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IndianPlasticIndustry,PlasticIndustryinIndia,PlasticIndustry,PlasticIndustries

IndianPlasticIndustry,PlasticIndustryinIndia,Plastic
Industry,PlasticIndustries
INDIANPLASTICINDUSTRY

Sizeofthe

TodayinIndiathereareabout22000plasticprocessingunitsand150plastic

Industry

processingmachinerymanufacturers.

PercentageIn

Intheyear2006,thevalueofworldplasticexportwasUS$375billionandthe

WorldMarket

shareofIndiawaslessthan1%withexportsofworthUS$3.187billion.

Market

ThepercapitaconsumptionofplasticproductsinIndiaisgrowingandismoving

capitalization

towards8%GDPgrowth.

History

Eversince1957,thePlasticsIndustryinIndiahasmadesignificantachievementsasitmadea
modestbutpromisingbeginningbycommencingproductionofPolystyrene.Thechronologyof
manufactureofIndianpolymersissummarisedasunder:1957Polystyrene,1959LDPE,1961PVC
,1968HDPE,1978Polypropylene.SuchpotentialIndianmarkethasmotivatedtheentrepreneursin
thecountrytoacquiretechnicalexpertise,achievehighqualitystandardsandbuildcapacitiesin
variousfacetsoftheboomingplasticindustry.ThePhenomenaldevelopmentsintheplastic
machinerysectoriscoupledwiththedevelopmentsinthepetrochemicalsector,bothofwhich
supporttheplasticprocessingsector.

Thishasfacilitatedtheplasticprocessorstobuildcapacitiesfortheserviceofboththedomestic
marketandthemarketsoverseas.TodayIndianPlasticprocessingsectorcomprisesofover30,000
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unitsinvolvedinproducingavarietyofitemsthroughinjectionmoulding,blowmoulding,extrusion
andcalendaring.Thecapacitiesbuiltinmostsegmentsofthisindustrycoupledwithinherent
capabilitieshasmadeuscapableofservicingtheoverseasmarkets.TheIndianplasticindustryhas
takengreatstridesandinthepastfewdecades,theindustryhasgrowntothestatusofaleading
sectorinthecountrywithasizablebase.
Plasticmaterialisgainingnotableimportanceindifferentspheresofactivityandthepercapita
consumptionisincreasingatafastpace.ContinuousadvancementsanddevelopmentsinPlastic
technology,processingmachineries,expertise,andcosteffectivemanufacturingisfastreplacingthe
typicalmaterials.Onthebasisofvalueaddedshare,theIndianPlasticindustryisabout0.5%of
India'sGDP.Theexportofplasticproductsalsoyieldsabout1%ofthecountry'sexports.Thesector
hasalargepresenceofsmallscalecompaniesintheindustry,whichaccountformorethan50%
turnoveroftheindustryandprovidesemploymenttoanestimated0.4millionpeopleinthecountry.
ApproximatelyRs.100billionareinvestedintheformoffixedassetsintheplasticprocessingindustry.

BriefIntroduction

TheIndianPlasticindustryisfacingseveredemandcrunchinthedomesticindustryforquitesome
time.Demandformajorpolymerswas10%lowerinQ2thisfinancialyearascomparedtothesame
periodlastyear.Theslowdowndemandisadverselyaffectingtheindustrycomprisingof15raw
materialproducersandthereareabout26,000processingunitsinthecountrywithadverseimpact
ontheemploymentof3.3millionpeopleassociatedwiththisindustry.Thecontributionoftheplastic
industryintheeconomicgrowthofcountriestheworldhasbeengreat.
Withapopulationoveronebillionwhere40%areunderage15,opportunitiesforplasticsproducers
inIndiaincludeneartermrapidgrowthinthenation'sinternalconsumptionofplasticproductsand
theIndianmiddleclassis300millionandrising,andtheannualGDPgrowthrateis8%.

Marketcapitalization
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Typically,inanemergingmarket,demandgrowthforplasticsis2to2.5timestheGDPgrowth.Sadly
thisisnotthecaseinIndiawherethegrowthattimeshasbeenlowerthantheGDPgrowth.Theper
capitaconsumptionofplasticsinIndiaat5kgismuchlowerthanthatofChinawhichaverages25kg.
ButIndiacouldseeverysoonimprovementintheproductionofPlastic.Indiatodayrepresentsrange
ofhighlypromisingopportunitiesforgrowthofplasticsproducersworldwide.Thefragmentedplastics
industryinIndiaisbeginningtoconsolidate,governmentalregulationsandtradebarriersarecoming
downduetoIndia'srecentadmissiontotheWTO,andsomelargeNorthAmericanplastics
manufacturershavealreadybegundoingbusinesshere.

