 "Thriving consumer market driving demand for specialty polymers")
Specialty polymers are generally defined within the polymer industry as niche polymeric additives with unique functions to enhance performance. These additives are used to impart a desired feature in specific applicationsforplethora of industries such as automotive, consumer durables, packaging, textiles, agriculture, electronics, and building &construction. Specialty polymers include a broad range of polymeric additives like coupling agents, surfactants, impact modifiers, tie layer adhesives, dispersing agents, compatibilisers, rheology improvers, surface finish improvers etc.The use of these additives in commodity polymers imparts substantially differentiating properties to the base polymers; this enables customers to achieve higher levels of product performance hence imparting significant value for the targeted segments of the customer base.
Specialty polymericadditives constitute the higher end of the polymeric value-chain, and are used in smaller amounts compared to commodity-grade polymers as only minute quantities are required to provide specific functionality for performance enhancement. Development and production of specialty polymers require substantial development work, enabling them to be priced at a premium. Due to continuous development and change in end industry, organisations manufacturing specialty additives, need to keep abreast of changes in the industry and meet customer requirements at a fast pace.
India’s economy is gaining momentum with substantial growth in middle class population. With increased purchasing power, there is a demand for products, which require polymers in some form or the other. For instance, the electronics & automotive industry is on a strong growth trajectory which is leading to increased demand for engineering polymers such as nylons, polycarbonates, ABS, PET, POM, PBT and hence the specialty additives. It is unfortunate, but true that growth in electronics and automobiles, determines the degree of development of a nation today.
Ironically, polymers sector, along with civil and mechanical engineering fields, wasone of the few industries that began to grow in independent India. In 1970s,a surge in growth of plastics in India was witnessed. It continues till today. However, in spite of being a mature industry, India still lags far behind the developed world. European, American and Japanese R&D outpaces Indian R&D in the materials domain. Specialty additives presenta unique challenge to the domestic industry to keep up with the changing landscape of the consumer market. India’s large and growing middle class demands more consumer goods, better carsand electronics, and improved water treatment, all of which involve the design of advanced, cost-efficient chemical systems and materials that can be used to produce them.
Manufacturing sector is on the threshold of massive growth in India, with the launch of the ‘Make in India’ campaign. As the current HRD Minister stated, Make in India needs to be complemented with ‘Think in India’ and, one may add even, ‘Design in India’. To cater to the vast population of this country, we need to innovate – create businesses and manufacture indigenously. Any goods today, have polymers in some form. And these are high end polymers with improved properties. The industry demands huge amounts of specialty polymers to produce electronics, auto components and a vast assortment of other products both for use within India and for export.Unfortunately, this demand is today met mainly by multinational firms, rather than domestic Indian companies. This causes increased drain on forex reserves and higher prices for the end products. It, therefore, goes without saying that the Indian polymer industries should focus on developing specialty additives indigenously than importing. For the industry to succeed, domestic players needs to develop local products at the right price, use mergers and acquisitions and partnerships to grow, and build a strong value proposition to attract talent, among other factors.
To succeed in the global economy, the industry needs to itself make its own products redundant. If Indian industry does not lead the market, it will lag behind and in no way would India be able to achieve ‘Make in India’ goal and provide jobs to its burgeoning population.
To summarise, the requirement for innovation is driven by the need for India to leapfrog intothe league of developed nations; it is driven by the need for meeting the demands of its growing population; the need for setting up manufacturing on large scales to keep the economy growing; and the need for being able to provide jobs to its youth. The domestic polymers industry should use this golden opportunity and handle the complex challenges by taking into account the requirements and budget of the customer, while at the same time producing newer additives and materials.
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Samit Jain is the managing director of Pluss Polymers Pvt Ltd
Kailash Pandey is the assistant manager, business development – polymers at Pluss Polymers Pvt Ltd
Specialty polymericadditives constitute the higher end of the polymeric value-chain, and are used in smaller amounts compared to commodity-grade polymers as only minute quantities are required to provide specific functionality for performance enhancement. Development and production of specialty polymers require substantial development work, enabling them to be priced at a premium. Due to continuous development and change in end industry, organisations manufacturing specialty additives, need to keep abreast of changes in the industry and meet customer requirements at a fast pace.
