psir

October 2013

Name Company CommitteeMr. J. R. Shah Jayvee Organics & Polymers Pvt Ltd ConvenorMr. Francis Pinto Consultant ChairmanMr. Prem G Manghani Consultant Coordinator - Raw MaterialsMr. S.N. Kabra Kolsite Group of Companies Coordinator - MachineryMr. Achal N. Thakkar Tipco Industries Ltd. MemberMr. Hemant Minocha Rajiv Plastics Limited MemberMr. T. K. Bandopadhyay Indian Centre for Plastics in the Environment MemberMr. N. K. Balgi Ferromatik Milacron India Ltd. MemberMr. Rajendra Sharma Ferromatik Milacron India Ltd. MemberMr. Sunil Jain Rajoo Engineers Ltd, MemberMr. L. K. Singh Fixopan Machines Pvt. Ltd. MemberMr. Rajiv Trivedi Prasad Koch Technik Pvt. Ltd. MemberMr. Soham Mehta Axcel Polymers Ltd. MemberMr. J. J. Modi Baerlocher India Additives Pvt. Ltd. MemberMr. Bhaskar Ghosh Reliance Industries Limited MemberMr. Vinod K. R. Reliance Industries Limited MemberMr. Shekhar Balakrishan Reliance Industries Limited Member

2

Committee Members

India Overview

Polymer Manufacturing Capacity

Polymer Consumption

Imports/Exports

Masterbatch/Additives

Machinery Manufacturing Industry

Polymer Growth Opportunities

Conclusion

3

Auxiliary Equipment

Plastics Recycling

Contents

..land of billion opportunities

Population 1.2 Bn (4 times US)

Largest Parliamentary democracy

Secular State - No state religion

Independent Judiciary

23 official languages, business language predominantly English

Excellent Social Infrastructure Education, Healthcare, Travel & Recreation.

Third largest economy on PPP basis (appx. US $5 trillion)

India Snapshot

4

54

56

58

60

62

64

66

68

70

72

74

200 0 200 5 201 0 201 5 202 0 202 5 203 0

India Brazil

China Russia

G6

Large potentially productive workforce

Working Age Population as % of Total Population (Age 15 60)

66% of India in theworking age group 768m

Median age 24 years

5

Demographic Profile

Country Mn. Sq. KM

Population (Million)

GDP (PPP)Bn US$

Afghanistan 0.65 29 34

Bangladesh 0.14 164 291

Bhutan 0.04 2 5

India 3.29 1270 4793

Maldives 0.30 0.3 3

Nepal 0.14 30 41

Pakistan 0.80 170 518

Sri Lanka 0.66 20 127

Total 8 6.02 1685 5085

23% of world population accounting for less than 7% of GDP

Indian Sub-Continent

Source: World Bank for GDP

6

Bhutan

(%) 2010-11 2011-12 2012-13

GDP(Factor Cost) 8.4 6.9 5

Growth

Agriculture 5.0 2.7 1.9

Industry 8.6 8.2 2.1

Services 9.4 9.6 7.1

Total 8.4 6.9 5

Inflation WPI-Average 8.0-8.5 9.2 7.3

Interest rate 10-year G-Sec 8.1-8.3 8.5 8.1

Exchange rate

Re / US $ (Year-end) 43.5 48 54.4

Fiscal deficit As a % of GDP 4.8 5.7 5.2

Robust economy with strong fundamentals 10th largest in the world by nominal GDP and the 3rd largest by purchasing power parity (PPP)

Source: CRISIL/Ministry of Finance

7

Indian Economy

GDP Growth Strong Relation to Petrochemical Growth

GDP Growth

Polymer Growth

Import Duty

1990-1995 5.0% 12.9% 50%+

1995-2000 6.5% 14.6% 40%

2000-2004 5.9% 5.8% 45%-15%

2005-2012 8.7% 10.9% 12.5% (H) - 5% (L)

2012-201712th Plan 8.0% 10.6% 7.5%-5% ?

2017-202213th Plan 9.5% 10.4% 5%-0% ?

