Opportunities in the Indian Plastics SectorJune 2020

FEW GLOBAL HIGHLIGHTS

Largest manufacturer of Lami tubes

Largest manufacturer of BOPP tubes

Largest Rotomolded Tank market in the world

2nd largest exporter of FIBC bags

5th largest producer of PP

Polybenzemidazole(PBI)-only producer in the world

43%

16%

13%

11%

7%

4%3%2% 1%

PVC PP

HDPE LLDPE

LDPE EVA

PET ABS

PS

IMPORT TRENDS 2018-19Total imports:

4191 KT

EXPORT TRENDS 2018-19

Total imports:

2523 KT

32%

24%

20%

16%

6% 2%

PETPPLLDPEHDPELDPEPS

109

6538 32

11

USA Europe China Brazil India

Per capita plastic consumption (kg/person)

SOURCE: AIPMA and Plastindia, TATA strategic analysis

8.313.2

22

FY 10 FY 15 FY 20

10.5%

10%

Plastic Processing in India (MMTPA)

SOURCE: Industry reports, TATA strategic analysis

INDIAN PLASTICS SECTOR: MARKET OVERVIEW

Classification of plastic products by types of processes

1

2

3

4

EXTRUSION:Films and sheets, fibresand filments pipe, conduits and profiles, other applications

INJECTING MOULDING:Industrial and household injection moulding, Thermowareand moulded luggage

BLOW MOULDING:Bottles, containers,

toys and housewares

ROTO MOULDING:

Large circular tanks such as water tanks

Polymer manufacturers

Equipmentmanufacturers

Plastic Processors

Recycling players

End

user

indu

strie

s

Dominated by ~15 large industrial groups

Dominated by ~200 players

High

Low

Conc

entr

atio

n

Flow

of e

quip

men

t

Flow

of v

irgi

n po

lym

ers

Fragmented with ~50,000 units mostly operated by small players

~4000 unorganized units, ~3500 organized units

Flow of processed plastics

Flow

of r

ecyc

les

plas

tics

Flow

of r

ecyc

les

plas

tics

INDIAN PLASTICS SECTOR: INDUSTRY STRUCTURE

SOURCE: Crisil, TSMG, Plastindia

Polyolefins11,770 kilo tonnes

Polyvinyl Chloride (PVC)1,560 kilo tonnes

Polyethylene Terephthalate (PET)

2,730 kilo tonnes

Styrenics457 kilo tonnes

Major Engineering Plastics

498 kilo tonnes

Performance Plastics 3,285 kilo tonnes

LAPETKATA: (BCPL PE & PP)

BHATINDA(HMEL,PP)

KOTA(DCM, PVC)

JAMNAGAR:(RILPE & PP)VADODARA: (RIL PE, PP &PVC)

DAHEJ: (RIL PE, PVC & PET) (OPAL PE &PET)HAZIRA: (RIL PE, PP, PVC & PET)

SARIGRAM:(PET)NAGOTHANE: (RIL PE, PP &PP)

RATNAGIRI: (Finolex PVC, Supreme PS)

MANGALURU: (MRPL PE &PP)

CUDDALORE: (Chemplast PVC)SAHUPURAM: (DCW PVC)METTUR: (Chemplast PVC)

VISHAKHAPATNAM: (LG PS)

PARADEEP: (IOCL PP)

HALDIA: (HPL PE &PP)DHANUSERI: (PET)

PANIPAT: (IOCL PE &PP)

PATA: (GAIL PE)

INDIAN PLASTICS SECTOR: MANUFACTURING & CAPACITY

MANUFACTURING CLUSTERS

SOURCE: PlastIndia, Indian Plastics Industry Report

Major Thermoplastics capacity (2019)17 million metric tonnes

CAPA

CITY

The government has been taking proactive steps to increase plastic production in India

Loading unloading Facilities

Industrial Plots

Recycling Areas

Tool Rooms

Common Facilities

R&D labs

OBJECTIVES FACILITIESIncrease the competitiveness,

polymer absorption

capacity and value additionAchieve

sustainable growth through

waste management,

recycling

Increase investments in

the sector through additions

in capacity and production

Adopt a cluster development

approach

LOCATION-PLASTIC PARKS IN INDIA

INDIAN PLASTICS SECTOR: SEZs and PLASTIC PARKS

Tamot & BillauaMadhya Pradesh

Tinsukia DistrictAssam

ThiruvullurKarnataka

Siju VillageOdisha

DeogharJharkhand

Source: Sustainable Infrastructure with Plastics, FICCI, Plastindia.org

Although much lower than the global average of use of polymers, a growth trend has been seen in the demand over the years with the demand having increased 20 times in the past 20 years as opposed to the population increase of 1.5 times

