India An Emerging Market & Global Manufacturing Hub for Technical Textiles

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 classified 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 Protection 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, construction, healthcare, protective clothing, agriculture, sports, etc.

In the Indian scenario, technical textiles is one of the fastest growing segments of the textile industry, registering a double-digit growth year on year. This blog elaborates the current scenario of technical textiles and highlights India’s growth potential in this sunrise sector.

Global technical textiles market is expected to rise to US$ 220 billion by 2025

The global market for technical textiles is pegged at US$ 165 billion in 2018. Mobiltech, Indutech and Sportech are the largest segments of the global industry, together accounting for 52% of the market. Europe and China together account for more than 50% of global technical textile production while India accounts for approximately 5% of the production.

Figure 1: Segmentation of Global Technical Textiles Market (2018)

Data Source: Wazir Analysis

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 developed countries is maturing in a significant way. Recently, the demand from Asia Pacific has eclipsed the global demand for technical textiles accounting for approximately 40% of the total consumption.

In developing economies 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 US$ 220 bn. by 2025. Growth of end user industry in some specific segments are also driving the usage of technical textiles globally. Some of the examples include the below:

Figure 2: Major Markets for Technical Textiles

Data Source: Wazir Analysis

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 automotive industry is expected to remain a key driving factor for this segment over the coming years.
Meditech: Increasing infrastructure spending especially in the developing regions such as Asia Pacific and Central & South America owing to government initiatives is presumed to be a major regional driver. Growing population, increasing access to medical treatment is estimated to drive the medical & pharmaceutical 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 regulatory 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 research and development investments made by market players that have resulted in novel products and innovation. Major players such as Ahlstorm Corporation, DuPont, Asahi Kasei, Freudenberg, 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 US$ 50 bn. market by 2025

India is emerging as a significant player in the technical textiles industry and contributes to approximately 10% of global consumption. India’s technical textiles market is valued at US$ 17 billion, which has been growing a CAGR of 12% since the last five years.

Figure 3: Segmentation of Indian Technical Textiles Market in 2017-18

Data Source: DGCI&S

India is the net importer of technical textile products. India exported technical textile products worth US$ 1,737 million in 2017-18, while the imports for the same stood at US$ 2,126 million. 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-intensive products such as airbags, tyre cord fabric, glass fibre, etc., are imported to a large extent.

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

Data Source: DGCI&S

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

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 US$ 50 bn. by 2025. Some of the key factors that will drive the growth of technical textiles industry in India are:

Rising Consumer Awareness: With rising disposable incomes and changing lifestyles, areas like health and hygiene have become a prime concern for consumers. This has led to an increase in the consumption of Medical textiles such as facial wipes, dental floss, sanitary napkins, diapers, etc. Also, with an increasing focus on the importance of sports and fitness, the consumption of Sportech products such as activewear, sports footwear and sports equipment has risen.
Escalating Expenditure on Defence and Security: As India is on the way to become a global power, it is increasing its focus on upgrading 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.
Scope of Import Substitution: Although India at present imports a significant amount of technical textiles products, further investments in technology intense product segment can help in substituting imported products by the domestic product.
Product & Process innovation: With constantly evolving technology, innovations in various sectors enables the use of technical 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 products and improvement of the existing ones.
Growing Manufacturing industry:The growing manufacturing sectors including automobiles, construction, etc. has led to an increase in consumption of technical textile products. For example, the automobile sector is expected to grow at 12% CAGR to produce over 75 million vehicles by 2025. Components such as tyre cord, seat belts, insulation felts, etc. are all part of Mobiltech and hence, the growth of automotive industry would also enable the growth of the Mobiltech industry.
Government Support: Support from central and state governments in the form of textile parks, research centers, international collaboration with foreign institutes and laboratories, training facilities etc. is also playing a significant role in the sector’s progress. Various State Governments have also announced their textile policies aimed at attracting investments in their states. Moreover, attractive FDI policies for the investor can also attract more investments in technical textile sector.

Attractive Segments for Investment in India

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

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

	Mobiltech
	Segment	2017-18	2024-25 (P)	CAGR
1	Tyre Cord Fabric	1,000	2,500	14%
2	Tyre Cord Fabric	1,000	2,500	14%
3	Tyre Cord Fabric	1,000	2,500	14%
	Indutech
1	Glass Fibre Composites	351	930	15%
2	Coated Abrasives	267	960	20%
3	Ropes & Cordages	268	590	12%
4	Others	985	2,200	12%
	Total Indutech Market	1,870	4,680	14%
	Sportech
1	Sports Footwear Component	832	1,840	12%
2	Sportswear Fabric	164	390	13%
3	Others	129	260	11%
	Hometech
1	Fiberfill	543	1,200	12%
2	Furniture Fabric	392	1,040	15%
3	Others	765	2,010	15%

Data Source: ICRA Baselines Survey & Wazir Analysis

Moreover, India has all the ingredients to emerge as a prominent global player in this sector. Owing to its skilled and technical manpower, competitive manufacturing costs, existing infrastructure to support new technologies, etc., the country can develop a foothold 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 technology, absence of product development and R&D support, etc., that are impeding its growth. Moreover, inadequate awareness about the benefits of technical textiles among end-users is also hampering the demand in this sector.

India’s technical textiles industry is still in the infancy 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 support. The following measures need to be undertaken and prioritized to facilitate growth of the Indian technical textile industry:

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.
Forming International Partnership: Establishing partnership with international players would not only enhance financial investments but also enable knowledge and technology partnership into the country. The partnership can be in the form of a JV for Greenfield project, marketing tie-up, technology tie-up, buyback arrangement, etc.
Focusing on R&D: It becomes imperative to focus on research and development so that the emerging technology can be imbibed in the industry to achieve breakthrough inventions. The government is also taking appreciable measures to promote R&D initiatives by setting up Center of Excellences for different technical textiles segments.
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 manpower at both technical and managerial levels. Steps should be taken for the inclusion of technical textiles in curriculum of various universities/institutions at graduate and post graduate levels.
Implementation of Standards: The stakeholders 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 standards and better outreach to global buyers.
Regulatory Mechanism to Increase Consumption of Technical Textiles: Globally, the usage of many items of technical 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, protective clothing for industrial workers, and usage of geosynthetics for erosion control and agro textiles for sand dune stabilization in desert.

India is poised for growth in the technical textile consumption along with the country’s overall economic growth and leap towards modernization. Also, the country’s manufacturing 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.

The article has been authored by Sanjay Arora, Business Director, Anubha Sehgal, Senior Consultant & Swati Jain, Associate Consultant.

It was published in April 2019 in The Textile Magazine.

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