Growth in GDP Components

0

2

4

6

8

10

12

FY08 FY09 FY10 FY11 FY12 FY13 E FY14 F

5.8

0.20.8

7.9

3.6

1.9

4.5

9.7

4.4

9.2 9.2

3.53.1

4.8

10.3 10 10.5 9.8

8.2

6.77.9

Agriculture Industry Services

8

Advantage India

Economic Advantage 3rd largest economy globally with potential for high growth rate

Indian Equity market 3rd biggest in Asia

Demographic Advantage Emergence of Middle class - rising household income 2.9x 2010 & 2020 Growing consumer market - Booming retail sector

Large workforce Highly skilled & educated 2nd largest English speaking population

Urbanisation 31% -2010 to 35% -2020 (Population living in city)

Globalisation Share of Indias World Trade more than doubled from US$ 312 in 2006/07 to US$ 792 in 2012/13

By 2020, Productivity growth to help India sustain > 8% growth Per Capita GDP will more than double current levels Indians will buy 5 times more cars auto manufacturing hub > 100 million people will enter labor force 140 million rural dwellers to move to urban areas Infrastructure investments (Rail, Road & Ports) to match global standards

India: Entering the league of developed nations by 2020 9

Growth Drivers for India - Key Indicators

Millions 2011E 2020E CARG White goods CTV 13.6 60 20%

Refrigerator 5.1 14.3 8%

Air conditioner 2.6 18 13%

Washing Machines 2.5 9.1 14%

Transportation Car 1.7 9.7 18%

Commercial Vehicles 0.43 5.4 30%

Two wheelers 8.9 30 66%

Infrastructure Electricity (Bn Units) 773 1870 13%

Steel (MT) 55.1 130 11%

Coal (MT) 540.6 1380 16%

Cement (MT) 193.5 509 13%

Airline Passengers 43.2 452 28%

Mobile subscribers (Additions)

160 5000 24%

Polymers 2012 Consumption in MMT 11 20 10%

10Large market creates inherent demand for petrochemicals

Source : Cris Infac, SIAM, MoSPI, DGCA, TRAI, Industry, Plastindia Foundation Committee

Growth Drivers - Examples of Growth

India The Widely open Economy 11

Source: Ministry of Commerce & Industry, Government of India

Indias total merchandise tradeincreased over two-fold from US$312 Bn in 2006/07 to US$ 792Bnin 2012/13 43 % 0f GDP

Indias International Trade

Source: Ministry of Commerce & Industry, Government of India

Top Import Items(2012/13, US$ 492 bn)

Top Export Items (2012/13, US$ 300 bn)

Petroleum Products, 20%

Gems & Jewellary, 14%

Transport Equipments, 6

%

Machinery & Instmt 5%

Pharma & Fine Chemicals, 5%

Manufac. Metals, 3%

RMG Cotton incl access, 3%

Electronic goods, 3%

Cotton Yarn, Fabrics,

3%

Inorganic/Organic/Agro, 2%

Others, 36%

Petroleum Crude, 34%

Gold, 11%

Electronic goods, 6%

Machinery 6%

Pearls/Precious/Semiprecious Stones, 5%

Coal, Coke & Briquittes, 3%

Metal Ores & Scrap 3%

Organic Chemicals, 3%

Transport Equipments, 3%

Vegetable Oils (Edible), 2%

Others, 24%

Foreign Direct Investment : 2012/13 US$ 37 Bn (2011/12 US$ 47 Bn)12

Indias Trade Basket

Major Polymers - Manufacturing Capacity

Manufacturing Capacity is being continuously augmented

to meet increasing demand

2012-13 : Capacity : 10.4 MMT Consumption : 11 MMT

2016-17 : Capacity : 15.2 MMT Consumption : 16.5 MMT (Est.)

Fig. in KT

Source: Industry

PET Capacity:

- Bottle Grade : 2012-13 : 900 KT 2016-17 : 1800 KT

- For Film Appln. : 2012-13 : 410 KT 2016-17 : 670 KT

PS Capacity:- HIPS/GPPS: 460 KT- EPS: 120 KT

14

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

PS LDPE PVC LLDPE PET HDPE PP

580

205

1320

990

1330

1845

4130

580605

1420

2005

2470

3130

4970

2012-13

2016-17

Producers of Major Polymers (PE/PP/PVC/PS/PET)

Capacity 2012-13 : 10.4 MMT Capacity 2016-17 : 15.2 MMT

New Capacity addition by 2016/17 : 4.8 MMT

Source: Industry

15

RIL 47%

Haldia 11%

IOC 12%

GAIL 5%

HMEL 4%

Others 21%

RIL 43%

Haldia 7%

IOC 8%

GAIL 7%

HMEL 3%

OPaL 9%

MRPL 3%

Others 20%

Manufacturing Capacity Major Players (Thermoplastics)

