Polypropylene :Trends and Developments in Packaging

Dr. U. K SaroopGeneral Manger- Reliance Industries Limited

AUGUST 08, 2008

Content

• Polypropylene Versatile Polymer

• Clear Business Opportunities by Clarified Polypropylene

• Extrusion Blow Moulding (EBM) / Injection Stretch Blow

Moulding (ISBM)Thin Wall Injection Moulding (TWIM)

• Trends in Bulk packaging

• Retail Packaging

• Specialty Packaging

• RIL Partnership

Parable of Three Wise Men

Parable of Three Wise Men:The Green House Effect

other8%

Residential13%

Industry18%

Power Generation

41%

Transportation20%

World energy-related CO2emissions by sector 2004:

• The world has warmed by 0.74°C in the last century

• Will warm 0.2°C per decade

• Global temperature would increase by 3°C by the turn of this century

Climate Change – sparking events, that haven't happened in 650,000 years

Wiseman 1: Theory of Carbon Sequestration

• Carbon Capture and Sequestration – help ameliorate global warming

• By 2050, every year 5-10 billion Tons of CO2 will be buried

• Saline Aquifiers – sandstone formations evaluated for storage

• US$ 6 million project in 2004

• Compressing 3,000 tons of CO2 into a supercritical fluid

• Pumping it 1.6 km below surface into 2.3 mtr. thick sandstone layer

High Cost and Space requirements may become limiting factors !

Wiseman 2: Theory of Hydrogen Fuel• Transporting energy both in

Electrical and Chemical Form

• Two conduits - ~ 1 mtr. Dia.

• Electricity – through (red) resistance

free pipes made of super conducting

materials

• Chilled Hydrogen as liquid (blue)

maintain temp. ~ absolute zero

• Simultaneously transmit

– 5 gigawatts of Electricity

– 10 gigawatts of Thermal Power

Technology development – a long way to go !!

Wiseman 3: Theory of Common Sense

….. Use more & more Polyolefins

The question is …..

Parable of Three Wise Men:The question is ???

And the answer is …..

Parable of Three Wise Men: (A Case) Polyolefins: Environmental Value Added

Avg. mid-sized car in US contains $2219 of Chemistry (Both Chemical Products & Processing)

• Total amount of Chemistry in Automobiles US$ 31.5 bln

• Chemical products make up ~ US$ 800 of the total value of the car

• On an avg. contains 150 kg of Plastics (8% of total wt)

Enhancing Efficiency (West Europe Case)

• Each 4.5 kg of plastics substituted improves fuel efficiency by 0.11 to 0.14%

• Annual fuel savings of over 2.3m t – equivalent to 9.2 m t CO2 emissions

Polyolefins – offering hygienic, environmentally safe products

Polypropylene Versatile Polymer : Designer’s Choice

PP - A Versatile Polymer…With the widest Performance Envelope

Optimum impact-stiffness balance

400

600Izod impact at RT, J/m2

Flexural modulus, MPa

0 1000 2000

200

Optimum impact-stiffness balance

400

600Izod impact at RT, J/m2

Flexural modulus, MPa

0 1000 2000

200

Global PP Demand

PP - CARG 5.4%

MMT

Source – CMAI 2006

4153

0

20

40

60

2005 2010

RCP and ICP are growing at higher rates than HPP

Journey from 1.3 MMT to 3.2 MMT by 2010

P P C o n s u m p t io n 2 0 0 5

IM3 6 %

R a f f ia s3 2 %

T Q1 6 %

B O P P8 %

E x t r u s io n3 %

F & F5 %

P P C o n s u m p t io n 2 0 1 0

I M3 1 %

R a f f i a2 9 %

T Q1 1 %

B O P P9 %

E x t r u s i o n7 %F & F

1 3 %

Polypropylene –India Growth Opportunities

Packaging – Adding the 5th Dimension

Packaging –Revolutionizing Classical 4 “P” Model

Clarified Polypropylene

• Glass like transparency

• Excellent moisture barrier & Chemical resistance

• Higher continuous use ambient temperature

• Hot fill (upto 98o C), Retortable & Microwaveable

• Excellent balance of stiffness , flexibility

• Live Hinge property

• Excellent ESCR property

• Cost effective

Clarified Polypropylene (cPP) ideally suited for Modern Life Style

Characteristics of Clarified PP

India vis-à-vis Global Average

Strive to Meet Global Average

3.1 %

7.5 %

cPP Consumption : as %age of Total PP

Incorporation of Ethylene in PP

• Chain regularity disturbed.

