Market Research Report : Man made Fiber Market in India 2011


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Man-made Fiber market in India is expected see a steady growth. Increasing demand for textile namely general purpose textile, fashion wear, textile used for special purpose, along with the increasing price of textile made up of cotton is expected to drive the man-made fiber market in India.

The report begins with an overview of the overall textile market in India which comprises of different types of textiles available in India. It then discusses the man-made fiber market which includes a brief overview of the market covering the production and installed capacity in India. This is followed by an overview of major types of man-made fiber and filament yarn. It includes information about its demand and supply, and export and import scenario India. It is immediately followed by a highlight of the export-import scenario in India.

The major characteristics of the market have been analyzed and include – favorable demographic, rising cotton prices, rising cost of raw material, anti-dumping duty and unfavorable excise duty.

The competition section provides an overview of the competitive landscape in the industry. It also includes a brief profile of the major players which includes a snapshot of their corporation, financial performance and expansion plans, providing an insight into the existing competitive scenario.

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Market Research Report : Man made Fiber Market in India 2011

  1. 1. Man-made Fiber Market – IndiaMay 2011
  2. 2. Executive Summary Man-made fibers market is expected to grow at a CAGR of A% while filament yarn will grow at B% during 20-- Market Indian textile market is considered to be one of the largest in the world and has the 2nd largest installed capacity of spindles Overview Central & state government is playing an important role in the development of the textile sector Man-made Staple Fiber – Polyester Staple Fiber, Viscose Staple Fiber, Acrylic Staple Fiber and LE Market Polypropylene Staple FiberSegmentation Man-Made Filament yarn – Polyester Filament Yarn, Viscose Filament Yarn, Nylon Filament Yarn MP and Polypropylene Filament Yarn Indian man-made fibers has been identified as one of the few segment which was not affected by the global recessionExport-Import A Increasing price of cotton along with C% rise in man-made fibers across various categories since S Oct 20-- has led to decrease in export Indian man-made fiber players recently demanded an increase in duty refunds so as to adjust for rising raw material costs Market Market characteristics which is affecting man-made fiber includes favorable demographic, risingCharacteristics cotton prices, rising cost of raw material, anti-dumping duty and unfavorable Excise duty Man made fiber and filament yarn market is defined by the presence of very few players These are considered as big player in the manufacturing of man-made fiber & filament yarn Competition Domestic Players Company 1 Company 2 Company 3 Company 4 MAN-MADE FIBER MARKET IN INDIA 2011.PPT 2
  3. 3. •Market Overview•Market Segmentation•Export-Import Overview•Market Characteristics•Competition MAN-MADE FIBER MARKET IN INDIA 2011.PPT 3
  4. 4. Demand for man-made fibers is expected to rise due tolimited growth of cotton productsMan-made Fiber (MMF) – Overview Production of Fiber and Yarn• India is considered to be the second (20--) largest Type 1 Type A producer of man-made fiber in the world Man-made fiber and yarn industry comprises of fiber and bn Kg j% filament yarn manufacturing units of cellulose and non 3 cellulose origin k% 2 PLE• In 20--, out of total consumption of A bn kg of fiber, including cotton & man-made, B bn kg (C%) is manufactured by man-made fiber & yarn industry 1 0 20-- 20-- 20-- 20--e SAM It has been estimated that textile made of man-made fiber accounts for about D% of Indias total textile exports• Man-made fiber is expected to see huge growth It has been estimated that domestic fiber consumption Installed Capacity of Fiber and yarn (20--) Type 1 Type A Installed Capacity ratio is at E:F (FY 20--) which is in favor of cotton, while globally its G:H Due to limited growth in cotton cultivation, it has been of Units Number estimated that Indian fiber consumption will tilt towards man-made fiber• To drive the growth of textile industry, both in domestic and export, a National Fiber Policy has been set up by the government Type 1 Type 3 Type A Type C Type 2 Type 4 Type B Type D MAN-MADE FIBER MARKET IN INDIA 2011.PPT 4
