Technical Textiles

International Trends

Vibrant Gujarat
Presentation

Prepared by

www.gherzi.com

India – November 20th, 2010

Vibrant Gujarat Conference 2010, India Page 1
Gherzi Group

World leading consultancy for the Fibre

Fibre, Textile
Textile, TechTex & Nonwoven and
Garment industry with more than 900 full time employees
Management &
Corparate
p Finance Engineering
g g
Organisation

Restructuring and
Turn-around BOSS
H U G O B O S S

Strategy

Market Studies

M&A

Supply Chain

Operational Improvement

Product Development

Vibrant Gujarat Conference 2010, India Page 2

International Trends in Technical Textiles

Agenda

1 T h i l Textile
Technical T til Market
M k t Overview
O i 3

2 High Growth Applications 7

3 High Growth Technologies 12

4 Growth Opportunities 25

Vibrant Gujarat Conference 2010, India Page 3

Technical Textile Market Overview

World markets for Technical Textiles are growing by 23 Bn US $ in 5 years with

the Asian share increasing to 45 %

World market for Technical Textiles

Bn US$
1995 2000 2005 2010

140 133
110
120
93
100 78 73 55 %
80 63
57 %
60 54 58 %
59 %
46
40
43% 60 45%
47
20 39 42%
32 41%
0

Rest of World
A i
Asia
Source: DRA, Gherzi analysis and research

Vibrant Gujarat Conference 2010, India Page 4

Technical Textile Market Overview

Generally, emerging economies show the highest growth rates in Technical

Textiles

T h i l Textiles:
Technical T til Long
L term
t trend
t d by
b region
i

2005 2010 CAGR 05 / 10 [%]

Total: 127
127.2
2 M US$

Total: 106.8 M US$

Asia: 44%
4.4
59.9

Asia 48.4

34.8 America: 3.0 %

America 30.0

Europe: 2.7 %
Europe 25.6 29.2
ROW 2.8 3.3 ROW: 3.3 %

Source: IVGT

Vibrant Gujarat Conference 2010, India Page 5

Technical Textile Market Overview

By 2010 China and India will have become major global players in Technical
Textiles with China achieving a world market share of 26 % and India a share of 9 %

Technical Textiles production in ‘000 tons

[‘000 tons]
China India

2002 2010 2002 2010

6,000

5,000

4,000

3,000 6,065
2 000
2,000 4 105
4,105
1,000 2,075
1,340
0

Source: Technical Textile International, Ministry of Textiles India, Gherzi analysis and estimates

Vibrant Gujarat Conference 2010, India Page 6

International Trends in Technical Textiles

Agenda

1 T h i lT
Technical Textile
til MMarket
k tOOverview
i 3

2 High Growth Applications 7

3 High Growth Technologies 12

4 Growth Opportunities 25

Vibrant Gujarat Conference 2010, India Page 7

High Growth Applications

Geotech, Indutech & Buildtech are expected to be the highest growth TechTex
applications worldwide

Technical Textile long term trend

M US $ 2005 2010 CAGR %

G
Geotech 927 1,202 5.3 %

Indutech 16,687 21,527 5,3 %

Buildtech 7,379 9,430 5.0 %

Source: DRA (excluding Oekotech)

Vibrant Gujarat Conference 2010, India Page 8

High Growth Applications

Geotextiles are expected to grow on average by 5 % p.a. ‘till 2013. Emerging

markets like Asia / Pacific show the highest growth rates

Demand of Geotextiles 2013 [Mm²]

4.715 Mm²

Others [Mm²]]
[Mm 2008 2013 AGR [%]
Asia / Pacific
f
(595 Mm²) (2340 Mm²) North
Western 865 1005 3,0
12.6 % America
Europe
(775 M
Mm²)
²) Western
16.4 % 710 775 1,8
Europe
44.6 %
Asia /
1610 2340 78
7,8
21.3 % Pacific

