opportunities in the indian plastics sector in... · polyolefins. 11,770 kilo tonnes. polyvinyl...
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Opportunities in the Indian Plastics SectorJune 2020
FEW GLOBAL HIGHLIGHTS
Largest manufacturer of Lami tubes
Largest manufacturer of BOPP tubes
Largest Rotomolded Tank market in the world
2nd largest exporter of FIBC bags
5th largest producer of PP
Polybenzemidazole(PBI)-only producer in the world
43%
16%
13%
11%
7%
4%3%2% 1%
PVC PP
HDPE LLDPE
LDPE EVA
PET ABS
PS
IMPORT TRENDS 2018-19Total imports:
4191 KT
EXPORT TRENDS 2018-19
Total imports:
2523 KT
32%
24%
20%
16%
6% 2%
PETPPLLDPEHDPELDPEPS
109
6538 32
11
USA Europe China Brazil India
Per capita plastic consumption (kg/person)
SOURCE: AIPMA and Plastindia, TATA strategic analysis
8.313.2
22
FY 10 FY 15 FY 20
10.5%
10%
Plastic Processing in India (MMTPA)
SOURCE: Industry reports, TATA strategic analysis
INDIAN PLASTICS SECTOR: MARKET OVERVIEW
Classification of plastic products by types of processes
1
2
3
4
EXTRUSION:Films and sheets, fibresand filments pipe, conduits and profiles, other applications
INJECTING MOULDING:Industrial and household injection moulding, Thermowareand moulded luggage
BLOW MOULDING:Bottles, containers,
toys and housewares
ROTO MOULDING:
Large circular tanks such as water tanks
Polymer manufacturers
Equipmentmanufacturers
Plastic Processors
Recycling players
End
user
indu
strie
s
Dominated by ~15 large industrial groups
Dominated by ~200 players
High
Low
Conc
entr
atio
n
Flow
of e
quip
men
t
Flow
of v
irgi
n po
lym
ers
Fragmented with ~50,000 units mostly operated by small players
~4000 unorganized units, ~3500 organized units
Flow of processed plastics
Flow
of r
ecyc
les
plas
tics
Flow
of r
ecyc
les
plas
tics
INDIAN PLASTICS SECTOR: INDUSTRY STRUCTURE
SOURCE: Crisil, TSMG, Plastindia
Polyolefins11,770 kilo tonnes
Polyvinyl Chloride (PVC)1,560 kilo tonnes
Polyethylene Terephthalate (PET)
2,730 kilo tonnes
Styrenics457 kilo tonnes
Major Engineering Plastics
498 kilo tonnes
Performance Plastics 3,285 kilo tonnes
LAPETKATA: (BCPL PE & PP)
BHATINDA(HMEL,PP)
KOTA(DCM, PVC)
JAMNAGAR:(RILPE & PP)VADODARA: (RIL PE, PP &PVC)
DAHEJ: (RIL PE, PVC & PET) (OPAL PE &PET)HAZIRA: (RIL PE, PP, PVC & PET)
SARIGRAM:(PET)NAGOTHANE: (RIL PE, PP &PP)
RATNAGIRI: (Finolex PVC, Supreme PS)
MANGALURU: (MRPL PE &PP)
CUDDALORE: (Chemplast PVC)SAHUPURAM: (DCW PVC)METTUR: (Chemplast PVC)
VISHAKHAPATNAM: (LG PS)
PARADEEP: (IOCL PP)
HALDIA: (HPL PE &PP)DHANUSERI: (PET)
PANIPAT: (IOCL PE &PP)
PATA: (GAIL PE)
INDIAN PLASTICS SECTOR: MANUFACTURING & CAPACITY
MANUFACTURING CLUSTERS
SOURCE: PlastIndia, Indian Plastics Industry Report
Major Thermoplastics capacity (2019)17 million metric tonnes
CAPA
CITY
The government has been taking proactive steps to increase plastic production in India
Loading unloading Facilities
Industrial Plots
Recycling Areas
Tool Rooms
Common Facilities
R&D labs
OBJECTIVES FACILITIESIncrease the competitiveness,
polymer absorption
capacity and value additionAchieve
sustainable growth through
waste management,
recycling
Increase investments in
the sector through additions
in capacity and production
Adopt a cluster development
approach
LOCATION-PLASTIC PARKS IN INDIA
INDIAN PLASTICS SECTOR: SEZs and PLASTIC PARKS
Tamot & BillauaMadhya Pradesh
Tinsukia DistrictAssam
ThiruvullurKarnataka
Siju VillageOdisha
DeogharJharkhand
Source: Sustainable Infrastructure with Plastics, FICCI, Plastindia.org
Although much lower than the global average of use of polymers, a growth trend has been seen in the demand over the years with the demand having increased 20 times in the past 20 years as opposed to the population increase of 1.5 times
Figu
res i
n Kg
s (V
irgin
Pol
ymer
)
Per C
apita
Con
sum
ptio
n of
Pol
ymer
(A
cros
s Cou
ntrie
s)
900
1,65
0
2,90
0
4,20
0 6,80
0
15,5
00 18,4
50
02,0004,0006,0008,000
10,00012,00014,00016,00018,00020,000
1990 1995 2000 2005 2010 2016 2018
Growth in Demand for Plastics over the year (KTU)
INDIAN PLASTICS SECTOR: DEMAND
Source: Plastindia.org
13% 9%42% 17%
3% 2%7% 7%
Flexible Packaging Rigid Packaging Building & Construction Agriculture
Household Automotive Others Electronics
Production Segments
7%
12%Woven Sacks
Optical Items
19%
12%
50%
Plastic sheets, Films and Plates
Extruded and moldedgoods
Others
INDIAN PLASTICS SECTOR: DEMAND SEGMENTATION
Source: Plastindia.org
Consumption Segments
~50,00 plastic Processing
units
~USD 765 million
in 2018-19—Domestic market core machinery.
