INDIAN INDUSTRIAL GLOVES MARKET

Personal protective equipment (PPE) are defined as protective gear used to minimize exposure to risk that may result in physical injury or/ and death. Hazards at workplace may occur due to exposure to various elements and substances such as fire, chemicals, sharp objects, radiation etc. PPE consists of several product categories such as gloves, shoes, masks, helmets, eye wear, face covers, body suits and harness.

The onset of Covid-19 has brought to forefront the importance of PPE at workplace. This article aims to explore the Indian hand protection equipment market, specifically those which have an industrial use. We aim to cover a brief understanding of the existing regulations, supply chain assessment of major players and the key trends emerging from the market as it looks at the near future

INTRODUCTION

In 2017, the Indian PPE market stood at around USD 350 million. The market had shown steady growth since 2013-14. On average, the PPE market grew at a rate between 12% and 14% in that period. By this estimate, the market is expected to be around USD 530 million in 2020.

The rise in the usage of PPEs can be attributed to several factors. Some of them are:

• Increasing adherence to global safety procedures
• Internationalization of shop floors
• Stringent compliance checking protocols in plants and factories
• Educational and marketing initiatives carried out by major players

It can be estimated that the market has suffered a temporary hit because of the pandemic. As a result, the demand of quality PPEs is expected to go down. This will, in turn, affect the growth rate of the market. Till the end of FY’20, the growth rate will be around 8% to 10%. The demand will increase once the industry starts functioning as it did in pre-Covid era. It can be safely concluded that from 2021-22 onwards, the industry growth rate will be around 15% to 18%, bringing the overall market of PPEs to around USD 650 million.

REGULATIONS GOVERNING USES OF PPE

In India, the Ministry of Labour is responsible for health and safety of workers. There are also several laws that govern the usage of PPE. These laws and regulations determine the guidelines for protection of workers against hazards which cannot be otherwise eliminated or controlled via engineering methods. The Factories Act, 1948 is one such act. This Act has been instrumental in formulating national policies with respect to occupational safety and health in the country. Several section of the Act lay the onus of responsibility on the employer in ensuring the safety of the workers.

As per Section 7(A) the employer has to ensure health, safety and welfare of all workers (permanent and contractual) while they are at work. It is the employers’ duty to take care of workers’ safety by providing means of protection, rescue, first aid and cleanup.

Sections 35 and 87 state that it is the employers’ duty to provide instruction, training and supervision regarding the use of PPE to the employees. Employers should also provide all the required protective equipment to the workers who are involved in hazardous work.

In addition to the Act, there are several separate acts that govern organizational safety and health in various industries. Some of these acts are Explosives Act, 1884, Indian Boilers Act, 1923, Dangerous Machines (Regulation) Act, 1923, Plantation Labour Act, 1951, The Insecticide Act, 1968, Dock Workers Act, 1986 and the Electricity Act, 2002. This list is not exhaustive as there are other such acts too.

At an organizational level, there are robust policies for prevention of hazards and usage of PPE. These policies include PPE policy, environmental policy and safety incentive policy. Organizations also engage regularly with workers in training them on the usage of PPE. Regular workshops are conducted for them. In addition, manuals, books and other publications are regularly distributed among the employees. Adherence to safety guidelines is strictly enforced. These methods help organizations in the long run as this would mean lower costs of settlement in an unfortunate event of an accident. Following safety protocols also help the organization’s image in the market by projecting them as one that takes care of its employees.

HAND PROTECTION MARKET

The various components of the Indian PPE segment are classified as under:

As can be seen from the pie, hand protection equipment constitutes the largest chunk amongst PPE. This can be attributed to two main reasons:

• Low cost as compared to other segments
• Their usability

Hand protection equipment is considered to be fast moving consumables. Most of the gloves used are usually discarded after a few uses. It is estimated that around 75-80% of gloves are discarded within 5 uses. However, this number depends upon the industry, the activity that the glove is used for and the material that it is made of.

HAND GLOVE CLASSIFICATION

 Protective gloves can be classified on the basis of their uses and the material they are used for.

