Kowledge Paper Plastic PDF
Kowledge Paper Plastic PDF
Kowledge Paper Plastic PDF
Plastics Industry
National Conference on
Potential of Plastics Industry in
Northern India
WITH FOCUS TO PLASTICULTURE
( Micro Irrigation and Post-Harvest Management)
Message
Federation of
Indian Chambers
of Commerce and Industry
Federation House
Tansen Marg
New Delhi 110001
T +91 11 23738760 (11 Lines)
F +91 11 23320717 - 23721504
E [email protected]
www.ficci.com
CIN: U99999DL 1956NPL002635
Message
India currently supports nearly 17.50% of world’s population with 2.4% land
resources and 4% of water resources. The Indian Agriculture sector is consuming
almost 80% of available water. As per International Water Management Institute,
during the past decade, groundwater especially beneath some northern Indian
states has fallen at an alarming level. This may impact the food security of the
nation as the region also happens to be its food bowl.
PRABH DAS
Chairman-FICCI National Petrochemicals Committee
Managing Director & CEO
HPCL-Mittal Energy Limited
Knowledge Paper on
Plastics Industry
Foreword
Federation of Indian Chambers of Commerce & Industry (FICCI) & TATA Strategic
Management Group (TSMG) have been regularly tracking plastics & petrochemicals
industry. TSMG has been supporting companies, both big and small, across the industry
value chains to achieve business excellence. The same knowledge and experience gives us an
additional advantage to realize this report.
Accelerated globalization, rapid change in technology and growing consumerism have
brought with it sweeping changes and abundant opportunities for plastic industry to grow
domestically and globally. Significant investments are coming up in India in this sector in the
next few years. Growth in the petrochemical sector will improve the feedstock availability for
the plastic production. For example, Reliance Industries Ltd (RIL) is planning to invest USD 16
billion to expand petrochemical production capacity by FY18. Indian Oil Corp (IOCL) is
planning to invest USD 1.3 billion in setting up a petrochemical complex at Paradip refinery
in Odisha by FY19. Besides these, four PCPIR's are under various stages of development
which will further improve the petrochemical landscape in India. In September 2014, GOI has
announced 'Make in India' initiative to catalyze Indian manufacturing. Additionally, GOI is
also promoting '100 smart cities. It is clear that plastics will be called on to play a vital role in
this changing landscape and plastic industry will benefit from national efforts to encourage
and improve manufacturing.
Historically, major percentage of the population in northern India has been engaged in
agriculture. Though the land is very fertile, the farmers are affected with the problems of low
productivity and low return on investment primarily due to heavy dependence on
monsoons. Going forward, plasticulture applications have the potential to offer them the
much needed solutions to improve productivity and reduce dependence on monsoons and
therefore, will drive the demand for plastics.
As per industry estimates, 35-40% of the food products produced in India are wasted due to
deficient infrastructure and lack of food processing capabilities. Plastics find applications in
packaging which protects the longevity and quality of food. This sector in India also offers
significant potential for growth leading to increase in demand for plastics. Beyond this due
to various benefits like increase in the yield, reducing water losses, cleaner produce due to
reduced soil contact etc. plasticulture farming has evolved significantly in the recent years.
Knowledge and Strategy Partner
We sincerely thank all participants whose valuable inputs have helped in developing this
report. As always, it was an insightful experience for the team to materialize this report.
Knowledge Paper on
Plastics Industry
Table of Contents
I. Executive summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 01
II. Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 03
2. Technology needs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31
3. Price pressure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
X. Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
XI. References. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
Knowledge Paper on
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LIST OF FIGURES AND TABLES
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I. Executive summary
P
lastic industry is making significant contribution to the economic
development and growth of various key sectors in the country such
as: Automotive, Construction, Electronics, Healthcare, Textiles, FMCG,
etc. It has expanded at 11% CAGR over the last five years to reach 12.2
MnTPA1 in FY14. However, India observes significant regional diversity in
consumption of plastics with Western India accounting for 45%, Northern
India for 24% and Southern India for 21%. Bulk of the consumption in
Northern India is again from the end use industries such as Auto, packaging
(including bulk packaging), plasticulture applications, electronic appliances
etc. which are concentrated mostly in UP and Delhi-NCR (>50%).However,
plastic processing in other parts like Rajasthan, Punjab, Haryana,
Uttarakhand, J&K and Himachal Pradesh are expected to grow in the coming
years, based on increased availability of feedstock and higher focus on
manufacturing sectors.
The plastic industry can reach the apex in the coming years due to its
numerous applications in agriculture. In India, 70% of the rural population is
dependent on agriculture as their principal mean of livelihood and the
polymer utilization by application in agriculture is only 2% compared to the
global average of 8%. If plasticulture is efficiently introduced into this
segment it can transform the Indian agriculture scenario and bring in the
"Second Green Revolution". Plasticulture possess a great potential to
increase the production and productivity in various phases of agriculture like
during the micro irrigation, water management and post-harvest
management practices. It can also bring significant growth in the food
processing & packaging industry and can reduce the post-harvest losses.
