Introduction of Plastic Products

The plastic industry of India has a big market potentiality and is gradually prospering. This potentiality of the market will surely actuate the entrepreneurs to invest in this industry. Entrepreneurs are trying to provide high quality plastic products, so that it becomes a booming industry.
Commodity PLASTIC AND ARTICLES THEREOF. India's Total Export
In Rs Lacs

2010-2011 1,815,009.43 114,292,192.18

%Share 1.588

2011-2012(Apr-Dec) 2,010,802.55 106,492,687.15

%Share 1.8882

Source: Ministry Of Commerce, India

As figures from the above table we can easy figure out the market in the plastic export. We can easily find the growth in business as our market share is increased from last year and 1.88% for the current year yet. We can see that the value of our export is Rs 2,010,802.55 lacs are for 5 months is quite high the total export Rs 1815009.43 for last year.
Commodity PLASTIC AND ARTICLES THEREOF. India's Total Import
In Rs Lacs

2010-2011 3,447,709.74 168,346,695.57

%Share 2.048

2011-2012(Apr-Dec) 2,966,066.80 170,452,705.87

%Share 1.7401

Source: Ministry Of Commerce, India

The statistics for the import of plastic products is more than what we export so we can also have domestic demand for plastic and article thereof.

History
Indian plastic industry has made significant achievements in the country ever since it made a promising beginning with the start of production of polystyrene in 1957. The industry is growing at a rapid pace and the per capita consumption of plastics in the country has increased several times as compared to the earlier decade. The chronology of production of polymers is summarized as under 1957 - Polystyrene, 1959 LDPE, 1961 - PVC , 1968 HDPE, 1978 - Polypropylene Currently, the Indian plastic industry is highly fragmented with an estimate of around 25,000 firms and over 400,000 employees. The top 100 players of Indian plastic industry account for just 20% of the industry turnover. Barring 10 to 15% of the firms that can be categorized as medium scale enterprises, most of the units operate on a small scale basis. The immense potential of Indian plastic industry has motivated Indian manufacturers to acquire technical expertise, achieve superior quality standards and build capacities in different facets of the booming plastic industry. Substantial developments in the plastic machinery sector coupled with matching developments in the petrochemical sector, both of which support the plastic processing industry, have facilitated the plastic processors to develop capacities to cater both the domestic as well as overseas exports.

Products
There are 468 products categories for plastic products which have 468 HS Code under the article 39. The major plastic products that India export are Raw Materials - PVC, polypropylene, polyethylene, polystyrene, ABS, polyester chips, urea / phenol formaldehyde, master batches, additives, etc Packaging - PP / HDPE woven sacks / bags / fabrics, poly-lined jute goods, box strapping, BOPP tapes, a range of plastic sheeting / films (of PVC, PP, HDPE, nylon, FRP, PTFE, acrylic, etc.), pouches, crates, bottles, containers, barrels, cans, carboys, shopping / carrier / garbage bags. Films - Polyester film, BOPP film, mesh, metalized / multilayer films and photo films Consumer Goods - Toothbrushes, cleaning brushes, hair brushes, nail / cosmetic brushes, combs, molded furniture (chairs, tables, etc.) house ware, kitchenware, insulated molded house ware, microwave re-heat able containers, mats and mattresses, water bottles, gifts and novelties, a range of stationery items like files, folders, mathematical instruments, etc. Writing Instruments - Pens, ball pens, markers, sign pens, refills, etc. Travel ware - Molded luggage, soft luggage, a range of bags like school bags / ladies handbags, wallets, etc. Leather Cloth / Artificial Leather Floor Coverings - Vinyl floor coverings and linoleums Foam Boards Drip Irrigation Systems / Components Pipes & Pipe Fittings - Made of PVC, HDPE, PP, FRP, nylon Water Storage Tanks Toys and Games Engineering Plastics - Auto components, parts for various machinery / equipment in telecommunications, railways, electronics, etc. Electrical Accessories FRP / GRP Products - Safety helmets / equipment, pipes, storage tanks, etc. Sanitary Fittings - Cisterns, toilet seats, bathroom fittings, etc. Construction - PVC profiles, doors, windows, etc. Tarpaulins Laminates Fishnets / Fishing Lines Cordage / Ropes / Twins Eyewear - Lenses, spectacle frames, goggles, etc. Laboratory Ware Surgical / Medical - Disposable syringes, blood / urine bags, I.V. sets, etc.