Others 465 595 5,1

North America
(1005 Mm²) Total 3.650 7.715 5,3

S
Source: The Freedonia Group,
G IMaCS
CS analysis, Gherzi
G analysis

Vibrant Gujarat Conference 2010, India Page 9

High Growth Applications

Successful Geotech companies in Europe are outgrowing the market

Major
j European
p Geotech companies
p (Sales
( in M€))

Naue GmbH (Germany) Huesker Geosynthetics (Germany)

140.0 109.2

115.7 90.7

Year: 2006 2008 2006 2008

Source: Unternehmensregister

Vibrant Gujarat Conference 2010, India Page 10

High Growth Applications

The same holds true for leading Indutech & Buildtech companies in Europe

Growth of examples
p for Indutech & Buildtech in M€

Habasit (CH) GKD

516.9
452.1

102 6
102.6
73.3

Year: 2006 2008 2006 2008

Source: Habasit, Unternehmensregister

Vibrant Gujarat Conference 2010, India Page 11

International Trends in Technical Textiles

Agenda

1 T h i lT
Technical Textile
til MMarket
k tOOverview
i 3

2 High Growth Applications 7

3 High Growth Technologies 12

4 Growth Opportunities 25

Vibrant Gujarat Conference 2010, India Page 12

High Growth Technologies

Examples of high growth technologies

Nonwovens

Composite reinforcement

Vibrant Gujarat Conference 2010, India Page 13

High Growth Technologies

Generally, Nonwovens show the highest growth rate of all Technical Textile
technologies

Worldwide Nonwoven production from 2002 to 2012 (Fc.)

2002 2007 2012 (Fc.)

30.6
30 6
Bn US$
20.9
15.1 BnUS$
Bn US$

Source: INDA, Edana estimates

Vibrant Gujarat Conference 2010, India Page 14

High Growth Technologies

Amongst all regions China shows the highest growth in Nonwoven production

Nonwoven production Outlook by region

[in kt] 1997 2002 2007 2012 (est.) CAGR [97/12]

Europe 781 1.263 1.659 2.339 7.6 %
China 211 478 1.136 2.068 16.4 %
Other Asia Pacific 308 405 573 777 6.4 %
North America 897 1.184 1.491 1.845 4.9 %
So th America
South 101 172 254 419 99%
9.9
Japan 298 298 338 388 1.8 %
Middle East 63 120 174 272 10 2 %
10.2
ROW 29 47 126 304 17.0 %
Total 2.688 3.967 5.751 8.412 7.9 %
Source: Inda, Edana, Gherzi estimates

Vibrant Gujarat Conference 2010, India Page 15

High Growth Technologies

Compared to China Indian Nonwoven production is underdeveloped

Asia’s growth of Nonwoven production

[tons]
1.095.000 t 1.909.000 t 3.031.000 t

3.000.000 India

2.000.000

1.000.000
China

[year]

Source: ANNA, KNIC, TNFIA, CNTA, Gherzi estimates

Vibrant Gujarat Conference 2010, India Page 16

High Growth Technologies

In 2012 the world Nonwoven production (~ 8.4 million tons) will split by process as
follows

Nonwovens segmented by application

Air laid Pulp Wet laid

8% 4%
World Nonwoven production
2012: ~ 8.4 Mn tons

Spunlaid
48%
Carded
40%

Source: INDA estimates, Gherzi estimates

Vibrant Gujarat Conference 2010, India Page 17

High Growth Technologies

Spunbond is the fastest growing Nonwoven technology

Development of Nonwoven technologies from 1997 to 2012 (Fc.)

4500
[kt]
4000 4039 Spunbond
(ex chips)
3500
3396
3000
2621
2500
2507

2000 1889

1500
1605
1453

1000 942
694
500 406
159 293
217 283
126 186
0
1997 2002 2007 2012

Spunbond Carded Air laid Wet laid

Source: INDA estimates

Vibrant Gujarat Conference 2010, India Page 18

High Growth Technologies

Carded NW production by bonding technology shows the highest growth in hydro-

entangled (spunlace) Nonwovens

Development of Nonwoven carded production from 1997 to 2012 (est.)

