polyamide mrkt india

1 The Polyamide Market in India

A post-completion proposal for a

new multi-client report from

AWJ Consulting

Published: SEPTEMBER 2009

THE POLYAMIDE

MARKET IN INDIA


TABLE OF CONTENTS

P3 Introduction: Background and scope of the study

P7 Executive summary

P9 Table of contents of full report

P11 Cost of the study

P12 About AWJ Consulting

P14 Subscribing to the study


INTRODUCTION: BACKGROUND and SCOPE OF THE

STUDY

The Indian polyamide market grew strongly each year from 2000 to 2007 at growth

rates which averaged 13% p.a., almost double the average GDP growth during the

same period. India was not, however, immune to the emerging global financial crisis

which started in September 2008, and its effects negated any PA demand growth

earlier in that year to leave the overall 2008 PA market flat. Demand appears to be

have recovered cautiously during Q1 2009, but is gaining momentum as 2009 moves

into August. AWJ Consulting (AWJC) is forecasting that PA consumption growth

should be sustained at an average 11% p.a. up until 2013.

With the Indian polyamide market now characterised by an increasing number of

suppliers, but a diverse and a relatively fragmented end use processing sector, a

changing supply structure is likely to evolve over the next few years. The industry

faces major questions relating to market drivers, application dynamics and

competitive strategies. To assist companies in this area, AWJ Consulting (AWJC)

has completed this major new study to address and answer these questions.

The study is entitled:

The polyamide market in INDIA

Demand drivers and supplier strategies

The research programme was undertaken between February and July 2009 and

involved AWJC using a field-oriented approach to build the study detail. AWJC made

multiple calls to develop its understanding of the market combined with analysis of

publicly available data and information related to PA suppliers and processors in

India. AWJC undertook over 140 interviews of which 25 were detailed personal

interviews all conducted in India by AWJC‟s principal, Tony Jones, who has over 25

years experience in the PA market in both commercial and consulting capacities. The

scope of the interview programme by type of company interviewed is shown below.

Type of company Number of interviews

OEMs 20

Tier One/Two Systems Suppliers, Moulders and Extruders

60

PA compounders 20

PA producers 25


Others ( inc compound machinery, additive and filler producers, polymer distributors, recyclers and traders )

15

TOTAL 140

This report analyses and comments on:

The size and growth of the market, by PA polymer and compound product

type, and by end use market application

The supply of PA polymer and, in particular, the current high dependence on

imports for the ETP market

The product and application positioning of the major PA polymer producers

and independent PA compounders

The concentration of PA demand in certain provinces, regions and cities

The supply of PA polymer/raw material feedstock to the independent

compounding sector

Specific questions answered include:

Which types of PA are set to enjoy the strongest growth?

Which PA polymer producers and compounders have been investing and in which market sectors are the investments targeted?

How important is Distribution?

What are the key individual application developments underpinning future growth in the PA market?

What inter- polymer competition exists in the key applications?

What scope remains for additional substitution of metal by PA, particularly in the automotive industry?

Where does the power lie to influence change, i.e. OEM, first/second tier systems supplier (moulder), etc?

Who are the major moulders /extruders of PA?

How and where are the independent compounders effectively competing against the PA producers, gaining specification and becoming active suppliers?

What level of commitment do the leading PA compounders have to the different applications, and is PA core to their overall business?


The report will be an invaluable resource to companies who are attempting to ensure

that their business in India maximises its profit and growth potential. As part of the

subscription to this report, AWJC offers 1 day of follow up consultancy, to respond to

queries and more closely interact with clients and their management, thereby

ensuring they derive the maximum value from the report.

The report analyses the Indian PA market downstream from the polymerisation level

as shown in the following diagram.