But at the same time Indian Plastic industry continues to face environmental
myths and lacks in advanced technology availability. Going ahead recycling &
reuse of plastics could be a foremost step towards fostering innovation and
sustainability. Also increased awareness through help of industry groups and
Government could help address some of these challenges.
Note: 1. The demand mentioned is of Total Polymers comprising Thermoplastics and Thermosets.
However, in this reports the focus is upon the major polymers {PE, PP, PVC, PS& others (EPS& PVC
compound)
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II. Introduction
T
he chemical industry is critical for the economic development of any
country. Indian chemical sector accounts for 13% of the gross value
added by the industries segment. With Asia's increasing contribution
to the global chemical industry, India emerges as one of the focus
destinations for chemical companies worldwide. Chemical industry is critical
for the economic development of any country as it offers products and
solutions for virtually all sectors of economy.
The chemical industry in India accounted for USD 118 Bn in FY13 and is
expected to grow at 8% p.a. over the next 5 years. Indian petrochemical
industry which includes the end products like polymers, synthetic fibers,
surfactants, etc. has grown at 11% from USD 19.3 billion in FY11 to USD 27
billion in FY14.
Major driver for the consumption of petrochemicals are plastics. Since plastic
products permeate the entire spectrum of daily use items and cover almost
every sphere of life like clothing, housing, construction, furniture,
automobiles, household items, agriculture, horticulture, irrigation,
packaging, medical appliances, electronics and electrical etc. Current low per
Knowledge and Strategy Partner
capita consumption level of plastic products in India as compared to
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developed countries indicates that India offers a huge opportunity over long
term (Refer Figure 1).
65
45
32
10
Substantially lower
43% consumption
in India
35%
25%
21%
17% 16% 18%
15%
8%
2%
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Driven by the increased focus on the Make in India campaign, Ministry of
Chemicals & Fertilizers and the Central Institute of Plastics Engineering &
Technology (CIPET) have actively extend their support for the growth of
plastic industry in India. For e.g, an export-oriented plastic cluster has been
proposed to be set up at an investment of over Rs 100 crore in Lucknow. India
Industries Association (IIA) in collaboration with CIPET will set up this cluster.
Cluster has already generated interest amongst 200 industrialists and
entrepreneurs and is expected to generate direct employment opportunity
for ~2,500 youth.
Additionally, rising thrust on 100 smart cities will further propel the growth of
plastic industry. Considering the critical elements of any smart cities such as
water management, infrastructure, waste management, etc. the usage of
plastics can bring efficiency in all such fields and can therefore, make the
smart cities more sustainable and cost effective.
New investments are expected in plastic sector with 40,800 additional plastic
processing machines are expected to be installed by FY15 and could
potentially generate 3 million additional employment opportunities.
Significant investments planned in sectors such as water & sanitation
management, irrigation, power, transport etc. will result in making India a hub
for PVC and CPVC product manufacturing.
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III. Plastic industry in India
A
wide variety of plastics raw materials are produced to meet the
material needs of different sectors of the economy. These polymeric
materials are broadly categorized as commodity, engineering and
specialty plastics. Commodity plastics are the major products that account
for bulk of the plastics and in turn for petrochemical industry. And therefore
the report mainly emphasizes on the commodity plastics which comprise of
Polyethylene (PE), Polypropylene (PP), Polyvinyl Chloride (PVC) and
Polystyrene (PS). While engineering and specialty plastics are plastics that
exhibit superior mechanical and thermal properties in a wide range of
conditions over and above more commonly used commodity plastics and are
used for specific purpose. These include styrene derivatives (PS/EPS &
SAN/ABS), polycarbonate, poly methyl methacrylate, polycarbonates, poly
oxy methylene (POM) plastics etc.
There are three broad types of PE, viz: Low-density Polyethylene (LDPE),
High-density Polyethylene (HDPE) and Linear Low-density Polyethylene
(LLDPE). Major plastic materials like PE and PP are derived from Ethylene and
Propylene respectively, while other plastics such as PVC, PS & ABS and PC are
produced from benzene, butadiene and other feedstock.
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1) Demand overview
10500
8,732
9000
7%
7500 3%
5,824 8%
6000
4500
3%
3000
13%
1500
0
FY09 FY14
Polypropylene (PP) demand has grown at 3% p.a from 1.9 MnTPA in FY09 to
2.2 MnTPA in FY14. Poly-Styrene (PS) has observed a growth rate of 3% p.a. to
reach 0.2 MnTPA in FY14, while other (PC/ ABS etc.) have grown at 7% p.a.
from 0.09 TPA in FY09 to 0.13 MnTPA in FY14 (Ref figure 4).
