1. 19 Mar 2010 GROWTH POTENTIAL AND PROSPECTS IN INDIA Reliance Industries Limited

2.  one of the most promising and faster growing areas for global and indian textile industry  indispensible part of human life  encompasses immense range and diversity of raw materials, processes, products and applications  accounts for over one-quarter of all textile consumption in weight terms  plays crucial role in indian economy and infrastructural development 19 Mar 2010

3.  technical textiles are defined as textile materials and products used primarily for their technical performance and functional properties rather than their aesthetic or decorative characteristics  depending on the product characteristics, functional requirements and end-use applications, these have been grouped into 12 segments 19 Mar 2010

4.  agrotech (agriculture, horticulture and forestry)  buildtech (building and construction)  clothtech (shoes and clothing)  geotech (geotextiles, civil engineering)  hometech (furniture, upholstery, interior furnishing, household textiles, floor covering)  indutech (filteration, cleaning and other industrial uses)  medtech (medical, healthcare and hygiene)  mobiltech (automobiles, shipping, railways and aerospace)  oekotech (environmental protection)  packtech (packaging)  protech (person and property protection)  sporttech (sport and leisure) 19 Mar 2010

5.  world market for technical textiles at 21 mn tonnes (us$ 120 bn) during 2007-08 is expected to increase to 26 mn tonnes (us$139 bn) by 2012 with a cagr of 4 - 5 % depending on the area of application  fibre consumption in technical textiles was 22 % of total fibres consumed in 2005  the drivers for future growth are expected to be asian countries like china and india. the growth in asia is expected to be 6.5 percent while it would be merely 2.2 percent in developed countries  sector-wise higher growth rates are for indutech, buildtech, medtech, geotech, packtech and agrotech. but protech is important in view of safety. 19 Mar 2010

7. 20052010 CAGR % (VOL.) QUANTITY (mn TONNES) 19.68323.7743.8 VALUE (bn US$) 106.899127.2873.4

8. 19 Mar 2010 REGION / COUNTRY 2005200520102010 05 - 10 VOL. (mn T) VALUE (US$ bn) VOL. (mn T) VALUE (US$ bn) CAGR % (VOL.) EUROPE (WEST) 4.10723.9684.76021.0473.0 EUROPE (EAST) 0.6664.5830.8175.2254.2 AMERICA (NORTH) 4.77423.7105.59127.5613.2 AMERICA (SOUTH) 1.0046.3481.2307.2554.1 ASIAINDIA8.0911.57348.4014.90510.1562.07565.1566.7745.05.8 OCEANIA0.1160.5780.1410.7123.9 TOTAL19.683106.89923.774127.283.87

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10. SECTOR2005200520102010 CAGR % VOLUMEVALUEVOLUMEVALUEVOLUMEVALUE AGROTECH16156568195880793.553.84 BUILDTECH20337296259193254.634.73 CLOTHTECH14137014165683062.953.19 GEOTECH31992741312034.944.98 HOMETECH24997622285387782.702.66 INDUTECH2624166873257215283.984.85 MEDTECH19286670238082384.434.33 MOBILTECH2828268613338292823.021.34 PACKTECH29905329360666303.524.20 PROTECH279587334068573.632.82 SPORTTECH1153160521382190623.403.21 OEKOTECH287103940013896.455.67 TOTAL19681106899237741272883.593.80

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12. FIBRE TYPE 200020052010 CAGR % NATURAL3462383944472.54 MAN-MADE/ INORGANIC 1325215843193273.85 TOTAL1671419682237743.59

13.  POLYESTER - 25 %  POLYOLEFINS - 25 %  GLASS - 15 %  JUTE, COIR, ETC. - 14 %  COTTON - 7 %  VISCOSE - 3 %  OTHER CELLULOSICS - 3 %  POLYAMIDE - 7 %  ARAMID AND CARBON FIBRES - 1 % 19 Mar 2010