Top Export of India

S.No. 1 2 3 4 5 6 7 8 9 10 CHINA P RP USA BAHAMAS U ARAB EMTS TURKEY ITALY UK BRAZIL GERMANY NIGERIA Country Values in Rs. Lacs 2010-2011 181,722.64 194,408.17 11.99 111,913.50 103,452.06 107,772.19 58,582.50 28,727.39 59,892.58 37,043.05 2011-2012(Apr-Dec) 237,103.03 181,964.88 101,687.40 93,871.83 91,063.23 85,295.49 56,745.68 56,271.73 51,594.49 51,119.97

Source: Ministry Of Commerce, India

Top Import of India

S.No. 1 2 3 4 5 6 7 8 9 10 CHINA P RP USA KOREA RP GERMANY THAILAND TAIWAN SAUDI ARAB SINGAPORE JAPAN U ARAB EMTS Country Values in Rs. Lacs 2010-2011 390,149.22 371,788.91 387,683.55 230,328.77 229,459.90 238,047.66 298,886.46 161,308.14 127,420.11 109,614.81 Quntity in thousands 2011-2012(Apr-Dec) 474,188.13 337,619.22 315,971.65 200,722.15 184,220.01 179,538.13 176,138.81 138,068.57 116,973.76 90,335.98

Source: Ministry Of Commerce, India

The top 10 trading partners for Indian plastic industry are

USA UAE Italy UK Belgium Germany Singapore Saudi Arabia China Hong Kong

Product Analysis
392510- RESERVOIRS TANKS VATS & SIMILAR CONTAINER UPTO 300L Direction of Trade from India:
Exports: Chile is one of the booming markets for Indian plastic industry for product under category of HS Code 392510. India has increased its export to Chile with Rs 698.98 lacs from Dec, 2011 to April, 2012 with the quantity of 129.87 thousand units. The other ready market for India is UK which has continuous demand for plastic product from India under this category with Rs 443.97 for year 2010-2011 and Rs 286.15 from Dec, 2011 to April, 2012 with the quantity of 281.71 thousand units from 2010-2011 and 139.99 thousand unit from Dec, 2011 to April, 2012 respectively. Product under this category is mostly demanded in UK, Tanzania, UAE, Nigeria, Oman, Egypt, Nepal, Germany, Dominic rep, Netherland, USA. The total export of India under this category is Rs. 1510.7 Lacs from 2010-2011 and Rs. 1610.57 Lacs from Dec, 2011 to April, 2012 respectively. The table below will shows the further direction of export from India:
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Country CHILE UK TANZANIA REP U ARAB EMTS NIGERIA OMAN EGYPT A RP NEPAL GERMANY DOMINIC REP NETHERLAND FRANCE SEYCHELLES USA BAHARAIN IS 1.57 41.68 443.97 296.94 207.18 70.23 191.17 74.47 68.38 0.71 1.21 25.03 Values in Rs. Lacs 2010-2011 2011-2012(Apr-Dec) 698.98 286.15 131.15 116.66 92.47 54.21 39.96 35.96 35.52 34.06 22.72 15.87 11.09 7.43 5.76 1.5 18.32 Quntity in thousands 2010-2011 281.71 201.82 154.57 70 134.26 42.66 85.26 0.4 1.26 9.88 2011-2012(Apr-Dec) 129.87 139.99 75 47.06 59.31 27.48 17 30.8 5.8 11.75 9.87 8 7.7 2.61 1.9

Source: Ministry of Commerce, India

Export Graph for India

2011-2012(Apr-Dec)
0% 1% 1% 0% 2% 2% 2% 1% 0% 0% 0% 0% 0% 0% 0% CHILE UK TANZANIA REP U ARAB EMTS NIGERIA 43% OMAN EGYPT A RP NEPAL 8% 18% GERMANY DOMINIC REP NETHERLAND FRANCE SEYCHELLES USA BAHARAIN IS SAUDI ARAB

3% 6% 7%

2%

From the Graph we can find out the potential market are lies for countries- Chile, UK, Tanzania Rep, UAE and Nigeria. We can also find Europe as a potential buyer from India with UK and country like Germany, France also. But the growth of market is more in Chile and it emerged as a booming market for plastic container, vats, reservoirs, etc.

