6
PLASTICS AND POLYMERS INDUSTRY The Indian

The Indian PLASTICS AND POLYMERS INDUSTRY

  • Upload
    others

  • View
    2

  • Download
    0

Embed Size (px)

Citation preview

Page 1: The Indian PLASTICS AND POLYMERS INDUSTRY

PLASTICS AND POLYMERSINDUSTRY

The Indian

Page 2: The Indian PLASTICS AND POLYMERS INDUSTRY

OVERVIEW

Industry Snapshot

1

Over USD 3 billionSize of the Indian plastics and polymers industry in 2018

8 - 10%Expected CAGR till 2025

Key Characteristics

Through technology innovation andincrease in production capacity, Indianproducers are targeting to achieve 3%of the global plastics and polymersmarket by 2025.

India’s demand for majorplastics in 2018-19.

4 millionThe number of workers theplastics industry employsdirectly.

~16 million tonnes

In 2018, plastics export fromIndia stood at USD 10.98 billionout of which exports of rawplastic materials stood at USD4.53 billion.

India stands third in polymerconsumption globally afterChina and US.

Source: Plastasia Industry report

There are currently over 30’000 plasticprocessing units, 85-90% of these aresmall and medium-sized enterprisesemploying less than 50 workers.

The polymer consumption in India isexpected to increase to about 20million metric tons by 2020. This ismajorly due to supportive governmentpolicies and use of polymers toreplace traditional packaging in India.

Source: India Brand Equity Foundation

Source: Plastivision India

Source: India Brand Equity Foundation

Page 3: The Indian PLASTICS AND POLYMERS INDUSTRY

MAJOR CONSUMER AND PRODUCTION SEGMENTS

Source: Plastindia Industry reportSource: Plastindia Industry report

Maj

or c

onsu

mer

s of

plas

tics

in In

dia

Packaging Automotive Building and Construction

Agriculture Others

59% 9%

9% 10%

13%

Maj

or p

rodu

ctio

n se

gmen

ts o

f pla

stic

s

Optical Items Plastic Sheets, Films and Plates

Extruded and Moulded Goods

Woven Sacks Packaging Items Others

40 %10 %12 %

7 % 19 % 12 %

9% 10%

2

Page 4: The Indian PLASTICS AND POLYMERS INDUSTRY

INDUSTRY GROWTH DRIVERS

3

Changing Demographics

More than 50% of India’s population is under the age of 25, with the averageage of India being 29, much lower than its peers. Trends have shown that thedisposable income is rising along with urbanization and growing penetration inthe rural markets. A consumption trend has been observed, which has led toan increase in the demand for packaged goods which has further led to anincrease in the demand for plastic packaging.

The Lighter, The Better.

Owing to the light weight anddurability factor, a trend of shiftingfrom metal components to polymer-based parts and components hasbeen observed.

Infrastructure Building

The government, having realized the need for an integrated supply chain, is currentlyworking on establishing Plastic Parks. At present, six Plastic Parks across the countryhave been approved and are expected to provide an ecosystem to synergizeproduction capacities with modernized infrastructure.

Growth in Industries which usePlastic Products

India has been on a growthtrajectory owing to the in-countryand export demand. Severalindustries such as automotive,aerospace and packaging (feederindustry for plastic products) haveshown sharp growth rates in thepast few years. India is alsopoised to become the fastestgrowing consumer market. It isexpected that this will createfurther demand for plasticproducts.

Chinese Supply Chain Disruption

Supply chain disruptions in China due totighter environment norms have led to anuncertainty in the Chinese market. SeveralInternational players have shifted theirsourcing destination to India. This hascreated opportunities for Indian plasticcompanies.

Page 5: The Indian PLASTICS AND POLYMERS INDUSTRY

OPPORTUNITIES

4

REINFORCED PLASTIC & THE INCREASING DEMAND01

IMPORTS & CONSUMPTION04

TECHNOLOGY UPGRADATION03

INCREASING PER CAPITA CONSUMPTION02

Reinforced plastic has increasingly become an effective alternative to metalcomponents . Sectors such as aerospace, construction, medical, military, andmarine are utilizing reinforced plastics on a large scale owing to their versatility,lightweight and durability. This has raised the demand and opportunity.

India’s per capita consumption of plastics is 11 kilograms, which is one tenth ofthat of the US and less than a third of that of China. Current rapid urbanizationin India is certain to increase the demand in consumption and need to addressdemand-supply gap.

Indian plastic and polymer manufacturers are on the look-out to upgrade theirtechnology to gain greater global market share. This provides an opportunity formachinery manufacturers, robotics & industrial automation as well as polymerresearch & development companies to target Indian manufacturers.

India’s domestic plastic production meets only 50% of its demand, which isincreasing with the growth of construction and infrastructure sector. Plasticcomponents and parts are used wider applications such as electric wiring,flooring, wall covering and waterproofing. There exists a huge demand andsupply gap which can be targeted by foreign companies.

Page 6: The Indian PLASTICS AND POLYMERS INDUSTRY

T&A’s POINT OF VIEW

5

India is currently a powerhouse forplastic and polymer-based productsmajorly owing to the widespreadmanufacturing sector in India.

There exists a huge gap between thedemand and supply of plastic andpolymer-based products. This gap isexpected to widen in the future asurbanization continues and per capitaplastic consumption of India reachescloser to its western counterparts. Asindustries become competitive andwith growth in exports, the need forcomplex plastic products would arisewhich would provide an opportunityfor Foreign manufacturers and R&Dfirms to target these needs by way ofproduction. Foreign manufacturerscan also target to tap into plasticimports.

Technology adoption in organizedplayers has been increasing rapidly.Opportunities for robotics companies,automation, improved machines andmanufacturing processes will see arise. This provides an opportunity forforeign companies to leverage theirtechnology either by providing theirtechnology to Indian companies or bymeans of manufacturing/importing toIndia.

It is also expected that a new sectori.e. after use plastics will become thecornerstone of the Industry, thiswould include technology tosustainably reduce the leakage ofplastics into natural systems anddecoupling of plastics from fossilfeedstocks, giving rise to a circulareconomy.