plastic indsutry

8/12/2019 Plastic indsutry

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Shreyas Nair 12020241066Bhushan Ashtikar 12020241016

Jagdish Lamture12020241080

Pradeep Dharasurkar1202024189


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IntroductionPlastic

The name plastic has been coined from plastikos- a Greekword meaning capable of being shaped or molded

characterized by light weight, high corrosion resistance and lowmelting point

Classification of Plastic: Broadly plastics can be classified into two types

Thermosetting

Thermoplastic

Apart from these, plastics have been also divided into sevendifferent types by the plastic industry


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POLYETHYLENE TEREPHTHALATE (PETE): soda and cooking oil

bottles

HIGH DENSITY POLYETHYLENE (HDPE): detergent bottles, milk jugs

POLYVINYL CHLORIDE (PVC): plastic pipes, furniture

LOW DENSITY POLYETHYLENE (LDPE): dry cleaning bags, food

storage containers

POLYPROPYLENE (PP) : bottle caps , drinking straws

POLYSTYRENE (PS) : cups, plastic tableware

OTHER: includes those plastics which are different from the six

aforesaid types of plastic. Food containers ,Tupperware


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The chronology of production of polymers is summarized as

under

Polystyrene(1957)

LDP (1959)

PVC (1961)

HDPE (1968)

Polypropylene(1978)


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Plastic Products

Packaging

PP / HDPE woven sacks / bags / fabrics

A range of plastic sheeting / films

Films

Polyester film, BOPP film

Mesh, photo films

ConsumerGoods

Toothbrushes, cleaning brushes, hair brushes

house ware, kitchenware, stationery items

WritingInstruments

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.


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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 / equipments

Electrical Accessories FRP / GRP Products - Safety helmets / equipment, pipes,

storage tanks, etc

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

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

sets, etc

(Source: http://www.india-exports.com/plastic.html)


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Indian Plastic industry

The per capita consumption of polymers industry in the

country during 2012-13 was low at just 9.7 kg

Growing market for plastics and consumes about 11 million

tonnes annually against a global consumption of 275 million

tonne per year

The plastics and polymer consumption is growing at an

average rate of 10%

Manufacturing capacity of 30 million metric tonnes per

annum

(Source: coverage of Report on Indian Plastics Industry 2012-2016 by Indian

express)


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Contribution to Economy

Over 30000 processing units employing 4 million people

On the basis of value added, share of India's plastic products

industry is about 0.5% of India's GDP

The export of plastic products also yield about 1% of thecountry's exports

Large presence of small scale companies in the industry,

which account for more than 50% turnover of the industry

Approximately Rs 100 billion are invested in the form of fixedassets in the plastic processing industry

(Source: India Exports and Business Trade Zone)


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Polymer Capacities in India

Source: Indian Plastic Industry-vision 2012, A report by CRISIL


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Governing organizations for the plastic

Industry Plastics Export Promotion Council (PLEXCONCIL)

the apex government body for the promotion of exports

The members of the council comprise large/medium/small-scalemanufacturers and exporters

Facilitates exporters by organising international trade fairs, buyer sellermeets, etc

The All India Plastics Manufacturers' Association (AIPMA) Apex non profit body serving Plastic industry since 1945

AIPMA organizes National as well as International trade shows , Seminars,Lecture Meetings, Conferences, Buyer & Seller Meet, TrainingProgrammes

Liaison between the Government and the Industry

(Source: www.aipma.net/about-aipma, www.ibef.org)


