Growth of PET Film Industry in India

Ashish Gupta

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Flow of Presentation

• BOPET Film manufacturing

• Types of Films ( Thick - Thin)

• Film Application

• Film advantages

• Global Scenario

• Indian Scenario

• Challenges and Concerns

• Strategies

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Annual Output TPA 20000 36000

Line Width Meter 6.7 8.7

Thickness Range Microns 8 + 8 +

Production Speed m/min 325 500

PET ( BOPET)Film Production

New Lines with line width 8.7 meter wide

Input : PET chips or Direct cast

Machine configurations

PET Film Classification

• Thin Film- Less than or equal to 50 microns thickness

- Account for about 70% of the BOPET film market

- Major use in Packaging and Industrial applications

• Thick Film- More than 50 microns thickness

- Account for about 30% of the BOPET film market

- Major use in Optical films, Digital Printing, PV cells, Electrical & Industrial applications

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Thin Films applications

Flexible Packaging

Metallic YarnsPresentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Thick Film applications

Digital Printing

X rays Cable Insulation

Solar Back sheet

LCD PanelProtective Sheet

Cards

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Growth of PET film in India

• Flexible Packaging industry which is growing at 12-15%

Per capita consumption of Flexible Packaging

India : 4 Kg

Taiwan : 19 kg

Germany : 43 kg ( Source: FICCI)

• Ability of Indian Manufacturers to capture the Export markets

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Advantages of Flexible Packaging

• Reduces Food spoilage and wastage - Prolongs shelf life

• Convenience , small pack sizes

• Uses Less Energy to manufacture

• Improves Transport efficiency

25 trucks of Rigid packaging = 1 truck of Flexible Packaging -> Less fuel consumption

Flexible Packaging Saves Transportation Miles & Fuel Consumption

60 kg of beverage = 50 kg of glass =6 kg of Rigid PET

= 3 kg of Aluminum = 1.5 kg of Flexible Plastic

Source : FPA

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Global BOPET Film Scenario

• More than 300 BOPET lines in the world

(175 approx. in china, - 30 in India)

• 2016: Demand ( 4 mn T) Capacity ( 5.5 mnT)

Source: IndustryPresentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Indian BOPET Scenario

Domestic Demand : Approx 380 KT per annumExport Supply : Approx 90 KT per annumImports : Approx 20 KT per annum

Demand Growth in Domestic : 10 -12 % p.a• 1 New line will be commissioned

every year for next 2 years

YEAR 2016

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Location -BOPET film manufacturing units

Manufacturing units : North India & West India

Major Indian Suppliers : Polyplex, Jindal , UFLEX , SRF , Ester, Vacmet, Garware etc

New Entrants ( last 4 years) : Sparsh, Chiripal , Sumilon etc

Major Markets : North India, West India

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Strategies of the BOPET manufacturers

• Export to increase the line Utilization rates

• Capture new Export markets from the Global Players like SKC, Dupontetc

• Value added products- Coated films ( chemical , PVDC etc)

- Metallized films

- White Films

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Challenges faced by the Indian BOPET film industry

• Recycling issues of PET films used in Flexible Packaging with Multi layer films

• Environmental ministry focus on non recyclable multi layer plastics

• Global Overcapacity in BOPET film manufacturing industry

• Imports from China

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Outlook of Indian BOPET film industry

• Thin films will be a very competitive segment with low margins for some period

• Companies will try to build volumes on the commodities

• Focus on Value added products ( coated, chemical, etc)

• Small duration closures may happen with some players

• Should they start focussing on Thick film ?

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences

Any Questions ?

Write to : ashishgupta@flexstreet.com

Call : +91-9811788529

Flexstreet – BOPET and BOPP Film Industry Consultants

- Sourcing Advisors

- Industry Consulting

- Better Manufacturing Solutions

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences