Polymer sales to cross 4.5 mt

The domestic plastic industry has something to cheer about. India's polymer consumption has registered a 21 per cent growth rate in first nine months of this fiscal, compared with the same period, last year.

Polymer sales went up to 3.32 million tonne (mt) from 2.76 mt. Going at this rate, annual sales are expected to cross 4.5 mt this year.

"Now India ranks tenth in polymer consumption. If the industry continues to grow at this pace, the country will emerge as the third biggest market in the world by 2010 with consumption touching 12.5 mt," Kamal P Nanavaty, president, cracker and polymers sector, Reliance Industries and chairman, PlastIndia, said.

"At present, the US is the largest market in the world consuming 27.3 mt of polymer products. By 2010, polymer sales in the US and China is expected to go up to 38.9 mt and 38.8 mt respectively. But, India's polymer consumption has recorded the fastest growth rate of 14.1 per cent and is expecting a quantum jump," Sujith Banerji, president, polymers and olefins business, RIL, said.

"Interestingly, the crude oil price rise did not affect the growth of the industry. Soon, India will become a hub for the plastic industry and will emerge as a major exporter of plastic goods," Nanavathy said.

In April- December 2005, the polymer industry has sold 9.79 lakh tonne (lt) poly propylene, 7.4 lt high density poly ethylene, 4.24 lt linear low-density poly ethlene, 1.83 lt low- density poly ethlene, 8.57 lt poly vinyl chloride and 1.39 lt polystyrene.

To keep pace with the quantum leap that the industry is poised to take, it is envisaged that Rs 84,000 crore worth of additional investments would be required in the next 4 years. The employment potential both direct and indirect will also increase manifold, Nanavaty added.

He added Plastic India 2006, an exhibition to be held in New Delhi from February 9th, will showcase the rapid strides that the industry has made.

"Over 1,200 participants from 30 countries will take part in the event and we expect our business to go up by 20 per cent during the exhibition", Nanavaty said.