Page 57 - Plastics News December 2022

IN THE NEWS

India’s value-added plastic industry lacks the scale to meet robust overseas
demand
he ongoing energy crisis in Europe in Covid cases which sets new high few months. But, Indian exporters, so
Thas severely affected manufactur- records each passing day. As China far, failed to cash in on the opportuni-
ing units across the continent and its follows a ‘zero-tolerance policy on ty which may render them long-term
impact is being felt across the world Covid’, the eruption of new Covid losses and stretch even to the extent
including India. Value-added plastic waves pushed the premier business of permanent loss of clients.
manufacturing plants have been strug- cities and manufacturing and export
gling in Europe to meet even local hubs into lockdowns. The strict ac- “Several buyers from Europe, the
consumption in spite of continuous tion of local authorities invited violent United States and elsewhere want to
growth in demand. Export orders to protests across several cities which deal with Indian producers. We don’t
other countries have been cancelled, disrupted the manufacturing and trad- have the scale to meet their demand
obviously because of the exorbitant ing of products including value-added and capture the opportunity. Fresh in-
increases in the manufacturing cost plastics. vestment in the Indian plastic industry
that emanated from spiralling energy was very slow in the past few years
costs. With scarce availability from China, due to low profitability mainly in the
European consumers are looking at MSME segment and hence, could
China has successfully grabbed the sourcing value-added plastic products not achieve the scale it deserves. As
opportunity and captured a large from alternative sources, of which In- a result, India’s plastic export growth
European market share in the value- dia has proved as a preferred location. remained stagnant for the last several
added plastic segment. But China For Indian plastic exporters, enquiries years,” said Arvind Goenka, Managing
is now surrounded by a resurgence and orders have multiplied in the last Director, RMG Polyvinyl India Ltd.

ON A SLOW LANE

India’s plastics exports (US$ billion)

Financial year Raw materials Value-added products Others Total
(Apr-Mar)
2021-22 4.23 8.35 0.77 13.35
2020-21 3.34 6.13 0.39 9.86
2019-20 3.46 6.29 0.26 10.01
2018-19 4.53 6.24 0.25 11.02
2017-18 3.27 5.35 0.23 8.85
2016-17 2.55 4.76 0.25 7.56
2015-16 2.51 4.88 0.25 7.64
Source: The Plastics Export Promotion Council (Plexconcil)

Data compiled by the apex indus- billion in the previous year. The first India’s shipment of value-added plas-
try body the Plastics Export Promo- Covid wave erupted in India in March tic products also jumped by a stagger-
tion Council (Plexconcil), under the 2020 which followed lockdowns ing 36.13 percent to US$8.35 billion
Ministry of Commerce and Industry, across the country and disruption in in the financial year 2021-22 com-
showed India’s total plastic export manufacturing and trading activities. pared to US$6.13 billion in the previ-
skyrocketed by 35.40 percent to Covid spread throughout the world ous year. Similarly, plastic raw materi-
US$13.35 billion in the financial year also impacted India’s plastic exports als exports jumped by 26.55 percent
2021-22 from a low base of US$9.86 in the financial year 2020-21. to US$4.23 billion in the financial year

December 2022 PLASTICS NEWS 57