RESIN

SALE

INDEPENDENT

COMPOUND

INTEGRATED

COMPOUND

DIRECT SALE

DISTRIBUTOR EXPORT

MOULDING / PROCESSING INDUSTRY

IMPORTED

COMPOUND

TEXTILE/ FILM/

OTHERS EXPORTS

POLYAMIDE

RESIN

(includes local

production

and imports)

RECLAIM/

RECYCLE

COMPOUND

RESIN

COMPOUND

RESIN

6

The Polyamide Market in India

Product Scope

The PA families covered at an application level are:

PA6

PA66

PA4.6 and partially aromatic polyamides (inc PPA)

Polyamide compound types appraised include:

Glass fibre reinforced

Flame retardant (UL –V0)

Others (includes unfilled, heat stabilised, mineral reinforced, impact modified and blends )

Data Points

Data is provided for 2003, 2007, 2008, with forecasts for 2013.

Units of Measurement

Data is reported in tonnes, or thousand metric tonnes, with values in Rs Lakhs, Rs

Crore, or €m as appropriate. NB tonnage volume is the weight of PA polymer or

compound used by the processor and includes prime (virgin), secondary and

reprocessed compounds.

Applications

Research focus concentrated on 20 individual applications (or associated application

groups) currently perceived to be consuming the largest volumes of PA in the 3 end-use

injection moulding markets, namely Automotive, Electrical /Electronic, and Other

Industries. PA extrusion (film and non-film) applications are also included.

7


EXECUTIVE SUMMARY

Demand

The polyamide market in India saw growth in the last five years average 12% p.a.,

compared with average GDP growth of 6.5% during the same period. AWJC is

forecasting that in the period up to 2013, growth in PA consumption will be sustained at

an average 11% p.a. Demand for PA compounds or polymer at the processor level in

2008 reached 42,000 tonnes and is expected to grow to 72,000 tonnes in 2013.

HISTORIC AND FORECAST DEMAND BY PA PRODUCT TYPE DURING THE PERIOD 2003-2013

Units: 000 Tonnes

2003 2007 2008 2013 Growth rate % p.a. 2008-

2013

PA6 18.8 32.2 32.5 56.1 11.5

PA66 5.2 8.9 9.1 15.2 10.9

HTN 0 0.15 0.2 1 41

Total 24 41.25 41.8 72.3 11.4

Injection Moulding accounted for 69% of PA demand in 2008, with the automotive

sector the destination for 55% of the total PA volume tonnage processed. PA demand

in automotive applications in India grew strongly up until 2007; largely on the back of

unit production growth which itself averaged 18% p.a. during the period 2001-2007.

Future long term growth for PA in the sector will, however , be particularly underpinned

as the typical kgs per car content increases from its present 5 kgs which lags far behind

the levels associated with cars made in the US, Europe and Japan . The Indian

automotive market also includes production of 8 million two wheelers p.a. which also

offer significant growth potential for PA.

Havells, the largest and probably fastest growing electrical and power distribution

equipment manufacturer in India, is the country‟s largest processor of PA (mostly PA6),

including significant volumes for exported PA products. The Indian electrical industry as

a whole, is itself anticipating further stimulus from the Government to spur domestic

demand and a faster implementation of the ongoing projects for augmenting power

generation, transmission and distribution systems.

The Indian Railway Infrastructure, a large user of PA66 for insulators, is likewise set to

grow strongly in order to support the overall growth of the country‟s economy as laid out

in the 11th Five year plan published in 2008.

8


In the extrusion market, demand for PA6 polymer in the film packaging sector should

also grow strongly at around 15% p.a., doubling the 2008 volume of 2,500 tonnes by

2013.

Supply

An estimated 101,000 tonnes of PA6 polymer was produced in India in 2008, of which

approximately 20% or 19,800 tonnes were subsequently consumed in the plastics

applications covered in the scope of this study. Of the 8 companies producing PA6

polymer in India , only 2, SRF and GSFC directly participate in the ETP business with

JCT „s involvement restricted to the occasional supply of textile grade PA6 polymer to

independent compounders. At the PA6 compound supply level, SRF appear to enjoy

market leadership along with DSM who have just started up production at its new 20-

25,000 tonne p.a. ETP compounding plant near Pune. Kuibyshevazot have significantly

increased exports of PA6 polymer into the compounding sector during the first half of

2009.