New Capacity addition during 2013/14 to 2016/17 : 4.8 MMT

Fig. in KT

Source: Industry 16

LDPE LLDPE HDPE PP PVC PS/EPS PET 12-13 % Share 15-16 % ShareRIL 205 445 515 2700 650 ---- 350 4865 47% 6565 43%IOC ---- 175 475 600 ---- ---- ---- 1250 12% 1250 8%Haldia ---- 220 500 390 ---- ---- ---- 1110 11% 1110 7%GAIL ---- 150 355 ---- ---- ---- 505 5% 975 6%HMEL ---- ---- ---- 440 ---- ---- ---- 440 4% 440 3%Dhunseri Petrochem ---- ---- ---- ---- ---- ---- 400 400 4% 400 3%Supreme Petrochem ---- ---- ---- ---- ---- 342 ---- 342 3% 342 2%Finolex ---- ---- ---- ---- 270 ---- ---- 270 3% 270 2%Chemplast Sanmar ---- ---- ---- ---- 250 ---- ---- 250 2.4% 250 1.6%JBF Industries ---- ---- ---- ---- ---- ---- 150 150 1.4% 150 1.0%LG Polymers India ---- ---- ---- ---- ---- 130 ---- 130 1.2% 130 0.9%StyroSolutions ---- ---- ---- ---- ---- 105 ---- 105 1.0% 105 0.7%DCW ---- ---- ---- ---- 90 ---- ---- 90 0.9% 90 0.6%DSCL ---- ---- ---- ---- 61 ---- ---- 61 0.6% 61 0.4%OPaL ---- ---- ---- ---- ---- ---- ---- ---- ---- 1400 9.2%MRPL ---- ---- ---- ---- ---- ---- ---- ---- ---- 440 2.9%BCPL ---- ---- ---- ---- ---- ---- ---- ---- ---- 280 1.8%Micropet ---- ---- ---- ---- ---- ---- ---- ---- ---- 220 1.4%JBF Industries ---- ---- ---- ---- ---- ---- ---- ---- ---- 30 0.2%Others ---- ---- ---- ---- ---- 5 430 435 4.2% 675 4.4%Total 205 990 1845 4130 1321 582 1330 10403 100% 15183 100%

Polymer Processing Industry : An Overview

India Per Capita Consumption in 12-13 9.7 kg (USA 109 Kg, China 45 Kg,Brazil 32 Kg)

Per Capita Consumption in 12-13 13 kg (Virgin + Recycled)

Virgin Polymer consumption in 12-13 11.8 MMT

No of Processing units about 30,000

No of processing Machines ~ 113,000

Processing Capacity 30 MMT

Processing Capacity CARG 13 % last 5 years

No. of plastics machinery manufacturing units ~ 200

Investment in Machinery ~ US $ 5 Billion

Investment required for next 5 yrs ~10 Bn US$ (Project Invest.)

18Source: Industry

2012-13 : 11.8 MMT

2016-17 : 17.6 MMT (Est.)

Demand 11.8 MMT (2012/13) 17.6 KT (2016/17) : ~ 10.7 % CARG

*Others : cPVC - 75

TPE 15

TPU - 12

Total Polymer Consumption : 2012-13(Thermoplastics + Thermosets)

PE3400

PP3100

PVC2370

Thermosets800

PET570

BOPET410

Engg. Polymers500

PS/EPS325 EVA

135

Others*102

Source: PlastIndia Foundation Committee

19

Thermoplastic Elastomers (TPE) Styrenic Block Copolymers (SBCs, TPE-S) Thermoplastic Polyolefins (TPO/TPV) Thermoplastic Polyurethanes (TPU, TPE-U) Copolyester Elastomers (COPE, TPE-E) Polyamide Elastomers

(TPE-A, PEBA, COPA) Others (including Super TPV, ETPV etc.)

Fig. in KT

Thermoplastic Polymer Consumption - 2012-13

PP28%

PVC22%

HDPE16%

LLDPE11%

PET5.5%

Engg. Polymers4.6%

LDPE4%

BOPET3.7%

PS/EPS3%

EVA1.2%

cPVC0.7%

Demand 11 MMT (2012/13) 16.5 MMT (2016/17) : ~ 10.8 % CARG

2012-13 : 11 MMT

2016-17 : 16.5 MMT (Est.)

20


Demand 500 KT (2012/13) 680 KT (2016/17) : ~ 8 % CARG

*Others : PMMA , POM, PPO/PPS, UHMWPE, PEEK, FP, LCP, etc

Engineering Polymers Consumption 2012-13

ABS31%

PC30%

PBT11% SAN

7%

PolyAmide10%

Others*11%

Fig. in KT


21

Demand 800 KT (2012/13) 1100 KT (2016/17) : ~ 8 % CARG

2012-13 : 800 KT

2016-17 : 1100 KT (Est.)

Fig. in KTPhenolic Resins

360

Unsaturated Polyester

200

Urathanes125

Epoxy Resins60

Melamine Resins25

Urea Resins20

Other Thermosetting

Resins10

Thermosetting Polymer Consumption - 2012-13

In terms of Moulding Powders incase of Phenolic, Urea etc. thequantum will be still larger

22


Demand 3.4 MMT (2012/13) 4.9 MMT (2016/17) : ~ 9.6 % CARGIndia to be top ten packaging consumer by 2016 - demand set to reach $24 Bn by 2016

2012-13 : 3.4 MMT

2016-17 : 4.94 MMT (Est.)

