presented by gunjan sharma business head, polyester...
TRANSCRIPT
Indian Polyesters: Way to Go
Presented by
Gunjan Sharma
Business Head, Polyester Staple Business
Agenda
Global Trends in Textile Industry
• Growth Engines
• Future Pointers
Indian Perspective
• Current scenario
• On Right Track?
RIL Polyester
• Unflinching support
• Focussed innovationrs
Conclusion
Global Trends in Textile Industry
Economies and Consumption
40 kg
20 kg
10 kg
5 kg
3 kg
N. America
Pe
r C
apit
a Fi
be
r C
on
sum
pti
on
W. Europe
Japan
Taiwan/ S. Korea
China
Turkey
India
South Asia
E. Europe
Africa & Mid. East
5.2 Billion People
Latin America
2000
200005000 40000100002500500GDP per Capita in USD (on PPP)
IndiaE. Europe Latin America
7.1 Billion People
China
N. America
W. Europe
Japan
Taiwan/ S. Korea
2014
Source: Reliance Population boom fuelling incremental fibre requirement
Avg: 8.7 kg/capita
Avg: 12.5 kg/capita
40 kg
20 kg
10 kg
5 kg
3 kg
Source: Reliance Analysis
Fibre Consumption Trends
MMF fibres, notably polyester, to occupy 75% of future fibre consumption increment
20 25 25 28 34
19
3749
55
66
2
4
6
7
9
11
10
10
11
12
0
20
40
60
80
100
120
140
2000 2010 2015 2020 2030
Cotton Polyester Cellulose Others
Segment From toCarpet Polyamide/PP Filament PFYNonwovens Cotton PSF/Cellulosic/PP StapleApparel Cotton PSF/CellulosicAir bags (Side curtains) Polyamide Filament PFYTailored clothing Wool Polyester
mmt
Source: PCI, Tecnon
53
75
90101
120
Fibre Consumption Ratios
Developing nations to drive MMF demand
kg Cotton:MMF Total Fiber MMF Polyester
World 28:72 13 9 6
China 18:82 16 13 11
India 54:46 5 3 3
Comparison in per capita consumption of textile raw material
Share of Man Made Fibre
Developing
Developed
Source: PCI
Apparel vs Non-apparel
Apparel
Home
Technical
Source: PCI
Indian consumption heavily skewed towards apparel
Global India
53%
27%
20%
67%
6%
27%
Home
Technical
Apparel
Source: PCI, Technopak
Apparel Dominance
Chindia: Change in per
capita spend (US $)
Per capita spend in 2025: China $377, India $138
Apparel continues to grow both in volume and in value
0
20
40
60
80
100
120
140
160
180
200
2000 2005 2011 2016 2021
Global Apparel Growth
(est. 3%)
Bn pcs
Source: Technopak
Natural21%
Synthetics79%
Natural18%
Synthetics82%
Natural23%
Synthetics77%
Emergence of Technical Textiles
• Current size $145 Bn
• Volume growth: 2x Global GDP
• Multiple Technologies & Raw Materials
• Niche, highly knowledge-intensive products for specialist niches
• Sustaining double digit margin
Source: DRA Report Technical Textile to ride on multifunctionalties of Polyester
1995 2005 2014
Natural Fibres18%
Polyester25%
PP24%
Nylon6%
Others27%
Natural Fibres Polyester PP Nylon Others
Fiber Consumption: 29 MMTSource: Reliance Analysis
Trend towards Smarter Fibres
• Multifunctional: Combining various functions into one affordable fibre.
