Plexconcil to push goods in the US

Plastic Export Promotion Council (Plexconcil) has decided to set up four warehouses in the United States to expand market share in the $ 5 billion plastic consumer goods market dominated by China and Taiwan. India's share is below five per cent at present.

The first warehouse is expected to come up in the west coast at Los Angeles. Similar facilities will follow at Chicago, New York and Miami in a phased manner.

The central government will bear part of the cost under the Market Access Initiative (MAI) scheme while the rest to be borne by participating members.

R P Kalyanpur, executive director of Plexconcil, said the first warehouse was expected to be operational by end of this year.

"It will open up a new distribution channel for the participating members. This will reduce cost in the distribution channel, open access to different point of sale like discount shops, telemarketing etc., and minimise quality complains. It will also enable exporters to trade in small quantity lots," he said.

EPC may consider a joint marketing and sales strategy for all warehouse members. However, exporters inclined to undertake sales and marketing activities individually were free to do so, he added.

India's plastic goods export crossed $ 1 billion mark, growing by 12 per cent in the last fiscal.

EPC was in talks with real estate consultant CB Richard Ellis for warehouse space. It may set up a legal entity, like a non-profit corporate body, to run the warehouses. It is expecting 25 participants to begin with for the warehouses.

Plexconcil aim was to be one of the most active of the 21 EPCs in the country in utilisation of the MAI scheme for setting up the storage depots overseas.

Others contemplating a similar move included Council for Leather Export (CLE) and Engineering Export Promotion Council (EEPC).

Plexconcil had appointed a consultant, Frost and Sullivan, to study the export market for plastic consumer goods in the US. Anand Rangachary, deputy director of Frost & Sullivan, said Indian plastic products suffered from lack of identity.

"Exporters need to increase the awareness of Indian plastic consumer items by brand promotion and road shows," he said.

The study has recommended investments in design and product development, formation of cartels to gain scale advantages, identifying niche markets in each segment and building sustainable relationship with players in the distribution chain.