Machines installed till March 2019
~165,000
Employment
generated:~ 5 million (direct
+ indirect)
Growth in
machinery CAGR 13.9% for last
five years
SOURCE: Industry estimates, PMMAI, Plexconcil
Investment in machinery, moulds
and converting
lines~USD 6.5 billion
13.63 kgIndia’s per capita consumption of virgin polymer
2017
2018
2019
2020(E)
2021(E)
3,080
2,770
2,940
2,610
2,460
2017
2018
2019
2020(E)
2021(E)
7,360
10,000
10,150
9,250
9,150
2017
2018
2019
2020(E)
2021(E)
790
970
1,030
900
840
Extrusion Machinery Injection Moulding Machinery Blow Moulding MachineryTotal Machines till 2019: 43,540 Total Machines till 2019: 108,510 Total Machines till 2019: 12,890
MAC
HIN
ERY
DEM
AND
FORE
CAST
INDIAN PLASTICS SECTOR: MACHINERY INDUSTRY OVERVIEW
SOURCE:PlastIndia
Swachh Bharat
Mission
Bricks made up of recycled plastics
PVC doors for toilets
Plastics Dustbin
Smart Cities
Optical fiber ducts laying
Envisaged usage of 8-10% waste plastics in roads
Door, window and profiles
Housing for All by 2022
Opportunity for piping industry
PVC pipes for water management
Skil l India Injection
Moulding Thermoforming Blow Moulding Extrusion
Clean Ganga River
Mission
Waste plastics stream for recycling
Sanitary pipe & fitting, overhead roto tanks
Source: Sustainable Infrastructure with Plastics, FICCI, Plastindia.org
INDIAN PLASTICS SECTOR: GOVERNMENT INITIATIVES
ElectronicsIndustry
InfrastructureIndustry
5
4
Investments in Infrastructure will result in
making India a hub for PVC and CPVC products
leading to growth in plastics processing.
AgricultureIndustry
2
3Packaging Industry Automotive
Industry
1With a higher per capita income, the demand for
personal hygiene products and convenience products has increased leading to
increased demand for plastics
Growing penetration, and fast technology
upgradation will lead to higher usage of plastics
in the automobile segment
Significant progress in the adoption of
plasticulture techniques will grow at a rapid pace
Increasing penetration rate of consumer
electronics provide scope for the growth of
plastics industry
Source: Sustainable Infrastructure with Plastics, FICCI, Plastindia.org
INDIAN PLASTICS SECTOR: GROWTH DRIVERS
Plastic materials may be employed in water conservation, irrigation efficiency, crop protection, crop storage and transportation.
Growing interest in green products, healthier lifestyles and growing concern to protect environment is leading to a shift towards bio-plastics.
Plastic has low energy requirements during production, hence considered to be energy efficient. It consumes ~25% less energy in production compared to other alternatives
The popularity of plastic furniture has grown since it offers features unavailable in conventional wooden and metal furniture, such as easy maintenance, light weight, durability . Source: Sustainable Infrastructure with Plastics, FICCI, Plastindia.org
PLASTICULTURE
BIO-PLASTICS
EFFECTIVE WASTE
MANAGEMENT
PLASTIC MOULDED FURNITURE SEGMENT
SWISS PRESENCE IN INDIA
INDIAN PLASTICS SECTOR: MARKET OPPORTUNITY
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