On the basis of the material used, they are classified as:

• Cotton/ linen gloves: As the name suggests these gloves are made of cotton, nylon, denim or any other similar fabric. They are the cheapest gloves available in the market. As these are damaged very easily, they are discarded after one or two uses.
• Latex: A type of unsupported gloves, they are predominantly used in healthcare and pharma industries. They also find usage in areas where there are chances of interaction with slightly corrosive chemicals. Their price range is dependent on the type of latex used and the brand value of the manufacturer. They are available in two variants: powdered and unpowdered.
• PVC/ Nitrile gloves: These are supported as well as unsupported gloves. They find usage for both cut protection as well as for chemical resistance. Their price is dependent on the make of the glove (supported/ unsupported), type of polymer used for the coating, layers of coating and the brand of the manufacturer
• Leather gloves: They provide excellent insulation and are used extensively in metal processing industries. They are costlier than other gloves. Hence, most of them are used for 15 to 30 days, averaging 5 to 6 hours every day. They are preferred for welding operations.
• Special gloves: They are made of Kevlar, aramid or stainless steel coils. Their consumption is based on the usage for which they are designed. They provide excellent insulation as well as cut resistance. For instance, Kevlar has a high resistance to cut and tears. As a result, Kevlar gloves and sleeves are used extensively in glass manufacturing industry, as some of the raw materials are imported, these gloves are priced the highest.

With innovations in technology and environmental consciousness, other materials are being considered for manufacture of gloves. The focus has shifted on using environmental friendly products for manufacturing.

Based on their uses, they are classified as:

• Mechanical gloves: These gloves are used in a number of manufacturing operations. The quality of the glove used depends on the severity of the risk the task being executed possesses. Several shop floor operations require the use of at least cotton gloves.
• Chemical resistant gloves: They are used for protection against chemicals and other hazardous liquids. They also find usage where the worker has to deal with oil and other lubricants. A variant of these comes with ribs so as to provide a better grip while working.
• Temperature resistance gloves: Made of leather, aramid or other related materials these gloves provide excellent insulation against high temperature. They are the preferred gloves for welding, forging and related operations. They are used widely in metal processing and glass blowing industries.
• Special purpose gloves: As the name suggests, they are used for certain specific applications. A variety of raw materials are used for manufacturing them. Their pricing depends on factors such as raw materials, application for which they are used and their availability in the market.

Glove rating: The European Standard, EN 388, is used to determine the quality of the glove. The test for EN 388 is conducted by a third party and tests the glove on four parameters, namely abrasion, cut, tear and puncture. The rating for ‘cut’ is on a scale of 1 to 5, while for all others it is on a scale of 1 to 4. Higher the rating on the glove, better the protection provided for that parameter. For example, if a glove has a rating 4-5-3-2, it signifies that its abrasion rating is ‘4’, cut rating is ‘5’, tear rating is ‘3’ and puncture rating is ‘2’.

SUPPLY CHAIN

In this industry, two major models exist: import-distribution and manufacturing-distribution

Import-distribution: After manufacturing and shipping from their home country the products are imported by either a manufacturer or by the manufacturer’s India subsidiary. The importers then sell it to regional distributors and resellers who, in turn, sell it to the end customer.

Both the master distributor and regional resellers keep buffer stocks to deal with disruptions in supply. However, master distributors have better warehousing capabilities than regional distributors. This helps them in maintaining product flow I case of disruptions in supply. The standard lead time is 2-3 weeks.

Regional distributors and resellers are businesses who have, over time, built and maintained relationships with plants and factories (end customers) in their area. These vendors are preferred because of their quick deliveries and shorter lead times. These regional distributors also work in close tandem with their suppliers/ principals. Thus, suppliers/ distributors are able to predict demand and manage inventory accordingly. They hire a dedicated sales team just for this purpose.

Contract manufacturing: India also has a large unorganized market. About 55%-60% of the market is unorganized. Players in the unorganized sector are mostly small manufacturers with cotton liners as their main products and revenues less than INR 5 crore (around USD 700,000). These players also undertake ad-hoc manufacturing for organized players. Thus, they play a pivotal role in bridging the supply when demand is high.

Vendor selection process

End users have a linear approach to vendor selection. The supplier approaches the end user with a detailed profile and product portfolio. The supplier is then evaluated on parameters such as product pricing, experience and product features. If the supplier is found suitable product trials are carried out. If the trial outcomes are satisfactory, price negotiations take place to determine price points for the end product. The entire process concludes when the order is placed.

Some of the parameters on which vendors are scrutinized are:

• Commercial terms and conditions
• Vendor experience
• Existing customers
• Product pricing
• Technical competence of the vendor
• Relevant product certifications such as CE, ISO etc.
• Expanse of product portfolio ad available sizes

Centralized/ decentralized purchasing

Some large end users have centralized purchasing system where the requirement from all the manufacturing units is collated and processed. This simplifies the process for placing order and eases up the working capital at individual units. Vendor scrutiny is stricter. More than pricing, the quality of the gloves used is given importance.

De-centralized purchasing takes place at individual unit. Here, the quality of the product used may be compromised as cost effective products are preferred.

To find a balance between price and quality, a hybrid approach to purchasing can be followed. Here the basic liners and other daily consumable gloves are purchased at plant level while the gloves for special purposes and high risk applications are purchased centrally. This will help avoid compromises on quality.

