Plastic goods makers come together

Companies and industry bodies are joining hands to promote the export of finished plastic goods from the country.

India's current share of the world market is less than one per cent. While nearly 35 per cent of the pet resin produced in the country was exported, exports of finished plastic goods was very low.

This was because the manufacturers would concentrate on selling the products in the domestic market, said K K Seksaria, president, India Plastic Federation (IPF).

Haldia Petrochemicals Ltd (HPL) and IPF have joined hands in a campaign to educate manufacturers about prospects in the international market.

Nearly 60 per cent of last year's exports were raw materials, and this indeed is a missed opportunity for the Indian manufacturers, said Ujjal De, senior vice-president and head, marketing & business development, HPL.

In contrast, China was 40 per cent import-dependent but still managed to garner a 25 per cent share of the world export market for finished plastic goods.

As Polyurethene (PO) prices were lower in Asian countries compared to the US and European countries, Asian producers had an advantage, De said, and added that in the age of Free Trade Agreements and decreasing subsidies for small manufacturers, the import duty on finished plastic goods was most likely to be reduced in phases and eventually abolished.

He also said that the Indian producers would then have to face competition from foreign players in Malaysia, Thailand and other South East Asian countries.

Indian manufacturers should start exporting at least five to ten per cent of their production overseas to gain experience about pricing concerns and international marketing strategies.

Global demand for geo-textiles was 13,600 KTA in 2007, and was clocking a compounded annual growth rate of 3.8 per cent.

The estimated demand from the US alone (for plastic food containers) has been estimated to touch as much as $21 billion by 2009. Currently, five HPL supported FIBC units exported 7 KTA worth goods annually.