Assignment Plastic Products

7/30/2019 Assignment Plastic Products

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Introduction of Plastic Products

The plastic industry of India has a big market potentiality and is gradually prospering. This

potentiality of the market will surely actuate the entrepreneurs to invest in this industry.

Entrepreneurs are trying to provide high quality plastic products, so that it becomes a booming

industry.

Commodity 2010-2011 %Share 2011-2012(Apr-Dec) %Share

PLASTIC AND ARTICLES THEREOF. 1,815,009.43 1.588 2,010,802.55 1.8882

India's Total Export 114,292,192.18 106,492,687.15In Rs Lacs Source: Ministry Of Commerce, India

As figures from the above table we can easy figure out the market in the plastic export. We can easily

find the growth in business as our market share is increased from last year and 1.88% for the current

year yet. We can see that the value of our export is Rs 2,010,802.55 lacs are for 5 months is quite high

the total export Rs 1815009.43 for last year.

Commodity 2010-2011 %Share 2011-2012(Apr-Dec) %Share

PLASTIC AND ARTICLES THEREOF. 3,447,709.74 2.048 2,966,066.80 1.7401

India's Total Import 168,346,695.57 170,452,705.87In Rs Lacs Source: Ministry Of Commerce, India

The statistics for the import of plastic products is more than what we export so we can also have

domestic demand for plastic and article thereof.

History

Indian plastic industry has made significant achievements in the country ever since it made a promisingbeginning with the start of production of polystyrene in 1957. The industry is growing at a rapid pace

and the per capita consumption of plastics in the country has increased several times as compared to

the earlier decade. The chronology of production of polymers is summarized as under

1957 - Polystyrene, 1959 LDPE, 1961 - PVC , 1968 HDPE, 1978 - Polypropylene

Currently, the Indian plastic industry is highly fragmented with an estimate of around 25,000 firms

and over 400,000 employees. The top 100 players of Indian plastic industry account for just 20% of the

industry turnover. Barring 10 to 15% of the firms that can be categorized as medium scale enterprises,

most of the units operate on a small scale basis.

The immense potential of Indian plastic industry has motivated Indian manufacturers to acquiretechnical expertise, achieve superior quality standards and build capacities in different facets of the

booming plastic industry. Substantial developments in the plastic machinery sector coupled with

matching developments in the petrochemical sector, both of which support the plastic processing

industry, have facilitated the plastic processors to develop capacities to cater both the domestic as well

as overseas exports.


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Products

There are 468 products categories for plastic products which have 468 HS Code under the article 39.

The major plastic products that India export are -

Raw Materials - PVC, polypropylene, polyethylene, polystyrene, ABS, polyester chips, urea / phenolformaldehyde, master batches, additives, etc

Packaging - PP / HDPE woven sacks / bags / fabrics, poly-lined jute goods, box strapping, BOPP tapes, a

range of plastic sheeting / films (of PVC, PP, HDPE, nylon, FRP, PTFE, acrylic, etc.), pouches, crates,

bottles, containers, barrels, cans, carboys, shopping / carrier / garbage bags.

Films - Polyester film, BOPP film, mesh, metalized / multilayer films and photo films

Consumer Goods - Toothbrushes, cleaning brushes, hair brushes, nail / cosmetic brushes, combs,

molded furniture (chairs, tables, etc.) house ware, kitchenware, insulated molded house ware,microwave re-heat able containers, mats and mattresses, water bottles, gifts and novelties, a range of

stationery items like files, folders, mathematical instruments, etc.

Writing Instruments - Pens, ball pens, markers, sign pens, refills, etc.

Travel ware - Molded luggage, soft luggage, a range of bags like school bags / ladies handbags, wallets,

etc.

Leather Cloth / Artificial Leather Floor Coverings - Vinyl floor coverings and linoleums

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 / equipment in telecommunications, railways, electronics, etc.

Electrical Accessories FRP / GRP Products - Safety helmets / equipment, pipes, storage tanks, etc.

Sanitary Fittings - Cisterns, toilet seats, bathroom fittings, etc.

Construction - PVC profiles, doors, windows, etc.

Tarpaulins Laminates Fishnets / Fishing Lines Cordage / Ropes / Twins Eyewear - Lenses, spectacle

frames, goggles, etc.

Laboratory Ware Surgical / Medical - Disposable syringes, blood / urine bags, I.V. sets, etc.


