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

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Carpet backings without latex are also being produced by some manufacturers. This system eliminates<br />

delamination and thus, such carpets are light weight, more flexible, easier to install and can be<br />

recycled easily. This also eliminates the "new carpet odor".<br />

Market dynamics and key growth drivers<br />

CBC is used as primary and secondary backing for carpets. Thus, growth in the carpet industry is the<br />

key demand driver for CBC. The Indian carpet industry is mainly driven by exports. Around 95% <strong>of</strong><br />

the carpets made in India are exported majorly to USA. The carpet export witnessed a decline in<br />

recent years because <strong>of</strong> rupee appreciation against dollar. As per discussions with industry experts and<br />

key industry players the carpet exports are expected to remain stagnant in future thus, limiting the<br />

growth potential <strong>of</strong> CBC. However, marginal growth is expected in the synthetic CBC only because<br />

<strong>of</strong> replacement <strong>of</strong> jute by the synthetic category.<br />

Consumption pattern and market size<br />

CBC is used in majority <strong>of</strong> the carpets. In 2007–08, approximately 75 million square meters <strong>of</strong> non-<br />

jute carpets were exported <strong>of</strong> which 70 million square meters <strong>of</strong> carpets are expected to have carpet<br />

backing. Since 95% <strong>of</strong> the carpets manufactured in India are exported, the production <strong>of</strong> carpets with<br />

carpet backing is estimated at 73 million square meters. As per industry sources approximately 10 %<br />

<strong>of</strong> the carpets have jute carpet backing. The average GSM <strong>of</strong> jute backing is 300.<br />

The current market size <strong>of</strong> jute CBC is estimated at 4750 MT valued at Rs 17 crore. The demand for<br />

jute CBC is expected to fall because <strong>of</strong> its replacement by synthetic CBC. The market for jute CBC is<br />

expected to decrease to 3673 MT by 2012-13 (falling at 5% year on year). The market potential for<br />

jute carpet backing in 2012-13 is estimated at Rs 12.86 crore.<br />

The market size <strong>of</strong> synthetic carpet backing cloth is estimated at 128 million sq m valued at Rs 269<br />

crore. The demand for synthetic carpet backing is expected to increase on account <strong>of</strong> replacement <strong>of</strong><br />

jute CBC by synthetic. Thus, the demand for synthetic CBC is expected to increase to 164 million sq<br />

m by 2012-13 registering a growth <strong>of</strong> 5% year on year.<br />

The market potential in 2012-13 is estimated at Rs 345 crore. The current and future forecast <strong>of</strong> CBC<br />

<strong>consumption</strong> is given below:-<br />

Market size for CBC 2007-08 2012-13

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