Plastics Machinery ManufacturersAssociation of India

9th April, 2015

Plastics Machinery ManufacturersAssociation of India

9th April, 2015

Plastics Processing Machineries (PPM)-Indian Industry Overview• 14 manufacturers in organized sector. 200+

manufacturers in small & medium sector• Comprises of wholly owned subsidiaries, Joint

Ventures, Manufacturers under Technology License andhome grown technology machine builders

• Main products include Injection Moulding Machine,Extruders and Blow Moulding Machine. InjectionMoulding Machine accounts for 70% of total PPMIndian Industry

• Export earnings: $50 million; Employment generationpotential: 1.20 Lakh (Direct + Indirect)

• 14 manufacturers in organized sector. 200+manufacturers in small & medium sector

• Comprises of wholly owned subsidiaries, JointVentures, Manufacturers under Technology License andhome grown technology machine builders

• Main products include Injection Moulding Machine,Extruders and Blow Moulding Machine. InjectionMoulding Machine accounts for 70% of total PPMIndian Industry

• Export earnings: $50 million; Employment generationpotential: 1.20 Lakh (Direct + Indirect)

PMMAI, Founding Members• Windsor Machinery Limited• Kabra Extrusiontechnik Ltd• Lohia Starlinger Limited• Rajoo Engineers Limited• Mamata Machinery Pvt. Ltd.• Toshiba Machines Limited• Electronica Plastic Machines Limited• Ferromatik Milacron India Pvt. Ltd• Neo Plast Engineering Pvt. Ltd.• Steer Engineering Pvt. Ltd.• Negri Bossi Division Sacmi Engineering (India) Pvt. Ltd.• Sidel India Pvt. Ltd• J.P. Extrusiontech Pvt.Ltd

• Windsor Machinery Limited• Kabra Extrusiontechnik Ltd• Lohia Starlinger Limited• Rajoo Engineers Limited• Mamata Machinery Pvt. Ltd.• Toshiba Machines Limited• Electronica Plastic Machines Limited• Ferromatik Milacron India Pvt. Ltd• Neo Plast Engineering Pvt. Ltd.• Steer Engineering Pvt. Ltd.• Negri Bossi Division Sacmi Engineering (India) Pvt. Ltd.• Sidel India Pvt. Ltd• J.P. Extrusiontech Pvt.Ltd

Imports & Industry’s Concerns• Continuous imports despite industry having sufficient

or significant surplus capacities• Continuous dumping of injection moulding machines

despite industry having surplus capacities• Fresh dumping by other countries, apart from China• Imports of used plastics processing machineries- not

only causing damage to Industry’s market share, butalso inducing processer inefficiencies

• Imports of certain technology parts & components dueto unavailability in domestic market leading to highcost of production

• Continuous imports despite industry having sufficientor significant surplus capacities

• Continuous dumping of injection moulding machinesdespite industry having surplus capacities

• Fresh dumping by other countries, apart from China• Imports of used plastics processing machineries- not

only causing damage to Industry’s market share, butalso inducing processer inefficiencies

• Imports of certain technology parts & components dueto unavailability in domestic market leading to highcost of production

Import StatusNew Machines

2011- 12 2012- 13 2013- 14Quantity (Nos.) 2,501 1,789 1,617Value (Rs. Crores) 1,142 984 897

-

200

400

600

800

1,000

1,200

-

500

1,000

1,500

2,000

2,500

3,000

Qua

ntity

(Nos

.)Imports of Plastic Processing Machinery

2011- 12 2012- 13 2013- 14Quantity (Nos.) 2,501 1,789 1,617Value (Rs. Crores) 1,142 984 897

-

200

400

600

800

1,000

1,200

-

500

1,000

1,500

2,000

2,500

3,000

Qua

ntity

(Nos

.)Imports of Plastic Processing Machinery

Import StatusUsed Machines

2011- 12 2012- 13 2013- 14Quantity (Nos.) 1,040 796 593Value (Rs. Crores) 83 86 102

-

20

40

60

80

100

120

-

200

400

600

800

1,000

1,200

Qua

ntity

(N

os.)

Imports of Plastic Processing Machineries

2011- 12 2012- 13 2013- 14Quantity (Nos.) 1,040 796 593Value (Rs. Crores) 83 86 102

-

20

40

60

80

100

120

-

200

400

600

800

1,000

1,200

Qua

ntity

(N

os.)

