2012 - Strengthening the Plastic Industry, Features - Personality

Arvind M. Mehta
Chairman
Welset Plast Extrusions
Pvt Ltd, Mumbai
Past President AIPMA
Imm. Past President
Plast India Foundation

Plastindia 2009 exhibition helped in triggering growth despite the global recession. The logo of Plastindia 2009, ‘Future Is Here – India’ and vigorous marketing gave a real push to the Indian plastics industry. Amid global recession there was cheer and great relief to foreigners that India is ‘the market.’ Massive buying and confidence of Indian exhibitions led by SMEs; all exhibitions order books were full for the next 1 to 1 ½ years.

Thereafter, everybody went on an expansion spree. There was 15% plus growth in plastics till 2011. Per capita consumption was raised to 8.5 kgs when there was an investment of Rs. 10,000 crores in the processing sector. Machine capacity was enhanced and old capacities updated, that brought products to global acceptance level.

2011 began on a bad note for India. Crisis in EU and USA, sudden spurt in dollar strength, depreciation of the Rupee from Rs. 46 to Rs. 53 created an atmosphere of negativity. Investment proposals were at a five year low in 2011 due to Government flip-flop on policies. Asset creation suffered badly during this period. In addition, banks were reluctant to fund for fear of bad loans. Funding also became very expensive since there were 13 rate increases by RBI. Whereas, 2012 is pointing to a trend reversal since no more rate increases are in the offing. 100% FDI in single brand retail has been notified. Furthermore, Moody has upgraded India rating to investment grade for short term foreign currency bank deposits.

This is the right time for the Indian plastic industry to upgrade technology management and target full utilisation of capacity. Finance is tough, so, while there will be elimination of many players, only the healthy ones will prevail.

With infinite opportunities, Plastindia 2012 offers a platform for future growth by managing the 3 ‘M’s; money, manpower and management. Money to the tune of 10-20,000 crores to be invested. All India Plastics Manufacturers Association (AIPMA) offers next two big opportunities for exports, Plastivision Arabia 2012 and Kenya Plast 2012.

The plastic industry of India which is just maturing will grow twice the rate of GDP, so the future of this industry is bright. In due course of time, 2012 will ultimately march forward with growth in all sectors of plastics.

2012 - Strengthening the Plastic Industry

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