Technical Textiles

with Application for

Defence

Textiles
Government of Gujarat
Contents

Project Concept 3
Market Potential 7
Growth Drivers 9
Gujarat – Competitive Advantage 10
Project Information 11
- Location/ Size
- Infrastructure Availability/ Connectivity
- Raw Material/ Manpower
- Key Players/ Major Fabric Suppliers
- Potential Collaboration Opportunities
- Key Considerations
Project Financials 21
Approvals & Incentives 22

Page 2
Project Concept
Technical Textiles in Defence

Project concept
► The project envisages to setup a manufacturing unit of technical textile – Defencetech/ Protech
products and its application in defence sector, based on the growing demand and easy
availability of raw materials, infrastructure, and established supply chain setup in Gujarat.

What is technical textile for Defence?

► Technical textiles that are used in the defence sector are called ‘Defencetech’. These are
speciality textiles that provide safety to the wearer during high-risk engagements like protection
from bullets and explosions, and also from extreme atmospheric conditions.
► ‘Defencetech’ primarily forms a part of Protech (protective clothing) and also consists of some
products of Sportech (technical textiles used for sports purposes) and Buildtech (construction
textile components and fabrics used in building and construction industry).
► The Ministry of Defence (Government of India) is one of the major consumer of Defencetech for
the use of armed forces.

What comprises Defencetech?

Bullet proof High altitude

Tarpaulins
jackets clothing

Nuclear Biological
Sleeping bags Tents
& Chemical suits

Sources:
“Baseline survey of the Technical Textile industry in India”, Office of the Textile Commissioner, 2 July 2016
“An Overview,” technicaltextile.gov.in website, http://www.technicaltextile.gov.in/overview.html, 3 July 2016
“Support to Technical Textiles (para no 6 ),” Industries Commissionerate website, http://ic.gujarat.gov.in/?page_id=2300, 2 July 2016

Page 3
Market Potential

Market overview of Defence tech in India

► The entire market of Defencetech is mostly Market size of Defencetech*
catered by domestic production with (INR billion)
imports accounting for minimal share.
► There is high potential for growth of
Defencetech due to growing terror threats 0.97
across the world as well as policy initiatives 0.99 0.87
undertaken by the national governments
aiming to provide better safety measures to 16.88 19.5
soldiers and army personnel. 15.75
► The procurement of majority of the
products, including bullet-proof jackets, 2012-13 2013-14 2015-16 (F)
high-altitude clothing, sleeping bags, tents
and tarpaulins, by the India’s Ministry of Domestic consumption Exports
Defence, is approximately 2/3rd of the total *Derived on the basis of markets for key products
procurement. (bullet proof jackets, high altitude clothing, sleeping
bags, tents, tarpaulins, NBC suits)

Defence Ministry’s growing expenditure on technical textiles

Annual purchases made by the The annual purchases of technical textiles
Ministry of defence (INR billion) are expected to rise at 9% CAGR to
~INR3.8 billion during 2015–16, led by
3.8 growing demand for the key products used
3.2
3 2 by the defence personnel.
2.9
Bullet proof jackets and high-altitude
clothing accounts for the majority of the
purchases.

2012-2013 2013-2014 2015-2016 (F)

Textile market potential - Gujarat

► The Government of Gujarat plans to invest

US$3.28 billion in the textile industry by 2020
Sources: and create one million jobs in the industry.
“Baseline survey of the Technical Textile industry in India”, Office of
the Textile Commissioner, 2 July 2016 ► Textile exports in 2013, accounted for 12% in
“Protech (Protective and safety clothing and textiles)”, Office of the
Textile Commissioner website,
Gujarat and aims to increase the exports to
http://www.technicaltextile.gov.in/protech.html, 2 July 2016 25% by 2017.
“Gujarat, the growth engine of India,”
http://www.ibef.org/download/Gujarat-November-2015.pdf, 2 July 2016 ► Gujarat contributes over one-fourth of India’s
Annual Repot, Shrilakshmi Cotsyn Limited,
“http://www.shrilakshmi.in/financial/Annual-Report-2014-15.pdf” technical textile overall production output, and
“2016 Top Markets Report Technical Textiles,” International Trade is expected to increase to 50% by 2020.
Administration website,
http://trade.gov/topmarkets/pdf/Textiles_Top_Markets_Report.pdf, 2
July 2016