• Examples are (DD+AMF+FR), (LP+AMF), (DD+UV), Fibres with Microchips
Commodity Fibre
Last DecadeFunctional Fibre
This DecadeSmart Fibre
Next Decade
Population Growth
Urbanization Volatility/Availability of
Cotton
Better Infrastructu
re
Rising Living
Standards
Lifestyle Changes
Eco-friendly/Sustainability
MEGA
TRENDS
Innovation in polyesters to address evolving needs
Bridging the Gap: Indian Perspective
India: Fastest Growing Democracy
Source: ICIC Bank ,Exchange RateUSD : Rs 39.8Indian GDP to cross two trillion dollar mark
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
China India Taiwan US S Korea UK EU
GDP Growth Rates
Population 1237 Mn
Middle Class 300 Mn
Teenagers 150 Mn
Urban Workers 120 Mn
Million plus Cities 23
Small Retailers 2.3 Mn
GDP $ 1842 Bn
PPP $ 5138
Source: Reliance Analysis
Indian Textile Industry: A Snapshot
Installed capacity of 48 mnspindles (~20% of world’s installed capacity)
Second largest in the world
14% of industrial production6% of GDP17% of export earnings
$110 Bn Industry, exports: $40 Bn
Projected growth @ 9.5% CAGR $220 Bn by 2020; Exports: $80 Bn by 2020
Employs 35 million people directly and 55 million people in allied activities, ~12 Mn more jobs by 2020
0.8 mn rotors2.2 mn powerlooms50,000 shuttle less looms
Technical textile market: Rs 66000 CrsGrowing at 11%
Spun yarn prod: 4700 mn kg Fabric prod: 61761 mn sqm
Rich
Middle Class
Lower Middle Class
Fiber usage Pyramid for Apparel Segment
Cotton /VSF Based FabricFunctional Polyester Fabric
Blended Fabric:Polyester & Cotton /VSF Blended
Polyester Rich Fabric
Burgeoning middle class will prefer polyester based fabrics
India to play Catch-up
Item India Est. Growth Rate
World Req. Rate to match World by 2020
Per capita fibreconsumption
5 4% 13 15%
Per capita MMF consumption
3 6% 9 18%
Is the growth good enough?
Need the right stimulus to achieve global average
Higher focus needed on home and tech textile
RatioIndian %
Est. GrowthIndian
Ratio Global %
Req. Growth Rate to match Global by 2020
Apparel 67% 9% 53% 9%
Non-apparel 33% 10% 47% 33%
Source: PCI, Technopak
Vision 2020
Poised for high growth
• Indian share • In world's textiles/clothing exports: 2009: 3.98%, 2011: 4.11%• In Global trade is projected to reach 8% by 2020
• Govt policies to boost Indian trade• TUFS• Scheme for Integrated Textiles Park• Special focus on tech tex etc.
Source: TexMin, Reliance Analysis, WTO Secretariat
6.7
Key Execution Points
• Higher Regulatory support– Duty/fiscal parity among all fibres to
ensure all-round development
– Accurate HNS coding for tech textiles
– Incentivize purchase of expensive
technology
• Improving availability of skilled
manpower and flexible labour laws
• Investment in downstream and
finishing
Propelling to higher growth trajectories
5 year investment share (Rs Crs) Global China India
Spindleage 58% 57% 89%
Weaving 30% 29% 10%
Knitting 12% 14% 1%
Source: ITMF
• Higher emphasis on performance
driven textiles– Same textiles that can do more
eg. Shirts that can regulate
temperature, curtains that prevent fire
spreading
– Constant focus on innovation to
deliver more
• Improving the infrastructure :– Better power situation, more efficient
and modern ports, smoother and well-
constructed roads to improve bottom-
line and reduce time to serve
customers
Reliance: Leading the Way
Significant contribution to India's economic growth
• 14% of India’s exports
• 4.8% of Indian Govt. indirect tax
• 4% of total Indian market cap
• 8.6% Weightage in BSE; 7.0% Weightage in NSE
Growing importance across the globe
Reliance: The Growth Architect