• Decrease in crystallinity and rate of

crystallization.

• Restrict the size of crystalline aggregates.

• Better clarity.

Use of Clarifier (Nucleation)

• Large number of crystallites having size less

than wavelength of light.

• Effect : Better clarity and high stiffness.

PP Random Copolymer

Inorganic Nucleators : Larger than the wavelength of light.Sorbitol-based Clarifiers form a fibrous network within the resin that makes the crystallites smaller than the wavelength of light.

(Source: Milliken Chemical)

Nucleators and clarifiers

induce formation of smaller

spherulites that scatter less

light.

Nucleated vs Clarified PP

100 microns

Nucleated PPStandard PP

Polypropylene morphology

Photomicrographs - cross-polarized light

Polypropylene morphology

Clarified PolypropyleneIndian Perspective

Processing TechniquesProcessing Techniques

MouldingMoulding ExtrusionExtrusion

TWIMTWIM IMIM ISBMISBMEBMEBM

Sheet& TF

Sheet& TF

RTE / RTS Containers

Housewares , Consumables & Medicare

Pharma & Beverages Cosmeceuticals Disposable

containers

Partnership with Machinery mfrs. – Key to future Success

cPP – Diverse Process Technologies

Infusion of new technologies (ISBM & TWIM) to fuel growth

0

50

100

150

200

250

300

350

400

450

2005-06 2008-09 2012-13

TF

IM & EBM

ISBM

TWIM

TF ISBM TWIM

IM & EBM

TF

IM & EBM

ISBMTWIM

Matured Technology

Con

sum

ptio

n in

KTA

cPP Growth avenues : India

Clear Business Opportunities by Clarified Polypropylene

Complete Market Acceptance of cPP Containers

OEM’s : GSK, Heinz, Cadbury, GCMMF

Total Current Mkt : 85 KTA

50% is Packed in Bottles & 50 % in Refill Pouches

Market is growing at 15 %

GSK controls 70% Market

Malt Milk Food : Successful Commercialized Application

Oxygen Sensitive

cPP is the Winner – Strategy to substitute Glass & Tetra-Pack

cPP Beverage Analysis

Target Market : 200 ml Single Serve Bottles

OEM’s : Warna, Amul, Mahanand, Metro

Dairy, Aavin, Hatsun

Status : Sterilizers modified (Suitable for

Plastic Bottles ) at couple of Dairies

Major Growth drivers :Changing Food Habits & Health Consciousness Widespread availability of Cold Chains due to Retail ChainHigh Disposable Income

Dairy : Flavored Milk

Target Market : Low Juice Content Fruit Drinks

Existing Material : Glass, HR-PET, Tetrapak

Status

• Trend Changing towards Health Drinks

• Government emphasis on Processed food sector

cPP Offers :

• Hot fillability upto 98 deg C

( High Filling Temp means lower Preservative Requirements)

• Lower Bottle Weight Vis-à-vis PET

cPP Finding rightful place in Hot Filled Products

Hot Filled Fruit Drink

OEM’s:

Bisleri, Pepsi, G.C.Beverages, National Foods, Railways

Existing Material : PET

• High Growth market ( 30 % annually)

• PP offers Weight advantage apart from Soft touch and no Acetaldehyde Generation

• Contact Clarity same as glass

• Bottle & Cap both from PP –Ease of recycling

Water : Promising Market for cPP

Total Mkt 120 Crore Bottles

200&500ml :

35% Mkt Share

(42Crore

Bottles)

35 % Lower Density than PET : Commercial USP of cPP

Drinking / Flavoured Water

Drinking / Flavoured Water

Target Market : RTE Food / Mithai packaging

Existing Material : Paper Cartons / Trays

End-User : RTE Outlets, Food-Courts, Mithai Shops, Meal Vendors, Local Sweet and confectionary shops

Status :

• TF Containers are in use for select Mithai Pkg.

