1. A Presentation at N W T A, Gandhinagar
By,MunishTyagi,Ceo,NuovatexCo.Newdelhi
www.nuovatexprojects.com

2.  India has 2nd largest Textile Ind`y in world, with150 years history of
mechanised production,yet the scenerio for Technical textiles and
nonwovens is yet in emerging and evolving stages.
 While China is already on the way to be No 1 producer in this new
field, India s share is yet to touch even 1% of the global production,
 For understanding the Dynamics of the sector, the key drivers are,
 1> due to political patronage of Cotton, the traditional Textiles remained as
cotton dominated and also as cummodity industry,while the world has moved into
extensive use of Synthetics with nearly 63% share in total.
 2> due to poor Policy / vision,India has been a late adopter of new technology
whether it be OE Spg, wide fabric Processing or Tech. textiles & non wovens,
 3> as a result the Tech. textiles and nonwoven sector remained
highly import dependant even though production of Synthetics was on
the rise in India esp. polyester & PP from Reliance Ind.
 4> despite above challenges, the size of the technical textiles markets
has grown steadily at avg11-12% rate to current level of Rs 70,000 crore
 5> with increasing Outlays on infrastructure,and the growth in
consuming middle and urban/semi urban class the present share of
12-13% for tech textiles is estimated to touch 20% by year 2020.
 6> However,overlap of technologies and Products needs serious clarity.

3. The high cost of European tech
impacts cost /viability of SME
nonwoven projects,in India.
If China can succeed, then
their low cost Tech is okay
 Needlepunched NP nonwovens
 This is a Fiber based system,
 The technology is simple ,flexible
& has low entry barrier,
 With all Fiber resources,and being 4
th largest Synthetic fiber producer
,India has all competitive strength,
other than Low cost Indeg.technology,
 The reasons of being laggard are our
usual Late n slow adoption of
Technology ;and poor productivity.
 The NP products have a wide and
versatile Product range and command a
Good 40% share globally.
 With industrial uses esp. in Filter media
and other felt like end uses,the NP
nonwovens have an assured future
and,incl .their use in NW composites.
 v/s Spun melt/spun bond
 This is a polymer to filament to
nonwoven fabric making system.
 overall world share of Spunmelt/
spun bonds is 55% of total
nonwovens,with extensive use in
Disposable/hygiene products.
 This is due to their high
production rates; but cost of
tech.and Investment are high too.
 The leader and our fierce
competitor is China ,with large
synthetic/MMF fiber resources,
 In just 10 years,China has become
3rd largest consumer of
nonwovens,next to the USA & EC

4.  India is endowed with geog dividend of largest young n
employable population,and can expect avg. 5.5 to 5% GDP level
over next 5 years.
 Today, we find that traditional textile sector is getting saturated and
not growing in exports vis a vis global competition.
 We do have potential to be a $120 Bln textile producer,with 8-9% of
global textile share; But it is to happen with growth from technical
textile sector where the Needle-punched will be the key driver.
 Key factors going in favor of Needle punched segment in India are;
A] simple Technology and wide/versatile product range with fiber flexibility,
B] successful role models like M/s Supreme and, UniProducts India,
C] special Incentives and Govt subsidy available to tech.tex sector to
reduce the interest burden and gaining competitive advantage.
Our Indy`s comfort zone for staying in basics and cummodity will
not help since Nonwovens are engineered products,
To survive and cont`sly evolve ;new Techtex units have to think
`innovation `products esp composite nonwovens

5. Detailed break up of a new
4tpd SME project is provided.
Detailed production cost and
economic Viability is provided
 PROJECT COST BREAKUP
 Land- min of 2 acres recommended
at Rs 50 lacs
 Bldgs-1800 sq mtr is proposed at
Rs 9000/sq mtr
 Imported NP plant e.g of Y- Yang
China at FOB $6.3Lac,under EPCG.
 The overall project cost incl.pre
Interest and WC margin works out to
approx Rs 9.5 crores
*the share of imported Plant in total
proj.cost of 9.2 Cr is at 55%.
 PROJ.FINANCIALS /Viability

 The proj cost,of 9.2 cr to be funded with debt-
equity of 2 to 1.i.e promoters share of Rs 3 Crore.
 Conversion of nonwoven Fabric to usable Kits is
the `weak link` in t Technical-textile chain. A
 20-25% of output is recommended to Convertor.
 In 2nd year at 75% capacity, the unit will have Sale
T/over of Rs 19 crore ie. 2 times of invest,and with
RM ratio of < 60%.
 This leads to Healthy financial ratios of,GP or
EBITA of 23.5%, before interest and tax;and
Simple Payback of 4.5 years.TUF allows 1+5 Yrs.
BEP of 55% and, Avg DSCR of 2.10 over 5 years.
 Under practical Market input and output rates,the
SME unit of 4TPD size for producing Filter media
from NP nonwoven is economically VIABLE.
 * the SME proj. having Capex under Rs 10 cr
benefits under 15%TUFS,and both Viability and
payback period and ROI would improve by +5%.

6. Yes,
There are serious threats
from imports from China.
 Strength+Opportunity
 .
 Threats & weakness

7. Other than high fashion,tech-
tex to fast substitute textiles.
India has reasonable GDP and with
young consumers can be global
leader in tech tex consumption.
 Technical textiles
 Tech tex or nonwovens are fastest
growing textile use products,with
global share of 50 to 50.
 These are used in industrial and
consumer end uses;and demand
in consumption is prorata x2 .5 of
a country s GDP economy.
 The biggest opportunity are in
technical fabrics, medical textiles
,water/air Filter media, and all
types of Disposable fabrics
eg.diapers, hygiene pads etc etc..
 We already do $12 Bln .worth.
 What Tech-tex can or Not
do for Indian textile indy
 While USA and europe started 30
years ago,we started 5 years back.
China is ahead of us by 12-15 in this
field already.
 USA and Europe are now
stagnated,and it is Indian and China
doing a 10-12% growth.
 All fibers are available in India;and it
is now challenge for new
entrepreneurs to covert Nonwovens
to usable kits.
 India having missed the global share
in Textiles: It has the emerging
opportunity to cover by Techtex.

8.  India did miss the bus to make its share at min 10% of world textile
trade. With emergence of cost effective Nonwoven technologies; we have
one more knock of opportunity to do so v/s competitors China,Turkey
Vietnam,Indonesia ,others.But, this can only happen with a dedicated
Road map and future vision outlined below:;
 We have to sacrifice political ways,and accept to reduce Cotton share to
be able to upgrade to versatile MMF fibers to help grow in Tech textiles,
 The expansion of Nonwoven capacity,under the TUFS support,to be for
New SME Techtex projects;with focus on conversion to make user Kits,
 The SME sector to be encouraged to adopt cost effective plants based
on low entry level technology from role models ,Korea, China,Taiwan.
 The manufacturing focus on needle punch technology to produce
industrial techtex products like felts, Filter media and for automobile
uses etc. produced from natural and MMF fibers and innov blends.
 The 4-5 COE in technical textiles to guide SME units on product
innovation that is practical to increased demand in Indian markets
 Govt to encourage More buying of Indian tech. tex into Infra, projects.

9. The era of traditional textiles is
getting over.Lets dream and Do
tehnical tex, to prosper N profit.
Tech. tex is a new kid,and needs to
be nurtured to bloom into a high
profit driven sector in Text.indy.
 A big thank you
 Munish tyagi
 98 11 25 33 32