1. Welspun Group I Textiles
GLOBAL SCENARIO
NONWOVENS
GLOBAL NONWOVENS SCENARIO
Welspun Group | Textiles
2. Welspun Group I Textiles
Global consumption of Nonwovens
North America
Consumption of 2 million
tonnes
CAGR : 5.4% (13-18)
South America
Consumption of 0.4 million
tonnes
CAGR : 6.2% (13-18)
Europe
Consumption of 2.1 million
tonnes
CAGR : 4.6% (13-18)
Asia
Consumption of 3.6 million
tonnes
CAGR : 11.1% (13-18)
Rest of the world
Consumption of 0.4 million tonnes
CAGR : 2.4% (13-18)
(Total maket size 8 million tonnes)Source: Future of Global Nonwoven Market, Smithers Apex 2014
3. Welspun Group I Textiles
About Nonwovens
• World Nonwovens consumption in 2013 stood more than 7 Mn MT valued at US $ 33 Bn
• It is projected to reach 11 Mn MT by 2018 valued at US $ 47.5 Bn (CAGR 7.5%)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
CAGR of 6.4% Projected CAGR of
7.5%
5818 6001
6370
6854
7375
7936
8553
9188
9883
10637
11445
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
World Nonwoven Consumption
Consumption '000 MT
4. Welspun Group I Textiles
Global Consumption Trend
1556 1592 1640 1705 1795 1912
270 281 293 307 325 347
1722 1739 1776 1834 1913 2000
1951 2059 2316
2641
2947
3241320 330
346
366
395
436
2008 2009 2010 2011 2012 2013
Geographic Nonwovens Consumption 2008-13,
000 tonnes
North America South America Europe Asia RoW
27%
5%
30%
33%
5%
Global NW Consumption Trend
North America South America Europe Asia RoW
24%
4%
25%
41%
6%
Asian
Consumption
Increased by
8% over 5
years
FY 2008
5.8 Mn MT
FY 2013
7.9 Mn MT• Asia registered highest growth CAGR of 10.7% in
consumption of NW.
• Asian NW consumption moved from US $ 7.5 Bn to
US $ 12.3 Bn.
Source: Future of Global Nonwoven Market, Smithers Apex 2014
5. Welspun Group I Textiles
Why Nonwovens Growing
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Saves labour & time
Cost (Energy/
resources/raw material)
Global
Economics/Demographics
Global population changes for
adult incontinence & baby
products, Higher income
Environmental Issues-
Regulatory pressure, Consumer
desires (Ex. Lenzing Tencel,
PLA) , Retailer proactivity
Performance
Product
differentiation/
customization
6. Welspun Group I Textiles
Nonwovens market
Industry dynamic volatile and
competitive
Fragmented, ripe for consolidation
Substitutes – Low, Increasing use of nonwovens
at expense of other material
Suppliers –
Forward
integration
unlikely
Polymer market
fundamentals to
remain weak
Barriers to entry- Product legislation, Innovation
capacity & investment required.
Customers –
Limited
backward
integration.
Very strong
relationships in
hygiene
Nonwoven Industry dynamics
7. Welspun Group I Textiles
Sensitivities in Nonwoven Business
• Raw material cost
- Raw material cost represents 55-60% of sales.
- Polypropylene and polyester key raw materials.
- Prices dependent upon the price of crude oil and
manufacturing capacity and demand.
- Industry usually follows ‘pass through’ mechanism.
• Economics
- Varies on factors such as economic conditions,
conditions specific to industry and specific to each
company
- Other factors such as geographical, political etc.
8. Welspun Group I Textiles
• Customer relationship
- High degree of dependency on maintaining good relations
with key customers.
- In hygiene market even one customer can account for as
much as 30% of sales.
• Competition
- Competition is intense & producers also faces competition
from global competition.
- Competition based upon range & quality of products, ability
to deliver new product, geographical reach, reputation,
price and client relationships.
9. Welspun Group I Textiles
• Changes in technology
- Important to maintain low cost position
- Failure to continually invest to develop a steady stream of
successful new products and processes could increase the
cost base and result in reduced competitiveness.
• The supply/demand balance
- Greatly effects both prices and profitability today on the
aggregate basis, the industry is oversupplied.
- Expansion in capacities in China & India.
• Legal and regulatory environment
- There are many laws and regulations concerning products,
and their composition, use and disposal. These laws are
becoming increasingly stringent.
10. Welspun Group I Textiles
5%
5%
5%
4%
4%
2%
2%
2%
2%
1%
1%
67%
Freudenberg
DuPont
Kimberly-Clark
Ahlstrom
PGI
Fiberweb
Johns Manville
Fitesa
Glatfelter
Avgol
• Fragmented industry: Top 11 biggest players have market share less than 33% by value.