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Figure 4: Demand breakup of plastics by types, FY14
3% 2%
19 % HDPE
25%
LLDPE
LDPE
17% PVC
PP
29%
5% PS
Others
Polyethylene (PE), which includes HDPE, LLDPE and LDPE (High Density PE,
Low Density PE and Linear Low density PE), accounts for the largest share i.e.,
41% of total consumption, while PP accounts for 25% of total consumption.
Within PE, HDPE is observing a moderate growth and has a consumption
share of 19%. LLDPE is expected to grow at higher pace due to its increased
penetration in LLDPE applications. Others include EPS and PVC compounds.
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Extrusion process is the most commonly used process in India and accounts
for 60% of total consumption by downstream plastic processing industries.
Injection moulding is the second most popular process accounting for 25%
of the consumption. Blow moulding is used for 6% while Rotomoulding 1%.
The rest of the plastic is processed through other processes.
At present the total consumption of the major plastic (PE, PP, PVC, PS, EPS &
PVC Compounds) plastics in India is 8.7 MnTPA. Western India has
traditionally been the largest consumer of plastics accounting for almost
45% of the total consumption. The region wise distribution of consumption is
given in Figure 5.
Western
Southern region, 45%
region, 21%
Northern
region, 24%
Source: IOCL, Industry reports, Research by Tata Strategic
Bulk of the consumption in Northern India is from the end use industries of
Auto, packaging (including bulk packaging), plasticulture applications,
electronic appliances etc. Figure below reflects indicative list of some end use Knowledge and Strategy Partner
2) Capacity overview
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Figure 7: Production Capacity ('000 MT) and Operating efficiency (%) of
plastics, FY14
3,500 120%
3,000 100%
2,500
80%
2,000
60%
1,500
40%
1,000
20%
500
- 0%
PE PP PVC PS & EPS
Capacity Operating Efficiency
India has a 2.9 MnTPA of PE production capacity out of which the combined
capacity of LLDPE & HDPE is 2.7 Mn TPA and 0.2 Mn TPA is for LDPE. PP and
PVC also have the large production capacities, i.e., 3.1MnTPA and 1.4MnTPA
respectively.
India has a 0.57 MnTPA production capacity of PS and EPS. However, all these
facilities are based on imported styrene as there is no local production. In
case of Engineering Plastics, there is a significant opportunity in India.
Currently for ABS, India has a 100,000 TPA production capacity, while PC base
resins are all imported. Polyamides have a limited production capacity, while
other major engineering plastics are being mostly imported to cater the
domestic demand.
Haldia Petrochemicals Ltd. (HPL) is another key player with PE capacity of 0.71
Mn TPA and PP capacity of 0.39 Mn TPA. HPL's plants are located in eastern
region of India. Other major players are Indian Oil (IOCL) & Gas Authority of
India (GAIL) with their plants located at Panipat and Auraiya respectively.
These plants mainly cater to the northern regional demand of plastics. IOCL
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have 0.65 MnTPA production capacities of PE and 0.6 MnTPA of PP.
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Table 2: Production Capacity of plastics by major players, FY14
GAIL 505,000 - - -
HMEL - 440000 - -
Chemplast - - 250,000 -
Sanmar
Finolex - - 270,000 -
Supreme - - 272,000
In Northern India, IOCL, GAIL & HMEL are the three plastic producers with
plastic production capacity of 1.25 MnTPA, 0.5MnTPA, and 0.44 MnTPA
respectively. Indian Oil Corporation Limited (IOCL) is the largest oil company
in India in terms of revenues. It is promoted by the Government of India with
Government holding 79% shares. IOCL commissioned its Panipat cracker in
February 2011. The Group owns and operates 10 of India's 20 refineries with a
combined refining capacity of 65.7 MnTPA.
Govt. of India has 57% stake in GAIL. It is a dominant player in natural gas
trading business and uses natural gas as the feedstock for production of
ethylene and in turn produces Polyethylene. GAIL has plans to double its
plastic production capacity and is expected to grow the capacity to 0.9
MnTPA by FY16. HMEL's Bhatinda Polypropylene plant (0.44 MnTPA) was
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commissioned in 2012. All put together the plastic production capacity is
expected to go up to 2.6 MnTPA by FY16. The figure below maps the plastic
production facilities along with their capacities.
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3) Import-export scenario
India is overall deficit in plastics and a lot of these materials are imported to
cater the unmet domestic demand. The major import source countries are
Saudi Arabia, Qatar, UAE, Korea, USA, Singapore, Thailand, Germany, Spain
and Malaysia. As reflected in Figure 9, India is deficit in PE and PVC. In FY14,
2.4 Mn TPA of PE was produced while domestics consumption was 3.6 Mn
TPA. In case of PVC, the FY14 domestic demand stood at 2.5 Mn TPA and the
domestic production was 1.3 Mn TPA. Polyamides consumption was 54,000
TPA, while domestic production was 13,000 TPA. Other major engineering
plastics were imported.