There is no existing polymerization of PA66 in India with the 9,000 tonne PA66 injection

moulding market exclusively supplied by locally produced PA66 compound based on

imported polymer, or imported PA66 compound. Dupont are the largest PA66

compound producer in India, and have developed market leadership in India through

direct sales and an extensive network of distributors operating across the country. Other

foreign PA producers with significant sales penetration in India include BASF and

Radici. The former are currently (July 2009) opening a 9,000 tonne p.a. ETP

compounding plant at an existing BASF facility in Thane. The €2.9million investment will

primarily manufacture PA6, PA66 and PBT compounds to underpin and grow BASF‟s

business in the Indian Automotive sector although Electrical and Electronics markets

will also be served. Radici, having originally entered the Indian ETP market in early

2006 via the formation of a joint venture company, Radici Plastics Modi P .Ltd, are

themselves likely to be considering various options for local manufacture.

The combined PA production of 20 independent compounders was estimated at 15,000

tonnes in 2008, with Formulated Polymers the largest at 3,500 tonnes.

AWJC estimate that in 2008, the total value of PA polymer or compound sales in India

at the processor level was 750 Rs Crore or €108 million. In order to capture and retain

value in it, AWJC expects PA polymer producers and compounders alike, to pay

increasing attention to understanding their customers‟ needs, to market segmentation,

to branding, and, where required, introduce value chain re-engineering.

9


TABLE OF CONTENTS of THE FULL REPORT

P4 Introduction Background and Scope of the Study

P8 Abbreviations

P9 Executive Summary

P11 Section 1 - The Market for PA in India

P17 Section 2 - Production and Supply of Polyamide polymer in India

P25 Section 3 - PA compound production

P31 Section 4 - High Temperature Nylons

P32 Section 5 - The Market for Polyamide in Automotive Applications

P57 Section 6 - The Market for Polyamide in the Electrical / Electronics Industry

P70 Section 7 - The Market for Polyamide in other Injection Moulded Industrial

Applications

P78 Section 8 - The Market for Polyamide in Film

P81 Section 9 - The Market for Polyamide in Non-Film Extrusion Markets

P84 Section 10 -Demand for Polyamide in Blow Moulding

P85 Section 11- Profiles and strategies of the major Polyamide manufacturers

- BASF

- Dupont

- DSM

- GSFC

- Radici

- SRF

10


P93 Section 12 - Market Position and Strategies of the Independent Indian

Compounders

P96 Section 13 - Profiles of Independent Indian Compounders

- APPL

- Axel Polymers

- Dilip Plastics

- Ester Industries

- Formulated Polymers

- Indore Composite

- Intercontinental Polymer Private Ltd

- Loxim

- Mahaveer Plast

- Modlon Polymers

- Next Polymers

- Rajivplastics

- Sundaram Polymers

P109 Section 14 – Profiles of major PA processors

- Adept Polymers

- AK Engineering

- ATC Components

- Ashok Minda

- Connectwell

- Consult Techniques

- Controls and Switchgear

- Elmex

- Ergocomp

- Essen Deinki

- Haryana Plastic

- Havells

- Injecto Plast

- Mann and Hummel

- Pheonix Contact

- Salzer Electronics

- Soynia

- Surelock

- Tata Visteon

- TVS group

- Techma Engineering

- Tyco Electronics

- Varroc

11


COSTS

The total cost of the report is as follows:

Project title Post

completion

subscribers

By

30/10/2009

Post

completion

subscribers

after

31/10/2009

TThhee ppoollyyaammiiddee mmaarrkkeett iinn

IInnddiiaa.. €4,500 €5,500

AWJ Consulting will invoice the full amount on delivering the report with payment

requested within 30 days.