Imports of Plastic Processing Machineries

Imports’ Share 2013- 14, Country wiseNew Machines

28%

3%8%

4%4%8%

29%

9%7%

Share in total Imports, 2013- 14

China

Germany

Japan

Malaysia

Philippines

Korea Rep

Taiwan

Vietnam

Others

28%

3%8%

4%4%8%

29%

9%7%

Share in total Imports, 2013- 14

China

Germany

Japan

Malaysia

Philippines

Korea Rep

Taiwan

Vietnam

Others

Imports’ Share 2013- 14, Country wiseUsed Machines

3%16%

3%

39%

9%

6%

4%3%

9%8%

Share in total Imports, 2013- 14

Canada

Germany

Italy

Japan

Malaysia

U K

U S A

Korea Rrep

Taiwan

Others

3%16%

3%

39%

9%

6%

4%3%

9%8%

Share in total Imports, 2013- 14

Canada

Germany

Italy

Japan

Malaysia

U K

U S A

Korea Rrep

Taiwan

Others

Imports’ Share 2013- 14, Machine wiseNew Machines

11%

9%

77%

3%

Share in Total Imports, 2013- 14

Blow Moulding

Extrusion

Injection Moulding

Vaccum Moulding

11%

9%

77%

3%

Share in Total Imports, 2013- 14

Blow Moulding

Extrusion

Injection Moulding

Vaccum Moulding

Recent Imports of Machines- QoQSN Period Qty Nos.

(New M/C)Value Rs. Lacs(New M/C)

Qty Nos.(Old M/C)

Value Rs. Lacs(Old M/C)

1 2013- 14 (Q1) 529 18,052 190 3,987

2 2013- 14 (Q2) 607 21,541 135 2,5232 2013- 14 (Q2) 607 21,541 135 2,523

3 2013- 14 (Q3) 629 20,696 104 1,230

4 2013- 14 (Q4) 628 26,126 122 1,499

5 2014- 15 (Q1) 580 19,343 134 2,730

6 2014- 15 (Q2) 620 24,799 216 2,946

Recent Imports (Nos.) of Machines-QoQ

529607 629 628

580620

190135 104 122 134

216

-

100

200

300

400

500

600

700

Import Nos. New & Used Machines

New Machines Used Machines

529607 629 628

580620

190135 104 122 134

216

-

100

200

300

400

500

600

700

Import Nos. New & Used Machines

New Machines Used Machines

Duty StructureDuty StructureDuty StructureDuty Structure

Machine Name: Injection Moulding Machine (ITC Code: 84771000; BCD: 7.50%)

Sno. Commodity HS Code BCD1 Ball Screw 84834000 7.50%2 Bi-Metallic Barrel 84779000 7.50%3 Contact Less Transducers 90319000 7.50%4 Electronic Control 85372000 7.50%5 Electronic Variable Volume Pump 84135090 7.50%6 Fixed Volume Pump 84136010/84136090 7.50%7 Graphite Bushings 84833000 7.50%8 High Precision Bearing 84828000 7.50%9 High Torque Hydro Motors 84122990 7.50%

10 High Wear Resistance Pad 73259910 15%11 Hydraulic Valves 84812000 7.50%12 Linear Motion Guide 84818090 7.50%13 Load Cell 90319000/90269000 0%14 Lubrication System 84133090 7.50%15 Power Supplies 85044010 10%16 Variable Frequency Drive 85013310/85015290 7.50%17 Automation Components 9031 7.50%18 S.G. Iron Casting 72/84779000 7.50%19 Steel Bars 7222 15%20 Machine Base 84879000 7.50%21 Hydraulic Reservoir 73090090  15%22 Heat Exchanger 84195010 7.50%23 Sheet Metal 73090090 15%23 Sheet Metal 73090090 15%24 Hydraulic Hoses 40092200  10%25 Hydraulic Cylinders 84122100 7.50%26 Hydraulic Fittings 84859000  7.50%27 Accumulators 84818049  7.50%28 Electric Motors 85015210  7.50%29 Seals 74199990  10%30 Transducers 85333910  0%31 Thermocouples 90251990  7.50%32 Electrical parts 85371000 7.50%33 Filters 84212190  7.50%34 Breathers 84212190  7.50%35 Heaters 85144000  7.50%36 Fastners 82034090 10%37 Anti vibration pads 40169390 10%38 Extruder Gearbox 84834000  7.50%39 Others 84779000 7.50%

Machine Name: Extruders/ Extrusion Machine (ITC Code: 84772000; BCD: 7.50%)

Sno. Part/ Component Code BCD1 Endless Belt 40103999 10.00%2 4 Way Ball Valve 84818090 7.50%3 Spring Loaded Plunger 731829 15.00%4 Insert 820900 10.00%5 Pullboring Head 820750 10.00%6 Pressure Transducer 90262000 0.00%7 Mating Connector 85366990 10.00%8 Drives 85437099 7.50%9 Cables 85442090 7.50%

