Growth and Opportunities in Plastic Industry of India
Arvind Mehta
Chairman & Managing Director
Welset Plast Extrusions Pvt. Ltd

Indian Plastics Industry has taken great strides. As shared by Shri Arvind Mehta, Chairman & Managing Director, Welset Plast Extrusions Pvt. Ltd., plastics will be called on to play a vital role in this changing region and the plastics industry will benefit from national efforts to encourage and improve manufacturing and processing in plastics.

India is one of the oldest civilizations, with a population of over one billion (17% of World Population). India has consistently shown a GDP Growth of more than 6%, since the introduction of economic reforms in 1991. The global demand for plastics increased after 21st century and it continues to increase over the years. The Indian sub-continent has established itself as the most exciting and dynamic emerging market in the world and is one full of potential and investment opportunities. India is one of the largest producers of Plastics in the world and is expected to become 3rd largest plastics manufacturer by 2020.

In context of Growth Drivers in Plastics Industry, India's booming progress in various fields has given a kick start to the growth spree of the Indian Plastics and Polymer industry. These have laid down a positive path for the plastics and polymers growth story in the country. The Development in the Indian Polymer Packaging Products has brought in the revolution with more than 60% of the polymers consumed in India being consumed for packaging applications. With the polymer consumption in packaging being at 5.3 Mn Mt in 2011, it is slated to reach 10 Mn Mt by 2020.

Another driving force behind the success of the plastics industry is the Indian appliance industry which is growing at 15% Y-o-Y. Other significant contributors to the progress of the industry are the healthcare domain, which is increasingly resorting to plastics in terms of syringes, IV fluid bottles, Modern Medical Equipment & Implants, Artificial body parts etc. The plastics industry in India is poised to grow multifold in the years to come.

In terms of Market Development, India's Gross Domestic Product (GDP) grew only by 5.7% year-on-year in April-June, 2017 quarters as per OECD Economic Survey of India, 2017. Indian economy is expected to grow at a rate of 6.7 per cent in the year 2017-18 and in the next financial year 2018-19 the economy is expected to grow at a rate of 7.2 percent. With a focus on expandable market capitalization of plastics industry, the per capita consumption of plastic products in India is growing and is moving towards 8% GDP Growth. The phenomenon rise in the plastics industry sector of India is coupled with the developments in the petrochemical sector and plastic processing sector, which has facilitated the plastics industries to build capacities for the service of both the domestic market and overseas market.


Figure 1: Plastics Products Demand Growth Drivers


Table 1

Today, Indian Plastics Processing sector comprises of over 30,000 units involved in producing a variety of items through injection moulding, blow moulding, extrusion and calendaring etc. The capacity built in most segments of this industry coupled with inherent capabilities has made Indian plastic industries capable of servicing the overseas markets.

The above table mentions about the key roles played by the plastics industry between the timeframe of 10 years (2005 - 2015) in the Indian economy. One of the major factors leading to technological skill enhancement and growing education standards through various sector focused institutions in the field of plastics, has resulted in creating abundant employment opportunities in last 10 years for the Indian youths. With a growing demand of plastic materials and its uses in various other industries, a diversified need was realized by the plastic industries to serve the nation's demand, resulting a turnover growth of about ` 98,245 Crores between the time period of 10 years.



In view of Wide Ranging reforms in the field of plastics industry, India is one of the most promising exporters of plastics among developing countries. The Indian plastics industry produces and exports a wide range of raw materials, plastic moulded extruded goods, polyester films, laminates, moulded/soft luggage items, writing instruments, plastic woven sacks and bags etc. As manufacturers increasingly focus on customising products in accordance with end-user needs, the Indian plastics industry has also started developing specific items to suit customer requirements, including supplies to original equipment manufacturers (OEMS). The design, style, as well as the pattern, is decided according to the requirement of the customer in the export market. The micro, small and medium plastics processing units (~75-80% of the total plastic processing units) contribute just about 25% of polymer consumption. The industry also consumes recycled plastics, which constitutes about 30% of the total consumption.

In addition with the government's renewed focus on providing clean water for drinking and improving sanitation facilities through the construction of individual household toilets, cluster toilets and community toilets under Swachh Bharat Mission, PVC and Chlorinated polyvinyl chloride (CPVC) plays important role in the sustainable management of these sectors through various plastic allied products. The huge allocation to infrastructure sector, higher focus on water management and on improvement in sanitation facilities provide huge growth potential for plastic manufacturers which has significant presence in these areas.

As per the growing demand of consumer products by Indian citizens, Indian consumers segment is broadly segregated into urban and rural markets, and is attracting marketers from across the world. "Smart cities, rapid urbanisation, increase in sale of packaged products through retail and ecommerce mode, low per capita consumption, shifting consumer lifestyles, large young population, majority of population of middle income group, many manufacturing segments adopting higher percentage of plastics, etc. are contributing towards the growth of plastics industry," and resulting to the growing demand of plastic consumable products among Indian citizens.


Figure 2
Source: Tata Strategic Analysis Report, Tata Strategic Management Group, February, 2017


In comparison of growing Indian plastics industries at global level, plastics are gradually becoming the material of choice for extensive usage due to their unique and diverse set of properties. However, due to low penetration levels of plastic products in the Indian market, especially rural segment, the per capita consumption of plastics is low. As shown in below mentioned figure, with current per capita consumption of plastics in the U.S. at 109 kg and in China at 38 kg, India at 11 kg has a long way to go. The low consumption level indicates an enormous growth potential for the plastics sector.

Due to increasing domestic consumption and high potential, India is emerging as one of the focus destinations for plastics and downstream players worldwide.

Key Facts about Welset Plast Extrusions Pvt. Ltd.

Welset is a well-known and highly trusted name in plastics industry making available a wide range of colouring and compounding solutions to the industry.

Welset has entrenched its name as a high quality manufacturer and supplier of a wide range of Colour, White, Black Master Batches, Anti-fibrillation/Filler Master Batches, and full range of Additive Master Batches for Plastics Industry.

Welset is equipped with technologically most advanced ISO 9001-2008 certified facility to produce full range of PVC compounds, master batches, niche medical grades and specialty products like tubings and sheetings. The facility is fully automated with clean room having class 100,000 environment.

With a vision to be the market leader in compounding by offering innovative colour and compounding solutions and to achieve higher levels of growth and excellence to attain leadership and set a benchmark of quality service at the National level and be recognized globally, Welset Plast Extrusions Pvt. Ltd., is today one of the leading companies in the business of colouring and compounding solutions for plastics industry.

Welset Plast Extrusions Pvt. Ltd. has achieved various milestones in its ongoing journey since the inception of the firm in the year 1968.