Reliance living the Growth is Life motto
Product Position
Polyester Fibre/Yarn 1
PX 5
PP 5
MEG 8
PTA 9
Changing dynamics in polyester
1982: RIL commissioned first polyester plant of 10 KTA
1980 2000 2010
Shift in Polyester hubs from the West to China & India
US, EU, Japan Taiwan, Korea China, India
Source: PCI/Reliance
Producer KTA
DuPont 841
Celanese 605
Hoechst 395
AKZO 316
Eastman 302
Rhone Poulenc 248
Teijin 219
Toray 172
ICI 155
Monsanto 146
Producer KTA
Nan Ya 1035
Reliance 779
KoSa 700
Teijin 698
SamYang/SS(Huvis)
658
Hualon 575
Far Eastern 604
DuPont 583
Tuntex 561
Producer KTA
Reliance 1950
Sinopec 1143
Indorama (S Asia) 967
Nan Ya 956
Sanfangxiang 840
Tongkun 800
Rongsheng 740
Yuandong 720
Hengli 680
Shenghong 675
Verticals
Plastics(PE, PP, PVC, PET)
Textiles
Petrochemicals(LAB, EO)
Oil and GasExploration
PetroleumRetailing
Oil and GasProduction
Polyester(Fiber, Filament)
FiberIntermediates
(PX, PTA & MEG)
Olefins and Aromatics
PetroleumRefining
2000s
1990s
1980s
1970s
Post 2000
Vertical Integration as a model of growth
Co
st L
ead
ers
hip
Mar
ket
Lead
ers
hip
Glo
bal
Acc
ep
tan
ce
Inn
ova
tio
n L
ead
ers
hip
Reliance Polyester Vision: Pillars of Success
“To continuously grow on a sustainable basis and be the largest, the most innovative and the most admired polyester producer in the world”
• Captive availability of PX, PTA & MEG
• R&D: Product / Technology Leadership
• Green Field Expansions/Acquisitions
• Best Practices: Six Sigma, ISO 9001, 14000, Focus on Sustainability
Reliance Polyester: Who are we?
World largest & most innovative Polyester supplier
Global Position
Capacity
Product Capability
Product Mix
Market Mix
Market Share
Sites
Manufacturing
Environment
Largest Polyester Fiber (Filament & Staple) producer
2.3 MMT : Filament 1.5 MMT , Polyester Staple 0.8 MMT
Largest differentiated Polyester producers for all segments
Complete Filament (POY,FDY,PTY,IDY) and Staple Range (PSF,NW,SC)
Domestic: 80%, Export 20%
Global market share: 5%, Largest Supplier to domestic industry
9 Large Sites: India 7 Sites .Malaysia 2 Sites
World class manufacturing: Global Awards in Quality (including Demings)
ISO 140001, Oekotex, REACH Compliant, Footprint in Recycling
Reliance Technology Centre, PG, Mumbai• 80 Scientists/Technologists working round the clock• Bringing Customized products, Process Innovations and
New solutions to textile industry• More than 28 patents registered
World Class Fiber Application Centre, PG, Mumbai• Latest generation of Down stream m/c & testing facilities • Checking fiber performance through stringent paremeters
Reliance Testing Centre, Coimbatore• Supporting down stream customers for their testing
needs
World-class R&D & Application Support
Product and application innovations to cater to global textile chain
Design
DevelopmentMaterials
Textile Wheel: Huge Potential
Source: The Department of Textile Technology, UNSW
Endeavour to serve all possible segments
• To serve all high-growth technical textiles segments, RIL strives to offer the best functional polyester for various applications
Recron® Flame Retardant
Recron® Pre Coloured
Recron® Feel Fresh
Recron® Green
for soft feel applications
for high resilience pillow/cushions
Recosilk®
for stretch yarns
for better fire protection
for lasting freshness (antimicrobial)
for easy dyeing and bright colors
ecofriendly fibre for apparel/home textiles
Recron® Sorona
for easy dyeing and bright colors
Recron® Conjugate
Recoflex®
Wide Gamut of High Performance Polyesters
Solutions for High Performance Apparel
Supporting all high performance applications
