1 country report plastics industry in india issues and challenges
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Country Report: Plastics Industry in India- Issues and Challenges
23RD ANNUAL GLOBAL MEETING ON PLASTICS & SUSTAINABILITY
A presentation by…
ARVIND M MEHTAChairman Plastivision India Advisory Board. AIPMA
Executive Director Council of International PlasticsAssociation Directors (CIPAD)
Past President: Plastindia FoundationPast President: AIPMA
Threats and Challenges for the Plastics Industry : An Indian PerspectiveCOUNTRY REPORT: PLASTICS INDUSTRY IN INDIA - ISSUES AND CHALLENGES
Miami, USA. 4-5 December 2012
Country Report: Plastics Industry in India- Issues and Challenges
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2Country Report: Plastics Industry in India- Issues and Challenges
Source: Industry Estimates* Demand growth for 12th and 13th plan refers to CARG
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2012-17 (12th Plan)
2017-22 (13th Plan)
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
22000
24000
5663 58326931
7818 81919303
14001
22080Demand
To touch 22 MMT in the 13th Plan
Plastics Consumption Likely to Cross 9 MMT in Current Year
Country Report: Plastics Industry in India- Issues and Challenges
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3Country Report: Plastics Industry in India- Issues and Challenges
• Strong economic growth rising purchasing power
• Favorable demography
• Growing middle class & upward mobility of income groups
• Low per capita consumption
• Retail Revolution
• Automobile sales
• Aggressive Infrastructure Development
Prime Drivers of Plastics Consumption Growth in India
Plastics consumption growth closely linked to the unfolding Indian growth story…. and likely to
continue
Country Report: Plastics Industry in India- Issues and Challenges
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4Country Report: Plastics Industry in India- Issues and Challenges
A Day in the Life of India - Average Daily Sales in India
Cars 6000 2 wheelers 36800
Washing Machine 10600
TVs 36400 AC 10100
Refrigerators 22100 Mobile phones 405400
Rapid rise in consumption fueling plastic industry growth
Country Report: Plastics Industry in India- Issues and Challenges
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5Country Report: Plastics Industry in India- Issues and Challenges
Consumption Supported by a Vibrant Processing Industry
As on March 2012
World-class capabilities to make competitive products
Number of Machines ~ 98000 Inst. Cap ~ 24000
Extrusion 29% Extrusion
66%
Blow Moulding
8%
Blow Moulding
5%
InjectionMoulding
5%
Roto (est) 1%v
Injection Moulding 62%
Roto (est) 1%v
Country Report: Plastics Industry in India- Issues and Challenges
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Country Report: Plastics Industry in India- Issues and Challenges
Rising Exports of Value Added Plastic Products
2005-06 2006-07 2007-08 2008-09 2009-10 2010-110.0
0.5
1.0
1.5
2.0
2.5
1.1 1.2
1.82.0 2.1
2.3Plastic Products Exports from India ($ Bn)
Film, Sheets &
Plates incl PET
29%
Other Moulded and ex-truded items12%
Packaging Items 10%Woven sacks/FIBCs
8%
Optical items
8%
Writing In-
stru-ments
6%
Houseware
6%
Pipes, tubes, hoses
and fit-tings
5%
Others 16%
Composition of India’s Plastic Products Exports
6
Reflect internationally accepted quality standards
Source: Report of the Sub-group on Petrochemicals for the 12th Five Year Plan, 2012
Country Report: Plastics Industry in India- Issues and Challenges
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7Country Report: Plastics Industry in India- Issues and Challenges
Issues Facing the Plastics Industry
THREATS
Issues & Challenges
Negative Perception Among Policy Makers
Littering Habits Among People
Government Bans
Environmental compliance
Plastic Waste Management Infrastructure
Environmental Regulations e.g REACHThreats
Country Report: Plastics Industry in India- Issues and Challenges
Thank you
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