Plas­tics pro­cess­ing in­dus­try poised to grow at CAGR of 10.5%: Re­port

FICCI Business Digest - - News -

A FICCI-Tata Strate­gic Man­age­ment Group Knowl­edge Pa­per on Plas­tic In­dus­try for In­fra­struc­ture, re­leased at the con­fer­ence, in­di­cates that plas­tics pro­cess­ing in­dus­try has grown at a CAGR of 10% in vol­ume terms from 8.3 MMTPA in FY10 to 13.4 MMTPA in FY15 and is ex­pected to grow at a CAGR of 10.5% from FY15 to FY20 to reach 22 MMTPA. In value terms, the plas­tic pro­cess­ing in­dus­try has grown at a CAGR of 11% from Rs 35,000 crore in FY '05 to Rs 100,000 crore in FY15. The cur­rent low lev­els of per capita con­sump­tion (11 Kg), in­creased growth in end use in­dus­tries, higher pen­e­tra­tion of plas­tics in var­i­ous ex­ist­ing ap­pli­ca­tions and ever grow­ing range of new ap­pli­ca­tions could fur­ther pro­pel the growth of plas­tics in India.

The In­dian plas­tic in­dus­try is mak­ing sig­nif­i­cant con­tri­bu­tion to the eco­nomic de­vel­op­ment and growth of var­i­ous key sec­tors in the coun­try which in­cludes au­to­mo­tive, con­struc­tion, elec­tron­ics, health­care, tex­tiles, and FMCG. The de­vel­op­ments in the plas­tic ma­chin­ery sec­tor are cou­pled with de­vel­op­ments in the petro­chem­i­cal sec­tor, both of which sup­port the plas­tic pro­cess­ing sec­tor. This has fa­cil­i­tated plas­tic pro­ces­sors to build ca­pac­i­ties for the ser­vice of both the do­mes­tic mar­ket and the mar­kets over­seas.

To­day, the plas­tic pro­cess­ing sec­tor com­prises over 30,000 units in­volved in pro­duc­ing a va­ri­ety of items, gain­ing no­table im­por­tance in dif­fer­ent spheres of ac­tiv­ity with per capita con­sump­tion in­creas­ing. The plas­tic pro­cess­ing in­dus­try has the po­ten­tial to con­trib­ute in bring­ing for­eign in­vest­ments and thus India's vi­sion of be­com­ing a man­u­fac­tur­ing hub.

The pa­per notes that in the last decade, sev­eral new ap­pli­ca­tions of plas­tic prod­ucts have emerged in sev­eral sec­tors boost­ing the in­dus­try fur­ther. For ex­am­ple, long fiber re­in­forced ther­mo­plas­tic for au­to­mo­tive in­dus­try, fibers that can trap in­fra-red ra­di­a­tions, pack­ag­ing that can in­crease the shelf life of prod­ucts etc. have cre­ated de­mand for plas­tics which were in their nascent stage in India.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.