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February 2001 - Volume 16 I Number 1 to Reverse Its Fortunes
From its very beginning, India’s textile industry has maintained an identity of its own – both internationally as well as within India. In fact, textiles is one of India’s largest industries, contributing 20% of industrial production, providing employment to almost 15 million people and accounting for nearly one-third of the country’s total exports. Though still more widely and better known for its cotton varieties, the complexion of the Indian textile Industry has undergone a major change in the last decade, with polyester emerging as a major constituent of India’s fiber mix. The last decade has seen a major shift from cotton to manmade fibers, which currently account for 40-45% of total fiber production and more than 55% of domestic consumption. India’s First Synthetic Fiber As the first synthetic fiber to be introduced in India, starting with a modest volume of 175 tons in 1962, nylon 6 production topped the 10,000-tons mark as early as 1971. It continued to grow fairly rapidly thereafter, at around 9.7% per annum throughout the ‘70s and first half of the 1980s, reaching a level of 38,867 tons in 1985. However, this growth rate could not be maintained. Between 1985 and 1999, nylon production exhibited a cyclic pattern, with a sudden drop in volumes in 1991 and 1997. While the production of polyester filament yarn during this period surged from a mere 65,000 tons in 1985 to almost 790,000 tons in 1999, nylon output peaked at 42,160 tons in 1995. By the end of 1999, domestic production had dropped to around 28,000 tons.
Reasons for Nylon’s Decline One of the main reasons for the declining trend in nylon volume has been a substantial reduction in polyester prices starting from 1996. Right up to the middle of 1990s, most synthetic fibers were considered to be a luxury item and were subjected to very high customs and excise duties. Also, the industry had to obtain a license for a specific capacity before setting up a new plant. All these factors led to small plant capacities and much higher product prices compared with most of the world. However, as a part of ongoing economic reforms in India, all duties have been substantially lowered and new fiber-making capacity has been added during the last five years, particularly in polyester. Therefore, with simultaneous reduction in international prices of raw materials PTA and MEG, polyester prices have come down significantly during the last three to four years. In absence of any significant corresponding reduction in nylon prices, polyester has been able to partially replace nylon in most existing end uses. With the reduction in nylon volume over the last few years, some of the older nylon players have closed their doors. As of now, a total of only six units continue to operate for manufacturing textile and semi-industrial nylon filament yarns. Total domestic production, including that of 210-denier semi-industrial yarn, has been around 28,000 tons (see Table 1) for fiscal year 1999-00. Out of these, SRF and Century Enka are essentially manufacturers of nylon tire yarn, but they also produce some small quantities of textile-grade yarns. Except for GSFC, all other units have been in operation for more than 25 years. Two of the nylon plants are located in north, two in western India, and one each in central and southern India. Including imports of 4000 tons per annum, total consumption of textile grade nylon has been around 32,000 tons during the last fiscal year. This includes 210-denier high-tenacity yarn for fishing twines and fishnet.
Nylon End Uses Because of its closeness to silk in terms of its bright lustre, luxurious handle and feel, and easy dyeability in silk – like deep and bright colors, the most common end use for nylon in India has been woven fabrics meant for women’s “Sarees” (traditional Indian dress) and “Dupattas” (a long scarf). The ability to dye nylon in open bath conditions makes its dyeing and processing much cheaper than polyester. With significant reduction in polyester prices in recent years, nylon has lost some of its volume in this segment to polyester. However, woven fabrics for women still continue to be the major end use of nylon in India, accounting for almost 40% of total consumption. Most of these fabric varieties use nylon in both warp and weft. Another woven fabric variety for women’s Sarees, using nylon monofilament in warp, accounts for another 15% consumption of nylon. Another major end use of nylon is fishing twines and fishnet, accounting for about 20% of total textile-grade nylon production. About 10-12% of nylon is used in warp knitting. The remaining quantity gets consumed for socks, narrow fabrics and other semi-industrial uses. As of now, only a very small quantity of nylon is being used for circular knitted fabrics and home textiles.