PE Sector wise Consumption - 2012-13


24

Film 45%

BM15%

IM8%

Raffia7% Pipe

7%

Roto Moulding 4%

MB3%

W&C3%

EC2% MF

1%

Others5%

Demand 3.1 MMT (2012/13) 4.9 MMT (2016/17) : ~ 12 % CARG

2012-13 : 3.1 MMT

2016-17 : 4.89 MMT (Est.)

Raffia 35%

IM32%

BOPP12%

TQ8%

F & F7%

Extrusion5%

Others1%

PP Sector wise Consumption - 2012-13


25

Demand 2.37 MMT (2012/13) 3.33 KT (2016/17) : ~ 8.8 % CARG

2012-13 : 2.37 MMT

2016-17 : 3.33 MMT (Est.)

PVC Sector wise Consumption - 2012-13

Pipes 67%

Calendering8%

Wire & Cables5%

Films4%

Fittings3%

Profiles2%

Compound3%

Footwear2%

Sheets1%

Others5%


26

PET Sector wise Consumption - 2012-13

Demand 1010 KT (2012/13) 1900 KT (2016/17) : ~ 17 % CARGTremendous Growth Potential for PET Consumption

2012-13 : 1.0 MMT

2016-17 : 1.9 MMT (Est.)

27

Bottle, 580

Film, 410

Strapping, 10

Sheets, 6

IM, 3

MB, 3

Others, 22


Figs. In KT

PET (Bottle Grade) Sector wise Consumption - 2012-13

Water21%

CSD17%

Alcoholic Beverages

14% Jar/Confectionary/Retail

12%

Health Care10%

Personal Care8%Flavoured

Beverages6%

Cooking Oil5%

Agro Chemicals

2%

Others6% Recycled PET (MMT)

2012 Global China IndiaPET Chips Consumption 18 3.3 0.6

Collection Rate 46% 90% 70%

India has the 2nd highest collection rate.

Demand 600 KT (2012/13) 1250 KT (2016/17) : ~ 20 % CARGTremendous Growth Potential for Indian Market

2012-13 : 0.6 MMT

2016-17 : 1.25 MMT (Est.)

Per Capita Consumption

World : 2.7 kg

USA : 6.7 kg

India : 0.5 kg

28


Demand 335 KT (2012/13) 410 KT (2016/17) : ~ 6 % CARG

PS/EPS Sector wise Consumption - 2012-13


29

Consumer durables

31%

Food Services14%

Novelty/Gift Items11%

Writing Instruments

7%

Foamed sheet7% Electronics

4% Razor, hanger,Toy5%

Packaging60%

Insulation40%

EPS70

Figs. In KT

Total Consumption : 335 KT

World Largest Rotomolded water tank Market

Roto Molding Market Snapshot


30

Market Size - 197 KT (117 KT virgin + 80 KT recycled) Around 75 % of virgin polymer consumed for tanks, i.e., 88KT. Est. Consumption of reprocessed material in Roto Molding ~ 80 KT. Overhead Tank : Loft Tank ratio - 85:15 ~80% of tanks demand is for < 2000 lts

90% of Industries in SSI sector consuming 10% of raw material

Roto Moulding Consumption


31

2535 40 40

4654 60 54

6575

82 8698 104

108 117

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Virgin Polymer Consumption in KT

2012-13 Consumption : 117 KT (virgin) + 80 KT(recycled)

Growth Opportunities Water Management Agriculture Sector Infrastructure - Manhole Traffic Furniture

Demand 11 MMT (2012) 20 MMT by 2020 : ~ 9 % CARG

2012-13 : 11 MMT

2016-17 : 16.2 MMT (Est.)Fig. in KT

Flexible Packaging

35%

Rigid Packaging13%

Industrial14%

Infrastructure12% Consumer

durables & Lifestyle

10%

Agriculture9%

Others4%

Automotive3%

Packaging Industry growing at 15% annually valued at USD 15.6 Billion

Flexible Packaging accounts for 30%

Thermoplastic Polymer Consumption Applicationwise2012-13

Source: PlastIndia Foundation Committee 32

Masterbatch manufacturing units in India about 180 nos.34

2012-13 2016-17 (Est.)

White/Black/Colour + Additive 255 400

Filler Masterbatch 515 800

Total 770 1200

Demand (KT)Masterbatch

Masterbatch Current Scennario


35

Masterbatch Growth drivers

New specific applications like cling film, anti bacterial film,

foaming agents and by demand of high speed extrusion.

Increased focus on quality aspects.

Growth in consumption of LL film, milk film.

