NON WOVEN Industry Is Poised For Healthy Growth

SIDWIN FABRIC PVT LTD, is one of the leading manufacturers, suppliers and exporters of PP, Spun Bond, Non-woven Fabrics since 2011. The range of products includes of Non-Woven Fabric Roll, Non-Woven Fabric Sheet, Hydrophilic Non- Woven Fabric, Agriculture Non-Woven Fabric and so on, that are manufactured using high quality raw materials. Sidwin is a name reckoned with trust, integrity, transparency and highly advanced technical expertise. SIDWIN has kept abreast with the latest trends in the industry, thus making them robust with the market requirements. By nurturing their modern facilities and drawing proficiency, they have now the competence to produce Nonwoven of any pattern as wished by the customers. The proficiency in Nonwoven has been precious in meeting the fabric necessities of customers. SIDWIN’s vast range of products has an array of applications mainly used in Agriculture, Medical, Health & Hygiene, Packaging, Shoes, Garments, Mattress & Furniture.

In conversation with Mr. Suresh Patel, MD, SIDWIN Fabrics Pvt Ltd

What is your assessment of growth of Non-woven Industry and how do you foresee it growing in coming future?

The non-woven industry enjoyed a boom following the COVID-19 pandemic due to surging demand for hygiene and medical products. However, this period of prosperity was followed by a period of overcapacity. A surge of new players entering the market coupled with a slight slowdown in the domestic market led to an oversupply situation. This resulted in underutilized capacity, with the industry currently operating at less than 50% potential.

Despite these current challenges, the future of the non-woven industry remains optimistic. The sector is projected to maintain a healthy Compound Annual Growth Rate (CAGR) of 6.4%, with the potential for even higher growth in the coming years. It's important to note that the non-woven industry extends beyond just the personal hygiene and medical segments, which only account for roughly 20-25% of the market. A significant portion of the industry caters to the packaging sector, which serves a wide variety of other industries.

Are we facing some problems with imports from China?

While China may not be a significant disruptor in the domestic market, it presents a major challenge for Indian exports. Several factors contribute to this struggle. First, Indian exporters face direct competition from China in the global market. Second, sea freight costs have skyrocketed in the past two years, doubling and even tripling. This dramatic increase is largely due to global geopolitical tensions, such as the Russia-Ukraine war and the Israel-Hamas conflict. These conflicts have disrupted shipping routes, leading to longer journeys and higher costs. Finally, the Indian export industry is grappling with significant fluctuations in raw material prices. These prices are not only continuously rising, but also experiencing high volatility. These combined factors pose a significant threat to the profitability of Indian exporters.

What is the major challenge being face by the industry in India, as you mentioned, there is over capacity issue, sea freight issue and raw material price fluctuation issue. But what about availability of raw material? How do you see the Indian market prices and international market prices?

Raw material availability isn't a major concern for the industry, but price fluctuations certainly are. While the processing methods used by domestic and overseas suppliers are fairly similar, the issue lies in market dynamics. When the gap between supply and demand widens, polymer prices, which directly impact raw material costs in India, experience significant hikes. These frequent price adjustments, occurring on a weekly basis, create significant challenges for manufacturers. Locking into long-term contracts becomes difficult, and short-term market instability arises, creating a gap between buyers and suppliers. Shifting to a monthly raw material price reset wouldn't just promote price stability but also improve material availability. This would benefit all parties involved - buyers, sellers, and exporters - by allowing for better planning and increased competitiveness in international markets.

What are the other major challenges you think Indian manufacturers face today in Indian market?

The Indian non-woven and packaging industry faces a unique challenge. While the per capita plastic consumption in India is significantly lower compared to foreign countries, stricter government regulations and environmental concerns are specifically impacting the packaging sector, where only thin plastics (up to 60 GSM) are allowed.

However, an even bigger hurdle lies in technological limitations. The Indian industry lags behind in upgrading its technology compared to competitors like China. This stagnation is partly attributed to visa restrictions imposed on Chinese professionals in recent years. Without access to these experts, crucial knowledge transfer for implementing the latest technologies in non-woven and packaging production has been hampered. As a consequence, the last 20 large-scale plants in India were built without incorporating the most advanced Chinese know-how, potentially hindering their competitiveness. To address this issue, the government should consider easing restrictions on entry for qualified technology experts, allowing the industry to bridge the technological gap and ensure its future growth.