Out of the major nylon filament yarns used in India (Table 2), 20/1 SD flat, 44/24 BT flat and 210/24 BR flat yarns account for almost 45-50% of total nylon consumption in India. Overall, almost 70-75% of all nylon yarn is used as flat yarn. Opportunity and Challenges Despite the slowdown of the last few years, consumption of nylon filament yarn worldwide is still as high as 16% of polyester filament yarn. Interestingly, this ratio is only 3.5% for India. One of the main reasons for such a low ratio is the limited end uses for nylon in India. Some of the common international end uses for nylon, such as stockings, casual wear, intimate wear, sports wear, swimwear, home furnishings etc., are virtually missing in India. One of the immediate challenges for India’s nylon industry, therefore, is to develop products and markets for those end uses which utilize the superior inherent properties of nylon — such as its softness, lightness, elastic recovery and stretchability, high moisture regain and easy dyeability in deep and bright colors. This requires a very strong partnership and well-coordinated developmental efforts across the entire value chain - from the yarn supplier to the retailer. In addition, adequate efforts will have to be put in for educating the end consumer and other members of the textile chain about the advantages and superiority of nylon.
The government of India, in its recently announced National Textile Policy 2000, has decided to provide a major focus on textile exports. With an objective to increase exports from the current level of about $11 billion to $50 billion by 2010, the major thrust will be on developing a multi-fiber base for exports rather than depending on cotton alone – both for yarns as well as for fabrics and garments. The knitting and garmenting sectors, hither to reserved for the small-scale sector, are expected to be opened up. The private sector will be encouraged to set up world-class integrated textile complexes and textile processing units. The government has already set up a special fund of around $5 billion as part of its Technology Upgradation Fund Scheme (TUFS) to upgrade and modernize various sectors. The industry is likely to take advantage of these initiatives and is expected to make fresh investments in areas such as knitting, processing and finishing, and garmenting.
In addition, with most premium domestic and international apparel brands wanting to take advantage of the 150-million-plus strong Indian market, the recent trend toward retailing of branded apparel should also provide some synergy in exploiting the full potential India ITME-2000 Shatters Records
India ITME 2000, Asia’s mega textile machinery exhibition, set records for both exhibitors and attendance. The exhibition was held December 1-10 in Mumbai. A record 615 exhibitors occupied more than 22,700 square meters of floor space. Of the participants, 368 were Indian companies and 247 came from outside the country. Exhibitors representing 22 countries took part in the fair, billed as the largest textile show in Asia. The total number of visitors topped 100,000 for the first time, show organizers said. Visitors came from across India, Bangladesh, Pakistan, Sri Lanka and from Africa and Southeast Asia. In one of three seminars presented during the fair, Herwig M. Strolz, director general of the International Textile Manufacturers Federation, speaking on the topic of opportunities and challenges facing the global textile industry, observed a general recovery taking place throughout the world textile industry, but with Asia leading the recovery. He also noted that the industry was becoming increasingly global. “Investments in industry therefore need to be made with a global perspective, rather than a local view,” he said. Looking to how the industry will operate in a post WTO-2004 world, Mr. Strolz said the companies must “innovate or perish, as there is room only for the qualitatively fittest.” Overall, industry executives from India and abroad were optimistic about sales, citing serious interest from decision-makers visiting the exhibition. Most major machinery manufacturers reported making good contacts at the fair and were hopeful of booking orders. According to a senior India technologist, Ajeet Yadav, “The Indian ITME has become the source for all prominent textile machinery manufacturers to offer their latest technology to Indian and the nearby South Asian, Middle Eastern and African markets under one roof. A visit to the ITME will immediately update you to the latest offering from the machinery industry.” Narendra Shah, chairman of India ITME Society, aptly summed up the 10-day event at a function marking the closing of the exhibition. Said he: “Exhibitions provide opportunity in the same manner as you plant seeds, which all of us have done here. With the care that you will give, these plants can bear fruit for you in times to come. Exhibitions bring you in contact, which turns into relationship. In the long term this will be your reward.”
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