Investment in the plastic industry will touch $10 billion (Rs 62,000 crore) in the next five years, says PlastIndia Foundation. The industry body says the investments will be fuelled by growing demand from the automobile, consumer packaging and infrastructure sectors.
PlastIndia is the apex body of major associations and institutions, including government organisations, connected with the plastic industry.
More investment
Unveiling the “Report on Indian Plastic Industry 2012-16”, J.R. Shah, Chairman, National Executive Council, PlastIndia 2015 (a trade show), said the plastic industry would be the direct beneficiary of increasing per capita income, particularly in urban India.
“There are about 30,000 processing units with capacity to process 30 million tonnes a year. The industry registered a compound annual growth rate of 13 per cent in the last five years and invested $5 billion in machinery. It will require another $10 billion investment in the next five years,” he said.
Clearing the apprehension on the adverse impact of plastics on the environment, Subash Kadakia, President, PlastIndia, said: “Leave alone plastic, any material will turn hazardous if it is not handled with care. The industry is conscious of its responsibility and is increasing recycling capacity.”
University proposed
Kadakia pointed out that from the simple syringe to packaging of costly drugs, life would become difficult without plastics. The Reserve Bank of India recently expressed its desire to print currency notes in plastic to enhance their shelf life, he added. In a bid to improve awareness and knowledge, PlastIndia has proposed to set up a university on plastics and has acquired 35 acres in Vapi, Gujarat.
It has tied up with the University of Massachusetts at Lowell and University of Wisconsin at Madison in the US.
“We have received the letter of intent from the Gujarat Government and plan to invest Rs 150 crore over the next four years to set up the university,” said Shah.
Demand for thermoplastic polymers, the key raw material for the plastics industry, is expected to reach 16 million tonnes (mt) in the next five years against 11 mt recorded last fiscal.
Polymer manufacturing capacity is projected to touch 15.2 mt from the current level of 10.4 mt. Major polymer producers include Reliance Industries, Indian Oil Corporation, Haldia Petrochem and GAIL.