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POLYMER MANUFACTURING


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CONVERTING INDUSTRY

MACHINERY


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Growth Drivers

Packaging

Automotive

Appliances Healthcare and Hygiene

Agriculture

Infrastructure


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Packaging

The development in Polymer packaging

brought in the revolution

>60% polymers used in India are consumed

for packaging

Key industries

Food

FMCG

Cosmetics


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Automotive

Growth drivers for polymer usage

Low vehicle penetration

Rising income levels

Growing middle class

Large scale use of polymers expected to makethe vehicle light and efficient

Applications include Bumpers, dashboards, grills

Battery containers

Ducts, seats, interiors


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Appliances

The key growth drivers for Polymer Usage

Low penetration Level in India

Untapped Rural Market

Faster Replacement Cycle Availability of Power to all by 2020

Applications of Polymers in Automobiles

All plastics Washing Machines TV / AC cabinets, Refrigerator Components

Water Purifier Body


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Healthcare and Hygiene

India has already emerged as preferredMedical Tourism Destination

The modern healthcare demands for more

polymer based products The key growth drivers for Polymer Usage

Syringes, IV Fluid Bottles, Blood Bags

Disposable wears

Modern Medical Equipments

Implants, Artificial Body Parts

Personnel Hygiene Products

Sanitary Products, Baby care products


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Agriculture

PlasticultureThe emerging sector in India Growing awareness will drive consumption growth in

Agriculture Sector


Green Houses

Crop / Fruit Covers

Drip Irrigation

Products used are Pipes

Storage Tanks

Shade Nets


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Infrastructure

Polymers playing a pivotal role inInfrastructure development


Building and Construction Mega Highway Projects

Rural Electrification Projects

Products used are

Pipes (Gas, Water, Sewerage)

Storage Tanks

Profiles and Decorative Item

Geosynthetics


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Porter's Five Force Analysis


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Bargaining power of Supplier

A few factors which increases the supplier

powers are

presence of few suppliers

presence of large no. of purchasers

high costs of switching suppliers

Oligopoly with 15 key players


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Bargaining power of Buyer

Buyers in this industry are many

Range from small to big sized firms

Firms producing standard products have largevolumes and multiple suppliers:

Agriculture, Infrastructure and Packaging have low

to medium bargaining power

Automobiles and electronics have high bargaining

power


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Competition

Large chunk of the plastic processors are lying

in the small and medium scale range of

industries

Price war

Small companies specialise in a particular

variety

Large players are not as adaptable as small

companies


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Threat of New entrants

New entrant faces difficulty in case that it doesnot achieve a substantial market share to reachthe minimum efficient scale, it usually stands at acost disadvantage

Established market and reap advantages ofeconomies of scope. Also the SSI policy of theGovt - its reservation policy and exempting itfrom several kinds of taxes

Access to raw materials, technological know-how,key-inputs are difficult

Only big firms can enter this kind of market

having sufficient capital at hand


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Threat of substitutes

With the growing alertness against the use of

plastic in daily life at an alarming rate, there is

a threat of close substitutes

Glass

PHB biocomposites

Liquid wood

ECM biofilm

Polyactides


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Vision

Fields like biotechnology and nanotechnology

to be the key drivers

Collaborative partnership in R&D

Extensive reverse logistics

Recycling and waste management


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Reference

http://export.gov/build/groups/public/@eg_

main/@byind/@manufind/documents/webco

ntent/eg_main_041066.pdf

http://www.zenithresearch.org.in/images/sto

ries/pdf/2011/Nov/22_vol-1_issue-

7%20_%20%20%20SANTANU%20MANDA%20

Industry%20Analysis%20_Plastic%20_L.pdf
http://export.gov/build/groups/public/@eg_main/@byind/@manufind/documents/webcontent/eg_main_041066.pdfhttp://export.gov/build/groups/public/@eg_main/@byind/@manufind/documents/webcontent/eg_main_041066.pdfhttp://export.gov/build/groups/public/@eg_main/@byind/@manufind/documents/webcontent/eg_main_041066.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://www.zenithresearch.org.in/images/stories/pdf/2011/Nov/22_vol-1_issue-7%20_%20%20%20SANTANU%20MANDA%20Industry%20Analysis%20_Plastic%20_L.pdfhttp://export.gov/build/groups/public/@eg_main/@byind/@manufind/documents/webcontent/eg_main_041066.pdfhttp://export.gov/build/groups/public/@eg_main/@byind/@manufind/documents/webcontent/eg_main_041066.pdfhttp://export.gov/build/groups/public/@eg_main/@byind/@manufind/documents/webcontent/eg_main_041066.pdfhttp://export.gov/build/groups/public/@eg_main/@byind/@manufind/documents/webcontent/eg_main_041066.pdf

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