Few Plastics materials are produced in surplus and these materials are
exported to international markets. Major export destinations are China,
Egypt, UAE, Turkey, Vietnam, and Indonesia. In FY 14, Indian production of PP
stood at 2.6 MnTPA while demand was 2.2 Mn TPA only. Similarly, domestic
demand for PS/EPS was 0.3 MnTPA, and production was 0.34 MnTPA.
4,000
3,609
3,500
3,000
2,648 2574
2,422
2,500
2,184
2,000
1,500 1,367
1,000
0
PE PP PVC PS + EPS
Consumption Production
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India is deficit in PE and is dependent on imports for fulfilling demand. In
FY14, 1.3 MnT of PE was imported. PP production exceeds the domestic
consumption and hence, caters to international markets as well. India
exported 0.94 MnT and imported .5 Mn Tof PP in FY14 (Refer Figure 10).
Domestic production of PVC is not enough to cater to the demand and hence
30% of demand is met through imports. 1.2 MnTPA of PVC was imported in
FY14. India is a net exporter of PS, while most of the engineering plastics are
being imported.
1400.0 1331.3
1208.5
1200.0
1000.0 943.2
800.0
600.0
479.2
400.0
200.0 126.1
88.0 64.7
41.7 10.2
1.3
0.0
PE PP PVC PS + EPS Others
Import Export
Exports of plastic finished goods have more than doubled from $1.2 Bn in
FY07 to $2.7 Bn in FY12. But fierce competition from countries such as China,
Indonesia, Taiwan and other South Asian countries are restricting growth. The
exports of these value added plastic products could be a huge growth
opportunity if Indian manufacturers can increase / maintain their
manufacturing competitiveness while ensuring high quality. (Ref: Fig 11 &
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Fig 12).
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Figure 11: Exports of value added plastic products (Bn USD)
17.6%
2.7
2.3
2.0 2.1
1.8
1.2
Others, 17%
Film, sheets &
Pipes, tubes and plates, 29%
fittings, 4%
Housewares, 6%
Writing
instruments, 6%
Other moulded
& extruded
Optical items, 12%
items, 8%
Woven
Packaging
sacks, 8%
items, 10%
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IV. Plastics applications in Agriculture
1
970s witnessed the first Green Revolution in India. With the adoption
of high yielding variety of seeds along with better farming techniques
like better use of fertilizers, insecticides and pesticides, made it
possible for India to turn to a self-reliant agricultural nation. India currently
supports nearly 16% of worlds' population with 2.4% land resources and 4%
water resources. Nearly 70% of the Indian rural population is dependent on
agriculture as their principal means of livelihood. However, Agriculture &
Allied Sectors (including agriculture, livestock, forestry and fishery)
contributes 17.6 % of India's GDP in FY14.
1. Plasticulture Applications
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Table 3: Major Plasticulture Applications
Application Comments
Drip Irrigation System l Precise application of irrigation water and plant nutrients at low pressure and
frequent intervals through drippers/emitters directly into the root zone of plant
Sprinkle Irrigation System l Application of water under high pressure with the help of a pump.
l Water is released through a small diameter nozzle placed in the pipes
Ponds and Reservoir Linings l Plastics film lining to prevent against seepage in canals, ponds and reservoirs
l Also avoids depletion of stored water used for drinking & irrigation purpose
Plastic Mulching l Mulching is covering the soil around the plant with plastics film, straw, grass,
hay, dry leaves, stones etc.
l Prevents loss of moisture and acts as a barrier between the soil and
atmosphere
Greenhouse l Greenhouse is a framed structure covered with glass or plastics film
l Acts as selective radiation filter, in which plants are grown under the
controlled environment
Plastic Tunnel l Plastics tunnel facilitates the entrapment of carbon dioxide, thereby
enhancing the photosynthetic activities of the plant that help to increase yield
Plastics which are most widely used in agriculture, water management and
related applications are PE, (LLDPE, LDPE and HDPE), PP and PVC.(Refer :
Table 4)
Table 4: Polymers used in Plasticulture applications
S.no Applications PVC LDPE LLDPE HDPE PP
Main/sub main - Laterals/emitting Screen filter Drippers/emitters
1. Drip Irrigation lines pipes
Control valves - Micro tubes Disc filter Fittings
Main/sub main Connecting line - Main/sub main Fittings
2. Sprinkler irrigation lines lines
Control valves - - Nozzles Nozzles
3. Greenhouse Main/sub main lines UV films UV films Main sub main lines Ropes
4. Low Tunnel - UV films - Hoops Ropes
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2. Plasticulture Potential
India is a vast nation. Every region has got specific agricultural characteristics
and problems. These area specific problems can be tackled with innovative
and scientific use of Plasticulture techniques. This would not only maximize
the output of farms but also optimizes the input factors. Table 4 shows the
region specific constraints in agriculture. For example, in Western Himalayan
region the productivity is low because of constraints like severe soil erosion,
degradation due to heavy rainfall/floods and deforestation and inadequate
market delivery infrastructure.