17.  fabric - 67 %  unspun fibres - 24 %  yarns - 09 %  fibre products include fibre reinforced concrete and composites, cushioning, fillings, insulation & sports equipments, toys  yarn products include sutures, ropes, fishing gears, shoe laces, swings  fabrics can be woven, knitted and non-woven and cover all sectors of technical textiles 19 Mar 2010

19.  INDIGENOUS PRODUCTION OF TECHNICAL TEXTILES IS LIMITED AND SCATTERED MAINLY IN SMALL & MEDIUM SECTORS  THE DEMAND FOR MANY ITEMS IS MET THROUGH IMPORTS e.g. DEFENCE AND POLICE  LARGE UNTAPPED POTENTIAL EXISTS FOR POTENTIAL INVESTORS  SOME OF THE PRODUCTS CAN BE PRODUCED BY MINOR ALTERATION IN EXISTING SET UP 19 Mar 2010

20.  in many developed countries (e.g. usa and japan) technical textiles account for over 35 percent of the textile industry’s output as against 19 % for china and 5 % for india  primarily active in the clothtech, packtech and sporttech sectors  limited to commodity products  very little presence in high tech segments  there is a general perception that technical textiles are predominantly produced in large scale sector but it is true only to limited extent 19 Mar 2010

21.  indigenous production and ‘value for money’ pricing concept will explode the market  India, the fourth largest economy in terms of purchasing power parity (ppp) (after usa, china & japan) is a growing market of one billion plus people, of which 300 million people are middle class consumers  the consumption of disposable segment of technical textiles is directly related to the disposable income  considering the above, over all growth of technical textiles is estimated at 14 percent per annum with appropriate policy regime and accordingly the market size for technical textiles will increase from rs. 37100 crores in 2007-08 to rs. 62420 crores in 2012-13 (icra study) at a cagr of 11 % 19 Mar 2010

22.  the value addition in technical textiles is steadily shifting from raw materials and intermediate products to downstream industries where india has a strong base  low cost skilled labour is highly competitive as compared to developed countries  decentralised sector’s contribution in technical textiles is significant for their growth in india  indian textile industry is fundamentally strong which can be useful in commodity markets of technical textiles through cost competitive structure  in the high niche market, india has advantage of network of r&d institutions for developing new technologies 19 Mar 2010

23.  dominance of decentralised sector – inadequate resources and finance  absence of regulatory legislation  absence of required standards on quality of products and codes of practices  deterrants for entrepreneurs:  doubt about future market potential of technical textiles in view of absence of regulation and needed consumtion  huge capital costs involved for machinery, raw materials and equipment  sustained promotional efforts and substantial investment needed for market development  limited experience in production and use of technical textiles  outdated existing regulatory mechanism 19 Mar 2010

24.  lack of basic infrastructure, skilled manpower, testing facilities, training & educational facilities  negligible investment in r&d on technical textiles  lack of comprehensive database on technical textiles  lack of awareness and benefits of using technical textiles among users  hesitation in accepting world proven cost effective technologies  poor understanding of product properties in regard to its constructability, durability, structural integrity, functional utility, fibre composition and its installation and handling 19 Mar 2010

25.  import intensive nature making their cost prohibitive  no quality benchmark for technology for technical textiles  non-availability of main raw materials i.e. specialty fibres at competitive and affordable prices  limited demand in view of absence of required standards and regulations  lack of awareness of benefits of using technical textiles  little emphasis on health, safety and environmental aspects  hesitation in adopting latest world proven efficient and cost effective technologies  little understanding among users about the type of product and its properties regarding constructability, durability, structural integrity, survivability and functional utility 19 Mar 2010

26. Sl. N o. TT SECTOR NO LAW (2006-07) NO LAW AT CAGR NO LAW (2011- 12) WITH LAW AT CAGR WITH LAW(2011- 12) WITH LAW(2011- 12) 1AGROTECH417.778613.848613.84 2BUILDTECH1415.43152846.94152846.94 3CLOTHTECH7988.731214078.871214078.87 4GEOTECH1688.91153397.0068.9823269.28 5HOMETECH1628.74163420.91163420.91 6INDUTECH1253.35122208.83122208.83 7MOBILTECH1613.53153245.39153245.39 8MEDTECH1280.32122256.36203185.85 9OEKOTECH69.9112123.2168.17940.33 10PACKTECH5785.932014397.252014397.25 11PROTECH1027.11172251.8925.453191.32 12SPORTTECH1906.36123359.66123359.66 TOTAL26076.0914.9452200.1324.5774758.46