• Meal Trays are also being used by few selected vendors

• Glasses & Cups are being used for liquid / creamy foods

Changing Food Habits : Driver for Disposable Containers

• Ethnic Food Mkt is 2.9lakh TPA

• Organized Mkt marginal – Growing@15%

• Demand for Attractive high end packaging is growing

• Possible to Pack Hot Foods

• Microwavable Packaging

RTE Food

Target Market : Fruit Jams, Honey , Bread

Spreads

Existing Material : Glass

cPP Finding rightful place in Hot Filled Products

• cPP Bottles can be Hot Filled – an important

requirement for Jam Filling

• No Breakage – Ease of handling

• Lower Weight

On-Going Projects : Jam and Honey

Infotainment Industry - India is catching up very fast with

global trend.

Optical Media a major growth area for Infotainment.

DVD a very fast growing application while VCD a declining

market.

Global DVD production estimated to 30 Bn in 2005.

USA, Europe & China account for 95 % of global market.

India’s share is < 1 %

~ 12 % MADE IN CHINA

Optical Media : DVD Boxes

Target Market : Movie Houses

Existing Material : Styrenics,

OEM’s : Cinema Houses like SONY, Infotainment Industries

Status :

• Sony has completely switched over to cPP DVD Boxes

• Presently they are importing all their requirements from China

• DVD Market is growing at very high speed

Catering High-Tech with HDD & Blue Ray Formats

Total Disc production (CD/DVD) :1 Bn Pc/Yr

DVD market Growth rate 92%

Optical Media (DVD Boxes)

Target Market : Dettol ( Antiseptic Liquid )

Existing Material : Glass

OEM : Reckitt & Benkiser

Status :

• PP has been approved by R & B in

• R & B is evaluating cPP Bottles for Dettol Packaging

• PET is not suitable for Dettol

• Very High Volume Market

Alone 200ml Bottle to Create 3,000 TPA Market

5 Lakh Bottles of

200ml per Day i.e.

15 Crore Bottles

Per Anum

Dettol

Target Market :Pill Vials, I.V. Fluid Bottles, Ayurvedic Cough SyrupsOEM’s :PDPL, GSK (Pharma), Pfizer, AlphaStatus :

New Grade SR20NS Successfully EstablishedRequisite Pharmacopeia certification Obtained

Factors for Rapid Growth in Pharma Industry

o High safety awareness

o India becoming favored destination for Multinational Pharma Industry

Pharmaceutical

Moisture Barrier and Adequate Transparency :cPP Containers find larger acceptance day by day

PP – Airtight Containers

Polypropylene :Extrusion Blow Moulding (EBM)

EBM : Freedom of Design(Transparency Included)

Polypropylene :Thermoforming

Thermoformed Products

Polypropylene :Thin Wall Injection Moulding (TWIM)

Retailing require large quantities of TWIM Containers for RTE FoodsPresently no Real TWIM Downstream in India

Bulk Packaging

Leno Bags – The Ideal Choice for F & V

It is a form of weave in which adjacent PP warp tapes are twisted around consecutive weft tapes to form a spiral pair, effectively locking each weft in place.

Excellent breathability, good tensile and burst strength.

Used for onions, potatoes, garlic, cabbage,

beet root, brinjal, carrot and coconuts.

Can be printed and labeled.

Available in wide range of colours.

Light in weight & cost effective compared to jute bags.

Does not impart odour to packed contents

Capacity : 1 to 50 Kg.

Advantages of Leno Bags

Leno Bags for Potato Storage

India 3rd largest producer of potatoes.

Most suitable for Cold Storages –due to

better aeration, leno bags reduces power

consumption by 30%.

Leno and CIPC – to create synergy for

storage packaging.

No sweating of potatoes hence lower

wastage

Ideal for sweat less potatoes due to

controlled sugar level in potatoes.

• Agri-

Horticultural

Produce

– Sugar / Food

Grains

– Fruits &

Vegetables

– Tea & Coffee

• 2nd Largest producer of

Horticulture Produce

• 2nd Largest producer of

- Sugar / Food grains

World choice for Agri & horticulture produce packaging

Woven Sack for Bulk Packaging

Packaging and storage of Foodgrains and Sugar is a

challenging job.

