Indian plastics industry is expected to invest US$10 billion for further increase in capacities during the next 5 years, according to a study by the Plastindia Foundation. Fuelled by increasing level of plastics usage in automobiles, consumer packaging and impact of increased infrastructure spending, the plastics industry is also set to double per capita consumption in the next five years, says this study called ‘Report on Indian Plastics Industry 2012-2016’.
It says the growth prospects of the industry are bright as the per capita consumption of polymers industry in the country during 2012-13 was low at just 9.7kg as compared to 109kg in USA, 45kg in China and as high as 32kg in a country like Brazil. Plastics industry would be a direct beneficiary of increasing per capita income, rising consumerisation and impact of modern ways of living particularly in urban India.
While sharing the highlights of the report, JR Shah, chairman, National Executive Council, Plastindia 2015 said: “India is a growing market for plastics and consumes about 11 million tonnes (MT) annually against a global consumption of 275MT per year and worldwide, the plastics and polymer consumption is growing at an aver-age rate of 10% and is expected to touch 16.5MT by 2016.”
The report points out that about 30,000 processing units with 113,000 processing machines have created manufacturing capacity of 30 million metric tonnes per annum. This has been achieved with a 13% CAGR of processing capacity during last five years. The industry has invested US$5 billion in the machinery.
The Foundation estimates the demand for polymers to jump to 16.5MT by 2016- 17 from 11MT during 2012-13.