27.  textile policy of government of india recognised growth prospects of technical textiles and accords priority for their development  constitution of expert committee on technical textiles (ectt)  setting up of a steering committee on growth and development of technical textiles (scgdtt)  government launched technology mission on technical textiles in the xi th five year plan to identify major constraints for improving their production and consumption in india  baseline survey on technical textiles was conducted 19 Mar 2010

28.  identified agrotech, protech, geotech & buildtech and medtech as key areas for growth and development in india  coverage of technical textiles under technology upgradation fund scheme (tufs)  setting up of 12 excellence centres (ecs) for technical textiles – already started ecs for geotech & buildtech; agrotech; medtech; and protech  de-reservation of sanitary napkins / baby diapers  basic custom duty for major machineries on technical textiles reduced from 10 to 5 %  10 % capital subsidy for new projects  5 % interest subsidy on loans under tufs  14 special economic zones to attract fdi and duty free imports and domestic procurement for 100 % exports  gujarat state is providing 10 % investment subsidy on technical textile projects 19 Mar 2010

29.  application areas  identification of application areas having strong potential in the domestic market i.e geotech (including buildtech), medtech, agrotech, protech and mobiltech  initial selection of products for which technical know-how, production facilities and raw materials already exist  indigenization of value added products of relatively easier technology capable of quick assimilation  development of technical textiles in high tech applications of aerospace, defence, etc. with public/private initiatives, joint ventures with mncs  urgent quality standards for identified products and their installation 19 Mar 2010

30.  raw material  use of indegeneously available fibres and import of high performance fibres  fibres (natural or man-made) use based on durability, survivability and integrity requirements considering health, safety and environmental impacts  providing fiscal incentives to specialty fibres to make them cost competitive and easilt affordable  amending existing regulation (drugs & cosmetics act) to cover newly developed manmade fibre products e.g. antimicrobial fibres, super absorbant fibres, non toxic/non allergic fibres, breathable fibres, antistatic fibres, etc. 19 Mar 2010

31.  THRUST NEEDED FOR SPECIALTY FIBRES  NEED FOR LONG LASTING PERFORMANCE PROPERTIES  COMPATIBILITY, DURABILITY, STRUCTURAL INTEGRITY AND SURVIVABILITY  UNIFORMITY OF PROPERTIES IN ALL DIRECTIONS  THE STANDARDS NORMALLY COVER LONG TERM DURABILITY WHICH IS NOT PROVIDED BY OTHER FIBRES  AS PER STANDARDS, THE PERFORMANCE AND FUNCTIONAL CHARACTERISTICS MUST BE CONTROLLED WITHIN NARROW LIMITS (AVERAGE VALUE + 2 X STANDARD DEVIATION) TO HAVE UNIFORMITY IN ALL DIRECTIONS TO PREVENT THEIR FUNCTIONAL FAILURE 19 Mar 2010

32.  manufacturing facilities  re-orientation of production facilities and training of manpower  products which can be manufactured on existing machinery be identified and marketing efforts be made  incentives for state of the art machinery for high potential high tech products  developing proper product-mix  capacity building of raw materials, machinery, infrastructure and production 19 Mar 2010

33.  r&d and quality assurance  investment in r&d and quality management as well as product development needed  latest world class testing facilities needed  national standards at par with international developments needed on urgent basis especially for specifications of products and codes of practices for installation, use and maintenance of technical textile products  certification and accreditation of testing facilities and production as per international standards 19 Mar 2010