The fee includes two hard copies of the study report and a review meeting within the UK

to discuss the report‟s contents. An electronic copy of the report will be supplied in a

Microsoft PDF format.

Review meetings and discussions will normally be held in the UK; however, other

locations, including India, will also be considered, although they are likely to incur travel

costs (to be invoiced separately).

12


ABOUT AWJ CONSULTING

AWJ Consulting is a small, specialized consulting service dedicated to the Global

Engineering Thermoplastics Industry. Founded and led by Tony Jones in October 2007,

AWJ Consulting offers a broad portfolio of services to clients, both large and small, who

can benefit from his commercial “hands on” and consulting experience built up since

entering the Industry in 1983.

In 2008 and 2009 to date, AWJ Consulting has successfully completed a range of single

client assignments for companies in the ETP Industry, notably:

Competitive distributor analysis in the UK ETP market

ETP compound production in the Independent compounding sector – an

acquisition search and appraisal

Supply chain analysis in selected global PA6 and PA66 markets

In July, 2008, AWJC published a multi-client report of the 500,000 tonne Chinese PA

market, which was well received by 8 PA polymer producers.

Tony Jones commenced his career in technical sales of ETP‟s to the UK Injection

Moulding sector with Whitfield Plastic Compounders. At the time, they were a leading

ETP compounder in the UK, and a distributor of PC, PA, PBT and ABS for Bayer, as

well as a “toll” compounder of POM for Celanese (now Ticona).

His European Plastics Industry understanding and knowledge was then developed

during a 4 year consultancy spell with CDC (Corporate Development Consultants),

including successful project management and completion of the first pan –European

multi-client studies on both the PP and ETP compound markets.

Following a business development role with leading UK “Telectronics” moulder ,

Plastic Engineers , in the early 1990‟s , Tony returned to Sales Management with the

specialist PA compounder , Plastex , before joining Applied Market Information (AMI) in

1993.

In an 11 year career at AMI, as Head of Client research, he pioneered the consulting

company‟s early studies and research of the Central European Plastics Industry, as well

as managing major market research projects in the late 1990‟s for polymer

manufacturers seeking to enter the emerging, but fast growing markets in Asia

(particularly China).

13


More recently, Tony also spent 3 years as Commercial Manager at Chem Polymer, the

UK‟s leading independent PA compounder who are now owned by the US diversified

material science company, Teknor Apex. In 2007, when back at AMI, he researched

and published a successful and well received multi-client study of the European PA

market, in addition to managing a strategic review of the largest 50 technical

compounders in Europe.

Where required to fully meet client needs, Tony will be networking with associates

around the world who have complementary skills and experience within the Global

Engineering Thermoplastics Industry.

AWJ Consulting offers assistance in the following areas:

Market research and analysis Competitor analysis and benchmarking Strategic analysis and planning Defining new product opportunities Market and product diversification Merger and acquisition – screening , selection and due diligence Global expansion

AWJ Consulting has extensive market experience and knowledge in:

Injection Moulding Thermoplastics Compounding Blow Moulding Extrusion Plastics Recycling Automotive plastic applications and component supply Engineering plastics in Electrical and Electronic markets

14


ACCEPTANCE

I wish to subscribe to “THE POLYAMIDE MARKET in INDIA” study at the following

price (tick which applies):

Post completion subscribers by 30/10/2009 at

€4,500

Post completion subscribers after 31/10/2009

at €5,500

I agree that the circulation of the report will be restricted to this company and subsidiaries in which its holding is more than 51 percent.

Company:

Address:

Telephone:

Fax:

E-mail:

Name:

Title:

Signature:

Date:

For any questions or further information regarding this study, please contact Tony

Jones, AWJ Consulting. Tel/fax: +44 (0)1454 269095, email: [email protected]

If you accept this proposal, please sign one copy and return it to AWJ Consulting. This

will serve as a binding agreement.

polyamide mrkt india

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