Not surprisingly, the promise of providing better protection through cleaner air and access to better quality water to millions of people is exciting India’s growing number of nonwovens companies, many of whom have already confirmed their attendance at INDEX 2011 – the next edition of the leading show for the nonwovens sector which takes place at Geneva Palexpo in Switzerland from April 12th-15th next year.
“Whilst it is difficult to predict exactly which path India will follow, we have confidence in the Indian potential to jump several steps, in the usually gradual sophistication of filter media, for instance, directly towards world-class products,” says Pierre Wiertz, general manager of EDANA, which hosted the Filtrex Asia event with local partner BCH. “The first Filtrex Asia has laid the foundation for the beginning of a process that will have an in-depth impact on the lives of millions of people.”
As a result of increased industrial developments in India, the filtration sector is seeing considerable growth as the need for quality products and a cleaner environment prompts stricter controls and regulations. Major industries linked to the filter market are seeing double-digit growth, and companies are gearing up to offer products to match the growing demand.
According to well-known filtration industry authority Lutz Bergmann, the filtration industry is worth an annual US$60 billlion and the nonwovens going into it have a value of around $2.5 billion.
“Woven fabrics are still important in India, which historically has a strong weaving base, but worldwide, woven fabrics have more or less been replaced by more effective and efficient nonwovens, so in this respect India has some catching up to do,” says Mr Bergmann. “India is also still heavily reliant on cotton, whereas other countries generally employ synthetic fibres now.
“However, India is going to be a significant market and, once the growth in China levels off, is likely to show the highest growth figures in the coming years.”
Demand for nonwovens in India is not just limited to filtration, however.
The current per capita consumption of nonwovens in India is less than 100 grams, whereas that of developed markets such as the US and Western Europe is around 3-3.5 kilograms.
In the more developed markets it has taken nearly four decades to reach that level but, with per capita consumption of nonwovens being directly related to the population’s per capita income levels, progress in India will be much quicker.
The Indian middle class is now over 300 million-strong and, according to analysts Goldman Sachs, the country’s economy will exceed those of Europe and Japan by 2030 and that of the US by 2045. Such growth will result from the increase in household incomes and predicted growth in the agriculture, manufacturing and service sectors.
India’s consumer spending is growing at over 5% per annum, which has resulted in the ongoing expansion of its organised retail sectors.
These will be vital factors in the increasing success of the nonwovens industry in India – both in durable products for infrastructure improvements and consumer markets for their many hygiene and health benefits.
Growth is also being actively bolstered by government backing.
India’s Ministry of Textiles, for instance, has identified nonwovens and technical textiles as an important area for support and several positive schemes at central government level have subsequently been implemented.
One major scheme has been the launch of the National Technology Mission for Technical Textiles which is being implemented during the 11th five-year plan to promote the development of the technical textile industry, with a budget of US$170 million.
This mission spans the entire spectrum of the technical textile industry and focuses on those areas that will aid growth of the industry. The government has identified four important sectors within the technical textile industry for immediate attention: medical, geotextiles, agricultural materials and protective fabrics – all markets in which nonwovens have a considerable market share.
Nonwoven machinery is also now included in the Technology Upgradation Fund (TUF) scheme.
The TUF was launched in 1999 to provide a boost to under-developed sectors of the textile chain and will be continued during the 11th five-year plan. It provides a 10% capital subsidy up-front for new projects involving new machinery for technical textiles, with the addition of a 5% interest subsidy on loans.
The nonwovens sector was not included in the earlier five-year plan period. Now, almost all machinery, including spunmelt systems, carding and thermal bonding machines and converting units are covered. The basic customs duty on imported textile machinery has also been reduced from 10% to 5%, so that the effective customs rate is around 20%.
Despite being second only to China in the size of its overall textile and garment industry, India’s share of the technical textiles markets, including nonwovens, is still insignificant. However, the country will invest some €717 million between now and 2012.
India’s domestic market for technical textiles is meanwhile expected to grow at an annual rate of 11%, to reach a value of €9.5 billion by 2012, from a 2009 value of €5.3 billion. Nonwovens will constitute a big part of that figure, making the country a prime location for investment and trade by the global nonwovens industry.
