CTAC 2024 Valencia - Henrik Hanke - Reduce to the max - slideshare.pdf
INVESTMENT STRATEGIES FOR TECHNICAL TEXTILES
1. B. S. Pancholi & Dr S. K. Basu
Man made Textiles Research Association, MANTRA Surat
1
INVESTMENT STRATEGIES FOR TECHNICAL TEXTILES
06/11/14
2. What is being discussed
Index
Part -1
1. Global scenario of spunbond applications
2. Investment Landscape of With Spunbond TT
3. Investment strategies for spunbond TT
4. Guidelines for Investment in TT (General)
Part-2
1. Factors limiting the scope of spunbond industry
2. Solutions for revival and uplifting of spunbond industry
3. How to differentiate to gain better marketability
4. How to explore New products and new markets
5. MANTRA-COE : Your partner for successful With Spunbond TT investment
and growth
2
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3. Part-I
1.Nonwoven –Global Scenario
3
60% nonwovens usage is
in disposable products
China today is producing over
1 million tons of nonwovens.
Current nonwoven
production level in
India is only about
70,000 tons per
annum which was the
same level in China, 15
years ago.
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5. NICHE and CUSTOMIZED products have
High end application.
Tougher specification on quality as per customer demand and specific
requirements
Require high investment not only for manufacturing but also R&D.
Require more time for application penetration in a country like India due to
high price and low awareness on usage benefits.
Low volume market reach.
Difficult to match the more advanced international competition on quality
and price
5
2.Investment scope of Spunbond TT
Niche and Customized products
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6. Commodity products
COMMODITY PRODUCTS have
Low end and daily use application.
Easier to manage specification on quality.
Suitable for low investment for SMEs
High volume and low price items
Sold in high volume at Retail stores like Reliance, Bigbazaar, Bharti-Walmart
Can be produced by use of converting technology
6
2.Investment scope of Spunbond TT
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7. 7
2.Investment scope of Spunbond TT
Characterestics NICHE products Customized
Products
Commodized
products
Investment High High Low
Innovation(R&D) High High Low
Complexity High Medium Low
Market Volume Small Small Large
Marketing Expenses High Medium Low
Profit Margin High Medium Low
Pay Back Period Long Long Short
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8. 8
2.Investment scope of Spunbond TT
Commodity Spunbond TT products are good for
investment because they are
Easy to manufacture with existing technical core competence.
Just you need converting machines to manufacture them
Require much lower investment with no big expenditure in knowhow
and R&D for development.
Easy to market through rapidly growing retail stores in India.
High volume demand and assured of steady profits over a longer
period of time.
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9. 9
2.Investment scope of Spunbond TT
Some examples of commodity Spunbond TT products
Scrubs – dish washers, industrial washers,
polishing scrubs, etc.
Packaging – shopping bags, packing liners,
storage bags, storage crates, saree cases,
etc.
Disposables – slippers, under garments, table
covers, decorative sheets, wall papers, etc.
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10. 10
2.Investment scope of With Spunbond TT
Some examples of commodity Spunbond TT products
Medical Textiles – gowns, caps, masks, shoe
covers, drapes, bed linen, gloves, trey covers,
hospital under pads, bandages, etc.
Hygiene – sanitary napkins, panty liners,
maternity pads, baby diapers, adult diapers,
sweat pads, breast pads, etc.
Wipes – wet wipes, baby wipes, dry wipes,
industrial wipes, clinical wipes, body wipes, etc.
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11. 11
Understand your core competence .
Choose a subsector(E.g.. Meditech).
Choose a product type ( Niche or commoditized) that suits your
investment capability ,Marketing strength and profitability goals.
Analyze, consult and plan your investment using stepwise approach
11
3. Investment strategy in Technical Textiles
06/11/14
12. Stepwise Strategy for investment in Spunbond TT
STEP-1Collection and Analysis of information
STEP 2 Choose sub-sector and Product type based on analysis
of core competence, market capability, investment strength
and profit goals
STEP 3 Draw up a cost sheet to calculate the expected profit
margin and payback period analysis ( Some consultants have
ready cost sheets for most products)
STEP 4 Draw up a Project plan ( Take help from expert
consultants if required) with milestones and make note of
precautions to be taken before execution.
STEP 5 Execute the project as per plan ( Take help from expert
consultants if required).
STEP 6. Formulate a marketing strategy and create a marketing
team well before product is ready for distribution
12
3. Investment Strategy in Technical Textiles
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13. 13
Useful guidelines for wiser investment in TT
JVs are least probable options
Domestic Market is more lucrative than export markets
Converter sector has good potential
Indian government support through technology mission is available for
funding and infrastructure development.
Expert guidance is available through centers of excellence created for TT
by Indian Government through TRAs
13
4.Guidelines for Investment in Technical Textiles
14. KEY SUCCESS FACTORS
14
KSF for TT business
Products are tailor made and vary
continuously. Support of qualified technical
hand is a must
Process optimization with minimum trial is
vital to be competitive in the market
Innovation is the key for success in this field
Supply to exact specification is mandatory
14
4.Guidelines for Investment in Technical Textiles
15. TT business mantra
15
Identify the segment
Seek expert guidance
Evaluate , Invest and innovate
Create and develop market for TT.
