Plastics industry to witness investments of $10 billion in next five years: Plastindia
The industry, which grew by 13% annually in last five years, to continue double-digit growth beyond 2016-17
 "Plastics industry to witness investments of $10 billion in next five years: Plastindia")
The plastics industry is expected to make investment of $10 billion for further increase in capacities during the next 5 years, according to Plastindia Foundation’s new study - titled ‘Report on Indian Plastics Industry 2012-2016’. Fuelled by increasing level of plastics usage in automobiles, consumer packaging and impact of increased infrastructure spending, the plastics industry is set to double per capita consumption in next five years.
The study concluded that the growth prospects of this industry are bright as the per capita consumption of polymers industry in the country during 2012-13 was low at just 9.7 kg as compared to 109 kg in USA, 45 kg in China and as high as 32 kg in a country like Brazil. Plastics industry would be a direct beneficiary of increasing per capita income, rising consumerisation and impact of modern ways of living particularly in urban India.
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J R Shah, Chairman, National Executive Council, Plastindia 2015, said, “India is a growing market for plastics and consumes about 11 million tonnes annually against a global consumption of 275 million tonne per year and worldwide, the plastics and polymer consumption is growing at an average rate of 10% and is expected to touch 16.5 million tonnes by 2016.”
According to Subash Kadakia, President, Plastindia Foundation, the plastics industry is conscious of its responsibilities as the consumption increases. He added, “Increasing capacity of plastics recycling is a priority. We are working closely with many authorities to increase the efficiency of waste management processes. Plastindia Foundation is continuously embarking upon education initiatives at various levels in our society.”
Plastindia Foundation estimates that major polymers manufacturing capacities to reach 15.2 million metric tonnes (MT) in 2016-17 from 10.4 million MT in 2012-13. Thus, the new capacity addition in major polymers such as PE, PP, PVC, PS and PET by 2016-17 is estimated at 4.8 million MT. Some of the major producers in the industry include Reliance Industries, IOC, Haldia Petrochemicals and Gail. As against this, the report estimates the total polymer (thermoplastics and thermosets) consumption to grow 10.7% CAGR from 11.8 million MT in 2012-13 to 17.6 million MT.
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India is expected to be among top ten packaging consumers in the world by 2016 with demand set to reach $24 billion. The growth in sector wise consumption of PE is estimated by the Plastindia Foundation from 3.4 million MT in 2012-13 to 4.9 million MT by 2016-17, recording a 9.6% CAGR. There is also tremendous growth prospects of 17% CAGR for PET consumption from one million MT in 2012-13 to 1.9 million MT by 2016-17.
Similarly, the Foundation report visualises tremendous potential for bottle-grade PET for Indian market. It estimates this sector to achieve 20% CAGR from 0.6 million MT in 2012-13 to 1.25 million MT by 2016-17.
The study concluded that the growth prospects of this industry are bright as the per capita consumption of polymers industry in the country during 2012-13 was low at just 9.7 kg as compared to 109 kg in USA, 45 kg in China and as high as 32 kg in a country like Brazil. Plastics industry would be a direct beneficiary of increasing per capita income, rising consumerisation and impact of modern ways of living particularly in urban India.
ALSO READ: Improving performance of plastic products using glass microspheres sustainably
J R Shah, Chairman, National Executive Council, Plastindia 2015, said, “India is a growing market for plastics and consumes about 11 million tonnes annually against a global consumption of 275 million tonne per year and worldwide, the plastics and polymer consumption is growing at an average rate of 10% and is expected to touch 16.5 million tonnes by 2016.”
According to Subash Kadakia, President, Plastindia Foundation, the plastics industry is conscious of its responsibilities as the consumption increases. He added, “Increasing capacity of plastics recycling is a priority. We are working closely with many authorities to increase the efficiency of waste management processes. Plastindia Foundation is continuously embarking upon education initiatives at various levels in our society.”
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Plastindia Foundation estimates that major polymers manufacturing capacities to reach 15.2 million metric tonnes (MT) in 2016-17 from 10.4 million MT in 2012-13. Thus, the new capacity addition in major polymers such as PE, PP, PVC, PS and PET by 2016-17 is estimated at 4.8 million MT. Some of the major producers in the industry include Reliance Industries, IOC, Haldia Petrochemicals and Gail. As against this, the report estimates the total polymer (thermoplastics and thermosets) consumption to grow 10.7% CAGR from 11.8 million MT in 2012-13 to 17.6 million MT.
ALSO READ: New plastic park to come up in Odisha
India is expected to be among top ten packaging consumers in the world by 2016 with demand set to reach $24 billion. The growth in sector wise consumption of PE is estimated by the Plastindia Foundation from 3.4 million MT in 2012-13 to 4.9 million MT by 2016-17, recording a 9.6% CAGR. There is also tremendous growth prospects of 17% CAGR for PET consumption from one million MT in 2012-13 to 1.9 million MT by 2016-17.
Similarly, the Foundation report visualises tremendous potential for bottle-grade PET for Indian market. It estimates this sector to achieve 20% CAGR from 0.6 million MT in 2012-13 to 1.25 million MT by 2016-17.