Page 4
Market Potential

Market size of key products of Defencetech in India

Market size of bullet proof jackets Significant shortfall of bullet proof jackets in
(INR billion) India
► In India, the potential for usage of bullet
0.63 proof jackets is very high. India has a
0.57 1.18 million strong army and there is a
0.54 requirement of 3.53 lakh bullet proof
jackets.
6.58 ► The government is taking significant
4.69 5.25 steps for procurement of 1.8 lakh bullet
proof jackets by 2017. The existing
supply is still behind the mandatory target
of the adequate number of bullet proof
2012-13 2013-14 2015-16 (P) jackets in India.
Domestic consumption Exports

Government taking initiatives towards India’s market size of high-altitude

procurement of high-altitude clothing clothing (INR billion)

► High altitude clothing is majorly used by the

army for protection against extreme
weather conditions like extremely low
temperature, high velocity winds, snow fall.
► Under the ‘Make in India’ initiative, the
government is encouraging Indian suppliers 7.68
— for the first time — to give the samples of 6.09 6.58
their products for super high altitude
clothing to the army for soldiers at Siachen.

India’s market size of sleeping bags 2012-13 2013-14 2015-16 (F)

(INR billion)
Growing demand for sleeping bags

► It is mandatory for all soldiers to have a

0.11 sleeping bag.
0.11 ► The replacement market for armed forces
0.11 is the major demand for sleeping bags
0.37 that offers high demand growth and the
0.24 0.28 market is expected to grow at 11% CAGR
over 2012-16.
2012-13 2013-14 2015-16 (P)
Domestic consumption Exports
Sources:
“Baseline survey of the Technical Textile industry in India”, Office of the Textile Commissioner, 2 July 2016
“Protech (Protective and safety clothing and textiles)”, Office of the Textile Commissioner website, http://www.technicaltextile.gov.in/protech.html, 2
July 2016
“Gujarat, the growth engine of India,” http://www.ibef.org/download/Gujarat-November-2015.pdf, 2 July 2016
“Textiles,” http://trade.gov/topmarkets/pdf/Textiles_Top_Markets_Report.pdf, 2 July 2016
http://indianexpress.com/article/india/india-news-india/coming-soon-make-in-india-special-clothing-for-soldiers-at-the-worlds-highest-battlefield/
http://www.ibtimes.co.in/indian-army-soldiers-get-bullet-proof-jackets-after-decade-672763
http://indianexpress.com/article/india/india-news-india/coming-soon-make-in-india-special-clothing-for-soldiers-at-the-worlds-highest-battlefield/

Page 5
Growth Drivers

During 2008-2013, the exports of technical textile witnessed a surge as it grew at a CAGR of ~27%.
It is further expected to grow at a similar rate driven by large demand of technical textiles in the
international markets.

Exports for technical textiles Incentives provided to textile and apparel

(INR billion) sector from the Government of Gujarat
(INR million) 3,900
71.2

1,340
400
68 76 100
21.7
FY11 FY12 FY13 FY14 FY15 FY16

FY08 FY13 During FY16, incentives provided

increased ~3 times Y-o-Y and are
expected to rise further.