• Nearly 50% of all industry production of nonwovens is located in facilities in Western
Europe, the US and Japan.
• Production is growing strongly in developing countries such as China & India.
Major Producers
Source: Future of Global Nonwoven Market, Smithers Apex 2014
11. Welspun Group I Textiles
Nonwoven Types
Disposable Nonwovens
• Hygiene
o Feminine hygiene pads and liners
o Baby diapers etc
• Wipes
o Baby wipes
o Home cleaning wipes
o Industrial wipes etc
• Medical
o Surgical gowns & drapes
o Instrument wrap & bandages etc
• Other Disposables
o Softener sheets
o Napkins & table cloths
Source: Future of Global Nonwoven Market, Smithers Apex 2014
12. Welspun Group I Textiles
Nonwoven Types
Durable Nonwovens
• Work wears
• Interlinings & Shoe Inserts
• Synthetic leather
• Coating substrates
• Household applications like table
linens
• Upholstery liners & bedding material
• Wall coverings, floor coverings
• Filtration
• Automotive
• Geotextiles
• Agricultural etc.
Source: Future of Global Nonwoven Market, Smithers Apex 2014
13. Welspun Group I Textiles
Nonwoven Market Mapping
Nonwoven World Market: US $ 33.1 Bn, 7.9 Mn MT
Disposables Durables
• US $12.5 Bn
• 3.5 Mn MT
• US $20.6 Bn
• 4.5 Mn MT
57%
3%
15%
7%
8%
10%Hygiene
Industrial
Wipes
Personal Wipes
Home Wipes
Medical
Other
20%
1%
10%
13%
10%
10%
2%
7%
3%
6%
3%
12%
3%
Upholstry
Garments
Floor Coverings
Building
Geotextiles
Automotive
Agriculture
Coating Substrates
Air Filters
Liquid Filters
Interlinings
Other
Leather
Break-up FY 2013 in Value Terms
Source: Future of Global Nonwoven Market, Smithers Apex 2014
14. Welspun Group I Textiles
Asia
2008 2014 2018 CAGR (13-18)
Spunlaid 784 1740 2807 13.7%
Drylaid 1054 1804 2524 9.1%
Airlaid 79 85 101 3.5%
Wetlaid 34 48 62 6.5%
0
10000
20000
30000
2008 2014 2018
NW Consumption
NW
Consumption
• Asia remains the global leader,
with a market share of 40.8%
and consumption of 3.6 million
tonnes.
• The annual expected growth
rate from 2013-18 is expected
to be 11.1%.
Source: Future of Global Nonwoven Market, Smithers Apex 2014
‘000
tonnes
15. Welspun Group I Textiles
0 1000 2000 3000
2008
2014
2018 Hygiene
Medical
Personal Wipes
Homecare Wipes
Industrial Wipes
Others
0 1000 2000 3000
2008
2014
2018 Garments
Interlinings
Shoe/Leather
Coating substrates
Household
Filtration‘000
tonnes
Disposable nonwovens
Total consumption – 1.2
million tonnes
CAGR – 11.7% (2013-18)
Durable nonwovens
Total consumption – 2.4
million tonnes
CAGR – 10.3% (2013-18)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Asia
16. Welspun Group I Textiles
• Europe has market share of 25.2% and consumption of 2.0 million tonnes.
• The annual expected growth rate from 2013-18 is expected to be 4.6%
0
100
200
300
400
2008 2014 2018
Rest
Poland
Russia
Turkey
Western Europe - CAGR : 4.5% (2013-18) Eastern Europe - CAGR : 4.8% (2013-18)
0
500
1000
1500
2000
2008 2014 2018
Scandinavia
Benelux
Spain
Italy
UK
2008 2014 2018 CAGR (13-18)
Spunlaid 873 1062 1296 4.6%
Drylaid 624 726 856 4.2%
Airlaid 123 155 192 5.5%
Wetlaid 48 63 77 5.0%
‘000
tonnes
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Europe
17. Welspun Group I Textiles
0 500 1000 1500
2008
2014
2018
Hygiene
Medical
Personal Wipes
Homecare Wipes
Industrial Wipes
Others
0 200 400 600
2008
2014
2018
Garments
Interlinings
Shoe/Leather
Coating substrates
Household
Filtration
‘000
tonnes
Disposable nonwovens
Total consumption – 1.0
million tonnes
CAGR – 4.0% (2013-18)
Durable nonwovens
Total consumption – 1.0
million tonnes
CAGR – 5.2% (2013-18)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Europe
18. Welspun Group I Textiles
North America has a market share of 24.1% and consumption of 1.9 million tonnes.
