, and the Industry has again become vibrant. Of course, even then, the Government’s regulations were disturbing the Industry in many ways. In the recent past, Government has allowed lot of cotton to be exported out of the country, and this has brought once again problems to the Textile Industry. Fortunately, Government has realized this mistake, and regulated the cotton export to some extent.

4. The Industry is once again becoming vibrant. At this juncture, the TUF has been taken away, which has resulted into lot of problems in the Industry. I do hope that Government will bring back the TUF urgently, and will help in bringing the Textile Industry to its past glory and future growth. I would like to focus on the products namely Technical Textiles. Things are going to change on account of high technology segments, and Government’s attention to promote Technical Textiles. To put it in different words, like IT Industry, Technical Textiles is also belonging to new economics using new age technology and applications, and is a charming world with full of opportunities for those who are technologically well equipped to come forward in the field of Technical Textiles. Everyone in the august gathering is aware to some extent what is “Technical Textiles.” In fact, if one tries to define “Technical Textiles,” there is every possibility that there could be a slip here and there. To understand the subject better, I venture to define “Technical Textiles” as textile materials and products, manufactured for technical performance and functional properties, rather than normal apparel use, bed linen or decoration use. Based on the characteristics of the products, functional requirements and end-use, Technical Textile products have been classified into 12 segments as follows : “

5. Agro – tech Agriculture, horticulture and forestry BUILD – tech Building and construction CLOTH – tech Technical components of shoes and clothing GEO – tech Geotextiles, civil engineering HOME – tech Components of furniture, household textiles and floor coverings INDU – tech Filtration, cleaning and other industrial usage

6. MEDI – tech Hygiene and medical MOBIL – tech Automobiles, shipping, railways and aerospace OEKO – tech Environmental protection PACK – tech Packaging PRO – tech Personal and property protection SPORT – tech Sport and leisure

7. Some of the common products of technical textiles are seat-belts, airbags, nylon tier cord fabrics, seat covers, car-body covers, automobile interiors carpets, helmets, insulation felts, sanitary napkins, diapers, surgical dressings, healthcare textiles, footwear components, sleeping bags, balloning fabrics, parachute fabrics, fire-retardant fabrics, fire-retardant upholstery, ballistic protective clothing, bullet-poof jackets, hoses, ropes, dry belts, computer ribbons, battery separators, filters, decatising cloth, bolting cloth, applications in construction industry, shoe laces, narrow-width fabrics, hoardings, awnings, canvas, tarpaulin, etc. To put the things in different perspective, Technical Textiles could be broadly classified into 4 categories. The purpose of making this classification is to throw light on the growth prospects of Technical Textiles, to which I shall refer after some time.

8. The 4 broad categories are as follows: Usage in the field of Meditech Usage for Protective purposes Usage due to deep inroads into the Construction industry Usage for Industries purposes

9. Meditech Usage due to improved economic condition in the field of Meditech like diapers, hygiene products, swaps, cloth tissues, disposable napkins, hospital care products, personal care products, etc.

10. Protective purposes Usage for protective purposes like fire- retardant fabrics for upholstery, curtain and bullet-proof jackets, etc.

11. Construction industry Usage due to deep inroads into the construction industry because of marvels of technological excellence. Technical Textiles are being increasingly used in the construction of airports, flyovers, bridges, walls of the building, waterfront walls, construction of roads, etc. The applications of geo-synthetics are mind- boggling, and new areas are being identified for use of Technical Textiles in replacement of traditional materials.

12. Industries Purpose Usage for industrial purposes, like filtration, packaging, conveyor belts, fabrics for tyre manufacture, etc.

13. Technical Textiles and its market The world market for Technical Textiles is estimated at 24 billion kg, valued at US$ 127 Billion and has a healthy growth rate. Amongst all the segments of the Technical Textiles, Mobiltech, Indutech, Sporttech - are the more prominent ones, which collectively account for 56% of the global market size. Technical Textiles account for 40% of textile consumption in many developed countries, which is another indicator of how the Technical Textiles have captured the market. The total likely market size in India was estimated at Rs 220 Billion in 2002-2003, and this was then revised to Rs 418 Billion in 2008-2009. As on date, there are 3000 units manufacturing Technical Textiles in the country, of which about 90% are in the SME Sector. The present total production may be only about 20% of the requirement, and thus, there is a huge demand gap for setting up Technical Textiles.