India’s economy is gaining momentum with substantial growth in middle class population. With increased purchasing power, there is a demand for products, which require polymers in some form or the other. For instance, the electronics & automotive industry is on a strong growth trajectory which is leading to increased demand for engineering polymers such as nylons, polycarbonates, ABS, PET, POM, PBT and hence the specialty additives. It is unfortunate, but true that growth in electronics and automobiles, determines the degree of development of a nation today.
Ironically, polymers sector, along with civil and mechanical engineering fields, wasone of the few industries that began to grow in independent India. In 1970s,a surge in growth of plastics in India was witnessed. It continues till today. However, in spite of being a mature industry, India still lags far behind the developed world. European, American and Japanese R&D outpaces Indian R&D in the materials domain. Specialty additives presenta unique challenge to the domestic industry to keep up with the changing landscape of the consumer market. India’s large and growing middle class demands more consumer goods, better carsand electronics, and improved water treatment, all of which involve the design of advanced, cost-efficient chemical systems and materials that can be used to produce them.
Manufacturing sector is on the threshold of massive growth in India, with the launch of the ‘Make in India’ campaign. As the current HRD Minister stated, Make in India needs to be complemented with ‘Think in India’ and, one may add even, ‘Design in India’. To cater to the vast population of this country, we need to innovate – create businesses and manufacture indigenously. Any goods today, have polymers in some form. And these are high end polymers with improved properties. The industry demands huge amounts of specialty polymers to produce electronics, auto components and a vast assortment of other products both for use within India and for export.Unfortunately, this demand is today met mainly by multinational firms, rather than domestic Indian companies. This causes increased drain on forex reserves and higher prices for the end products. It, therefore, goes without saying that the Indian polymer industries should focus on developing specialty additives indigenously than importing. For the industry to succeed, domestic players needs to develop local products at the right price, use mergers and acquisitions and partnerships to grow, and build a strong value proposition to attract talent, among other factors.
Samit Jain, Director, Pluss Polymers Pvt Ltd
India does not lack institutions of higher learning nor research labs. CSIR under the leadership of Dr R A Mashelkar, began the processing of converting Indian R&D institutions towards delivering patents and innovations. We today need to use our ability to leverage our various research institutes for cross disciplinary research making India a conducive location for R&D in the field of advance polymers & chemicals. Academia and industry should work closely to develop new products and innovative solutions to their problems.New and differentiating formulations of these specialty additives need to be developed, driven by application know-how and technology advances. Innovation would help India and the industry protect its intellectual property through patents.To succeed in the global economy, the industry needs to itself make its own products redundant. If Indian industry does not lead the market, it will lag behind and in no way would India be able to achieve ‘Make in India’ goal and provide jobs to its burgeoning population.
Kailash Pandey, assistant manager, business development – polymers, Pluss Polymers Pvt Ltd
The polymer industry in India also stands at the cusp of environmental problems plaguing the world. India aspires to become developed and it becomes the responsibility of the industry to ensure that materials used to meet the increased demands are easily recyclable, degradable or environmentally safe.To summarise, the requirement for innovation is driven by the need for India to leapfrog intothe league of developed nations; it is driven by the need for meeting the demands of its growing population; the need for setting up manufacturing on large scales to keep the economy growing; and the need for being able to provide jobs to its youth. The domestic polymers industry should use this golden opportunity and handle the complex challenges by taking into account the requirements and budget of the customer, while at the same time producing newer additives and materials.
____________________________________________________________________________________________________________________
Samit Jain is the managing director of Pluss Polymers Pvt Ltd
Kailash Pandey is the assistant manager, business development – polymers at Pluss Polymers Pvt Ltd