[kt] 1800

1600
1562
1400

1200
Spunlace
p
1115 1083 (ex carded
1000
fleece)
800 778 782
664 780 751
600 621 610

400
331
200
168
0
1997 2002 2007 2012

Needle punch Spunlace Thermal / Resin

Source: INDA estimates

Vibrant Gujarat Conference 2010, India Page 19

High Growth Technologies

Nonwoven technology has allowed for exceptional company growth in Europe

Example: Pegas (CZ)

2003 2010 (exp.)

138 M€

50 M€

Source: Pegas

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High Growth Technologies

Examples of high growth technologies

Nonwovens

Composite reinforcement

Vibrant Gujarat Conference 2010, India Page 21

High Growth Technologies

Definitions

‰ Composites are mainly produced by resin impregnation of – sometimes pre-impregnated

pre impregnated
(‘prepreg’) – fibre structures

‰ The fibres give strength to the composite structure without adding undue weight

‰ Composites can be segmented into ‘low

low performance
performance’ (using chopped glass or glass mats as
reinforcement) and ‘high performance’ (using fabrics of glass, polyester, aramide or carbon as
reinforcement)

S
Source: T
Technical
h i lT Textile
til MMarkets
k t

Vibrant Gujarat Conference 2010, India Page 22

High Growth Technologies

On a world scale above average growth is expected especially for the wind energy
and aerospace segments

World market growth by application

% CAGR
2005 - 2010
10 Wind energy

9 Aerospace

7
Pipe
6 Electrical / &
Transpor-
Electronic Tank*
tation
5 Construction
Others World average growth
4 Consumer 2005 - 2010
goods
3
Marine
2

1
World market
0
0 1000 2000 3000 4000 5000 6000
2005 in kt
* driven also by canal revamping
Source: E-Composites

Vibrant Gujarat Conference 2010, India Page 23

High Growth Technologies

Saertex
S t company growth th (multiaxial
( lti i l specialist)
i li t) demonstrates
d t t theth attractiveness
tt ti off
the high performance composite reinforcement segment

Example: Saertex (D)

2001 2004 2006 2008 2009 (est.)

CAGR 21.2 %

133.5 M€ 140 M€

125M€

55M€
30 M€

Source: INDA, Gherzi estimates

Vibrant Gujarat Conference 2010, India Page 24

International Trends in Technical Textiles

Agenda

1 T h i lT
Technical Textile
til MMarket
k tOOverview
i 3

2 High Growth Applications 7

3 High Growth Technologies 12

4 Growth Opportunities 25

Vibrant Gujarat Conference 2010, India Page 25

Conclusion & Growth Opportunities

‰ Technical Textiles will continue to grow worldwide – especially in the emerging

markets

‰ Climate changes leading to floods, hurricanes, etc. favour the worldwide use of
Geotextiles which is one of the strongest
g g
growing
g Technical Textile segments
g

‰ Asia
A i will
ill b
become a major
j global
l b l player
l iin T
Technical
h i lT Textiles
til d due tto th
the hi
high
h growth
th
rates of local markets and increasing installation of local state-of-the-art production
capacity

‰ Compared to China India still lags behind especially in Nonwoven production

Vibrant Gujarat Conference 2010, India Page 26

Conclusion & Growth Opportunities

‰ New manufacturing technologies show above average growth rates

o Nonwoven
o Multi-axial technology
o etc.

‰ Textile reinforcement of high performance composites (such as with carbon fibres) is

becoming more and more important in respect to reducing weights (such as in air-
planes and cars) or stemming from the demand from new sectors like wind energy

‰ Internationally, composite reinforcements and Nonwovens have been the foundation

for exceptional growth

Vibrant Gujarat Conference 2010, India Page 27

Q&A

Thank you very much for your attention!

•

Questions are welcome!

Vibrant Gujarat Conference 2010, India Page 28