  5. 5. Segment I: Staple Fiber (1/4)Polyester Staple Fiber – Overview Demand Supply Scenario• Production of polyester staple fiber has been much Production Consumption mn Kg higher than the domestics demand which has led to 2,000 higher export of this fiber 1,500 It has been estimated that overall installed capacity of LE 1,000 polyester stable fiber is A bn kg during FY 20-- 500 P• It has been estimated that the production of 0 polyester staple fiber grew from B mn kg in FY 19-- to M 19-- 20-- 20--e 20--e 20--e C mn kg in FY 20-- registering a CAGR of D% SA Growth has been estimated to be highest during the post quota period which was E% CAGR during FY 20-- to FY 20--• Manufacturing of polyester staple fiber is done Export-Import Import Export primarily by few players in India mn Kg Some of the key players include Reliance Industries, Indo 150 Rama and JCT Fiber 100 Reliance Industries has been considered to be the leading players which accounted for 64% of total production in the 50 industry during FY 20-- 0 20-- 20-- 20-- 20-- 20-- (Apr-Jan) MAN-MADE FIBER MARKET IN INDIA 2011.PPT 5
  6. 6. Market Characteristics Favourable Demographic Rising cotton prices Major ` Rising cost of raw materialCharacteristics Anti-dumping duty Unfavourable Excise duty MAN-MADE FIBER MARKET IN INDIA 2011.PPT 6
  7. 7. Man-made fiber market is characterized by the presence of very few large players Competition – Overview Share of Production (20--) • Man-made fiber/ filament yarn market is defined by Type 1 100% 0% the presence of very few large players in the sector Company 1 Others Companies have looked to specialize in a particular segment towards developing expertise and market share LE Type 2 For instance, Viscose Staple Fiber is manufactured only by Company 1 Company 2 Company 3 Others P Company 1 in India similarly Polypropylene Staple Fiber is manufactured by Company 2 Type 3 AM • It has been estimated that since very few organized interrelated players are producing MMF Fabric, most S of the garment manufacturers have to procure TT externally and thus are not able to get RR Type 4 Company 1 Company 2 Company 1 Company 3 Others Others • Man-made fiber such as acetate, cuprammonium Type A filament yarn, nylon 66, nylon 11, Lycra, PVA fiber Company 1 Company 2 Comapny3 Others and filament which are required for the manufacture Type B of high end garments are Q in India Company 1 Company 2 Company 3 Others This led to a need to have policy incentive so as to encourage domestic Y of such fiber Type C Company 1 Company 2 OthersSource: MAN-MADE FIBER MARKET IN INDIA 2011.PPT 7
  8. 8. Domestic Players in the Market (1/13)Company Snapshot: Company 1Corporate Information Financial Performance Total RevenueHeadquarters Location 1 INR bn Net Profit INR bnFounded 19-- 200 4 150 0Product Product A 100 -4 50Key People Person A 0 -8 20-- 20-- 20-- 20--Business Highlights• Company engages in the garments, rayon yarn viscose, and other products in India and internationally E It also produces viscose filament yarn products under the S brand name L• P division recorded revenues of INR A bn in FY20--, an increase of B% over 20-- and INR C bn in FY20-- P• Currently its production capacity of Viscose Filament yarn stands at D TPA AM• It is considered as second largest producer in India with BB% domestic production share and largest exporter of Viscose Filament Yarn in India S MAN-MADE FIBER MARKET IN INDIA 2011.PPT 8
  9. 9. Thank you for the attentionThe Man-made Fiber Market - India report is a part of Research on India’s ManufacturingIndustry Series.For more detailed information or customized research requirements please contact:Gaurav KumarPhone: +91 33 4064 6214E-Mail: gaurav.kumar@netscribes.comResearch on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quickinsights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge-consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &business research, business & corporate intelligence, content-management services, and knowledge-software services. At its core lies a truevalue proposition that draws upon a vast knowledge base. Netscribes is a one-stop shop designed to fulfil clients’ profitability and growthobjectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India,Netscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is thesole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. MAN-MADE FIBER MARKET IN INDIA 2011.PPT 9