The Indian MMF industry dominated by polyester (70%) and viscose (10%) was valued at USD 4.63 bn in FY08. RIL and Grasim are the key players in the above segments respectively and India ranks amongst the top 3 countries in polyester production.

Globally, share of MMF consumption in textiles is 65% compared to 45% in India. The higher consumption of cotton is due to higher production of cotton domestically and tropical climate favoring cotton clothing. However, demand for MMF especially polyester is continuously rising and it has an inverse relationship with prices of cotton. With prices of cotton expected to remain higher, polyester consumption will improve.

In the current economic crisis, how will the Indian MMF industry cope up? What are the new emerging trends in the industry? The report seeks to answer the above issues using reliable sources of primary and secondary data and the author's views on the same.

The author's report on the Indian MMF industry provides statistical data on various MMF products, industry outlook and its concerns.

The report is indispensable for any company in the textile industry, banks/ FIs, policy makers, research & academic organizations, other international and national agencies, etc. Additionally, the 12 monthly updates (for the period September 2009 to August 2010) accompanying the subscription of the said report would form a potent tool for the subscribers to keep abreast of the happenings in the industry.

The Indian Textile Industry is one of the most important and integrated industries in the Indian economy providing employment to about 35 mn people directly and 50 mn people indirectly. The market size in FY08 is estimated at USD 52 bn and accounts for 26% of the manufacturing sector, 20% of the industrial production and 18% of total industrial employment. The industry also contributes 15% to gross export earnings and 4% to national GDP. The textile industry can be segmented into natural fibres and man-made fibres (MMF) based on use of basic raw material, cotton or crude derivate respectively.

MMF industry can be further classified into:

a) Synthetic fibres (derived from petrochemical processing) comprises Polyester, Acrylic, Olefin, Nylon & Spandex b) Cellulosic fibre (derived from cellulose in cotton & wood pulp) comprises Rayon (Viscose), Acetate fibres & Triacetate.

The domestic MMF industry is dominated by polyester (70%) and viscose (10%) and is valued at USD 4.63 bn in FY08. RIL and Grasim are the key players in both the segments respectively. India also ranks amongst the top 3 major producers of polyester in the world. Globally the share of MMF consumption in textiles is 65% compared to 45% in India. Due to ample availability of cotton and tropical climate, cotton is considered a preferred choice over MMF, especially polyester.

The Indian MMF industry is characterised by cyclical nature with strong linkages to GDP growth and consumer spending, low per capita consumption at 2 kgs compared to 12 kgs in China and 11 kgs in Europe, higher environmental burden as compared to natural fibres, higher raw material cost and margins dependent on crude price volatility.

The demand drivers of the industry are increasing population & changing fashion trends, higher %age of working women, higher disposable income, use of plastic cards & superior demographic factors. The industry however lacks modernization & economies of scale thereby reducing its export competitiveness.

With the recent downturn in the global and domestic economies, textile sector has been severely hit. GoI has provided various benefits in the form of reduced taxes and export benefits to revive the sector as it generates huge export revenues and provides large employment.

The author expects that going forward the overhang of global recessionary conditions will continue and exports will continue to be affected. However, long term prospects remain positive due to higher domestic demand and switch over from cotton due to higher cotton prices. The author foresees home textiles, technical textiles, accessories to be newer growth areas of MMF.

Key Topics Covered:

• Executive Summary
• Overview of The Indian Textile Industry
• Classification Of Man Made Fibres
• Production Process
• Characteristics Of Indian MMF Industry
• Demand Drivers
• Product wise Industry Statistics
• Cost Analysis
• Cotton & Man Made Fibre
• SWOT Analysis
• Outlook & Concerns
• Company Profile
• Annexures
• Figure Index
• Table Index

Companies Mentioned:

• Reliance Industries Ltd.
• Indo Rama Synthetics Ltd
• Century Enka ltd.
• Garden Skill Mills
• Alok Industries Ltd.
• Grasim Industries Ltd.

For more information visit http://www.researchandmarkets.com/research/10176b/indian_man_made_fi

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