Stretch Yarn
Micro Yarn
Super Micro Yarn
Moisture Management Yarn
Bi component
Staple for thermal insulation
Antimicrobial Fiber
Super Micro Fibers
Moisture Management Fiber
Ecofriendly products
PFY
PSF
Offerings for Buidltech and Hometech
Fiber Process Product
NW PSF Non Woven Wadding for Roofing, Acoustics Insulation
Recron 3s Mixing with Cement
Reinforcement of concrete
Wet laid Decorative wall paper
Flame Retardant PTY
& PSF
Woven & Nonwoven
Flame Resistant Upholstery
Carpet Fiber Spinning, Tufting
Wall to Wall Carpeting
Functional Polyester Fiber becoming more important for Builtech & Hometech
Polyesters for Mobitech
Fiber Process Uses
Dope Dyed PTY Woven, Knitting Head Liners, Seat Covers, Floor Mat
Non -Woven PSF, Carpet Fiber
Non Woven/Woven tuftingFloor Carpet,Head liners, Insulation
Catering to stringent automotive demands
Seat Fabric
Carpet
Headliners
Polyester mainly used in
Polyester Innovations for Geotech
• Construction: 2nd largest sector in India• Contributing 11% of total GDP• Employing ~35 million people. • Size of $126 million in 2013-14• Responsible for the second most FDI
inflows (11%)
• Vast scope for growth in construction: • Better road density and overall
qualitative road development• New air corridors for Tier II cities;
upgradation of current facilities. • Railways: Estimated investment of $86.5
mn required, for modernization, port connectivity projects and development of metro networks.
Indian Geotech market to reach Rs 2400 Crs by 2015
Fiber Process Product
NW PSF Non Woven Soil reinforcement & Filtration in Road, Railways
Recron 3s Mixing with Cement
Reinforcement of concrete Road
Nonwovens for Medtech Applications
Source : Asian Textile Journal
Special non woven products for Medtech segments
Use of Polyester StapleFiber Process Product
Spunlace PSF
Hydro entanglement
Surgical Gowns, Diapers, Wipes
Recron 3s Wet laid Wrapping Paper for surgical instruments /Tea Bag
Hollow PSF Thermal Bonding
Diapers, Adult/Feminine Hygiene Products
Segments of Nonwoven
Hygiene41%
Wipes13%
Geotech7%
Upholstery& Coating
12%
Filtration5%
Garments etc7%
Medicals3%
Others12%
Proactive Capacity Addition
MMTPresent Capacity
Expansion Post-Expansion
PX 2.0 2.3 4.3
PTA 2.0 2.3 4.3
MEG 0.7 0.7 1.4
PFY 1.0 0.4 1.4
PTY 0.3 0.14 0.44
PSF 0.8 0.3 1.1
PET 0.5 0.65 1.15
Helping serve growing demand in both domestic and exports markets
RIL: Responsible Role
33
• Undertaking vast expansion throughout the
polyester chain
• Adding capacity ahead of demand to spur
growth
• Reliance Technology Group (RTG) providing
innovations for high performance
• Sustainability initiatives
• Technical support for downstream industry
• End to end solution provider to the textile
industry
What is good for India is good for Reliance
Conclusion
Conclusion
Textile demand will continue to grow at healthy rates
Non-apparel fueled by MMF to outgrow apparel; India needs to grow non-apparel base faster
Trends towards smarter and high performance products endless opportunities
Higher govt. support required to catch up with global consumption levels
Need for greater investments in downstream
Polyesters continue to be the main growth driver
Reliance – Supporting growth all the way
Thank you for your attention!
Disclaimer: This presentation is exclusive and confidential to RIL PSF Business. It contains views of RIL PSF Business which are based on market information,assumptions and projections and hence fitness of data cannot be guaranteed. Publishing/reproduction of any data herein cannot be done without the expresspermission of RIL PSF Business.