Higher consumption of Black Masterbatch in Pipe.

Increased usage in Molding sector.

High polymer price levels trigger enhanced usage.

Boom in raffia market.

37

Additives Demand 2012/13 2016/17

ADDITIVES 2012-13 2016-17

Anti Oxidants

Phenolic AO 4000 6290

Phosphite AO 4700 7400

Trioesters 350 550

UV - Absorbers 1500 2360

10550 16600

Stabilizers

PVC Heat Stabilisers 57000 80460

Modifiers

Impact Modifiers 7120 10050

Processing Aids 5650 7980

12770 18030

(Fig. In MT)

ADDITIVES 2012-13 2016-17

Flame Retardants

Brominated 640 840

Phosphite 1530 2010

Antimony Oxide 1600 2100

ATH 9600 12580

Others 1020 1340

14390 18870

Plastisizers

Primary Plastisizers 225000 306110

Epoxy Plastisizers 30000 40810

Chlorinated Paraffins 125000 170060

380000 516980


2012-13 : Major Polymer Imports : Qnty : 2.67 MMT

Polymer Imports 2012/13

PVC1135

LLDPE520

HDPE455

PP430

EVA130

S Arabia 18%

Korea 15%

Taiwan12%

Qatar 9%

UAE7%

Singapore 5%

USA 5%

Thailand5%

China4%

Others 21%

Major Polymer Imports (figs. In KT) Country wise Polymer Imports (USD 2.77 Bn )


46%

18%

14%

7%

6%5% 4% Plastic Raw Materials

Moulded and Extruded Goods

Plastic sheets, films, plates etc

Packaging materials

Other plastic items

All types of optical items

Stationery/Office and School Supplies

Source: Plexconcil 40

Exports from India 2012/13

2012-13 : Raw Materials : USD 2.77 Bn

Finished Products : USD 1.93 Bn

KT USD (Mn)

Self adhesive plates, sheets, film, foil, tape, etc 462 856

Articles for packing goods; stoppers, lids, caps & closures 106 196

Tubes, pipes, hoses and fittings 59 109

Sanitary ware - Baths, sinks, wash-basins, bidets, lavoratory pans, seats & covers, flushing cisterns

30 55

Builders' ware of plastics 27 50

Table ware, kitchen ware & other household articles 17 31

Floor, wall & ceiling coverings 16 29

Monofilament (> 1mm dia), profile shapes of plastics 9 16

Other articles of plastics 317 586

Total 1041 1928

FY 2013 (Apr 12 - Mar 13) Product


Imports Converted Products 2012/13

2012-13 : Polymer Exports : USD 2.77 Bn (1.29 MMT)

PP : 845 KT, PET : 225 KT, HDPE : 150 KT, PS : 70 KT

Converted Products Exports : USD 3.25 Billion

U S A 13%

UAE7%

Germany5%

China PRP4%

U K 4%

Others67%

Processed Goods : USD 3.25 Billion

China PRP 20%

Turkey9%

UAE5% U S A

5%

Italy5%

Others56%

Raw Materials : USD 2.77 Bn

Source: Plexconcil

PE domestic supply will be in excess of demand by 2016-17

42

Country wise Exports from India 2012/13

43

Imports Converted Products 2012/13

Plastic Moulded Extruded Goods Laminates

Plastic Raw Materials Poly-Lined Jute Goods

Polyester Film Moulded Soft Luggage items

Plastic Woven Sacks/Fabrics/Bags Lenses

Writing Instruments GRP/FRP Products

Floor Coverings Plastic Elec. Accessories

PVC Fabricated Goods Plastic Bangles/Imitation Jewelry

PVC Leather Cloth Optical Goods

Ropes/Twines/Yarn/Bristles NES Items (Not Elsewhere Specified)

Fish Nets/Fishing Line Polythene Pipes

PVC Rigid/Flexible Pipes/Fitting Cine X-Ray Films

PVC Sheeting/Film Toys/Dolls/Games

Dies & Moulds

45

Plastics Recycling

Last industry study on Recycling published in 2008 Number of Organised Recycling Units: 3500 Number of Unorganised Recycling Units: 4000 Major Types of Plastics Recycled: PET, HDPE, PVC, LDPE/LLDPE, PP, PS & others

like ABS, PMMA etc.

