Plastic Indsutry

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Shreyas Nair 12020241066 Bhushan Ashtikar 12020241016 Jagdish Lamture12020241080 Pradeep Dharasurkar1202024189

Introduction
Plastic
The name plastic has been coined from plastikos- a Greek word meaning capable of being shaped or molded characterized by light weight, high corrosion resistance and low melting point

Classification of Plastic:
Broadly plastics can be classified into two types Thermosetting Thermoplastic

Apart from these, plastics have been also divided into seven different types by the plastic industry

POLYETHYLENE TEREPHTHALATE (PETE): soda and cooking oil


bottles HIGH DENSITY POLYETHYLENE (HDPE): detergent bottles, milk jugs

POLYVINYL CHLORIDE (PVC): plastic pipes, furniture


LOW DENSITY POLYETHYLENE (LDPE): dry cleaning bags, food storage containers POLYPROPYLENE (PP) : bottle caps , drinking straws

POLYSTYRENE (PS) : cups, plastic tableware

OTHER: includes those plastics which are different from the six
aforesaid types of plastic. Food containers ,Tupperware

The chronology of production of polymers is summarized as under

Polystyrene (1957)

PVC (1961)

Polypropylene (1978)

LDP (1959)

HDPE (1968)

Plastic Products
Packaging

PP / HDPE woven sacks / bags / fabrics A range of plastic sheeting / films Polyester film, BOPP film Mesh, photo films Toothbrushes, cleaning brushes, hair brushes house ware, kitchenware, stationery items Pens, ball pens, markers, sign pens, refills, etc Molded luggage, soft luggage A range of bags like school bags / ladies handbags, wallets, etc.

Films

Consumer Goods

Writing Instruments

Travel ware

Foam Boards Drip Irrigation Systems / Components Pipes & Pipe Fittings - Made of PVC, HDPE, PP, FRP, nylon Water Storage Tanks Toys and Games Engineering Plastics - Auto components, parts for various machinery / equipments Electrical Accessories FRP / GRP Products - Safety helmets / equipment, pipes, storage tanks, etc Sanitary Fittings - Cisterns, toilet seats, bathroom fittings, etc Laboratory Ware Surgical / Medical - Disposable syringes, blood / urine bags, I.V. sets, etc
(Source: http://www.india-exports.com/plastic.html)

Indian Plastic industry


The per capita consumption of polymers industry in the country during 2012-13 was low at just 9.7 kg Growing market for plastics and consumes about 11 million tonnes annually against a global consumption of 275 million tonne per year The plastics and polymer consumption is growing at an average rate of 10% Manufacturing capacity of 30 million metric tonnes per annum
(Source: coverage of Report on Indian Plastics Industry 2012-2016 by Indian express)

Contribution to Economy
Over 30000 processing units employing 4 million people On the basis of value added, share of India's plastic products industry is about 0.5% of India's GDP The export of plastic products also yield about 1% of the country's exports Large presence of small scale companies in the industry, which account for more than 50% turnover of the industry Approximately Rs 100 billion are invested in the form of fixed assets in the plastic processing industry
(Source: India Exports and Business Trade Zone)

Polymer Capacities in India

Source: Indian Plastic Industry-vision 2012, A report by CRISIL

Governing organizations for the plastic Industry


Plastics Export Promotion Council (PLEXCONCIL)
the apex government body for the promotion of exports The members of the council comprise large/medium/small-scale manufacturers and exporters Facilitates exporters by organising international trade fairs, buyer seller meets, etc

The All India Plastics Manufacturers' Association (AIPMA)


Apex non profit body serving Plastic industry since 1945 AIPMA organizes National as well as International trade shows , Seminars, Lecture Meetings, Conferences, Buyer & Seller Meet, Training Programmes Liaison between the Government and the Industry

(Source: www.aipma.net/about-aipma, www.ibef.org)

POLYMER MANUFACTURING

CONVERTING INDUSTRY

MACHINERY

Growth Drivers
Packaging Automotive Appliances Healthcare and Hygiene Agriculture Infrastructure

Packaging

The development in Polymer packaging brought in the revolution >60% polymers used in India are consumed for packaging Key industries

Food FMCG Cosmetics

Automotive

Growth drivers for polymer usage


Low vehicle penetration Rising income levels Growing middle class

Large scale use of polymers expected to make the vehicle light and efficient Applications include

Bumpers, dashboards, grills Battery containers Ducts, seats, interiors

Appliances

The key growth drivers for Polymer Usage


Low penetration Level in India Untapped Rural Market Faster Replacement Cycle Availability of Power to all by 2020 All plastics Washing Machines TV / AC cabinets, Refrigerator Components Water Purifier Body

Applications of Polymers in Automobiles


Healthcare and Hygiene

India has already emerged as preferred Medical Tourism Destination The modern healthcare demands for more polymer based products The key growth drivers for Polymer Usage

Syringes, IV Fluid Bottles, Blood Bags Disposable wears Modern Medical Equipments Implants, Artificial Body Parts

Personnel Hygiene Products

Sanitary Products, Baby care products

Agriculture

Plasticulture The emerging sector in India Growing awareness will drive consumption growth in Agriculture Sector The key growth drivers for Polymer Usage

Green Houses Crop / Fruit Covers Drip Irrigation Pipes Storage Tanks Shade Nets

Products used are


Infrastructure

Polymers playing a pivotal role in Infrastructure development The key growth drivers for Polymer Usage

Building and Construction Mega Highway Projects Rural Electrification Projects

Products used are


Pipes (Gas, Water, Sewerage) Storage Tanks Profiles and Decorative Item Geosynthetics

Porter's Five Force Analysis

Bargaining power of Supplier

A few factors which increases the supplier powers are

presence of few suppliers presence of large no. of purchasers high costs of switching suppliers

Oligopoly with 15 key players

Bargaining power of Buyer


Buyers in this industry are many Range from small to big sized firms Firms producing standard products have large volumes and multiple suppliers:

Agriculture, Infrastructure and Packaging have low to medium bargaining power Automobiles and electronics have high bargaining power

Competition

Large chunk of the plastic processors are lying in the small and medium scale range of industries Price war Small companies specialise in a particular variety Large players are not as adaptable as small companies

Threat of New entrants

New entrant faces difficulty in case that it does not achieve a substantial market share to reach the minimum efficient scale, it usually stands at a cost disadvantage Established market and reap advantages of economies of scope. Also the SSI policy of the Govt - its reservation policy and exempting it from several kinds of taxes Access to raw materials, technological know-how, key-inputs are difficult Only big firms can enter this kind of market having sufficient capital at hand

Threat of substitutes

With the growing alertness against the use of plastic in daily life at an alarming rate, there is a threat of close substitutes

Glass PHB biocomposites Liquid wood ECM biofilm Polyactides

Vision

Fields like biotechnology and nanotechnology to be the key drivers Collaborative partnership in R&D Extensive reverse logistics Recycling and waste management

Reference

http://export.gov/build/groups/public/@eg_ main/@byind/@manufind/documents/webco ntent/eg_main_041066.pdf http://www.zenithresearch.org.in/images/sto ries/pdf/2011/Nov/22_vol-1_issue7%20_%20%20%20SANTANU%20MANDA%20 Industry%20Analysis%20_Plastic%20_L.pdf

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