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    Russian Update

    India Should Be New Global Center of Nonwovens Production

    Government aid and growing consumer spending add up to great potential for this high population country.

    Eugene Gerden, contributing editor09.13.15
    Amid the stagnation of the Russian and Chinese economies, India is expected to become a new global center of nonwovens production during the next several years.

    For the last five years, volume of Indian nonwovens production has almost doubled to reach 200,000 tons in 2014, (of which spunbond nonwoven fabrics production accounts for approximately 45%) and, according to expectations of analysts of the Indian government, the volume of production may reach 500,000 tons already by the end of 2018.

    The development of the Indian nonwovens industry currently takes place as part of the existing state program, “Of the development of Indian technical textile and nonwovens industry during the period of 2013-2017.” Unlike other emerging nations, a particular attention of the Indian government is paid for the design and increase of production of innovative nonwovens products, that can be competitive in the global market. As part of these plans, a significant volume of funds will be invested in research and development activities in the industry until 2020.

    In addition to the increase of domestic production, the volume of consumption and exports of nonwovens products will significantly increase during the next several years.


    Increased disposable incomes have helped grow diaper sales in India.
    In the meantime, leading Indian nonwovens producers have announced plans for further expansion of their local production capacities. For example, Global Nonwovens Ltd. has recently confirmed its plans to launch a new large spunmelt production line in Nasik. According to an official spokesman of the company, in recent years the volume of state support of the company and other industry producers has significantly increased, which has allowed the company to significantly expand its investment program and to consider the commissioning of new industry’s projects.

    Amidst the ever-growing demand for nonwoven materials in India, some global majors have recently announced their plans for the increase of exports to the Indian market and even for the localization of their production within the country. Many nonwovens producers that are already established in China and other Asian nations have been exporting nonwovens into India to meet demand for hygiene growth here. This has been beneficial to these producers who are reporting overcapacity in nonwovens and slower-than-expected hygiene growth in China.

    However, the expense and inconvenience associated with exporting materials across countries cannot be ignored, and this will lead companies, both foreign and domestic, to add more nonwovens manufacturing in India.

    For example, U.S.-based Procter & Gamble has recently announced plans to establish the production of nonwovens, specially designed for the Indian market and that country’s population. According to the company’s calculations, during the next several years the country’s overall population will reach 1.4 billion people, that will create conditions for the increase in demand for the company’s products.
    In recent years, the annual growth rate of the Indian nonwovens industry has reached 15%. According to predictions of the Indian government, the per capita nonwoven fabric consumption in the country is expected to reach 600-700 gsm by 2020.

    According to plans of the Indian government, during the next several years the number of investors within the domestic nonwovens industry will significantly increase. This is because the government will make it attractive for companies to invest in the country. It is expected that investors will be drawn to different segments through the establishment of special economic zones in different parts of the country.

    One of such zones will be established in the Mundra area of the western state of Gujarat, while another one is in the South India area of the country. Residents of both zones will specialize in technical textiles and nonwovens and will receive numerous benefits, including tax incentives from the Indian government.

    Already, the Indian Government has created of four Centers of Excellence in technical Textiles as part of Technology Mission on Technical Textiles (TMTT). Total investment in these centers will be about $22 million for a period of three years.  The four focus areas are nonwovens, sportech, indutech and composites and the Indian government funded these projects from 2010 to 2013. Each center received $5.44 million in funding to be used for infrastructure and personnel support as well as capital equipment. The Ichalkaranji-based DKTE Textile & Engineering Institute will establish the center for nonwovens.

    In another show of support to the national nonwovens industry, the Indian Government has recently decided to introduce a special subsidy for the imports of machinery for the needs of domestic nonwovens enterprises. It is planned that the provision of subsidies should provide an opportunity to producers to complete technical modernization already by the end of 2015.

    According to plans of the Indian government, the increase in domestic nonwovens production will provide an opportunity to start exports to the markets of neighboring countries, among which are Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan, Myanmar, Eastern Africa as well as some Middle East countries, where the demand for nonwovens in recent months has significantly increased. n
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