Manpower directly involved in Plastics Recycling: around 6, 00,000 Manpower indirectly involved in Plastics Recycling: around 10, 00,000 Quantum of Plastics Recycled per annum: 4 MMT. Estimation based on

following facts :

Almost 100% of Rigid Packaging products is recycled except EPS

70% of PET Bottle is recycled

Large imports of Plastic scrap & waste pairings

Waste generated by Plastic Industry, Industrial Plastic Waste

Recycling including the ones from household, furniture etc applications

Plastic products which went into municipal solid wasteSource: ICPE

46

Plastics Recycling Clusters

Estimated Quantity of Recycled Plastics 4 MMT

Plastics Recycling Clusters

Dhoraji, in Gujarat

Daman

Vapi in Gujarat

Malegaon (Dyana) & Sholapur in Maharashtra

Dharavi and Bhandup in Mumbai

Indore, Madhya Pradesh

Delhi, NCR

4 main categories of plastics recycling:

Primary Recycling conversion of waste plastics into products having performance levelcomparable to that of original products made from virgin plastics

Secondary Recycling conversion of waste plastics into products having less demandingperformance requirements than the original material

Tertiary Recycling the process of producing chemicals / fuels / similar products from wasteplastics

Quaternary Recycling the process of recovering energy from waste plastics by incineration.

Recycling Centres

Machinery Manufacturing Industry: Present Scenario

No. of plastic machinery manufacturing units : ~ 200

Domestic Market : ~ US $ 550 Million p.a.

Machines Installed Till Mar.2013 : - 113,000

Installed processing Capacity : 30 MMT

Employment : 1.2 million (direct+indirect)

Processing Capacity CARG : 13 % last 5 years


Injection Moulding 72250 9450

Blow Moulding 9000 1300

Extrusion Total 31600 19700

Monolayer Film 9370 1625

Multilayer 1290 1050

BOPP 33 600

PPTQ Film 2950 640

Raffia 1760 2690

PO Pipes 1395 1560

RPVC Pipe 5200 5390

Others 9580 5380Total 112850 30450

No. of Machines Installed

Installed Capacity (KT)

Installed Capacity being ~ double the quantity processed!Source: PlastIndia Foundation Committee

Injection Moulding

64%

Blow Moulding

8%

Extrusion28%

Injection Moulding

32%

Blow Moulding

4%

Extrusion64%

Total No. of Machines

Total Installed Capacity (KT)

(Excludes Mortality)

49

Sector wise Processing Industry 2012/13


(Excludes Mortality)

50

Machinery Additions Up to March 2013

Process Nos./KTA 08-09 09-10 10-11 11-12 12-13 Up to 12-13

ExtrusionMachines Added (Nos.) 1714 1816 1902 1620 1600 31620

Installed Capacity (KTA) 1531 1754 1901 1549 1496 19700

Injection Molding

Machines Added (Nos.) 3446 4236 5667 5942 5248 72240


BlowMolding

Machines Added (Nos.) 387 430 570 536 450 9010


TotalMachines Added (Nos.) 5547 6482 8139 8098 7298 112900


No of Machines

Description 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

IMM 2,899 3,139 3,446 4,236 5,667 5,942 5,248

Extrusion 1,273 1,645 1,714 1,816 1,902 1,620 1,600

BMM 336 326 387 430 570 536 450

Total 4,508 5,110 5,547 6,482 8,139 8,098 7,298

Description 2016-17 2017-18 2022-23 CAGR

IMM 7,300 8,200 14,500 12.1%

Extrusion 2,150 2,300 3,800 9.6%

BMM 700 800 1,250 10.8%

Total 10,150 11,300 19,550 11.5%

2012-13 was not a good year for Indian Economy.

Plastics machinery also experienced decline in demand.

Projection for 2016-17 : 11.5%IMM: 12 %, Extrusion: 9.6%, BMM: 10.8%

51


Plastics Machinery Demand & Growth Projections

TonnageRange

Sales 03-04

Sales 07-08

Sales 12-13

Sales 16-17 (Est)

Nos. Nos. Nos. Nos.

Up to 110T 1,156 1,566 1,968 2,860

125-200T 405 898 1,590 2,500

220-275T 75 205 340 545

350-450T 96 275 439 720

500-910T 69 167 229 600

> 910T 10 28 50 75

Total 1,811 3,139 5,248 7,300

Projection for 2016-17 : 12 % CAGR

52


Injection Moulding Machinery Capacity Addition

Growth in Domestic Machine Sale : 5.1% ; Imports : 27.2%

95%66% 60% 54%

5%34% 40% 46%

1999-2000 2005-06 2009-10 2012-13

Domestic Imported

3110 4705 6482 7298

Total Machines Added (2002-03 to 2012-13) : 7.3% CARG


53

Plastic Machinery : Growing share of Imports

54

50

71

82

97

113

0

20

40

60

80

100

120

0

5

10

15

20

25

30

35

40

45

2000-01 2006-07 2008-09 2010-11 2012-13

Tho

usa

nd

s

Tho

usa

nd

s K

T

No. of Machines (in '000) Polymer Consumption Installed Capacity

Despite hiccups in 2012, growth foreseen

CARG %

No. of Machines : ~ 7%

Polymer Consumption : ~ 10%

Installed Capacity : ~ 11%

Inst. Cap. /

Consumption (KT) No. of Machines


Industry Growth : 2000-01 to 2012-13

..Project investment to the tune of US $ 12 BillionIM, Pipe, Raffia, Films are growth drivers