Imports:
Israel is one of growing supplier for India under this category of plastic products with import of Rs. 230.55 Lacs from Dec, 2011 to Apr, 2012 and quantity of 69 thousand units from the same period. Other ready supplier is China which is supplying continuously to India under this category and one of the largest supplier and buyer of plastic product. India is imported Rs. 38.52 Lacs of product from China in year 2010-2011 and Rs. 227.55 from Dec, 2011 to Apr, 2012. The Quantity imported is 29.42 thousand units in 2010-2011 and 70.02 thousand units from Dec, 2011 to Apr, 2012. Other than China the other booming importer for India are Japan, Turkey, Korea, Netherland, and Germany. The total import of India under this category is Rs. 144.82 Lacs from 2010-2011 and Rs. 653.74 Lacs from Dec, 2011 to April, 2012 respectively. The table below will shows the further direction of import for India:
S.No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Country ISRAEL CHINA P RP JAPAN TURKEY KOREA RP NETHERLAND GERMANY ITALY TAIWAN UK MALAYSIA FRANCE MEXICO BANGLADESH PR USA 13.14 0.47 8.79 0.09 8.35 10.27 56.68 38.52 Values in Rs. Lacs 2010-2011 2011-2012(Apr-Dec) 230.55 227.55 59.43 38.67 16.15 13.76 12.06 11.95 10.05 9.14 8.98 5.5 4.89 1.96 1.75 4.2 0.31 3.65 0.05 3.28 11 19.8 Quntity in thousands 2010-2011 29.42 2011-2012(Apr-Dec) 69 70.02 16.69 19.9 5.02 7.3 8.06 6.6 2.17 1.23 4.68 0.68 0.89 1.61 0.34

Source: Ministry of Commerce, India

Import Graph for India

2011-2012(Apr-Dec)
0% 2% 3% 6% 9% 2% 2% 2% 1% 0% 1% 1% 1% ISRAEL CHINA P RP JAPAN TURKEY 35% KOREA RP NETHERLAND GERMANY ITALY TAIWAN 35% UK MALAYSIA FRANCE MEXICO BANGLADESH PR USA

From the above chart we can find out that both China & Israel is main importer for India for product under this category. But Israel is the one of the new market that supplying to India whereas China is one of the oldest and mature market so we can say that China is more preferred market for import. We also have import option from Japan, Turkey they are also serve as alternative market. Whereas Korea, Netherland, Germany, Italy, Taiwan, UK, Malaysia, France may be other market places to explore for product and can serve as advantage for supply chain.

Direction of World Trade:

Exports:
Germany is the biggest exporter for product under this category with 18.11% of world export. It contributes $1767624 thousand for the year 2011.The other leading exporters under this category are China, Poland, USA, Canada, France, Belgium, Italy, Turkey, Austria and UK. The total export of this category in world is $9755966 Thousands in 2011 and $8548788 Thousand in 2010. The table below shows the further direction of world trade for this product category:
Exporters World Germany China Poland United States of America Canada France Belgium Italy Turkey Austria United Kingdom Czech Republic Denmark Netherlands Slovakia Chinese Taipei Mexico Spain Sweden Hungary Exported value in 2007 8462982 1586686 750922 579352 445718 697636 482537 368937 332914 170942 232635 356492 175268 191079 193957 63368 149461 227999 141610 99465 94332 Exported value in 2008 9377891 1863601 941649 730488 508854 588983 527208 399904 338119 230280 270842 318490 215680 208870 217063 83187 156578 233563 133130 112293 103716 Exported value in 2009 7954574 1539958 951783 602504 458839 447458 369158 322641 263499 229652 232658 218501 179908 168181 188370 88489 122572 171900 116207 86317 88153 Exported value in 2010 8548788 1565571 1114022 710362 494758 460892 384938 330634 306148 247371 241270 239194 206777 178034 171989 129674 139867 127101 108672 99476 73411 Exported value in 2011 9755966 1767624 1384517 820523 555949 462367 435555 384997 327392 288030 276101 249451 244141 209681 201735 185256 153844 138018 132199 109249 97382