Growing demand from Defence tech

Demand for protective India is a net exporter of
Growing Expected rise
clothing has increased protective clothing and the
emphasis on in exports
significantly due to growth in its exports has
health & safety
growing emphasis on been 66% from the period
of armed forces
health and safety of 2007–08 to 2012–13. The
military personnel. higher growth is expected
Protective clothing is due to increase in demand
lightweight, perform better of protective clothing for
and yet they are strong defence from other
and durable. countries.
Domestic market for High growth Due to constant warnings of
Rise in terror
bullet proof jackets is potential for terror threats as well as
threats
expected to grow at 12% bullet proof recent terror attacks across
per annum during 2016– jackets the world, there is growing
19. Due to change in concern for undertaking more
norms regarding safety measures and tight
requirement of minimum security, due to which the
number of bullet proof demand for Defencetech is
jackets, the overall expected to rise.
market share is expected
to rise.
Sources:
“Baseline survey of the Technical Textile industry in India”, Office of the Textile Commissioner, 2 July 2016
“Indian diaper market to witness rapid growth in near future”, VC Circle, 2 September via Factiva
“Manufacturing Sector – Profile”, Vibrant Gujarat website, 7 October 2014

Page 6
Gujarat - Competitive
Advantage
► Gujarat has a very established textile Textile Hubs in Gujarat
sector with more than 1,500 medium and
large textile units and 18 textile-related
product clusters. Kutch
► Major units of technical textiles are mainly
concentrated in Ahmedabad, Surat,
Vadodara and Kutch. Surendrana
► The large number of textile units is gar,
attributable to high availability of raw Manavadar
material as Gujarat is the largest producer and Gondal
of cotton in the country with production of
~100 lac bales.
Saurashtra
► Approximately one-third of the cotton is
produced in Gujarat and it also accounts
for more than half of the petrochemical Ahmedabad
output of India.
► Gujarat also has large number of Ankaleshwar Surat
manpower with required skill set
attributable to better educational
infrastructure and Industrial Training
Institutes.

Gujarat governments' initiatives to flourish the textile industry

The Government of Gujarat intends to invest ~US$3.28 billion in the textile industry by 2020. It
aims to create 2.5 million jobs in the industry.

The Government is planning to introduce Technical Textile Mission to attract an investment of

~US$1.6 billion (~INR 100 billion) for establishing at least 2,000 technical textile manufacturing
facilities.

Two new Technical Textile (TT) zones to be developed in Ahmedabad and Surat district. Three
dedicated textile SEZs in Ahmedabad are also planned

Sources:
“Vibrant Gujarat Summit 2015," 3 July 2016.
“A report on Chemical industry,” Tata Strategic Management Group, 3 July 2016

Page 7
Project Information

Project at a Glance
Location Mehsana, Gujarat
Area 4500 sq. km.

Project site – Mehsana (Gujarat)

9 sub-districts
10 towns
606 villages
9 CD blocks
► Mehsana is one of the 33 districts of Gujarat and is located in the northern part of the state with
a geographical spread of 4500 km2.
► The district shares border with Banaskantha district in the north; Ahmedabad and Gandhinagar
districts in the south; Patan and Surendranagar in west; and Sabarkantha district in east.
► The district is strategically located and is at a distance of around 75 km from Ahmedabad. Over
the last few years, the district has seen significant industrial development.
► Mehsana is divided into nine sub-districts. Among these, industrial development is mainly
concentrated in Kadi and Mehsana Taluka, while other regions like Kheralu, Vadnagar and
Satlasana still remain backward.
► Some of the textile companies based in Mehsana are;
► Sanrhea Technical Textile
► Aeon Nonwovens Private Ltd.
► Ashima Ltd Unit – fabrics (cotton cloth)
► J K Polymers
► Uranus Internationals

Location suggested: Kadi Industrial area

► Mehsana district consists of many industrial areas, including Mehsana-II, Kadi, Visnagar and
Kukarwada. Below are the details of the three major industrial estates.
Industrial Area (In Rate Per Sq m ► Kadi can be a suitable location to
area Hectares) (INR, FY13) setup the plant as the land prices
are relatively cheaper and it is
Kadi 79.57 435 also a hub for cotton with over
Mehsana-II 126.69 1,440 100 cotton mills in operation and
is known as “Cotton City” of
Mehsana-I 46.52 1,725 India.

