1 country report plastics industry in india issues and challenges

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Country Report: Plastics Industry in India- Issues and Challenges 23 RD ANNUAL GLOBAL MEETING ON PLASTICS & SUSTAINABILITY A presentation by… ARVIND M MEHTA Chairman Plastivision India Advisory Board. AIPMA Executive Director Council of International Plastics Association Directors (CIPAD) Past President: Plastindia Foundation Past President: AIPMA Threats and Challenges for the Plastics Industry : An Indian Perspective COUNTRY REPORT: PLASTICS INDUSTRY IN INDIA - ISSUES AND CHALLENGES Miami, USA. 4-5 December 2012

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Page 1: 1 country report plastics industry in india issues and challenges

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

Page 2: 1 country report plastics industry in india issues and challenges

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

Page 3: 1 country report plastics industry in india issues and challenges

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

Page 4: 1 country report plastics industry in india issues and challenges

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

Page 5: 1 country report plastics industry in india issues and challenges

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

Page 6: 1 country report plastics industry in india issues and challenges

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

Page 7: 1 country report plastics industry in india issues and challenges

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

Page 8: 1 country report plastics industry in india issues and challenges

Country Report: Plastics Industry in India- Issues and Challenges

Thank you

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