Reep the full benefits of the emerging
exciting sunrise business of TT.
15
4. Guidelines for Investment in Technical Textiles
16. 16
1. Technology limitations
Most of the SB manufacturers went for SNGLEBEAM Technology which do not
give the best uniformity in GSM and all related quality parameters.
2. Undifferentiated Products
A Majority of SB mfr produce the same type of product with same technology
and same degree of quality with out any differentiation.
3. ZERO innovation
No attempt or effort made to look for already tried and tested innovations or
Value added conversions/products.
4. ZERO Marketing efforts
Traders take away maximum profits as no efforts by own marketing research and
lack of interest in building own marketing Teams.
16
Part-II
5.Factors limiting the performance of spunbond
Industry
06/11/14
17. Circle of influence for success
17
Things you
should do to
succeed in this
business
06/11/14
Influence for Success
18. FACTORS FOR BUSINESS SUCCESS
18
UNCONTROLLED FACTORS FOR
FAILURE TO SUCCEED
FACTORS TO TAKE CONTROL TO
SUCCEED
Policies of MOT of State or central
government
Join hands with organizations such as
ITTA and COEs to be self supporting.
Saturated consumer demand in the
market
Create/expand demand by focus on
market research and marketing team
building
Know and do trial marketing of
already developed innovative products
Limitation of the technology already
chosen for investment
Try Forward integration or Value
addition to existing products
Non availability of reliable expertise
and skill
Seek active participation and help
from COEs like MANTRA,BTRA,ATIRA
etc.,
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19. SUCCEES DEPENDS ON FOCUS
19
Work on factors you
Can do to succeed
Blame on other factors
Not in your control
Focus on factors
In your control
Focus on factors not
in your control
Success rate
expands
Success rate
Shrinks 06/11/14
20. 20
Technology limitations and undifferentiated products
Overcome the technology limitations and lack of differentiation by
converting single beam to double beam technology if you can afford to
invest for future growth.
forward integration to add conversion machines for value added and
differentiated products
20
6.Solutions for revival and uplifting the spunbond
industry
06/11/14
21. 21
Zero Innovation and Zero marketing.
Learn from nature which continuously improved its production of trees,
animals and humans with continuous evolution to produce highly
differentiated creatures to adopt and survive against adverse
environments for survival.
Nature follows “SURVIVAL OF FITTEST”. Test for fitness is readiness to
change and differentiate for better survival over competitors.
Innovate or perish: Look for value added products already marketed
world wide. Be a trader of those products to begin with and become a
manufacturer of the same later.
Create and strengthen Marketing teams to do away with traders and
make more profit margins from your existing products
21
6. Solutions for revival and uplifting the spunbond
industry
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22. 22
SHOPPING BAGS CAN ALSO BE DIFFERENTIATED
– bags should not be a commodity product, tailor made to
market needs, then only it is cost competitive
– overcome the limitations of bags (seam strength) for new
applications
– Make premium bags in shopping
– Make bags with more fancy look and finishes
– Lining is a big market, try to penetrate more
22
7.How to differentiate in the market
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24. 24
Differentiate through Value added finishing processes
•Waterproof
•Absorbency
•Flame retardant property
•Ultraviolet and gamma ray protection
•Antibacterial
•Soft product
•Whitened product
•Laminated products
•Composites
•Multi layered fabrics
•Coated 24
7.How to differentiate in the market
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25. 25
New Products and New Market
•The products that have less penetration or at basic quality level is
treated under new product.
•Knowhow for manufacturing and market for new products are
available.
•Some examples are shown hereafter.
25
8. How to explore new products and new markets
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26. 26
Current market Potential
market• Isolation gowns
• Surgical gowns
• Surgical mask
• Caps
• Shoe covers
• Surgical drapes
and
covers
• Medical packaging:
porosity allows gas
sterilization
• Trey covers
• Inspection covers
• Pillow covers
• Bed covers
• Stretcher covers
Medical Applications
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28. 28
Properties that favor SB application in
medical application are,
• Breathability,
• Resistance to fluid penetration,
• Lint free structure,
• Sterilizability,
• Impermeability to bacteria
Medical Applications
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29. 29
Properties that support are,
1.High weight to strength ratio
2.Dry feel
3.Cost effective
4.Comfortable
5.Hydrophilic/hydrophobic
Hygeiene Applications
06/11/14
30. New Products – Hygiene
Surgical Tapes
Diaper and sanitary napkin industry is looking for
soft, textile look and also laminated nonwovens.
They need more thickness/gsm and high rupture
strength/gsm and low gsm fabrics. 06/11/14
30
49. Ot h e
rs, 35
M ed i ca
l/ h ygi e
ne, 65
World
Source:Edison Investment Research / Industry
--Med ical I
Hygien e,
10
Others,
90
India
Huge application possibilities beside packaging
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49
51. New Market - A
patented
Disposable Slipper
All limitations of nonwoven
slippers are rectified, retail
price can be Rs.15/pair.
Manufacturing cost no more
that Rs. 5 - 7/pair.