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Top Export of India

S.No. Country Values in Rs. Lacs

2010-2011 2011-2012(Apr-Dec)

1 CHINA P RP 181,722.64 237,103.03

2 U S A 194,408.17 181,964.883 BAHAMAS 11.99 101,687.40

4 U ARAB EMTS 111,913.50 93,871.83

5 TURKEY 103,452.06 91,063.23

6 ITALY 107,772.19 85,295.49

7 U K 58,582.50 56,745.68

8 BRAZIL 28,727.39 56,271.73

9 GERMANY 59,892.58 51,594.49

10 NIGERIA 37,043.05 51,119.97

Source: Ministry Of Commerce, India

Top Import of India

S.No. Country Values in Rs. Lacs Quntity in thousands

2010-2011 2011-2012(Apr-Dec)

1 CHINA P RP 390,149.22 474,188.13

2 U S A 371,788.91 337,619.22

3 KOREA RP 387,683.55 315,971.65

4 GERMANY 230,328.77 200,722.15

5 THAILAND 229,459.90 184,220.01

6 TAIWAN 238,047.66 179,538.13

7 SAUDI ARAB 298,886.46 176,138.81

8 SINGAPORE 161,308.14 138,068.57

9 JAPAN 127,420.11 116,973.76

10 U ARAB EMTS 109,614.81 90,335.98

Source: Ministry Of Commerce, India

The top 10 trading partners for Indian plastic industry are

USA UAE Italy UK Belgium Germany Singapore Saudi Arabia China Hong Kong


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Product Analysis

392510- RESERVOIRS TANKS VATS & SIMILAR CONTAINER UPTO 300L

Direction of Trade from India:

Exports:

Chile is one of the booming markets for Indian plastic industry for product under category of HS Code

392510. India has increased its export to Chile with Rs 698.98 lacs from Dec, 2011 to April, 2012 with

the quantity of 129.87 thousand units.

The other ready market for India is UK which has continuous demand for plastic product from India

under this category with Rs 443.97 for year 2010-2011 and Rs 286.15 from Dec, 2011 to April, 2012

with the quantity of 281.71 thousand units from 2010-2011 and 139.99 thousand unit from Dec, 2011

to April, 2012 respectively.

Product under this category is mostly demanded in UK, Tanzania, UAE, Nigeria, Oman, Egypt, Nepal,

Germany, Dominic rep, Netherland, USA. The total export of India under this category is Rs. 1510.7 Lacs

from 2010-2011 and Rs. 1610.57 Lacs from Dec, 2011 to April, 2012 respectively.

The table below will shows the further direction of export from India:

S.No. Country Values in Rs. Lacs Quntity in thousands

2010-2011 2011-2012(Apr-Dec) 2010-2011 2011-2012(Apr-Dec)

1 CHILE 698.98 129.87

2 U K 443.97 286.15 281.71 139.99

3 TANZANIA REP 296.94 131.15 201.82 75

4 U ARAB EMTS 207.18 116.66 154.57 47.06

5 NIGERIA 70.23 92.47 70 59.31

6 OMAN 191.17 54.21 134.26 27.48

7 EGYPT A RP 74.47 39.96 42.66 17

8 NEPAL 68.38 35.96 85.26 30.8

9 GERMANY 0.71 35.52 0.4 5.8

10 DOMINIC REP 1.21 34.06 1.26 11.75

11 NETHERLAND 25.03 22.72 9.88 9.87

12 FRANCE 15.87 8

13 SEYCHELLES 1.57 11.09 1.5 7.7

14 U S A 41.68 7.43 18.32 2.61

15 BAHARAIN IS 5.76 1.9

Source: Ministry of Commerce, India


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Export Graph for India

From the Graph we can find out the potential market are lies for countries- Chile, UK, Tanzania Rep, UAE

and Nigeria.

We can also find Europe as a potential buyer from India with UK and country like Germany, France also.

But the growth of market is more in Chile and it emerged as a booming market for plastic container,

vats, reservoirs, etc.

43%

18%

8%

7%

6%

3%2%

2%2% 2%

1%

1% 1%

0%

0%

0%

0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%

2011-2012(Apr-Dec)

CHILE

U K

TANZANIA REP

U ARAB EMTS

NIGERIA

OMAN

EGYPT A RP

NEPAL

GERMANY

DOMINIC REP

NETHERLAND

FRANCE

SEYCHELLES

U S A

BAHARAIN IS

SAUDI ARAB


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Import Graph for India

From the above chart we can find out that both China & Israel is main importer for India for product

under this category. But Israel is the one of the new market that supplying to India whereas China is one

of the oldest and mature market so we can say that China is more preferred market for import.

We also have import option from Japan, Turkey they are also serve as alternative market.

Whereas Korea, Netherland, Germany, Italy, Taiwan, UK, Malaysia, France may be other market places

to explore for product and can serve as advantage for supply chain.

35%

35%

9%

6%

3%2%

2% 2%

2%

1% 1%

1%

1%

0%0%

2011-2012(Apr-Dec)

ISRAEL

CHINA P RP

JAPAN

TURKEY

KOREA RP

NETHERLAND

GERMANY

ITALY

TAIWAN

U K

MALAYSIA

FRANCE

MEXICO

BANGLADESH PR

U S A


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Direction of World Trade:

Exports:

Germany is the biggest exporter for product under this category with 18.11% of world export. It

contributes $1767624 thousand for the year 2011.The other leading exporters under this category areChina, Poland, USA, Canada, France, Belgium, Italy, Turkey, Austria and UK. The total export of this

category in world is $9755966 Thousands in 2011 and $8548788 Thousand in 2010.

