Lack of experience & technical know-how in developing markets make potential investors cautious
Mr. Johan Berlin is the majority shareholder and Managing Director of Investkonsult Sweden AB (Pvt. Ltd). He had worked previously at Investkonsult Int’l Trading (1987-2002) before taking over that company and renaming it to Investkonsult Sweden. Investkonsult Sweden AB work as consultants and brokers of machinery in the nonwoven and disposable hygiene industries supporting existing companies as well as start-ups. Investkonsult Sweden has also 23 years vast experience in the trading of second hand machines for conventional textile machinery and nonwoven machinery. Mr. Berlin has specialization in nonwoven and disposable hygiene and also he has knowledge of conventional textiles such as spinning, weaving, finishing & dyeing. He is a part time musician and enjoys skiing. He is also a frequent worldwide traveler and often called for large appraisals of nonwoven and disposable hygiene factories. Mr. Joakim Blomqvist, who is associated with Investkonsult Sweden AB assisted Mr. Berlin with data for preparing the answers.
Growth in the nonwovens industry is strongly correlated to the GDP and the purchasing power. In line with this, the largest increases in nonwoven production, converting and consumption will take place in regions with strong economic growth, especially in those countries that currently have a low penetration. In other words, the demand for nonwoven products will continue to increase in countries such as India and Indonesia.
The lack of experience and technical knowledge in the developing markets tend to make potential investors a bit cautious. Our experience is that many clients are eager to enter into the nonwoven industry, and most of them see the great growth potential, but quite few dare to invest in nonwoven equipment. Since we are able to guide these companies in the right direction, we feel that we fulfil an important role in this context.
We believe in a strong growth for nonwovens in India. Due to a growing middleclass and increased purchasing power, the disposable hygiene sector will become considerably larger, the demand for sanitary napkins will also grow due the governmental subsidies. Of course, there are opportunities also in production of durable nonwovens, especially in the construction market. Due to infrastructural investments, the demand for nonwoven geotextiles will continue to grow. According to Industry research, approximately 37 million square meters of geotextiles were rolled out in India in 2008 and the prediction for 2018 is 113 square meters.
DISCLAIMER: All views and opinions expressed in this column are solely of the interviewee, and they do not reflect in any way the opinion of technicaltextile.net.