Page 8
Project Information

Logistics & Connectivity

Mehsana is well-connected with different parts of Gujarat as well as with
other states in India

Rail Road

► Mehsana is connected with other ► Mehsana has a 51 km four-lane toll road

districts of the state like Patan, connecting it with Ahmedabad, Gujarat.
Porbandar and Ahmedabad by rail.
► The district is well-connected with
► It is further connected to Kandla port via Gandhinagar (68km), Vapi (458 km),
rail network through Ahmedabad and
Palanpur (72km), Rajkot (299km) and
Gandhidham.
Surendranagar (143km).

Air Port

► The nearest airport to the district is the ► The nearest port is at Dholera, 110 kms
domestic and international airport at from Ahmedabad. The port has potential to
Ahmedabad located at a distance of cater to ship building and ship repairing
77km. industries; offers opportunity for developing
berths for salt export.

► Dholera is being promoted as the Special

Investment Region for Gujarat.

Utility

Water Power

► Water for industrial purposes can be

obtained from four sources viz. Gujarat ► The main source for the power supply is
Water Supply and Sewerage Board Gujarat Energy Transmission
Corporation Limited.
(GWSSB), an irrigation canal, dams, and
surface reservoirs.
Sources:
http://www.mapsofindia.com/maps/gujarat/districts/mehsana.htm
http://www.nsdcindia.org/sites/default/files/files/gujarat-sg-report.pdf
http://dholera-sir.in/dmicgujarat.html

Page 9
Project Information

Manufacturing process: Example - Bullet proof jacket

Layers of fibers

f A bulletproof jacket comprises a vest-shaped sheet of advanced

plastics polymers composed of many layers of either Kevlar
(thread produced by spinning a solid fiber from a liquid chemical
blend) or Spectra Shield.
f The layers of woven Kevlar are sewn together using Kevlar
thread, while the non-woven Spectra Shield is coated and bonded
with resins and then sealed between two sheets of polyethylene
film.

Making of panels

f Kevlar threads are fed into a machine which wraps and stretches
them into yarn (a long continuous length of interlocked threads)
which is then weaved in large industrial processing machines. By
this process, ballistic material manufacturers produce the final
sheet material from which bullet proof panels are made.
f While Spectra used in bullet proof jackets is usually non-woven
and its panels are cut and stacked in layers.
f The panel provides protection and is placed inside of a fabric
protective cover/ shell that is made from a polyester/cotton blend
or nylon.

The end product

f An industrial cutting press is used to cut multiple layers of

ballistic material to make bullet proof panels, which are then put
into a protective cover/ shell.
f The protective cover/ shell is either sewn or heat-sealed in order
to protect the ballistic material inside against moisture.

Quality check
f A bulletproof jacket undergoes stringent protection testing processes against the lead bullets at
low/ high velocity.
f The jackets are also tested both wet and dry, as the fibers used to make a vest perform
differently when wet.
Sources:
“How to make a bullet proof vest?,” http://www.bodyarmornews.com/how-to-make-a-bullet-proof-vest/, accessed 28 August 2016;
“Bulletproof vest,” http://www.madehow.com/Volume-1/Bulletproof-Vest.html, accessed 28 August 2016.

Page 10
Project Information

Raw material requirements: Example - Bullet proof jacket

Raw Material Manufacturer/ Supplier

Kevlar fabric f National Safety Solution (Mumbai),
f Speciality Safety Engineers (Mumbai),
Spectra Shield
f Core Safety Group (Mumbai),
Kevlar thread f Super Safety Services (Mumbai)