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Table 6: Potential benefits from Plasticulture applications
Plasticulture Application Water Saving (%) Water Use Efficiency (%) Fertilizer Use Efficiency (%)
Drip Irrigation 40-70 30-70 20-40
Sprinkler Irrigation 30-50 35-60 30-40
Plastic Mulching 40-60 15-20 20-25
Greenhouse 60-85 20-25 30-35
Shade Nets 30-40 30-50 Not Available
Tunnel 40-50 20-30 Not Available
Farm Pond Lined with 100 40-60 Not Applicable
Plastic Film
To sum up, following are the opportunity that the agriculture sector has with
enhanced usage of Plasticulture applications:
l Soil conservation
The greater use of plastic in agriculture can also help to a great extent to
achieve up to fifty percent of the intended targets in Agriculture (as shown in
the figure 13). The wider use of Plasticulture can reduce the loss of harvest
and can increase the efficiency thus contributing more to the GDP. It is
estimated that the agriculture output can be increased by ~INR 68,000 Cr by
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using proper Plasticulture applications like drip irrigation, mulching etc. Also,
using innovative plastic packaging and handling techniques can promote
proper harvest management which will in turn contribute towards the
Agriculture-GDP.
6,000
76,000
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V. Water Management &
Micro-Irrigation
S
urplus grain production in North India is central to the national food
security as it meets the food deficits of several other regions. However,
these large positive benefits have also led to significant drop in the
water table. Urgent and innovative solutions are necessary to make the
model of the green revolution hydrologically sustainable. Plastic based
solutions could be utilized to deal with water scarcity.
1. Water storage for surplus rainfall - Polythene lined tanks can be used to
collect excess rainfall especially in the states of Jammu& Kashmir,
Himachal Pradesh and Uttarakhand. These tanks situated on the terraces
supply water under gravity and can be connected to low head drips and
micro-sprinklers and do not need any additional energy. Bucket or drum
kit based plastic drip systems, cisterns, plastic lined trenches, etc. can also
be used to directly harvest the rain water .
2. Canal commands linkages with plastic lined tanks (Diggis) - This solution
is more relevant in arid states such as Rajasthan where ground water is
saline, canal supply is uncertain & erratic and large part of water get
wasted due to highly sandy and undulating soils. In such situation water
Knowledge and Strategy Partner can be stored in plastic lined diggis and apply to the farms as per need
through plastic pipes and sprinkler/ drip systems.
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3. Plastic based resource recovery and reuse model - Plastic can be used for
the safe disposal and use of wastewater which has become a huge
problem after provision of household sanitation in rural areas.
Wastewater can be collected in plastic lined tanks and safely used for
agriculture after primary treatment.
Micro Irrigation
Tamil Nadu,
4% Chattishgarh, 4%
Madhya Pradesh,
5%
Haryana, 8% Rajasthan, 23%
Karnataka, 11%
Gujrat, 12%
Maharashtra, 17%
Andhra Pradesh,
16%
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Plastic application in Micro Irrigation
Plastics have found efficient usage in these micro irrigation systems in the
form of PVC pipe fittings, LDPE tubes, plastic mulches etc and have proven to
be advantageous in many forms such as;
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VI. Post- Harvest Management
T
he most important concern during post - harvest management is to
attain maximum shelf life of the produce; for which the fruits and
vegetables are to be kept in excellent condition and are supposed to
be of excellent quality. However, the best quality of the produce is only at the
moment of the harvest. After that, the quality cannot be improved but can be
maintained.
Since the shelf life of the commodity begins at harvest, it becomes important
to use appropriate methods for sorting, storing, handling, packing,
transporting, etc. from the stage of harvest till the time the commodity
reaches the end user.
Plastics have been quite effective when it comes to maintaining the quality of
the produce or for handling, disposal, storage, packaging etc.
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Table 8: Use of Plastic in post-harvest management
Applications Comments
Plastic Sacks l Used for packaging rice, grains and other materials. It can be generally recycled for
packing fresh produce.
l Key advantages are ready availability and cost effectiveness.
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Figure 15: Plastics in flexible packaging (% share)
Others
14%
PVC 7% Polyethylene
33%
PET
17%
Polypropylene
29%
~14% 13.3
7.1
45.1
26.7
FY14 FY18
Rigid Flexible
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Uttarakhand (Haridwar, Rudrapur & Pant nagar) is one of the key packaging
clusters in India. 13% of the total organized flexible packaging is from this
region. The major players who are present here are: Essel Propack, Paper
Products, Radha Madhu Group & TCPL.