10 Bearings 84822090 7.50%11 Infra Kote 34039900 10.00%12 Heat Transfer Compound 34039900 10.00%13 Shank type Finishing Cutter 82079090 10%14 Plain Bearing 8709 10.00%15 Water Pump 84137010 7.50%16 Mechenical Seal 84139190 7.50%17 Cartridge Heaters 85167990 10.00%18 Vaccum Pump 84141000 7.50%19 Slewing Ring Bearings 84821090 7.50%20 Cast Heater 85167990 10.00%21 Round Flange bearing 84822090 7.50%22 Alloy Steel Round Bar 72283029 15.00%23 A.C. Motors 85011020 7.50%23 A.C. Motors 85011020 7.50%24 Potentiometer, Transducer 85333110 0%25 Inductive Sensor 90319000 7.50%26 Socket 85364900 7.50%27 Safety Light Curtain 90328990 7.50%28 U Sensor & US Controller 85369090 7.50%29 Screen Filters 84212900 7.50%30 Lin Power Supply 85049000 7.50%31 Actuator Ball Drive 85049000 7.50%32 Static Generator & Genrator Bar 854370 7.50%

Machine Name: Blow Moulding Machine (ITC Code: 84773000; BCD: 7.50%)

Sno. Commodity HS Code BCD1 Ball Screw 84834000 7.50%2 Bi-Metallic Barrel 84779000 7.50%3 Contact Less Transducers 90319000 7.50%4 Electronic Control 85372000 7.50%5 Electronic Variable Volume Pump 84135090 7.50%6 Graphite Bushings 84833000 7.50%7 High Precision Bearing 84828000 7.50%8 Hydraulic Valves 84812000 7.50%9 Linear Motion Guide 84818090 7.50%

10 Lubrication System 84133090 7.50%11 Power Supplies 85044010 10.00%12 Variable Frequency Drive 85013310/85015290 7.50%13 Automation Components 9031 7.50%14 S.G. Iron Casting 72/84779000 7.50%15 Steel Bars 7222 15%16 Machine Base 84879000 7.50%17 Hydraulic Reservoir 73090090  15.00%18 Sheet Metal 73090090 15.00%19 Hydraulic Hoses 40092200  10%20 Hydraulic Cylinders 84122100 7.50%21 Hydraulic Fittings 84859000  7.50%22 Electric Motors 85015210  7.50%23 Seals 74199990  10%23 Seals 74199990  10%24 Transducers 85333910  0%25 Thermocouples 90251990  7.50%26 Electrical parts 85371000 7.50%27 Filters 84212190  7.50%28 Breathers 84212190  7.50%29 Heaters 85144000  7.50%30 Fastners 82034090 10%31 Anti vibration pads 40169390 10.00%32 Extruder Gearbox 84834000  7.50%

Date: 10th April, 2015

To, Shri. Mahender Kumar Secretary Tariff Commission 7th Floor, Loknayak Bhavan Khan Market, New Delhi Sub: -Request in the matter of reduction in import duties on major parts and components used by Plastics Machinery Manufacturers Dear Sir,

We the Plastics Machinery Manufacturers Association of India is an industry-body representing all plastics machinery manufacturing organisations in India. PMMAI was formed with the objective to promote the advancement of plastics machinery manufacturing industry and also to promote common interest of constituents of plastics machinery manufacturing industry comprising of primary processing machinery, post forming processing machinery and auxiliary equipment used in pre and post forming operations etc. in the fields of economy, technology and science through cooperation and coordination at national and international level and train people for the industry with required skills.

This is with reference to our discussions held on 9th April, 2015 at your office.

As discussed, import duties on certain technology parts & components used

in manufacturing of plastics processing machineries are quiet high. There is

no or very limited availability of these parts & components, domestically; and

therefore, industry has to import all such parts & components; thereby,

adversely effecting the cost competiveness.

In view of the above, we request you to conduct a study and recommend your

valuable suggestions to the concerned ministry for the reduction of import

duties on parts & components, so that this industry can become more cost

competitive.

We are enclosing herewith overview of the Industry; Import Situation; and

Duty Structure of Injection Moulding Machines, Extrusion Machines and Blow

Moulding Machines, which constitute more than 95% of total Indian Plastics

Processing Machinery Industry. Should you need any further information in

this matter, we would be pleased to provide the same.

With Regards,

Yours truly,

For Plastics Machinery Manufacturers Association of India

Mahendra Patel Chairman.