34.  domestic and export market development of technical textiles  regulatory framework in the interest of environment, health and safety  assistance for international / national exhibitions, fairs, seminars, etc.  incentives for certification / accreditation to international standards  incentives for substitution of traditional textiles by technical textiles  mandatory use of geotech, buildtech medtech for health, safety, environment and efficient utilisation of public funds  mandatory use of fr textiles in public places, buildings, uniform fabrics, etc. 19 Mar 2010

35.  in case of geotech / buildtech projects, the approval and implementation should include design parameters also and the priciple used should be f – d—b—o--t:  finance  design  build  operate  transfer  fiscal measures such as reduction of excise/custom duty/sales tax/service tax 19 Mar 2010

36.  considerable reduction of cost of projects (materials, design, installation and evaluation)  minimum subsequent repairs / maintenance;  prevention of environmental pollution leading to sustainable development  most efficient utilization of resources  better designs and longer project service life  increased safety of life and property  alternate and best technological applications for a specific end use 19 Mar 2010

37.  geotech  geotextiles and geogrids for reinforcement of base and subbase in pavement structures  geotextiles for subsurface drainage, subgrade separation and stabilisation, protection (cushioning), permanent erosion control, pavement overl;ays, slope protection and silt fence geotextiles for sediment control  geosynthetic clay liners  gabions for prevention of soil erosion  geogrids for mse systems  geosynthetic mats  geonets and geocomposites for waste containment  geocomposites / geocells / geomembranes / geofoams  prefabricated geosynthetic edge and vertical drains  geosynthetics for waste containment 19 Mar 2010

38.  BUILDTECH  geo-membranes for waterproofing of roofs  controlled permeability textiles for concrete formwork lining  fibers for reinforceed concrete  synthetic fibre insulation blanket  reflective vapour breathable textile substrate as radiant barrier in building envelope  house wraps  vapor breathable textile substrate as mineral wool insulation facing for buildings  technical textiles as honeycombs for landscaping  architectural fabric/ tensile structures (temporary and permanent)  hoardings for buildings 19 Mar 2010

39.  protect  bullet proof fabric/jacket  protective clothing for agricultural workers  protective clothing for mechanical /chemical / nuclear / biological protection  hi-visibility / high altitude warning clothing  protective clothing for dust protection  protective clothing for acoustic protection  protective clothing for biological protection  protective clothing for electric arc welding  fire retardant upholstery, curtains, bednets, beddings, uniform fabrics, bed linens, etc. 19 Mar 2010

40.  Agrotech  crop covers  greenhouse covers  row covers  poly-house films/membranes  shade-nets  mulch mats  baler twines  polyester/pp/hdpe nets for fishing  waterproof lining 19 Mar 2010

41.  Meditech  extracorporeal devices  artificial kidney, liver, lung, heart pacer  non-implantable textile materials  absorbent pad, bandages, compression bandages, plasters, absorbent gauges, lint and wadding  implantable textile materials  tendons, ligaments, cartilage, skin, contact lenses, cornea, joints, vascular grafts, heart valves  healthcare and hygiene products  surgical gowns, caps, gloves, masks; surgical covers drapes, aprons; beddings (blankets, sheets, pillow covers); clothing (uniform); incontinence/baby/adult diapers; cloth wiper, surgical hosiery, sanitary napkins, medical mattress, sterilization wraps, head and shoe covers, panty shield, wadding; wipes 19 Mar 2010

42.  other technical textiles  hometech (fiberfill, blinds, stuffed toys, carpet backing fabric)  mobiltech (seat belts, exhaust filters, airbags, tyre cord fabric, seat cover, headliners, insulation felts, interior carpets)  packtech (flexible intermediate bulk containers, soft luggage products, sackings)  indutech (synthetic tarpaulins, awnings, tents, conveyor belts, hoses, ropes, cordages, drive belts, webbings, slings, tapes, computer ribbons, battery separators, industrial filters)  sporttech (sports nets, sports footwear, sports composites, sleeping bags, artificial turfs, ballooning fabric, parachute fabric)  clothtech (sewing threads, interlinings, zip fasteners, tapes, velcro)  oekotech (environmental control-bags/filters, municipal wates – geosynthetics) 19 Mar 2010

43. THANK YOU