Page 20 - Plastics News December 2021

AIPMA AT woRk

CII Panel Discussion on unlocking Capacity and Capability –

Opportunity for Investment in the downstream industry during
Indian Chemical and Petrochemical Conference (ICPC) 2021 held
on 16-17 December 2021
Arvind M. Mehta
Chairman -Governing Council AIPMA
Past President – AIPMA & Plastindia Foundation

Topic presented: brands. Since, the raw materials & for plastics processing machine
To Reduce of Rs. 45000 Crore finished goods are available at a very is expected to boom.
Plastic Products Annual Imports low price from China, people prefer d. This would lead to additional
to import the product from there.
to India – with Import Substitu- Also, due to the unavailability of employment of around 250,000
people.
tion & Make in India - AIPMA latest technologies to produce high 9. Focusing on import substitution
quality finished goods at rapid speed through use of latest technologies
1. The existing size of the plastic in India, only add up to the import and innovation would unlock
Industry in the country is Rs. 3.00 to India. capability of downstream plastic
Lakh Crore, employing more than 5 7. India should specifically focus on industries. Further, import
Million people. reducing imports of Rs. 45,000 Crore substitution would help in unlocking
2. There are approximately 50,000 to India. This could be achieved by capacity of the converting industries
converting units – 90% in MSME focusing on strengthening Indian as it would add business of Rs.
having 1,75,000 Plastics processing plastic industry to adopt latest 45,000 crore for the industry.
machines for producing a diverse technologies so that products could 10. Adoption of latest technologies
range of plastic products. The be manufactured faster as well as of would also help Indian plastic
processing capacity is estimated to high quality. Speed to Market should processing industry to increase their
be 55 Million tonnes per annum. be the main focus. exports which is mere 1.5% of the
This processing capacity had been 8. AIPMA would like to reduce global exports.
growing @ 8.8% CAGR during last imports of this as it would be
4 years and the processing industry beneficial for the entire value chain 11. AIPMA’s AMTEC has launched
is expected to invest $10 billion of plastic industry including: - Centre of Excellence for
during the next 5 years to enhance a. Plastic processing industry can Plastics Product Innovation and
the capacity 86 Million Ton by 2024- get additional business of Rs. Application. As the name suggest,
25. 45,000 crores, by this import The Centre of Excellence is
3. The sector is going to play an substitution and making it in catering to the growing need of
Plastics processing segments. The
important role in India becoming India. Centre of Excellence is providing
US $ 5 Trillion economy. b. Around 4.5 Million tons 360 degrees’ services under one
4. India is importing plastic finished of additional raw material roof through Centre for Product
goods worth Rs. 45,000 crores per procurement by converters Design, Reverse Engineering,
year. – beneficial for Raw material Additive Manufacturing and plastic
5. China is exporting a large amount manufacturers. Raw material packaging, a step ahead in the import
of cheap finished goods products manufactures need quickly plan substitution of plastic products.
to India. China is a major supplier expansion of their plants. They 12.To maximize their investment in
for sectors like cell phones, telecom, need to unlock their capacity of marketing initiatives, we should look
power, plastic toys and critical raw material production. for strategies and tools that have the
pharma ingredients. China accounts c. Appr ox imately 16,000 most potential to engage decision
for around 40% share of total additional plastic processing makers. We should be a thought
imports of plastic products to India. machines will be required – to leader and have a unique solution
6. Cheap imports from China and the advantage for domestic for import substitution in a huge
other countries affect the domestic machine manufacturers. With volume, and we can get such a big
industry as it directly has an impact increased growth of plastics business for India.
on the local traders, craftsmen & processing industry, demand

20 PLASTICS NEWS DECEMBER 2021