Kraton rasin f Polyone Polymers India Private Limited (Mumbai)

f R. V. Plast (Ahmedabad),
Polyethylene film f Baroda Packaging (Mumbai),
f Shah Plastics (Pondicherry)
f Vaibhav Laxmi Textiles (Surat),
Polyester/ cotton blend
f Parvati Creation (Surat),
fabric
f Nirav Silk Mills Private Limited (Mumbai)
f Creative Carbon Private Limited (Ahmedabad),
Nylon padding f Nylopick Industries (Ahmedabad),
f R. P. Tex (Ahmedabad)
f Bhagwati Forge Industries (Bharuch),
Metal/ ceramic bonded/
f Diamond Metal Corporation (Ankleshwar),
fiberglass plates
f B. S. Engineers (Ahmedabad)
f Sun Narrow Fab Pvt. Ltd. (Surat),
Elastic webbing
f Viken Tape Private Limited (Surat)
f Harilal Lakhamshi Industries Private Limited (Ahmedabad),
Metallic buckles
f Ejeyes Components Private Limited (Mumbai)
f Kamlesh Industries (Ahmedabad),
Velcro closures
f Mahavir Traders (Mumbai)

Manpower requirement: Example - Bullet proof jacket

Responsibility Number
Manager 1
Supervisor 3
Clerk 2
Sewers 30
Quality check 2
Product Tesing 2
Packaging and shipping 2
Total 42
Sources:
Page 11 “How to make a bullet proof vest?,” http://www.bodyarmornews.com/how-to-make-a-bullet-proof-vest/, accessed 28 August 2016;
“Bulletproof vest,” http://www.madehow.com/Volume-1/Bulletproof-Vest.html, accessed 28 August 2016.
Project Information

Major players – Product wise

Key products Key players
Bullet Proof Shri Lakshmi Cotsyn Defence, TATA Advanced Materials, Anjani Technoplast,
Jackets MKU Pvt. Ltd, SMPP Pvt. Ltd., Start Wire (India) Ltd.
High Altitude Shri Lakshmi Cotsyn Defence, Entermonde Polycoaters, Ordnance Factory
Clothing Board, Kusumgar Corporates:
K C international, Standard Newar Mills, Tirupati Taxco Pvt. Ltd., Naveen
Sleeping bags
Textile agencies, Shri Lakshmi Cotsyn Defence
NBC suits Ordnance Factory Board, Shri Lakshmi Cotsyn Defence
A V enterprises, Standard Newar Mills, Tirupati Taxco Pvt. Ltd. and K C
Tents
International.

List of leading machinery suppliers

Product Supplier Name Machinery used Location
Gujarat Machinery Pvt. Tarpaulin Manufacturing Ahmedabad,
Ltd. Machine Gujarat
Tarpaulin
Shri Gurukrupa HDPE tarpaulin heat cutting
Vadodara, Gujarat
Engineering Works machine
Bullet proof Shenzhen Jiazhao High frequency Bullet proof
Guangdong, China
jackets Hightech Co., Ltd. Jacket making machine
Shenzhen Sinopwr High frequency welding tents
Tents Guangdong, China
Machine Ltd. making machine

Key considerations
► Inadequate awareness about the benefits of technical textiles among end-users which is
hampering the potential demand of technical textiles in India
► Absence of defined standards and regulations promoting usage of products made from
technical textiles, which leads to lack of sufficient demand for technical textiles.
► Lack of indigenous availability of specialised raw-materials hampering cost competitiveness
► Lack of skilled manpower for new technologies like nonwovens
► Lack of technology/consultancy support to manufacturers of technical textiles

Potential collaboration opportunities

► Global and Indian Defencetech/ Protech product manufacturers can either setup their own
manufacturing units or can outsource the manufacturing of Defencetech/ Protech products to
contract manufacturers to realize cost benefits.
► Defencetech/ Protech product manufacturers can also collaborate with research institutes like
Ahmedabad Textile Industrial Research Association (ATIRA), Apparel and Leather Technics
(ALT) Training College and National Institute of Design (NID) for manufacturing speciality
products.