Unit : US Dollar thousand

Source: International Trade Center, http://www.intracen.org

From the above fig we can find out that Germany is contributing 18%, China is 14%, Poland is 8%, USA is 6%, and Canada is 5%, France & Belgium 4% in the world export for this particular category of plastic product. Whereas India has very less export which is 0.0021% in comparison to world export for this particular product category.

Imports:
USA is the biggest importer for product under this category with 13.93% of world import. It contributes $1228519 thousand for the year 2011 . So it is one of the potential markets for this particular category. Other markets for this product category are France, Germany, Switzerland, Austria, Canada, UK, Belgium, Russia, and Czech Republic. The table below shows the further direction of world trade for this product category:
Importers World United States of America France Germany Switzerland Austria Canada United Kingdom Belgium Russian Federation Czech Republic Italy Netherlands Japan Denmark Poland Slovakia Norway Spain Iraq Sweden Imported value in 2007 7900348 1548202 671354 564859 244928 275769 287461 377716 251447 194639 175786 135008 223344 138952 142510 153568 118400 75660 170160 21996 85356 Imported value in 2008 8524559 1402481 745854 586127 298351 311886 335841 355340 307500 263308 229774 156578 244099 146584 170389 169386 138344 94582 165645 35138 96661 Imported value in 2009 7160513 1177693 650508 562372 288209 286650 302972 283969 272642 151589 177541 149234 198495 141359 128407 111981 142342 77839 114764 50385 68282 Imported value in 2010 7748680 1195227 717160 560574 321715 318175 342049 300978 269319 218972 190542 204953 184541 145833 136774 121227 118951 99505 120640 86301 87389 Imported value in 2011 8816491 1228519 761939 710259 416557 375856 354482 334005 318445 234798 230615 226940 209242 182793 177366 146455 128201 125663 118817 111678 104419

Unit : US Dollar thousand

Source: International Trade Center, http://www.intracen.org

From the above fig we can find out that USA is contributing approx 14%, France is 9%, Germany is 8%, Switzerland is 5%, UK, Austria, Canada & Belgium is 4% in the world import for this particular category of plastic product. Whereas India has very less import which is 0.0054% in comparison to world import for this particular product category.

Justification:
Demand If we see the data for Indian export we find that Chile is the emerging market for India but India has its regular market in UK and UK is one of the top importers for product under this category. In the trend for UK we can find that the demand is decreased so we cannot depend on UK alone but it is still a potential market for India.
Importers United Kingdom Imported value in 2007 377716 Imported value in 2008 355340 Imported value in 2009 283969 Imported value in 2010 300978 Imported value in 2011 334005

Trend

100.00

94.08

75.18

79.68

88.43

Whereas the trend of Chile is showing positive results and increased in demand also it is booming market so we can go for the market in Chile.
Importers Chile Imported value in 2007 15194 Imported value in 2008 18839 Imported value in 2009 13161 Imported value in 2010 19272 Imported value in 2011 27307

Trend

100.00

123.99

86.62

126.84

179.72

So, the potential market for product in this category is Chile and UK. We can take advantage of market demand in the Chile and export over there. How Supply We can import product from China as it is one of the largest exporter for this category after Germany and it has positive trend of export so we can easily find supply without any delay and we have advantage in going deal with china than Germany as both India and China belong to BRICS economy and it can be cheaper for us to get import from China than Germany in respect of both transportation/Shipping cost as well as tariff and other barriers.