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VII. Factors promoting opportunity in
Northern India
I
OCL Panipat plant and HMEL Bhatinda plant has given an impetus to
feedstock availability in Northern India which had minimal access to
feedstock. Besides this IOCL has also commissioned a propylene recovery
unit at its Mathura Refinery and is expected to invest Rs. 30,000 crore to
increase its presence in petrochemical industry. GAIL also has plans to double
its capacity which will further make the feedstock scenario more promising in
Northern India. These will lead to increased investments in downstream
plastic processing.
The macroeconomic trends for increase in demand of end use industry are
more likely to impact regions of Northern India and Eastern India than rest of
India. These two regions are in a growing phase and are facing significant
change in lifestyle and in turn growth of domestic end use industries.
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Moreover, National Committee on Plasticulture Applications in Horticulture
(NCPAH) has the mandate to promote and develop the use of plastics in
agriculture, horticulture, water management and other allied areas.
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VIII. Challenges for plastics industry in
Northern India
2. Technology needs
Technology needs are not particularly pertinent only to Northern India; they
are the common need across India. The Indian Plastic processing industry has Knowledge and Strategy Partner
seen a shift from low output/low technology machines to high output, high
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technology machines. There has been some major technological
advancement of global standards leading to achievements like;
However, India's technology needs are critical in areas like high production
and automatic blow molding machines, multilayer blow molding, Stretch/
Blow Moulding Machines, specific projects involving high CAPEX like PVC
calendaring, multilayer film plants for barrier films, multilayer Cast lines,
BOPP and Nonwoven depend solely on imported technology/machinery.
Other technological needs are:
3. Price pressure
The profits of plastics processing industry is facing tough times because of
increased & volatile input prices. Increase in crude oil prices along with the
continuous fall in rupee value has led to lower profits in spite of higher
volume realizations.
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IX. Recycling & Waste Management of
plastics
Plastic waste
Conversion to monomer
Conversion to fuel
Reducing agent in furnace Knowledge and Strategy Partner
Gasification
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The collection & segregation of recyclable waste is one of the key steps in
taking this further. Many a times, households and establishments throw the
waste on the street or dump it in open without segregating the waste which
reduces the quality and at times could make it hazardous. It is essential to
save the recyclable waste material from going to the waste processing and
disposal sites and using up landfill space. Salvaging it at source for recycling
could make profitable use of such material. This will save national resource
and also save the cost and efforts to dispose of such waste. An optimum way
to achieve it is by forming a habit of keeping recyclable waste material
separate from food waste and other bio-degradable wastes, in a separate
bag or bin at the source of waste generation, by having a two-bin system for
storage of waste at homes, shops and establishments where the domestic
food waste (cooked and uncooked) goes into the Municipal Solid Waste
collection system and recyclable waste can be handed over to the waste
collectors (rag-pickers) at the doorstep for transporting the same to the
recyclers.
The Life Cycle Analysis of various plastics products reveals that plastics create
lesser environmental pollution in the atmosphere compared to the
alternatives. Energy consumption, emissions of Green House Gases like CO2
and CH4, quantum of water usage - in all parameters plastics create lesser
foot print on earth.
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recent rules manufacturers and brand owners who use such bags have been
made responsible for the waste management activity along with the
Municipality / Local Bodies. Some state governments have also completely
banned the use of plastic carry bags which are below certain microns.
However, the real solution lies in segregation of waste at source and
promoting creation of waste management infrastructure coupled with
investment in developing recycling centers. Best practices of other
developed nations could be adopted for packaging waste, which follow a
covenant of better product design to ensure reduction, re-use and recycling
of packaging materials. There is also a need for public awareness and
discipline towards recycling of plastic waste. Responsibility for increasing
awareness lies on both government as well as industry. Maximum
participation of all stakeholders is very important to tackle the issue of
Plastics Waste Management. The support of successful NGOs can be
adopted as role model and emulate similar system at different parts of the
country through PPP mode by involving NGO, Municipal Corporation, the
respective State/Central Govt.
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X. Conclusion
Commodity plastics comprising of Polyethylene (PE), Polypropylene (PP),
Polyvinyl Chloride (PVC) and Polystyrene account for bulk of the plastic
consumption in India. India has ramped up its production capacity for plastic
to reach 2.9 MnTPA for PE, 3.1MnTPA for PP and 1.4MnTPA for PVC. IOCL
Panipat refinery, HMEL Bhatinda plant and upcoming GAIL capacity
expansion at Auriya will increase the supply of plastics in Northern India. With
increased supply of plastics, the focus should now be on the downstream
plastic processing industries and how do they grow profitably.