Figu

res i

n Kg

s (V

irgin

Pol

ymer

)

Per C

apita

Con

sum

ptio

n of

Pol

ymer

(A

cros

s Cou

ntrie

s)

900

1,65

0

2,90

0

4,20

0 6,80

0

15,5

00 18,4

50

02,0004,0006,0008,000

10,00012,00014,00016,00018,00020,000

1990 1995 2000 2005 2010 2016 2018

Growth in Demand for Plastics over the year (KTU)

INDIAN PLASTICS SECTOR: DEMAND

Source: Plastindia.org

13% 9%42% 17%

3% 2%7% 7%

Flexible Packaging Rigid Packaging Building & Construction Agriculture

Household Automotive Others Electronics

Production Segments

7%

12%Woven Sacks

Optical Items

19%

12%

50%

Plastic sheets, Films and Plates

Extruded and moldedgoods

Others

INDIAN PLASTICS SECTOR: DEMAND SEGMENTATION

Source: Plastindia.org

Consumption Segments

~50,00 plastic Processing

units

~USD 765 million

in 2018-19—Domestic market core machinery.

Machines installed till March 2019

~165,000

Employment

generated:~ 5 million (direct

+ indirect)

Growth in

machinery CAGR 13.9% for last

five years

SOURCE: Industry estimates, PMMAI, Plexconcil

Investment in machinery, moulds

and converting

lines~USD 6.5 billion

13.63 kgIndia’s per capita consumption of virgin polymer

2017

2018

2019

2020(E)

2021(E)

3,080

2,770

2,940

2,610

2,460

2017

2018

2019

2020(E)

2021(E)

7,360

10,000

10,150

9,250

9,150

2017

2018

2019

2020(E)

2021(E)

790

970

1,030

900

840

Extrusion Machinery Injection Moulding Machinery Blow Moulding MachineryTotal Machines till 2019: 43,540 Total Machines till 2019: 108,510 Total Machines till 2019: 12,890

MAC

HIN

ERY

DEM

AND

FORE

CAST

INDIAN PLASTICS SECTOR: MACHINERY INDUSTRY OVERVIEW

SOURCE:PlastIndia

Swachh Bharat

Mission

Bricks made up of recycled plastics

PVC doors for toilets

Plastics Dustbin

Smart Cities

Optical fiber ducts laying

Envisaged usage of 8-10% waste plastics in roads

Door, window and profiles

Housing for All by 2022

Opportunity for piping industry

PVC pipes for water management

Skil l India Injection

Moulding Thermoforming Blow Moulding Extrusion

Clean Ganga River

Mission

Waste plastics stream for recycling

Sanitary pipe & fitting, overhead roto tanks

Source: Sustainable Infrastructure with Plastics, FICCI, Plastindia.org

INDIAN PLASTICS SECTOR: GOVERNMENT INITIATIVES

ElectronicsIndustry

InfrastructureIndustry

5

4

Investments in Infrastructure will result in

making India a hub for PVC and CPVC products

leading to growth in plastics processing.

AgricultureIndustry

2

3Packaging Industry Automotive

Industry

1With a higher per capita income, the demand for

personal hygiene products and convenience products has increased leading to

increased demand for plastics

Growing penetration, and fast technology

upgradation will lead to higher usage of plastics

in the automobile segment

Significant progress in the adoption of

plasticulture techniques will grow at a rapid pace

Increasing penetration rate of consumer

electronics provide scope for the growth of

plastics industry

Source: Sustainable Infrastructure with Plastics, FICCI, Plastindia.org

INDIAN PLASTICS SECTOR: GROWTH DRIVERS

Plastic materials may be employed in water conservation, irrigation efficiency, crop protection, crop storage and transportation.

Growing interest in green products, healthier lifestyles and growing concern to protect environment is leading to a shift towards bio-plastics.

Plastic has low energy requirements during production, hence considered to be energy efficient. It consumes ~25% less energy in production compared to other alternatives

The popularity of plastic furniture has grown since it offers features unavailable in conventional wooden and metal furniture, such as easy maintenance, light weight, durability . Source: Sustainable Infrastructure with Plastics, FICCI, Plastindia.org

PLASTICULTURE

BIO-PLASTICS

EFFECTIVE WASTE

MANAGEMENT

PLASTIC MOULDED FURNITURE SEGMENT

SWISS PRESENCE IN INDIA

INDIAN PLASTICS SECTOR: MARKET OPPORTUNITY

THANK YOU