Significance of Plastic Industry

Ever since the beginning of the production of polystyrene in 1957, plastic industry has been making significant achievements. The industry is highly fragmented with approximately 25000 firms and over 400,000 employees. Indian plastic industry has an immense potential to motivate the manufacturers to acquire technical expertise and to achieve superior quality standards. 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.

In last few years, the plastic industry has grown to the leading sector in the country with a sizeable base. The per capita consumption of the material is increasing in the country at a very fast pace. Continuous advancements and developments in polymer technology, processing machinery, expertise, and cost effective manufacturing is fast replacing the typical materials in different segments with plastics.

 

The plastic sector adds up to 0.5% to country’s total GDP. The export also yields around 1% of the country’s export. This sector has a greater presence of small scale companies which account for more than 50% turnover of the industry. Approximately Rs. 100 billion are invested in the form of fixed assets in the plastic processing industry.

Indian plastic industry has the potential to grow at a consistent rate in future but the competition is expected to increase in next few years due to global trends. To survive the competition, both polymer manufacturers and processors will need to adopt radically new methods and approaches to reduce costs, improve market and customer service and management of performance.

 

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