Many application areas of plastics also have overlaps that make market
driven material substitution a good possibility. There are strategic objectives
driven by part consolidation and sustainability compulsions by the user
industry that have made material selection converge to a polymer to
promote recycling. An organized development addressing cost effective
plastic processing along with streamlining operations of recycling of plastics
could pave a growth path for downstream plastic manufacturers in Northern
India.
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harvested output from the field to the final retail market. There are lots of
chances for the degradation of food quality. Unique properties of plastic
make it suitable for applications such as packaging, storage etc during post-
harvest management.
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XI. References
1. Report of the Sub-group on Petrochemicals for the 12th Five Year Plan
11. KPMG report on "Fuelling new cycles of success in food sector through
infrastructure development."
12. NDTV Profit News report on Reliance Industries and India Oil to Invest in
Petrochemical Expansion
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19. Central Institute of plastic Engineering report on growth of plastic
industry
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XII. Innovative Plastics-based
Solutions for Alleviating Water Scarcity
in the Northern India*
Bharat R Sharma
Scientist Emeritus (Water Resources)
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to be channelled into local ponds for artificial recharge. Such ponds are
generally available in the close vicinity of most of the villages. A well-
designed scheme on Managed Aquifer Recharge may be implemented
to augment the depleting resources.
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Plastics Industry
the whole rice cropped area (2.62 M ha) of Punjab followed the stipulated
provisions, the net water savings of 2,180 million cubic metre were
achieved resulting in a saving of 7% in annual groundwater draft.
Additionally, this will lead to a saving of 175 million KWh of energy. The
study further recommends that rather than a single way of responding;
delayed transplanting ought to be integrated with other demand
management options for added gains.
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sustainable limits, while producing a surplus of rice for export. The
optimum combination is to change annual cropping pattern of rice,
wheat and fodder crops to 62, 90, and 42% of the net irrigated area from
the present level of about 90, 90 and 20% respectively, and double the
lactating dairy animals to 8 per 6 ha of land. There are several plastics
based interventions in this crop-dairy-milk value chain which save
both precious water and provide higher and sustainable incomes to the
farmers. Even a partial adoption of this recommendation has huge
financial and hydrological benefits towards a sustainable agriculture in
these state.
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Plastics Industry
packaging and transportation of the perishable produce. This is possible
only through improved and enhanced use of plastics through
development of specific products and designs. Good research and
demonstration in all these aspects shall spurt the sustainable and safe
use of plastics in the production and value chain and create a win-win
situation for the plastics industry and enhancing and improving the
livelihood options for progressive farmers and smart entrepreneurs.
The present model of agriculture and water use is stuck with an intensive
resource input based low- value unsustainable cereal production. As
accelerated cereal production picks up in other regions, the northern region
may envision a new paradigm of high value and diversified sustainable
agriculture and sustainable water use. The region already have the
competitive advantage of complete coverage of its farms under irrigation,
machinery and farm energy; excellent infrastructure and markets, a
progressive investment climate, knowledge institutions and great human
resource . The plastics based innovative solutions, besides the traditional
interventions already well known, shall synergise the growth of plastics
industry and also enhance the incomes and livelihoods of those engaged in
the production systems and a better value for the large consumers. The
moment has now arrived for chartering a new trajectory.
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XIII. KyqI iv`c plwsitk dI vrqoN Aqy iesdy Pwiedy
pI.pI.AYs. pWglI
pRDwn, borlOg Pwrmrz AYsOSIeySn Pwr swaUQ eySIAw
grIn hwaUs ie`k ijsqI pweIpW dw FWcw huMdw hY ijsnUM ie`k pwrdrSI
plwsitk dI SIt nwl FikAw huMdw hY[ iesdw Awkwr ienw v`fw huMdw hY ik
PslW dI kwSq leI vwqwvrx nUM pUrI qrHW jW kwPI h`d q`k kwbU hyT r`Kdw hY
qWik v`D JwV Aqy guxvqw vwly pdwrQ pRwpq ho skx[ grIn hwaUs nUM XU.vI.