0 1000 2000 3000 4000 5000 6000 7000

Misc

Roto

Sheet Line

F&F And Nonwoven

Compounding & MB

HDPE Pipe

Blow Moulding

BOPP & CPP Film

Multilayer Film

Monolayer Film

RPVC Pipe & Profiles

Raffia Tape Line

Injection Moulding

2897

324

370

220

338

592

1019

465

875

1820

2834

2094

6656

982

87

135

160

182

218

364

447

473

655

1091

1527

5455

Investment (Mn US $)Ins Cap (KT)

Injection Moulding 46,000Blow Moulding 7,000Extrusion 17,000

TOTAL 70,000

Est. No. of Additional Machines Required by 2020

55Source: PlastIndia Foundation Committee

Opportunities by 2020.

56

Plastics Machinery manufacturing in India well developed with presence of

world leading technologies :

Compounding Lines

Tape Lines & looms

Multilayer Film plants

Pipe plants

Injection Molding Machines

Rotomolding Machines

Thermoforming Machines

Auxiliary equipment such as Material conveying systems, Moldtemperature controllers & chillers, bag making machines, etc.

Indian technology competes globally

58

Auxiliary Equipment Business 10-15% of Machinery Business

0.0

5.0

10.0

15.0

20.0

25.0

12.715.0

17.319.5

22.7

Product Units Chilling plant 4500 Mould temp. Contrller 1000 Drying System - Hot Air Dryer 3500 - Dehumidified Air Dryer 600 Raw Material Conveying System - Hopper Loader 6000 - Central Conveying System 50 (incl. powder conveying) Volumetric/Gravimetric Blending System 600 Conveyor Belt with Coumting System 400 Granulator 3500 Robot (Imported from China, Taiwan, Japan, Korea, Europe} 100

Hot Runners 800

Population of Auxiliary Equipments in Plastics Industry (Includes Import/Export Business) Auxiliary Equipment Business

Figs in US $ (Mn)


Auxiliary Equipment in Plastics Processing Industry

60

Demand Growth Drivers Packaging

Retail Revolution setting pace for growth in packaging

Growth Drivers Food / Processed food

FMCG items

Packaged and fast food industry

Applications Multilayer films

BOPP Films

Shrink & Stretch wraps

Thin wall molding

Thermoforming

Blow Molded Containers

61

Demand Growth Drivers Infrastructure

The 12th plan envisages investment of ~ $ 43 bn for water management; $ 92 bn for irrigation sector; $ 220 bn for power generation

Growth Drivers Building and construction

Public Utilities services

Mega highway projects

Rural Electrification Projects

Applications Pipes (Gas, Water supply, Sewerage)

Storage Tanks

Profiles

Geotextiles

Source: infrafin.in/pdf/IBEF.pdf

62

Demand Growth Drivers Agriculture

Bringing about the 2nd green revolution

Growth Drivers Advanced agricultural technology

Government spending

Retailers farmers joint initiatives

Distribution Channel / Refrigerated Storage

Applications Greenhouse Films

Low tunnels

Micro irrigation: Drip / Sprinkler

Mulch Films

Crates, Pallets

63

Demand Growth Drivers Consumer Durables

Growth Drivers Healthy economic growth

Higher per capita income

Greater disposable income

Applications Appliances - Cabinets, audio

cassettes, washing

machines, refrigerators

Household furniture & toys

Luggage

Housewares

64

Demand Growth Drivers Healthcare

Growth Drivers Private investments in medical services

India a Medical Tourism destination

Wide acceptance of Medical Insurance

Applications Disposable syringes, IV blood bags, heart

valves etc.

Packaging of medicines, devices etc.

Disposable products: Diapers, Bed covers, pillow covers, gowns, masks, gloves

etc.

65

Other Growth Areas

Rigid Packaging

Edible Oil / Lube Oil

Pesticides / Chemicals

Caps & Closures

Automotive

Bumper & other molded parts

Fuel Tanks

Tool box

Mud guard

Industrial Applications

67

Achievements of Indian Plastics Industry :

Growth of machinery industry Installed capacity CARG of 11% (2001/02 to 2012/13) Global companies investing in India One of the largest BOPP line in India Worlds largest integrated Clean room FIBC manufacturing facility Worlds largest CD/DVD manufacturing facility World headquarters for largest Lamitube manufacturer Proposed Policies of government for growth of plastic industry

- Technology Up-gradation Fund Scheme

- Polypark

Achievements of Indian Plastic Processing Industry

India ..Happening

Together We Prosper!

