Domestic technical textiles Industry Segment-wise consumption of ...

Company Name
Capital Employed
(Rs crore)
Net Profit Margin
(%)
2006-07 2007-08 2006-07 2007-08
Rishi Packers Ltd. 18.4 15.6 1.6% -4.6%
Safari Industries (India) Ltd. 13.5 13.9 0.2% 1.3%
Samsonite South Asia Pvt. Ltd. 66.1 81.6 9.6% 10.6%
Texplast Industries Ltd. 11.4 11.2 21.6% -2.0%
Tulsyan N E C Ltd. 106.8 132.0 1.4% 2.4%
V I P Industries Ltd. 149.3 152.4 3.1% 3.7%
Winsome International Ltd. 5.4 8.2 3.0% 3.7%
Source: Prowess Database, IMaCS Analysis
Packtech segment of technical textiles is estimated to provide employment to 3.1 lakh people 10 of
whom number of technical 11 employees is estimated at 1.4 lakh and number of non-technical
employees is estimated at 1.7 lakh.
Impediments to growth
The usage of jute hessian and sacks is expected to decline marginally over the next 5 years. Due to the
South Asian Free Trade Agreement (SAFTA), import of jute goods in India from Bangladesh has
gone up considerably because of complete withdrawal of import duty effective from 1st January, 2008
which is posing a severe threat to Indian jute goods market. Discontinuance of External Market
Assistance is also negatively impacting the jute exports. Moreover, there is a continuous threat from
the substitute synthetic packaging industry as the trend is shifting towards synthetic counterparts.
Further, the smaller players are also hindered by their inability to cope with the volatility in raw-
material prices as the raw material (HDPE, PP) costs form a significant percentage of total costs.
Indian Raffia Industry
The Raffia Industry can be categorized into six main categories depending upon the type of woven
bag made. They are namely:
• Polyolefin Woven Sacks (excluding FIBC)
• Flexible Intermediate Bulk Containers (FIBC)
10 Employment has been estimated based on the analysis of primary and secondary data available for the
technical textile manufacturers. IMaCS has made appropriate adjustments because of insufficient data.
11 Technical includes managerial staff and skilled labour whereas non-technical includes unskilled labour.