Plastics capacity to double by '10

The industry is growing at 12% will pick up momentum riding on local consumption, exports.

The domestic plastics industry is set to double its processing capacity to 10-12 million tonnes per annum by 2010.

The Rs 55,000 crore industry, which is growing at the rate of 12 per cent, will pick up further momentum riding on domestic consumption and exports, according to Arvind Mehta, president, Plastindia Foundation - the apex body representing the country's plastic industry associations.

The foundation will organise the seventh international plastics exhibition in February next year with an aim to facilitate export-led growth by making India a global sourcing hub for plastic products.

At present, the per capita consumption of plastics in the country is 5 kg per annum, which, Mehta said, would double in the next three years. "Exports are growing at 21 per cent and there is tremendous potential to be tapped," he added. The country exports to over 140 countries in the world.

B P Pandey, joint secretary, department of chemicals & petrochemicals in the Ministry of Chemicals and Fertilisers, said, "There has been an investment of Rs 80,000 crore for ramping up capacities already." The plastic processing capacity of the country is 5 million tonnes per annum.

More than 35 countries are expected to participate in the exhibition showcasing innovations and opportunities in the sector.

Nikhil Meswani, executive director, Reliance Industries and chairman of the national advisory board, Plastindia, said, "The domestic plastic industry has moved from simple processing to manufacturing of speciality and high performance products. Under such circumstances, future of plastic in the country is going to be very bright."

The apex body said that if the central excise duty is halved to 8 per cent, it would boost the domestic industry.

Bhavarlal Jain, chairman of Jain Group of Industries, said, "As the plastic industry is set to grow faster, there is also the need to move to bio-degradable plastics.

Quality should not be compromised and prosperity of consumers should be there first as without that industry cannot grow."

"The plastics industry provides 3.6 million jobs currently. The figure will rise as new investments are made," said Mehta.