High steel prices boon for reinforced plastics

With prices of steel rising accompanied by the continuing boom in the country's infrastructure sector, the fibre reinforced plastic (FRP) industry is poised to double by 2012, in terms of revenues.

The Rs 5,000-crore industry, which largely operates in the small scale sector, is growing at a rate of 25 per cent and is expected to cross Rs 10,000 crore-mark in the next five years, according to industry players.

"The production of FRP involves combining polymer and glass or carbon fibre to produce a material which is lighter and stronger than steel," said Satish Kulkarni, chairman of the Chennai-based FRP Institute. It offers good corrosive resistance and low maintenance costs, he added.

At present, the penetration in the domestic market of such products is around 5 per cent, but Kulkarni said that as awareness among the end users was on the rise and there was good scope and opportunity for the industry to grow further.

FRP caters to industries such as automobiles, wind power and construction. Several municipal bodies across the country are keen on using FRP pipes for sewage and water transportation through.

"The booming telecom sector has also triggered growth for FRP industry. The use of optical fibres in telecom services brings good opportunities," said Pradeep Thakkar, president, FRP Institute.

The country has an overall capacity of close to 140,000 tonnes, which is slated to go up to a million tonnes in the next ten years.

At present, the industry caters only to the domestic market with less than 10 per cent of the total production being exported.

"The acceptance level for FRP products has increased this decade. With rising steel prices, the market scenario could prove advantageous for reinforced plastics," said Thakkar.

An international conference and exhibition on reinforced plastics will be organised in Mumbai, next month. Globally, the size of the industry is $61.32 billion, with North America representing 40 per cent of the total market value followed by Europe and the Asia-Pacific region.