TRENDS

Some major trends:

• There is an emerging market for gloves made of recycled fabric from garments such as jeans, used clothing etc.
• Basic liners are starting to be replaced by PU/ nitrile gloves
• Due to Covid-19, glove production within India has seen a surge
• Consumers are increasingly become concerned about safety and hygiene. This is driving the growth of disposable glove market
• Product differentiation between basic liners is low. Hence, firms need to come up with innovative marketing initiatives to increase their market share
• Increased government focus on health and safety is a major growth driver
• Different end user industries have increased the consumption of customized products pertaining to specific operations

CHINA AND ASIA INFLUENCE

Though India is one of the world’s largest producers of rubber, it still needs to import rubber. Partial reason for this is the tyre industry that consumes about 50% of the rubber produced. Gloves require specially processed synthetic rubber. Having an end-to-end indigenous supply line in India may not be a very cost effective technique. As a result, a majority of the gloves being used in the country are imported. China, Indonesia, Sri Lanka, Malaysia are some places where the imported gloves are manufactured from. In the immediate future shifting the entire manufacturing process to India may not be a feasible process. Substantial technological advancements need to be made so that the raw materials are processed in a cost effective manner.

Environmental concerns are big deciding factors in Indian manufacturing space. Thus, any production process implemented needs to be vetted against potential damage caused. Thus, there is also a dire need to use environmental friendly practices/ materials in production of industrial safety gloves.

MAJOR PLAYERS

Some of the major players in the market are:

• Acknit Industries: One of the very few listed companies in the segment
• Marvel Gloves: One of the market leaders, especially for entry level gloves. They have a decent manufacturing presence too
• Accent Industries: Owner of the brand “Atlas Protective Products”, they focus primarily on Indian market
• Midas Safety: A Canada based firm, majority of their products are imported from China, and Bangladesh
• Kimberly Clark: It operates in India through their subsidiary. Majority of their clients are in pharmaceutical, warehousing and construction sectors.
• Honeywell International: Another prominent importer, they have considered exploring the option of contract manufacturing for the Indian market
• DPL: Dipped Products Limited caters to about 5% of the global demand and about 8-10% of Indian demand

Other major players in the market include Mallcom Safety, Ansell, Lakeland, Techfeel Safety and ATG Gloves. This list is not exhaustive as there are other major players catering to different customers and regions.

Cotton gloves are manufactured by several players in the unorganized sector. Hence, we have not considered the unorganized sector in our study.

CHALLENGES FOR MANUFACTURERS

Certain challenges that manufacturers in India, and the industry in general, faces are:

• Indian market is flooded with China-manufactured products. They are low-cost, low-quality products. As a result, a large part of unorganized market comprises of these products. This impact the interests of local manufacturers who find it difficult to compete based on prices alone
• Gloves are consumables with short shelf life. Irrespective of the quality, they need to be replaced every few days. This impacts the buying decision of the purchasing manager who might lay more importance to cost concerns than quality concerns
• Cost of buying gloves comes under working capital of the manufacturing unit. Plant managers might try to save costs there, thus compromising the quality of the product. However, this may not be a hurdle in case of centralized purchasing where the cost becomes a secondary factor
• The protective covering on gloves makes them good insulators. Thus, upon continuous usage, there is a risk of user developing fungal infections. This results in added cost to the employer

CONCLUSION

The Indian industrial glove market is still in its adolescent stage. Because of Covid-19 the need for shorter supply lines has come to the forefront. With investments in technology, India stands at the threshold to become a global leader in manufacturing and supplying industrial safety products, especially gloves. Awareness regarding manufacturing processes needs to be made available to small businesses si that they can gradually shift towards organized segment, thus contributing to the development story of the sector.

References

• https://www.osha.gov/SLTC/personalprotectiveequipment/
• https://www.ehow.com/about_6596398_pvc-vs_-nitrile-gloves.html
• https://us.pipglobal.com/en/updated-en-388-standard/
• https://labour.gov.in/sites/default/files/TheFactoriesAct1948.pdf
• https://www.aerb.gov.in/storage/images/PDF/CodesGuides/General/IndustrialSafety/4.PDF
• https://rlshumancare.com/indian-stranded-code-of-personal-protective-equipment-ppe/#HANDS_PROTECTION_PPE8217S_IS_CODE
• https://www.ilo.org/dyn/legosh/en/f?p=14100:1100:0::NO::P1100_ISO_CODE3,P1100_SUBCODE_CODE,P1100_YEAR:IND,,2013
• https://indexsafety.in/product-category/special-purpose-gloves/page/2/
• https://www.alliedmarketresearch.com/india-disposable-gloves-market
• https://www.industrialrubbergoods.com/rubber-industry.html