New Delhi: The National Textiles Corporation (NTC) on Tuesday said it will invest Rs425 crore in association with a joint venture partner to foray into the manufacturing of technical textiles to cash in on the burgeoning demand from healthcare and infrastructure sectors.
“We plan to diversify into technical textiles space. This is an emerging sector. We will rope in a global firm that will provide technology to the venture and help to market the produce,” NTC chairman and managing director K. Ramachandran Pillai told the news agency.
NTC would offer a minority stake to the proposed joint venture partner and has earmarked Rs425 crore investment for the project. The proposed investment would be financed in proportion with the ratio of shareholding in the venture.
Pillai said the joint venture firm would set up two units -- one each in Northern and Southern India -- and the land required for putting up the plants have already been acquired.
Used mainly for non-aesthetic purpose, technical textiles have a wide array of applications. These include textiles for automotive applications, medical textiles, geo-textiles and agro-textiles among others.
“The application of technical textiles is very nascent in India, but the potential is enormous,” Pillai said, adding, only a couple of producers currently produce technical textiles in the country.
The joint venture would try to market its produce both in domestic and international markets, which is currently growing by 12% year-on-year.
Pillai said the global market for technical textiles was likely to go up to $150 billion in the coming years from around $127 billion in 2010.
According to government’s estimates, the domestic market for technical textiles is expected to clock 11% growth rate to cross Rs66,000 crore by 2012.
Pillai, credited with turning around the BIFR-referred NTC to a profit-making firm, said the two proposed mills are likely to be operational in 18-24 months from the zero date of commissioning the project.