The table below shows the further direction of world trade for this product category:

ExportersExported value in

2007

Exported value in

2008

Exported value in

2009

Exported value in

2010

Exported value in

2011

World 8462982 9377891 7954574 8548788 9755966

Germany 1586686 1863601 1539958 1565571 1767624

China 750922 941649 951783 1114022 1384517

Poland 579352 730488 602504 710362 820523

United States of America 445718 508854 458839 494758 555949

Canada 697636 588983 447458 460892 462367

France 482537 527208 369158 384938 435555

Belgium 368937 399904 322641 330634 384997

Italy 332914 338119 263499 306148 327392

Turkey 170942 230280 229652 247371 288030

Austria 232635 270842 232658 241270 276101

United Kingdom 356492 318490 218501 239194 249451

Czech Republic 175268 215680 179908 206777 244141

Denmark 191079 208870 168181 178034 209681

Netherlands 193957 217063 188370 171989 201735

Slovakia 63368 83187 88489 129674 185256

Chinese Taipei 149461 156578 122572 139867 153844

Mexico 227999 233563 171900 127101 138018

Spain 141610 133130 116207 108672 132199

Sweden 99465 112293 86317 99476 109249

Hungary 94332 103716 88153 73411 97382

Unit : US Dollar thousand Source: International Trade Center, http://www.intracen.org

From the above fig we can find out that Germany is contributing 18%, China is 14%, Poland is 8%, USA

is 6%, and Canada is 5%, France & Belgium 4% in the world export for this particular category of plastic

product.

Whereas India has very less export which is 0.0021% in comparison to world export for this particular

product category.
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Imports:

USA is the biggest importer for product under this category with 13.93% of world import. It

contributes $1228519 thousand for the year 2011 . So it is one of the potential markets for this

particular category. Other markets for this product category are France, Germany, Switzerland, Austria,

Canada, UK, Belgium, Russia, and Czech Republic.

The table below shows the further direction of world trade for this product category:

ImportersImported value

in 2007

Imported value in

2008

Imported value in

2009

Imported value in

2010

Imported value in

2011

World 7900348 8524559 7160513 7748680 8816491

United States of America 1548202 1402481 1177693 1195227 1228519

France 671354 745854 650508 717160 761939

Germany 564859 586127 562372 560574 710259

Switzerland 244928 298351 288209 321715 416557

Austria 275769 311886 286650 318175 375856

Canada 287461 335841 302972 342049 354482

United Kingdom 377716 355340 283969 300978 334005

Belgium 251447 307500 272642 269319 318445

Russian Federation 194639 263308 151589 218972 234798

Czech Republic 175786 229774 177541 190542 230615

Italy 135008 156578 149234 204953 226940

Netherlands 223344 244099 198495 184541 209242

Japan 138952 146584 141359 145833 182793

Denmark 142510 170389 128407 136774 177366

Poland 153568 169386 111981 121227 146455

Slovakia 118400 138344 142342 118951 128201

Norway 75660 94582 77839 99505 125663

Spain 170160 165645 114764 120640 118817

Iraq 21996 35138 50385 86301 111678

Sweden 85356 96661 68282 87389 104419

Unit : US Dollar thousand Source: International Trade Center,http://www.intracen.org

From the above fig we can find out that USA is contributing approx 14%, France is 9%, Germany is 8%,

Switzerland is 5%, UK, Austria, Canada & Belgium is 4% in the world import for this particular category

of plastic product.

Whereas India has very less import which is 0.0054% in comparison to world import for this particular

product category.
http://www.intracen.org/http://www.intracen.org/http://www.intracen.org/http://www.intracen.org/


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Justification:

DemandIf we see the data for Indian export we find that Chile is the emerging market for India

but India has its regular market in UK and UK is one of the top importers for product

under this category. In the trend for UK we can find that the demand is decreased so we

cannot depend on UK alone but it is still a potential market for India.

ImportersImported value in

2007

Imported value in

2008

Imported value in

2009

Imported value in

2010

Imported value in

2011

United Kingdom 377716 355340 283969 300978 334005

Trend 100.00 94.08 75.18 79.68 88.43

Whereas the trend of Chile is showing positive results and increased in demand also it

is booming market so we can go for the market in Chile.

ImportersImported value in

2007

Imported value in

2008

Imported value in

2009

Imported value in

2010

Imported value in

2011

Chile 15194 18839 13161 19272 27307

Trend 100.00 123.99 86.62 126.84 179.72

So, the potential market for product in this category is Chile and UK. We can take

advantage of market demand in the Chile and export over there.

How SupplyWe can import product from China as it is one of the largest exporter for this category

after Germany and it has positive trend of export so we can easily find supply without

any delay and we have advantage in going deal with china than Germany as both India

and China belong to BRICS economy and it can be cheaper for us to get import from

China than Germany in respect of both transportation/Shipping cost as well as tariff

and other barriers.

Documents

Assignment Plastic Products