What is the potential of non-woven in Agriculture Industry and what are problems you are facing in reaching out to the farmers?

Government support is crucial for making non-woven agricultural products a viable option for farmers. The non-woven association, after persistent efforts and lengthy follow-ups with the government, achieved a significant breakthrough. They successfully lobbied for the categorization of agricultural textiles like fruit covers, crop covers, and banana covers under "Technical Textiles." This categorization makes them eligible for subsidies from both central and state governments, which will significantly improve the affordability of these products for farmers.

What are major issues you are facing in educating farmers regarding Agriculture Textile products and their benefits?

We utilize two primary methods to educate farmers about the advantages of Crop Cover and Fruit Cover:

Local Exhibitions and Kisan Vikas Kendras: We participate in numerous local exhibitions, where industry experts guide farmers on product benefits. We collaborate with Kisan Vikas Kendras, agricultural development centers spread across India. Through KVKs, we engage with farmers in their regions, sharing successful results and encouraging them to explore the potential of Crop Cover and Fruit Cover. The focus is on the benefits for the farmers themselves, not on self-promotion or the product itself. By showcasing real-world success stories of farmers using greenhouses and improved planting methods, we inspire others to adopt these practices and discover the advantages of Crop Cover and Fruit Cover firsthand.

Collaboration with Agricultural Universities: We partner with agricultural universities and innovation centers throughout India. Through open communication, we provide these institutions with free Crop Cover and Fruit Cover products. Universities then incorporate these products into their educational programs and demonstrations, ultimately reaching a wider audience of students and farmers. This collaboration serves as a significant source of information for farmers seeking to learn more about Crop Cover and Fruit Cover.

Government of India has also established those Kisan Samridhi Kendras. So can your work be done through those shops as well?

Yes, reaching every farmer directly is definitely possible, but it's a time-consuming process. Currently, the most common approach involves training agro-dealers who live in the farmers' communities. These dealers then act as a bridge, providing information and guidance on new products like yours. Kisan Samriddhi Kendras, established under the Kisan Samriddhi program, offer another promising avenue. These centers, present in every tehsil and often the biggest dealers for fertilizers and seeds, have existing networks that can be leveraged.

The advantage of this local approach is clear. Unlike exhibitions or agricultural universities, Kisan Samriddhi Kendras operate at the village level. This allows them to directly explain new products, offer guidance, and discuss local applications with farmers. This knowledge sharing fosters interest and adoption of innovative solutions. However, it's important to acknowledge that these centers might not have expertise in all areas.

What are the major products we supply under Agriculture Textiles?

Banana Cover, Fruit Cover, Crop Covers are major products that we manufacture. Agriculture products constitute around 30% of our total business. Our industry manufactures crop covers, like banana covers. We don't just produce the raw material, but rather create the finished bags ready for farmers to use directly. These covers are designed for multiple uses, with a minimum of two applications and potentially up to three if the farmer cares for them properly.

What is your opinion on Personal Hygiene and Medical industry? What is our product in that and what is our growth and according to you what is the industry. In which direction is it going?

The personal hygiene industry is experiencing significant growth, with projections estimating a market size of 10-12 thousand crores. Experts even predict the baby diaper and sanitary pad segment to reach a staggering 30 thousand crores within the next five years. This rapid expansion can be attributed to a heightened awareness of personal hygiene practices, particularly following the COVID-19 pandemic. Additionally, government initiatives play a crucial role in promoting sanitary napkin access. These initiatives include free distribution in schools and colleges, along with funding for procurement through a tendering process.

Furthermore, increased awareness is driving growth not only in urban areas but also in rural regions. This shift is evident in the growing adoption of baby diapers across various locations, previously dominated by local network channels. The rising demand for baby diapers translates to increasing per capita consumption, indicating a very promising future for this segment.

What raw materials do you provide for baby diapers and sanitary napkins?

