Plastic Indsutry
Plastic Indsutry
Plastic Indsutry
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
OTHER: includes those plastics which are different from the six
aforesaid types of plastic. Food containers ,Tupperware
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)
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 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
Automotive
Large scale use of polymers expected to make the vehicle light and efficient Applications include
Appliances
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
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
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
Infrastructure
Polymers playing a pivotal role in Infrastructure development The key growth drivers for Polymer Usage
Pipes (Gas, Water, Sewerage) Storage Tanks Profiles and Decorative Item Geosynthetics
presence of few suppliers presence of large no. of purchasers high costs of switching suppliers
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
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
Vision
Fields like biotechnology and nanotechnology to be the key drivers Collaborative partnership in R&D Extensive reverse logistics Recycling and waste management
Reference