14. Government has identified Technical Textiles as a major thrust area for growth and expansion. The major components of Government support are: Under TUFS, a provision has been made for grant of interest subsidy reimbursement at 5% on specific Technical Textile machinery and additional benefit of 10% as upfront capital subsidy in respect of selected items of machinery. Government also gives duty credit scrip equivalent to 2% of FOB value of exports to promote export of Technical Textile products under the Focus Product Scheme. Government has also set up 4 Centres of Excellence for provision of support / infrastructure to manufacturers of technical textiles at one place. The Centres are: Government Support

15.  BRTA and ATIRA for Geo-Tech  SASMIRA and MANTRA for Agro-Tech  NITRA and IIT-Delhi for Pro-Tech  SITRA for Medi-Tech Centres of Excellence

16. There are numerous types of specialty fibres required for the manufacture of Technical Textiles. Currently, such specialty fibres are not being produced indigenously. Government has appreciated that to well entrench the Technical Textile Industry in the Country, such specialty fibres should be made available domestically, at least those fibres, which will have large consumption. Hence, Government has under its consideration a two-prong attack. The Government is considering the introduction of a Special Incentive Package for the setting up of manufacturing facilities in the Country to strengthen the raw material base, ie: specialty fibres. Centres of Excellence (Contd.)

17. Customs duty CVD on speciality fibres, which have no indigenous angle, may be abolished. The incentives under TUFS may be substantially liberalized particularly capital subsidy. In the realm of non-fiscal measures, support will come through standardization of specific segments of Technical Textiles. Government has also supported in the setting up of All India Association of Technical Textiles, which is a joint forum of the Industry and Government to discuss the issues facing the Industry and to find solutions for the same. A Technology Mission on Technical Textiles is being set up and this will give a big boost to the industry. Centres of Excellence (Contd.)

18. The industry on its part has been repeatedly requesting Government to make enactments for compulsory use of fire retardant fabrics in hotel industry, cinema halls, and other public Institutions. Road building should use geo-textiles, as its specification in the PWD Contracts. Where the application of Technical Textiles is useful for the Nation, it can be made by Law, and this will increase the use of Technical Textiles. Statutory support from Government will go a long way to promote Technical Textiles in India. Equally important is the need to hold buyers-sellers meet. Since technical textile is a nascent industry and its products are just being introduced in the country, it is necessary that the user industry should be enlightened on the plus points of Technical Textiles, which will induce the user-industries to switch over to Technical Textiles in a big way. Centres of Excellence (Contd.)

19. The signals given by Government are quite strong and it is clear that the technical textile movement is not a ripple, but has the potential to become a major industrial segment of the country. The improved economic conditions in the country will generate a good demand for Meditech, while the increased concerns for fire accidents and aggression of terrorists will boost demand for Protech. The industrialization of the country will generate more demand for Indutech and Packtech, while parameters likecost consideration, longer life etc. will promote the usage in Builtech and Geotech. POTENTIAL FOR TECHNICAL TEXTILES

20. Technical Textiles uses largely Synthetic Yarn and Synthetic Fibres. Rajasthan is not alien to man-made fibres. Rajasthan was the first State in the Country to promote Blended Yarn Industry in a big way, which has resulted as Bhilwara being the largest Centre for production of suiting material, and today, it is producing nearly 80 Million meters per month of such material. If this story is repeated for Technical Textiles in Rajasthan, Rajasthan may become one of the leading States to produce Technical Textiles. TECHNICAL TEXTILES IN RAJASTHAN

21. How this can happen? In my view, one of the ways to promote the Industry is to make investment easy and attractive. When I say “easy,” the Government should come forward for venture capital by way of equity participation for Unites going in for Technical Textiles. When I say “remunerative,” the Government should come forward with interest subsidy of 5% from the State Government for the period of first 5 years. This will help in making the Industry viable. In the first 2 to 3 years, it will be a struggle for such Industry, as the market for Technical Textiles needs to be self-developed. TECHNICAL TEXTILES IN RAJASTHAN (Contd.)

22. Other fiscal benefits such as State Electricity Duty, Sales Tax Exemption, etc, may also be given for the first 5 years. This is not going to cost much to the State Government, but it will bring in long term benefits to the State. Rajasthan has already taken some lead in Technical Textiles. Rajasthan Spinning & Weaving Mills Limited in their Bhilwara – Melba Units is already producing 50% of fabrics being used in the Automobile Industry in the Country. TECHNICAL TEXTILES IN RAJASTHAN (Contd.)

23. My own Units (Banswara Group) have taken a lead in producing Foul Water Fabrics for use in the high altitude where winds are strong for protection of Arm Forces. We have also started producing high quality Laminated Jacquard fabrics for Ladies’ Hand Bags. We are in the process of putting up Sport Textiles in our Plants at Banswara. Since 90% of the Technical Textiles is in the SME Sectors, and Rajasthan excels in the SME Sectors, I am sure, Government will accept my suggestions of Equity Participation, and interest free subsidy for the first 5 years, and many new Investors will come forward for the same. TECHNICAL TEXTILES IN RAJASTHAN (Contd.)

24. To sum up, Technical Textile Segment in India, in Rajasthan in particular, has tremendous potential to attract investment and is expected to register a promising growth. At my age, if I have ventured into Technical Textiles, at the younger age, it should be entirely attractive for people to come up in Technical Textiles. I wish every success to all those who aspire to become manufacturers of Technical Textiles, and start their Plants in Rajasthan. TECHNICAL TEXTILES IN RAJASTHAN (Contd.)

25. T hank y ou !