iPlm, Kqrnwk XU.vI. iPlmW nUM rok ky &sl dI r`iKAw krdI hY[ grIn
hwaUs Asr kwrn AMdr izAwdw qwpmwn huMdw hY Aqy AMdr dw vwqwvrx
kMtrol iv`c rihMdw hY[ bUty rwq nUM C`fI geI kwrbn fweIAwksweIf nUM svyry
soK lYNdy hn[ ies kwrn auh Awm hwlq vwly pOidAW nwloN 8-10 guxW vDyry
Knowledge and Strategy Partner
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Plastics Industry
Bojn bxw lYNdy hn[
grIn hwaUs nUM au~qr Aqy d`Kx idSw v`l ies qrHW bxwieAW jwxw
cwhIdw hY ik swrw swl sUrj dI roSnI v`D qoN v`D mwqrw iv`c &sl q`k pu`j
sky Aqy hvw dy dbwA dw Asr vI G`t qoN G`t hovy[ grIn hwaUs nUM bhuq vDyry
qwpmwn nUM vDx qoN rokx, kwrbn fweIAwksweIf Aqy nmI dI loVINdI mwqrw
bxweI r`Kx leI hvwdwr bxwieAw jWdw hY qWik &slW leI hvw dw qwpmwn
hwnIkwrk nw is`D hovy[ kudrqI hvwdwr grIn hwaUs iv`c hvw G`t sMGxI
hox kwrn grm ho ky aupr clI jWdI hY[ icmnI dI qrHW grm hvw nUM bwhr
k`F ky TMfI hvw nUM AMdr ilAwieAw jWdw hY Aqy ieh pRikirAw grIn hwaUs
nUM kudrqI qOr qy hvwdwr bxw idMdI hY[
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jWdI hY[ iesy qrHW fIihaUmfIPIkySn Awpxy Awp iv`c ie`k sm`isAw hY[
ijsdw h`l sOKw nhIN hY[ bwirS dy mOsm iv`c grIn hwaUs iv`c nmI dI mwqrw
hor izAwdw ho jWdI hY[ ies hwlwq iv`c rOSndwnW rwhIN hvw dw Awvwgmn
vI nmI dI mwqrw nUM Gtwaux iv`c Asmr`Q ho jWdw hY[ grIn hwaUs nwloN
bwhr hvw dI nmI dI mwqrw G`t huMdI hY audoN hvw dw Awvwgmn sheI huMdw hY[
ies leI grIn hwaUs lgwaux qoN pihlW hr pRkwr dI isKlweI Aqy
pRYktIl tRYinMg leI iksy grIn hwaUs nwl iml ky G`toN G`t ie`k swl dw
qzrbw hoxw zrUrI im`iQAw jwvy qW jo nYSnl hOtrIklcr imSn v`loN id`qI
jWdI sbisfI, ieSoryNs Aqy sbzIAW dy mMfIkrn dI isKlweI XkInI
bnwaux qoN bwAd hI grIn hwaUs/pOlI hwaUs lgwaux dI iejwzq id`qI jwvy[
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XIV. About Tata Strategic
Founded in 1991 as a
division of Tata Industries
L t d , Ta t a S t r a t e g i c
Management Group is the
largest Indian own
management consulting
firm. It has a 50 member
strong consulting team
supported by a panel of
d o m a i n e x p e r t s . Ta t a
Strategic has undertaken
1000+ engagements, with
over 300 clients, across
countries and sectors.
It has a growing client base
outside India with increasing
presence outside the Tata
G r o u p . A m a j o r i t y of
revenues now come from outside the group and more than 20% revenues
from clients outside India.
Tata Strategic offers a comprehensive range of solutions covering Direction
Setting, Driving Strategic Initiatives and Implementation Support
Our Offerings
Formulate Strategy Develop Solutions for Strategic Priorities
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XV. Tata Strategic Contacts
Manish Panchal
Practice Head - Chemicals, Logistics and Energy
Mobile: +91-9820520303
E-mail: [email protected]
Phone: +91-22-66376713
About FICCI
Established in 1927, FICCI is the largest and oldest apex business organisation
in India. Its history is closely interwoven with India's struggle for
independence, its industrialization, and its emergence as one of the most
rapidly growing global economies.
A non-government, not-for-profit organization, FICCI is the voice of India's
business and industry. From influencing policy to encouraging debate,
engaging with policy makers and civil society, FICCI articulates the views and
concerns of industry. It serves its members from the Indian private and public
corporate sectors and multinational companies, drawing its strength from
diverse regional chambers of commerce and industry across states, reaching
out to over 2,50,000 companies.
FICCI provides a platform for networking and consensus building within and
across sectors and is the first port of call for Indian industry, policy makers
and the international business community.
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About FICCI (Federation of Indian Chamber
of Commerce and Industry)
Established in 1927, FICCI is the largest and oldest apex business organisation in
India. Its history is closely interwoven with India’s struggle for independence, its
industrialization, and its emergence as one of the most rapidly growing global
economies.
A non-government, not-for-profit organisation, FICCI is the voice of India’s business
and industry. From influencing policy to encouraging debate, engaging with policy
makers and civil society, FICCI articulates the views and concerns of industry. It
serves its members from the Indian private and public corporate sectors and
multinational companies, drawing its strength from diverse regional chambers of
commerce and industry across states, reaching out to over 2,50,000 companies.
FICCI provides a platform for networking and consensus building within and across
sectors and is the first port of call for Indian industry, policy makers and the
international business community.
FICCI Contacts
Mr. P. S. Singh
Head-Chemicals & Petrochemicals Division
FICCI
Federation House, 1 Tansen Marg,
New Delhi-110001
Tel: +91-11-23316540 (Dir)
Email: [email protected]
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Industry’s Voice for Policy Change