Technicaltextiles are non-commodity textiles which are predominantly used in non-apparelapplications such as automotive textiles, medical textiles, geo textiles, sporttextiles, to name a few. Even in this tighter global economy, technicaltextiles are a growth sector. According to a recent report byRoseville-Minnesota, USA based Industrial Fabrics Association International,the specialty fabrics industry is expected to grow about 2.5 %. Jeff Rasmussenof the Industrial Fabrics Association International opines that with the globalGDP growth edging towards 4 percent, the specialty fabrics industry is expectedto maintain a growth rate of about 2.5 percent. Most recently, the UnitedKingdom based Textile Media Services has estimated the global market value fortechnical textiles to be about USD 127.2 billion. More importantly, in 2010,Asia's economic giant, China consumed technical textiles worth about USD 29 biIlion. China's next door neighbor India is projected to have a double digitgrowth of over 15 percent per annum in the technical textiles sector. A recentreport by the Associated Chambers of Commerce and Industry of India hasestimated the market size to be about USD 20 billion. The government of Indiais also supporting the growth of technical textiles sector in India by creatinga National Technological Mission on Technical Textiles (NTMT) with a budgetoutlay of USD 40 million. Medical textiles are an important part of this NTMT.To promote the growth of medical textiles in India, the Government hasestablished a Center of Excellence in medical textiles at the South IndiaTextile Research Association located in the textile city, Coimbatore, in SouthIndia.
Amongthe many different product categories in the technical textiles sector, medicaland hygiene textiles offer tremendous growth opportunities both in terms ofconsumption and value. A couple of reasons can be attributed to thisphenomenon:
- increase in global population;
- increased life expectancy and
- improved lifestyle.
Theuse of medical textiles that contribute to the wellness and health of humanbeings is more prevalent in the developed economies. However, in developingeconomies such as China and India, the acceptance of single use medical andhygiene products is slowly catching up. In these countries, cost issues relatedto the use of high quality single use products still dominate the decisionstowards their acceptance and usage.
ASPECTS TO CONSIDER
Currently,the technical textiles sector in India is import intensive and is dominated byfew companies. But for the commodity part of technical textiles sector such aspackaging and shopping bad industry, other sectors of the technical textilesindustry such as diapers, geo textiles, high quality spunbond-melt blown-spunbondnonwovens that are used in surgical gowns are either controlled by handful ofmanufacturing companies or imported.
Time has come now toanalyze why the technical textiles has not grown to the level of expectations.It will be a good exercise to analyze sector wise so that some understandingcan be obtained as to the weak links of growth in individual sectors of thetechnical textiles industry.
MEDICAL, HEALTH AND HYGIENE SECTORS
In any nation, whether it is developed or developing, greater resources are diverted towards health care, hygiene and lifestyle improvements. In the current times of tighter economic situation, with limits on disposable incomes, people will be willing to spend only on essential and lifesaving non-commodity textile items. However, the volume of such non-commodity textile items cannot be large. In addition to the volume issue, cost of the products also influences consumption. In the case of baby diapers, with particular reference to India, several factors influence its consumption. They are: 1) cost; 2) cultural aspects and 3) dispensable income. During my recent travels to India, I was able to better understand the reasons that impede the growth of baby diaper sector in India. Although there is an explosion of middle class population in India, the purchasing power of this class of population is not high enough to procure huge quantity of single-use items such as diapers.
The average price of a diaper is about rupees ten, which is not at the affordable price level. The price of diapers has not come at commodity level so that an explosion occurs at the consumption level. An international diaper consultant briefed me that although diaper market is expected to grow, the income level of the middle class and lower middle class is not high enough, which can support the growth of the diaper sector. A spinning textile executive, who is interested in diversifying, expressed his view that the diaper market will grow if the price of a diaper can be brought to rupees five. It is therefore necessary to develop a diaper industry that will develop a cost effective tier-2 product that is viable in the Indian market. As long as the product meets its minimum performance requirement and can be delivered at affordable price, diaper market will grow. There is opportunity for small and medium enterprises if they could use indigenous materials and deliver cost effective diapers. It should be taken into account that, diaper market is dominated by global brands like Pampers by Proctor and Gamble and Huggies by Kimberly Clark. It is my opinion that, if Indian entrepreneurs could deliver diapers at price affordable to middle and lower class population, as the market will be large, they will be competitive with international brands.
Apart from the baby diaper market, other products whose demand is growing are adult diapers and hospital underpads. India's aging population is growing as people are living longer; there is growing demand for adult continence and adult diapers. Currently, most of the adult diapers are imported from Taiwan, Korea and China. The price range for such adult diapers is between rupees 40 and 45. Indigenous development of adult diapers is necessary to increase the demand. As the aging population is growing and Indian hospitals are becoming centers of medical tourism, demand for single-use hospital underpads is increasing.
Opportunities lie ahead in the development of adult diapers, hospital underpads and cost-effective baby diapers.
DEVELOPING CONVERTING SECTOR
As mentioned above, the products that cater to the needs of hygiene and medical sectors at affordable price levels will give new opportunities for the India textile industry. It should be noted that baby diapers, adult diapers, etc. are converted products that involve accommodating multiple components including packaging. Efforts have to be made by the Government of India and interested parties such as the textile and chemical industry to create and enhance awareness on the converting sector of the technical textiles industry.
Indian technical textiles sector should now focus its attention on creating awareness on converted products. Awareness programs and project details on developing products like engine filters, air filters, hygiene products, etc., are the needs of the hour.
This article was originally published in The Textile Review magazine, March, 2012, published by Saket Projects Ltd., Ahmedabad.
About the Author:
Seshadri S. Ramkumar is associated with the Nonwovens and Advanced Materials Laboratory, The Institute of Environmental and Human Health Texas Tech University, Lubbock, Texas USA
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