Page 12 Sources: “Gujarat – Growth and Prosperity for All”, Vibrant Gujarat website, 25 August 2014
“Manufacturing Sector – Profile”, Vibrant Gujarat website, 7 October 2014
Project Financials
Cost of setting-up a bullet proof vest manufacturing (annual capacity: 50,000 units) facility in
Mehsana will be ~INR100 crores

Project specifications INR Crore % of overall cost

Land (17,000 sq mt @ INR ~580 per
1 1%
sq mt as of 2016)
Plant and machinery 70 70%
Utility and other equipment 5 5%
Miscellaneous fixed assets 7 7%
Contingencies 3 3%
Preliminary and pre-operative
4 4%
expenses
Margin money for working capital 10 10%
Total cost 100 100%

Payback period
Annual production (number of bullet proof jackets) 50,000
Revenue per unit – industry average (INR) 28,000
EBITDA margin – industry average (FY15)* 11.0%
Expected growth rate of Indian bullet proof jacket industry (FY12-16) 11.2%
Time (years) 1 2 3 4 5 6
Revenue (INR crore) 140.0 155.7 173.1 192.5 214.1 238.0
EBITDA (@11% of
revenue)= Cash flows 15.4 17.1 19.0 21.2 23.5 26.2
Cumulative cash flows 15.4 32.5 51.6 72.7 96.3 122.5
Investment (INR crore) 100
Estimated payback period: ~5 years
*Note: Average margin of Indian defence equipment market players

Minimum viable size

Fixed cost (30% of revenue – INR crore) 42.0
Variable cost (60% of revenue – INR crore) 84.0
Variable cost per unit (INR) 16,800
Minimum viable size: fixed cost/(revenue per unit-variable cost per unit) 37,500 units

► Bangladesh plans to set up a textile park in Mehsana, Gujarat;

Example of a ► Bangladesh is planning to set up a textile park in Kadi, Mehsana
planned set-up which will involve an initial investment of INR2.4–3 billion.
in Kadi, ► The proposed park will have spinning units with cumulative capacity
Mehsana of 1 lakh spindles. The country has sought around 100 acres of land
from the Gujarat’s government for the project.
Sources: “Honeywell Announces $20 Million Investment to Address Growing Demand For Spectra® Fiber”, June 2004,
Page 13 “Defense industry bright spark: MKU”, Stratpost, April 2012,
Approvals & Incentives

Approvals
For approvals, the project report should be submitted to respective District Industries Centres
(DICs). DIC will forward the proposal to Industries Commissioner who will submit the report to
State Level Approver Committee (SLAC) for final approval.

Incentives from Government of Gujarat

5% interest subsidy on bank loans for five years for those who establish new plants for value
addition chain like ginning, processing, weaving, knitting and machine carpeting.

7% interest subsidy on new plant and machinery for five years for cotton spinning, garment
manufacturing and technology up gradation.

Refund of value added tax (VAT) on expansion of new units in spinning and power tariff concession
to cotton spinning and weaving units.

Financial assistance for skill development centres, for technology acquisition and also for
supporting energy and water conservation as well as for environmental compliance.

Incentives from Government of India

5% credit linked interest subsidy under TUFS (Technology Up gradation Fund Scheme) scheme on
purchase of Technical textile machinery approved by government

Scheme for Integrated Textile Parks (SITP) : 40% capital subsidy to a maximum of INR40 crore on
total project cost on projects approved by government. Also, 100% FDI allowed for textile sector

The basic custom duty on imported technical textile machinery has been reduced from 10% to 5%
and support to start-ups

Source:
“Gujarat Textile Policy”, Industries and Mines Department, Government of Gujarat, 5 September 2012
“Manufacturing Sector – Profile”, Vibrant Gujarat website, 7 October 2014

Page 14
 Ministry of Textiles, Government of India
http://technotex.gov.in/

Industries & Mines Department

www.imd-gujarat.gov.in

Gujarat Industrial Development Corporation

www.gidc.gov.in

Office of Industries Commissioner

www.ic.gujarat.gov.in

Industrial Extension Bureau

www.indextb.com

Controllerate of Quality Assurance (Textiles and Clothing)

www.dgqadefence.gov.in
This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope.
It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision.

Office of The Industries Commissionerate

Block No. 1, 2nd Floor, Udyog Bhavan,
Gandhinagar 382 010. Gujarat
Ph.: 23252683/23252617
Email ID: [email protected]