Established democracy & stable government.

Judiciary of high international standards

Speedy reforms in legal framework for industry & business

Setting up of SEZs to overcome bottlenecks of infrastructure and create business friendly policies

Abundant technical skilled manpower

India, the major player in South Asian Region

Economic growth in the region accelerating demand growth for petrochemical products

Competitive Advantages

Wide spectrum of scales of manufacturing

Irreversible shift of industry to Asia

68

Indian economic fundamentals are robust despite current gloom and

continuing uncertainty in global economy

Huge growth opportunities in India for Plastics due to lower per capita

consumption as compared to world average

Flexible packaging industry poised for strong growth, insulated from the

current economic scenario due to huge & diversified consumer base

New applications /innovations in Packaging development is driving growth

in India which is ably supported by the current and upcoming domestic PE

Capacities

Summary

69

PLASTINDIA FOUNDATION invites you all

to participate and contribute positively

to your growth and to the growth of our

Plastics Industry.

Invitation

Together We Prosper!

70

71

VISION

PLASTINDIA will be an organization devoted to promoting excellence in the field of plastics and makingIndia a preferred sourcing base for plastic products for the world.

It will support and encourage development of outstanding institutions committed to education andresearch with emphasis on achieving the highest standards of quality in plastic products and developingeffective techniques for their recycling.

It will build awareness of the significant contribution made by plastics to society and the environment.

MISSION

To enhance the image and the growth of Indian Plastic Industry by holding World - Class exhibitions inIndia at regular intervals.

To encourage theme-based exhibitions in India.

To provide opportunities to demonstrate the industry's capabilities, participate in internationalexhibitions.

To educate the benefits of plastics to all segments of society, either directly or through associations.

To act as the catalyst for growth to the plastic industry and prepare plans and actions for up-gradationof quality, environment-friendliness and recycling within the plastic industry.

To create a positive policy framework with all statutory entities and increase per capita consumptionof plastics, encourage exports thereby significantly contributing to national growth.

To be flexible, vibrant and proactive body.

VISION & MISSION of PLASTINDIA FOUNDATION

Welcome to India..!

7373

401, Landmark 'B', Suren Road, Off Andheri Kurla Road, Andheri (E), Mumbai - 400093, India.Tel.: +91 22 2683 2911 14 Fax: +91 22 2684 5861

E-mail: [email protected] Website: www.plastindia.org

October 2013

74

75

This presentation contains forward-looking statements which may be identified by their use

of words like plans, expects, will, anticipates, believes, intends, projects,

estimates or other words of similar meaning. Forward-looking statements are based on

certain assumptions and expectations of future events. The Committee referred to in this

presentation cannot guarantee that these assumptions and expectations are accurate or will

be realized.

The actual results, performance or achievements, could thus differ materially from those

projected in any such forward-looking statements. These companies assume no

responsibility to publicly amend, modify or revise any forward looking statements, on the

basis of any subsequent developments, information or events, or otherwise.

The information contained was obtained from various sources believed to be reliable and

we do not guarantee its accuracy. Neither Plastindia Foundation or any of the members of

the Committee accepts any liability whatsoever for any direct or consequential damages or

losses arising from any use of this presentation or its contents.

Disclaimer

Report onIndian Plastics Industry2012 - 2016 Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Polymer Manufacturing CapacitySlide Number 14Slide Number 15Slide Number 16 India - Polymer ConsumptionSlide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22 Sector wise Polymer ConsumptionSlide Number 24Slide Number 25Slide Number 26Slide Number 27Slide Number 28Slide Number 29Slide Number 30Slide Number 31Slide Number 32MasterbatchSlide Number 34Slide Number 35AdditivesSlide Number 37 Imports/ExportsSlide Number 39Slide Number 40Slide Number 41Slide Number 42Slide Number 43 Plastics RecyclingSlide Number 45Slide Number 46 Machinery Manufacturing IndustrySlide Number 48Slide Number 49Slide Number 50Slide Number 51Slide Number 52Slide Number 53Slide Number 54Slide Number 55Slide Number 56 Auxiliary EquipmentSlide Number 58 Polymer Growth OpportunitiesSlide Number 60Slide Number 61Slide Number 62Slide Number 63Slide Number 64Slide Number 65ConclusionsSlide Number 67Slide Number 68Slide Number 69PLASTINDIA FOUNDATION invites you all to participate and contribute positively to your growth and to the growth of our Plastics Industry.Slide Number 71Thank YouSlide Number 73Indian Plastics IndustrySlide Number 75Status Report - Indian Plastic Industry - October 2013-pg22.pdfSlide Number 22

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