Sizeoftheindustry

TodayinIndiathereareabout22000plasticprocessingunitsand150plasticprocessingmachinery
manufactures.Themachineryunitssupplyover2500machineriesperannum.In198,theAllIndia
PlasticIndustriesAssociationwasincorporatedtosolvevariousissuerelatedtoimportdutyof
polymers.
RoleofPlasticIndustryintheIndianEconomy

@15%CARG,ConsumptionofPlasticPolymers
EmploymentInPlasticIndustry(Direct+Indirect)
PlasticIndustry'sTurnover

ExportofPlasticProducts@30%CARG
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2005

2015

4.7Million

18.9Million

Tonnes

Tonnes

2.5Million

9.5Millions

Rs.35,000

Rs.1,33,245

Crores

Crores

US$1900

US$10215

Millions

Millions
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IndianPlasticIndustry,PlasticIndustryinIndia,PlasticIndustry,PlasticIndustries

ContributionofPolymersandPlasticProductstothe
Exchequer

Rs.6200Crores

Rs.15990Crores

DomesticandExportShare

Intheyear2006,thevalueofworldplasticexportwasUS$375billionandtheshareofIndiawasless
than1%withexportsofworthUS$3.187billion.Duringthissameperiodthepercentageofgrowthin
exportwas21%.Duringthistrendofgrowthinexports,theexportsofplasticrawmaterialincreased
from55%to60%ofthetotalexportofplasticgoods,whiletheexportofprocessedplasticgoodswas
anegativegrowthfrom45%to9%.Accordingtorecentreportsofanalysts,theindustryissaidtobe
losinganopportunityofUSD300millionthroughvalueadditionontherawmaterialsthatare
exported.IndianPlasticIndustrytodayissymbolizingapromisingindustryandatthesametime
creatingnewemploymentopportunitiesforpeopleinthecountry.Thepercapitaconsumptionof
plasticproductsinIndiaisgrowingandismovingtowards8%GDPgrowth.

TopleadingCompanies

FinolexIndustriesLtd.Itcanproduce90,000metrictonsofpipeseachyear.
PlastiblendsIndiaLimitedisrenownedasIndia'spioneerMasterbatchesmanufacturer.
ThemostprominentplasticcompaniesinIndiaistheAGAGroupInternational,establishedin2004
inAmbalaCity,Haryana
CorporateResourceGroupisoneoftheleadingsuppliers,exportersandmanufacturersofplastic
instrumentsandpipettesinIndia.
ACRYPluscompanyexports,manufacturesandsuppliesacrylicplasticssheets,polycarbonate
sheets,polycarbonatemultiwallsheetsandPVCfoamsheets.
KayKayGlobalSupplierswasfoundedin1993atAmbalaCantt

EmploymentOpportunities

StudentswhoareinterestedtopursuethecareerinareaofPlasticTechnologymusthavecompleted
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10+2withphysics,chemistryandmathematics.AgoodPlasticTechnologistcanspecializeatthe
graduatelevelthroughaBEcourseinChemical/PolymerengineeringoraB.Sc.courseinChemistry
followedbyB.Tech./DiplomainPlastic/PolymerTechnology.GraduationinChemical/Polymer
engineeringwithChemistryareeligibleforpostgraduatecoursesinPlastic/Polymerstechnology.One
hastopassGATEforgettingadmissionintothepostgraduatecourse.Apartfromtheseopportunities
production,managementandmarketingareotherfunctionalareasandentryintheseareasshould
notnecessarilydemandabackgroundinPlasticTechnology.JobsinPlasticindustrycommunityis
createdwhereknowledgeissharedamongthecommunityonlatestdevelopmentinplasticindustry.

Latestdevelopments

TheIndianPlasticindustryisatthevergeofhighgrowthrateoverabout10%12%whichis
contributedbyhighgrowthrates,inturn,fromtheenduserindustries.Thistrendhasmainlybeen
drivingtheautomotivesector,sincetheeconomyisalreadyshowingsignsofrecoveryfromthe
downturn.
AsthePlasticindustryisheavilydependentonautomotivesector,launchingofnewcarsinthe
smallsegmentsareexpectedtodrivethedemandforplastics.
Indiaislikelytodominatetherestoftheworld'sPlasticwiththedomesticpercapitaconsumption
settodoubleby2012.AsthedomesticIndianPlasticIndustryexpectsfortheinvestmentofnearly
$80billionoverthenextfouryears.
Indiangovernmenthasidentifiedthepetrochemicalsindustryasa'highpriority'sector,asitis
owingtothefactthatplasticsplayanimportantroleinprovidingthebasicnecessitiesforeveryday
use,whileitisconservingthescarcenaturalresources.
Plasticplaysasignificantroleinthekeysectorsoftheeconomy,includingagriculture,water
management,automobiles,transportation,construction,telecommunicationandelectronics,
besidesdefenceandaerospace,computersandpowertransmissions.
AsofnowtheIndianPlasticindustryhasenormouspotentialforgrowthaspolymeruseinIndiais
farbelowtheworldlevel.Withincreasingcompetitionintheglobalmarketandtheconstantdrive
toimproveourlivingstandards,thescopeforuseofplasticsisboundtoincreasemanifoldand
maketheproductiondoubleinthecomingyears.

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