1: Product Concept

The Bamboo and bamboo-cotton blended yarns are a key part of the 'natural product' theme and being endorsed for use in 'soft look /soft feel' textiles, like Towels, knits and socks and also in home-textiles being sourced by leading global MNC Brands. Yarns of bamboo fiber provide the desirable properties of high absorbency, anti microbial and soft feel in textiles and made ups.

Based on its perception as natural eco friendly organic product, the demand is now originating from MNC brands which are more into bath and bed linen rather than the garments. However, as of yet the requirements are not volume based and rather in short tonnage. Unlike, organic cotton products, No certification is required.

Bamboo fiber is endowed with USP of high absorbency and anti bacterial property, but low strength when Wet.

Preferred End Uses of Bamboo yarns are thus Towels, Knits etc. The future demand for bamboo yarn products will come strongly from the Home textile i.e. Bed-linen segments. At present 2/3^rd of Consumption in Towels, Knit Garments, Socks etc

2: Bamboo yarns in Home Textiles

Unlike organic, the demand for Bamboo yarn products is just beginning to evolve, and mainly from:

• Towel industry which is mainly export and retail focused. The yarn counts used are 6s to 13s and, 14s to 30s as 100% bamboo or in 50/50, 40/60 or 30/70 blends with cotton or organic cotton, mainly for the terry Towel segment.
• The Dom. demand for bamboo yarn is thus derived on the following basis:
• the Size of the Towel industry in India is about 2.40 Lac tons p.a, and of which,1.5 % is for bamboo yarn, based on demand of MNC importers like Wal-Mart, Target, JC Penny, others.
• Thus, the present demand for bamboo yarns from home-textile sector [both, 100% and bamboo-cotton blended] works out to about 3600 ton/year i.e. a limited 300 ton/month. The table below highlights the production-consumption-demand matrix, for domestic markets.

Metric Ton P.M.]- 2007-08	India
A) Production- B) Consumption, incl. EOU imports C) Demand projections	2200 2800 3600

3: Drivers of Demand

Demand from home-textile sector and, natural product appeal are main demand drivers. The Core Factors driving the Demand are:

% of Total Global

Demand for eco friendly products: 20

Marketing needs of Brands: 30

Marketing needs of Kids wear: 10

Consumer preference Home textiles: 20

Retail margin for natural Products: 10

Anti-bacterial need for close to body underwear and socks etc: 10

TOTAL % 100