0
1000
2000
3000
2008 2014 2018
NW Consumption
NW
Consumption
‘000
tonnes
2008 2014 2018 CAGR (13-18)
Spunlaid 693 923 1184 6.1%
Drylaid 644 780 925 4.2%
Airlaid 120 148 180 4.5%
Wetlaid 64 65 70 1.7%
• North America here is defined
as the USA and Canada.
• The annual expected growth
rate from 2013-18 is expected
to be 5.4%
Source: Future of Global Nonwoven Market, Smithers Apex 2014
North America
19. Welspun Group I Textiles
0 500 1000 1500
2008
2014
2018 Hygiene
Medical
Personal Wipes
Homecare Wipes
Industrial Wipes
0 200 400 600
2008
2014
2018
Garments
Interlinings
Shoe/Leather
Coating substrates
Household
Filtration‘000
tonnes
Disposable nonwovens
Total consumption – 1.1
million tonnes
CAGR – 5.4% (2013-18)
Durable nonwovens
Total consumption – .89
million tonnes
CAGR – 5.4% (2013-18)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
North America
20. Welspun Group I Textiles
0
500
1000
1500
2008 2014 2018
NW Consumption
NW
Consumption
‘000
tonnes
2008 2014 2018 CAGR (13-18)
Spunlaid 141 180 212 4.3%
Drylaid 115 155 208 7.3%
Airlaid 11 28 42 11.4%
Wetlaid 1 2 3 10.1%
South America is positioned fourth
and has slowly lost its market
share from 4.7% to 4.1%. Its
consumption is at 0.3 million
tonnes.
The annual expected growth rate
from 2013-18 is expected to be
6.2%.
Source: Future of Global Nonwoven Market, Smithers Apex 2014
South America
21. Welspun Group I Textiles
0 100 200 300
2008
2014
2018 Hygiene
Medical
Personal Wipes
Homecare Wipes
Industrial Wipes
0 50 100 150 200
2008
2014
2018
Garments
Interlinings
Shoe/Leather
Coating substrates
Household
Filtration
Others
‘000
tonnes
Disposable nonwovens
Total consumption – .14
million tonnes
CAGR – 7.7% (2013-18)
Durable nonwovens
Total consumption – .22
million tonnes
CAGR – 6.7% (2013-18)
Source: Future of Global Nonwoven Market, Smithers Apex 2014
South America
22. Welspun Group I Textiles
PP Polymer
39%
PET Polymer
5%
PE Polymer
2%
Other Polymer
1%
PP
16%
PET
17%
Rayon
10%
BICO
3%
Wood
pulp
7%
other fibre
0%
PP Polymer, 47.7
PET Polymer, 0.2
PE Polymer , 0.8Other Polymer, 1.3
PP, 9.2
PET, 11.6
Rayon, 9.9
BICO, 3.9
Wood pulp,
14.7
other fibre, 0.6
PP Polymer
33%
PET
Polymer
10%
PE Polymer
3%
Other Polymer
0%
PP
21%
PET
20%
Rayon
10%
BICO
1%
Wood pulp
2%
other fibre
0%
Nonwovens Disposable Durable
• Polypropylene is the most widely used both in polymer & fibre form.
• Raw materials mainly dominated by polymers & synthetic fibre.
• Other raw materials like cotton, PLA (Polylactic acid) etc growing @10.8% per annum &
expected to grow @12.5%.
Source: Future of Global Nonwoven Market, Smithers Apex 2014
Materials for Nonwoven
23. Welspun Group I Textiles
• Decreasing basis weight resulting reduced raw material costs, shipping, waste disposal
& ware house cost.
• Permanently hydrophilic polypropylene/polyesters
• New sustainable materials – PLA and Kenaf
• Bicomponent fibres
- Utilizes the property of two fibres
- Exploits capabilities of both polymers
- Brings out multifunctional properties
2008-13, 5.5%
decrease in
basis weight
2008-13, hygiene dropped 6%
Personal care wipes dropped
5.3
Kenaf
Materials Trends
24. Welspun Group I Textiles
Processes
• Innovative SpunMelt
• Carding – High speed/High volume processing
• Coform - New innovative/combined processes
Post-processes
• Surface treatments
• Coating/laminations
Major Process Trends
26. Welspun Group I Textiles
EMBRYONIC GROWING MATURE AGING
SALES
TIME
Durables
Automotive
Wipes
Filters
Industrial
Personal care
Health care
Medical
Interlinings
Carpet
backings
0
50
100
N.
America
W.
Europe
Japan Asia S.
America
S. Africa
Feminine care
Baby care
Medical fabrics
Industrial fabrics
Apparel
MarketPenetration%
Source: Company data, Fiberweb and Edison Investment Research
Potential for growth
Notes de l'éditeur
5
Nonwoven products are primarily developed to save time, for retail customers like mothers, nurse with baby diapers, baby wipes or industrial workers like nurses, healthcare workers with underpads, bedpads & industrial wipes.