Nano exit hits plastics SMEs

While the state government and the industrial units directly or indirectly associated with Tata's Rs 1 lakh crore project in Singur are busy trying to quantify losses in the long run on account of the exit of Tata Motors nano plant from Singur, small and medium enterprises (SMEs) in the plastics industry empanelled to supply plastic components were facing losses too.

Around 15 small and medium plastic processing units received orders for supply of processed plastic components for the Tata Nano car, routed through big auto majors like Tata Auto Comp Systems Limited or Tata Johnson Controls (TJC), said K K Seksaria, president of the Indian Plastic Federation (IPF).

Till last week, both the auto component majors were involved in the process of identifying and finalising small suppliers competitive enough to supply materials. Their officials visited several plastic processing manufacturing units. Orders for 60 units of high end plastic processing machines were placed by such small companies for manufacture of processed components to the Tata project.

Each of these machines cost an average Rs 50 lakh.The small units faced bankruptcy with the project abandoned, since most already facing problem of low capacity utilisation in the state. The pull out had had a bad impact on the plastic processing industry of the state as a whole, since it brought with it oppurtunities for increasing the very limited plastic processing capacity in the state.

West Bengal had a processing capacity of less than 3kg per capita. The plastic processing industry would have gained in terms of higher sales, product development expertise and marketing skills as also competitive value and access to the global market, said Seksaria. Although he refused to name the suppliers, he indicated that some of the core suppliers which had received land inside the plant had been asked to relocate with the project. This was a challenge as most of the units were small and medium enterprises.