Sell in Railway stations,
hotels, hospitals, spa and at
all hygiene areas.
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51
53. 53
9.MANTRA-COE - Your partner for a successful
investment in Spunbond TT
MANMADE TEXTILE RESEARCH ASSOCIATION : 32 Years TRA
experience, COE partner for Agrotech products.COE in Coating and
lamination in Phase -1 and COE in Nonwovens
(spunlace/Needlpunch/Chemical/Thermal Bonding Technology) by
Govt of Gujarat.Having 500 mm Spunbond machines under ISDS
scheme of MOT.
Strong R&D data base and testing services capability well suited for
Non-woven technical textiles whose raw materials are derived from
synthetic and manmade fibres. 06/11/14
54. Centre of Excellence in Technical Textiles
(sponsored by Govt. of Gujarat)
Phase I
Coating and Lamination
Pilot plant facilities
Coating machine
Hot melt laminating machine
Narrow width machine
Testing Lab
To test raw materials and finished product
Product display centre
54
9. MANTRA-COE
55. 55
Has the state of art Pilot plant for Coating and lamination
Matex multilabo coating machine Cavitec hot melt laminating machine
9. MANTRA-COE
57. Plasma machine
This machine is installed at MANTRA under DST project
In collaboration with IPR, Gandhinagar
57
9. MANTRA-COE
Plasma technology is widely applicable
for the surface modification of textiles
& can improve functionality of textile
materials, such as 1. improves coating
adhesion 2. Pre-treatment process 3.
Dyeing & Printing 4. Finishing.
Thus reduces the consumption of dye &
chemicals
58. 58
Fully equipped Testing laboratory for quality evaluation of all types of TT products
Technical Textile Lab
9.MANTRA-COE
60. 60
NONWOVEN PLANTS:
Recently MANTRA has commissioned a NONWOVEN 500mm pilot plant machines under
the partial grant-in-aid by the Govt of Gujarat. which can produce maximuml
Nonwoven products.
Nonwoven pilot plant
Spunlace technology
Needlepunch technology
Chemical bonding
Thermal bonding
Centre of Excellence in Technical Textiles (sponsored by Govt. of Gujarat)
Phase II
9.MANTRA-COE
62. Pilot plant Facilities COE in Agrotech
MANTRA has purchased industrial scale Raschael machine for the
products to be used in Agriculture, mainly in shading purpose.
62
9.MANTRA-COE
63. 63
MANTRA COE – Phase III
Gujarat government sanctioned a project, “TT Product Development &
Application Center in Medical & Hygiene “ to establish a COE- Phase III by
MANTRA.
COE will be housed in a dedicated facility at Surat.
COE will have projectile weaving machines and different converting
machineries to produce the following products on a pilot scale
9.MANTRA-COE
65. 65
MANTRA COE – Phase III
Converting Machines & Its Products
I. Under pad
9. MANTRA-COE
- Spunbond Nonwoven as
Topsheet (Permeable)
Hydrophilic
- PE Film as Back Sheet
- Pulp (Imported)
- Hot melt adhesive
- SAP (Imported)
Sizes: (1) 60 x 40 cm (2) 60 x 60
(3) 60 x 90 cm
66. 66
MANTRA COE – Phase III
Converting Machines & Its Products
I. Sanitary napkin (ultrathin)
9.MANTRA-COE
(25 micron, 45gsm)
(22 micron, 23gsm)
(Hydrophillic 14gsm)
(Silicon)
67. 67
MANTRA COE – Phase III
Converting Machines & Its Products
I. Wet wipes (single piece)
9. MANTRA-COE
- Spunlace fabric (45 gsm) (100%) PE or PE/viscose or 100% viscose or Bamboo spunlace)
- Laminated paper (4.5 gm) (2 layer/3 layer)
- Re-sealable sticker
- Formulated ingredients (liquid)
Cutting-folding-wetting-stacking-packaging.
68. 68
9.MANTRA-COE
MANTRA COE – Phase III
Converting Machines & Its Products
I. Bouffant Cap Making Machine
Raw materials
- PP Spunbonded Nonwoven fabric (25 gsm)
- Elastic band/tape
69. 69
SUMMARY
Technical Textile sector has high growth potential for investment.
Selection of subsector and product type depends on core competence,
investment capability, profitability goals.
6 Step approach shall be followed for a sure successful investment.
Fundamental guidelines and some critical issues need to be addressed
for a wise investment decisions.
Add value and build your own marketing teams to reap profits instead of
dependence on traders.
Innovate and find new market to differentiate and evolve from herd
mentality
MANTRA-COE can be your Partner for a successful investment and
making best of existing production units for production efficiency,
innovation and penetration of new markets
.
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70. 70
END-NOTE TO REMEMBER FOR EVER
With growth in economy and enhancement of life style, the consumption of
Technical Textiles products is bound to increase. In the absence of
indigenous production, the imports will increase and India will loose
investment and employment opportunities.
Invest wisely in With Spunbond TT sector to have long and assured
profitable business
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71. True Guidance can be like a small lamp in
a Tunnel. It may not show us everything
at once, but it will give us enough light to
take our next step safely.
Theme / Message
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