Both are hygroscopic and thermally active.

Ideal Packaging System should have :

Adequate Mechanicals.

Sustain the quality on long term storage

Foodgrains & Sugar Packaging

100% satisfaction in Sugar and Foodgrain applicationNo deterioration in grain/sugar qualityReduced need for prophylactic treatmentStable stacks, free of bulges and burstingsNo infestation due to rodents, birds, etc.No moisture gain/lossHygienic and compatible with Edible ItemsHooking & Worker Friendly

Drop test

HookingHandling

Findings of Field Trials-PWS for foodgrain Packaging

PP Woven Sacks meets all the functional requirements

Certification Received from HAFED, NAFED, NSI, IARI etc.

PWS for foodgrain packaging – ISO

PP Woven Sacks meets all the functional requirements

PP Woven Sacks for Packaging of Tea

IIP Study report synopsis :

Shelf life evaluation on moisture content and organoleptic properties of tea stored in PP Woven Sacks also found to be better than in jute bags.

Chemical quality of tea stored in jute & PP Woven Sacks were comparable.

Mechanical properties of PP Woven Sacks found to be better than jute bags.

Transport worthiness and stackability found to be comparable to that of jute bags.

Cost effective functional solution to bulk tea packaging.

Target Market :

Hot Filled Juices, Pickles, Trays for Biscuits , RTE-Meal & Tea Bags

Status :

Very High demand for packaging of various consumable food items

RTE ( Ready to Eat), RTD ( Ready to drink), RTC ( Ready to Cook) Take away Foods, Processed Foods

Trays and Punnets for Confectionery, Fresh Fruits Pastries, Tea Bags………

Retail Industry (Reliance Initiatives)

Breathable Films:

• Extend shelf life, preserve freshness, flavor and reduce the need for preservatives.

• Equilibrium respiration rate for extended shelf life

• Use in: Leafy vegetables, Fruits

Key Projects

PP in core layer in a 3 layer structure:

• Enhanced clarity, gloss and moisture barrier

• Superior strength and stiffness

• Use in: Salt, sugar, candy/toffee, preservatives

Net Bags – for F & V

• Low Cost Packaging Material.

• Better product quality

• PE Knitted Bags ( Retail Pack) : 1/ 2 Kg & 1 Kg.

• PE / PP Extruded Net Bags( Retail Pack) : 1/2 Kg , 1 Kg , 2 Kg.

• PP Leno Bags Bulk Pack: above 2 Kg

• Use in: Onion , Potato, Vegetable & Citrus Fruit.

• Technology Transfer & Capacity Creation to meet future demand.

Key Projects

Multilayer Thermoformed Trays:• Multilayer thermoformed trays to withstand

cold temperature (-19°C) & ambient temperature (40°C).

• Enhanced Aesthetics

• Use in: Liquid concentrates / Instant Meals / Soup / Noodles

• Products: 5

Key Projects

Nitrogen flushing..• Inert atmosphere.• Positive pressure

within pack –product remain intact

Maintenance of the color of fresh meat – O2 purging

Carbon dioxide (CO2) ...• Carbonic acid inhibits micro

organism• Carbon dioxide volatilizes

when the pack is opened or the product is heated.

MAP:• Use in: Dairy / Meat / Poultry / RTE / Fish

• Product: 32

Key Projects

Laser Punctured perforated Films for F & V:

• Micro pores: 4 to 25 / Sq Cm

• Target O2 Permeability: > 200

• Longer shelf life of food product

• Use in: Ready to eat vegetables and fruits, easily perishable products

Key Projects

Smart packaging (Color changing film/lid):

• Consumer friendly package- indicating spoilage of food

• Changing color of the strip with change in environment.