We manufacture all our diaper components ourselves. We manufacture multiple layers with different functionalities at each level. These layers include a top sheet, a hydrophobic layer to repel moisture, and a hydrophilic layer to absorb it. We are aware of concerns regarding leaks and take pride in producing high-quality products to address this issue.

Currently, we don't manufacture Absorbent Disposable Liners (ADL) which are separate components used for additional absorption. However, we recognize the growing demand for various diaper features, including bubble sheets for increased comfort. While we don't produce bubble sheets at this moment, we are considering entering this market segment in the future to cater to evolving consumer needs.

Any thoughts about the role of non-owner take a shirt in developing this market, increasing awareness and gathering people on one platform?

The success of Nonwoven Tech Asia highlights the need for similar dedicated platforms across all Indian industries, facilitating collaboration and growth. Nonwoven Tech Asia plays a vital role in the nonwoven industry. This specialized exhibition, held every year for the past nine years, provides a unique platform for industry stakeholders.

Networking and Knowledge Sharing: Buyers and sellers connect, fostering valuable business relationships. Attendees gain access to the latest technologies, machinery, and equipment showcased by leading companies.

Product Innovation Hub: Nonwoven Tech Asia serves as a premier platform for companies to showcase their innovative products. This exposure fosters competition and drives advancements in the industry.

Expert Engagement: The introduction of seminars with renowned experts benefits both manufacturers and visitors, providing new insights and opportunities for collaboration.

Government Support: Inviting government ministries fosters policy development that benefits the industry and opens doors for export opportunities.

Export Promotion: Manufacturers, both direct and indirect exporters, have the chance to connect with potential international buyers visiting the event.

Comprehensive Industry Focus: Nonwoven Tech Asia caters to a wide range of industry needs, encompassing everything from raw materials to finished products.

Which industry segments additions should be made in non-tech Asia which we should concentrate on and invite to the exhibition so that the overall industry grows?

While the role of nonwoven materials in the furniture industry might seem small, there's a significant opportunity for expansion. Spun less, Needle-punch, and various other types of nonwovens can offer valuable applications within different industry segments. We're actively reaching out to companies that specialize in these nonwovens to showcase the potential of our industry. In recent years, we've seen a positive trend with major international players entering the nonwoven space, indicating growing interest and potential.

What are other suggestions do you have to make the Nonwoven Tech Asia Exhibition more effective?

There's a great opportunity to revitalize the non-woven industry by attracting both established non-woven users and related industries. We can achieve this by actively engaging with them. Exhibitions provide a perfect platform for companies to showcase their products and build a critical mass of participants. Additionally, collaboration with other industries through these events has proven successful in the past.

However, a major obstacle has emerged in the form of a government policy. The recent ban on Chinese partnerships for exhibitions has effectively cut off access to crucial technology. For the past three years, industry representatives have lobbied the ministry to allow exceptions for these exhibitions, especially considering the current state of non-woven technology development in India. While the government encourages domestic development, achieving complete self-sufficiency in this complex field within a short timeframe is simply not feasible.

The non-woven industry is a broad sector encompassing various conversion processes. This includes companies that manufacture filter bags and other filtration products. Ideally, these filtration-focused companies should be members of the non-woven industry association. There are some nuances, however. The filtration industry utilizes two main non-woven materials: needlepunch and spunbond. The needlepunch industry often considers itself distinct from the spunbond industry due to the production method (needle punching vs. spun bonding). Despite this technical distinction, both sectors contribute to the overall non-woven industry.

Our current association approach is nationwide and aims to gradually integrate all types of non-woven manufacturers, including those in filtration. We encourage participation from all segments, including those who may not have been previously involved.

How many members are there in Nonwoven Association right now?

The non-woven industry fraternity in India is organized into two key segments: regional and national.

Regional Segment: The country is divided into six zones, each with its own association and membership structure. These regional associations operate independently.

National Segment: To foster collaboration across these regional groups, a unified platform has been established - the Non-Woven Fabrics Association of India (NWFI). This national body comprises 25 members, carefully selected from the six regional associations.

This structure ensures that regional needs are addressed while also enabling a cohesive national voice for the non-woven industry in India. All put together, there are close to 300 members of the association.