The return on investments for major polymer companies in India has declined significantly in the last five years and the decline in margins has been maximum for small capacity players. This was revealed in a study conducted by Icra Ltd recently.
This apart, the report said that the returns of the non-integrated players have shown varying profitability as their raw material prices have also been variable and the average level of returns have been lower than their integrated counterparts.
In the last year, slowdown in key downstream markets worldwide coupled with the commissioning of several capacities led to a decline in global margins which also resulted in stagnation in the Indian companies