• Change in strip colour if product stored under adverse storage conditions for > 6 hours

• Collaboration with IIT- B

• Use in: Meat and dairy products

High barrier coatings based on nanoparticles:

• Metal oxide based coatings for very high barrier against moisture, oxygen and microorganisms

• Target OTR < 1 cc/ Sq M . 24 Hrs. Atm

• Use in: Alcoholic drinks

Key Projects

Light Weight & Easy to HandleGood Aesthetics , excellent printabilityHigh Strength & DurabilitySafe & HygienicDesign FlexibilityEasy availabilityMaintenance Free & WashableDimensional ConsistencyEco-friendlyValue Addition to the ProductHigh Salvage ValueReusable & Recyclable

Above all …

Moisture Resistant so..

Reduction in Wastages

Plastic Bubble Guard Cartons

PP – Caps & Closures

PP – Paint Pails

PP Containers for Water Based Paint Pails

Market Needs

BOPP

High Speed BOPP > 550 MPM & < 15 Mic

High Speed Raffia> 1000 MPM

F I B C

….Niche Grades for High Line speeds

Conductive PP Nanocomposite

Semiconductor Industries

Conductive PP: Predicted to expand to 17 KT in 2010 – US market

Medical Applications

• Conductive Polypropylene Composites/ Films - Carbon nanotubes, inorganic & metallic nanofillers….

• Improved impact resistance• wide range of electrical

conductivity

• ESD (106- 109 ohms/cm),

• EMI/RFI (10-10-2

ohms/cm)

PP/ Nanotube

Lower percolation Threshold

PP/ Carbon black

PolyVials (Emerald) Laboratory Grade Containers

Westlake Plastic Company

Conductive & static Dissipative polypropylenePropylux CN-F Propylux CN-F,Propylux SD-A,

ESD Boxes: PP based compound is transformed by injection molding to produce crates or boxes, used for the transport of ESD sensitive devices.

ESD Corrugated Board: PP based compound transformed into

corrugated sheet by extrusion.

Commercial Products

Varmason : Conductive Polypropylene

Small conductive box

Fluted conductive box MD Flip Top BoxesREEL Racks

Storage Units

Commercial Products

PSSI Conductive Containers

Commercial Products

Classic Enterprises Ltd.

Conductive PP profile sheet made for packaging and transportation of sensitive electronic devices

Conductive PP straps for semiconductor Industries

KOSTAT E-2001 Conductive PP Compound

Made to order crates/bins for handling of PCB and sensitive electronic components. Surface resistivity (10^3 to 10^5 )ohms/sq

RIL Partnership

Role of Business Development Group

Evolution of concept

Explore / Identify new market

Identify Modern technology

Identify Entrepreneur / Investor

Downstream development

Nurturing new application / Promotion /

Market extension

Securing Approvals From Testing Agencies

& End-user

Regulations / Mandation for driving Growth

Bulk Packaging

Rigid Packaging

Flexible Packaging

Automobiles

Lifestyle & Appliances

Textiles & Fibers

Pipe & Profiles

Downstream Development

Sector Management

Concept to Commercialisation

End Users

Machinery Manufacturers

Machinery Manufacturers

ProcessorsProcessors

BD

A Vital link amongstM/c Mfg. - Converter - End User

Extensive support from

• PARC – technical support

• Nodal Agencies

• Govt. Agencies – for Spec in

Extensive support from

• PARC – technical support

• Nodal Agencies

• Govt. Agencies – for Spec in

Concept to Commercialisation

Plant Location Licensor Technology Capacity

RIL Baroda Shell Montedison 55,000RIL Nagothane Lyondell Bassel Spheripol 1,20,000RIL Baroda Lyondell Bassel Spheripol 75,000RIL Hazira Dow UNIPOL, PP 4,00,000RIL Jamnagar Dow UNIPOL, PP 10,50,000HPL Haldia Lyondell Bassel Spheripol 2,70,000

Total PP Capacity ~ 2.0 Million MTA

RIL Contributes 85% of Total PP in India

PP Production in India

In short…...

RIL

Mould Maker / Machine mfr

Existing Customers

New Entrepreneur

State Ind. Dev. Corp.

OEM / End Users

Standard / Specs.

• Concept Marketing

• Product Identification

• Market Survey

• Feasibility Studies

• Development

• Implementation

• Supply chain

• Nurturing new

development

360° Support - Complete package of Value Added Services to Customers & Entrepreneurs