Andhra plastics producers to have own park
Plastics manufacturers in Andhra Pradesh are planning to set up their own dedicated plastics park at a location close to their user-industries.
They are not enthused by the government’s proposal to allot them a portion of land in the upcoming Petroleum, Chemicals and Petrochemical Investment Region (PCPIR). The manufacturers say that access to markets and suppliers is more important than getting subsidised land.
“The PCPIR is in Kakinada, while our major market is in and around Hyderabad. So we have decided to set up our own park on about 500 acres,” said V Anil Reddy, former president of the Andhra Pradesh Plastics Manufacturers Association (APPMA).
“The government is encouraging plastics units to shift out of the city. Once the new park comes up, only about 50 per cent of it is expected to be occupied by new units. The rest of it will be taken by existing units that will relocate from the Kattedan area in Hyderabad,” he said. The planned park could have 300-500 units depending on the area each unit takes.
APPMA, which has 4,000-odd member-companies, is scouting for land between Sangareddy and Sadashivpet on the Mumbai highway and also between Shamshabad and Shadnagar along the Bangalore highway, both well outside the city limits.
The land is expected to cost Rs 20-30 crore. “Negotiations are on and the deal may be firmed up any time,” he said.
The environmental clearances will not be a problem as they would follow all norms, including having an effluent treatment plant, according to Reddy. “Even now, we are a non-polluting industry,” he said, adding that most units recycle their own waste.
However, in February 2007, the Andhra Pradesh government had added manufacturers of plastic carry bags to the list of 66 polluting industries, according to the Andhra Pradesh Pollution Control Board.
“There may be a few, 250-300 out of 4,000 companies, that do not stick to norms. But these tend to be small units run by one individual who is worker-cum-owner, and units with an investment ranging from Rs 5 lakh to Rs 25 lakh,” Reddy clarified.
Nearly 75 per cent of the plastics producers under APPMA are in the small and medium category. Polypropylene woven sacks account for 40 per cent of their production, packaging material for 35 per cent and the rest includes domestic products like buckets and chairs as well as PVC pipes.
The industry has been growing at 10-12 per cent a year over the last few years, Reddy said. However, profit margins are under pressure due to rising input costs, mainly of crude oil and naphtha, he added.
Plastics manufacturers are also exploring opportunities for the use of plastics in green buildings, particularly as substitutes for conventional material like wood, glass and steel.
A 40-member delegation consisting of MSME members of APPMA will visit the K-2010 International Trade Fair in Dusseldorf (Germany), to be held from October 27 to November 3, to explore opportunities.