Sintex Part 2

Introduction – Plastic IndustryThe term “plastic” encompasses a broad range of materials. In addition, each has its own special properties and variations when it comes to properties such as hardness, heat tolerance, and resiliency. Nonetheless, each of them is made of organic condensation or addition polymers and can be made into fibers, films, or objects.

There are a variety of methods used to process plastic. Each method has its advantages and disadvantages and are better suited for specific applications. These methods include: injection molding, blow molding, thermoforming, transfer molding, reaction injection molding, compression molding, and extrusion.

Classifying Plastics

There are many methods used to classify plastics. The most common method is to classify them according to their polymer backbone. Plastics can, however, also be classified according to the glass transition temperature or thermoplastic versus thermoset.

No matter the classification, all plastics are polymers, which is a long chain of atoms that are bonded to one another. These chains are comprised of monomers, which are repeating molecular units. Most plastics are made of carbon polymers or carbon polymers combined with nitrogen, oxygen, sulfur, or chlorine in the backbone, which is the main path linking the units together. Plastic is then customized by “hanging” different molecular groups to the backbone.

History of Plastic

Experiments with plastic have been performed for centuries. In fact, even the Old Testament makes reference to natural materials that were used in the same way as plastic is used today. The exact year when plastic was first created or discovered, however, is a matter of dispute because the term “plastic” is so loosely defined.

The discovery of ebonite, or hard rubber, in 1851, however, had a major impact on the plastics industry. Ebonite was the first thermosetting material to be prepared that also involved its own unique chemical modification of naturally occurring material. Yet, it took several years for ebonite to be used to its potential.

As rubber technology was further being developed, collodion was also being manufactured. Collodion is a cellulose solution that is part of an alcohol-ether mixture. Alexander Parkes, an English inventor, noticed that a solid residue was left after solvent in the collodion evaporated. In his word, this residue was a “hard, horny elastic and waterproof substance.” He later patented the process in 1856 in order to waterproof woven fabrics.

In 1862, a new formulation was unveiled at the Great Exhibition in London. This early plastic was created by dissolving cellulose nitrate in a solvent. After being placed on a heated rolling machine, the mixture could be shaped. The first company to dedicated to manufacturing products

from the material, the Parkesine Company, was established in 1866. The company failed, however, in 1868. A year later, the Xylonite Company was opened by Daniel Spill, who was an associate of Parkes. This company also went bankrupt in 1874.

In the United States, plastic compounds were also on the rise. John Wesley Hyatt experimented with cellulose nitrate in the 1860s. In 1865, he became involved in developing a method for creating billiard balls with alternative materials. He developed balls made of ivory dust, cloth, and shellac, which was covered with a collodion coating.

Wyatt and his brother, Isaiah, went on to create a process for producing a material made of camphor and cellulose nitrate in 1870. By 1872, the term “celluloid” had been coined for the product. The brothers went on to establish the Celluloid Manufacturing Company, which was later renamed the American Cellulose Chemical Corporation and was ultimately absorbed by the Celanese Corporation.

By the 1900s, the use of plastic and all of its variations took off. Today, it is the most used material in the United States industry, with nearly every product containing plastic in one way or another.

Plastic Processing Methods

Injection Molding

The main method used for processing plastic is injection molding. With this process, the plastic is placed into a hopper. The hopper then feeds the plastic into a heated injection unit, where it is pushed through a long chamber with a reciprocating screw. Here, it is softened to a fluid state.

A nozzle is located at the end of the chamber. The fluid plastic is forced through the nozzle into a cold, closed mold. The halves of the mold are held shut with a system of clamps. When the plastic is cooled and solidified, the halves open and the finished product is ejected from the press.

Thermosetting materials usually are not processed with injection molding because they will soften, they harden to an infusible state. If they are processed with injection molding, they need to be moved through the heating chamber quickly so they do not set.

Blow Molding

Blow molding is used when the plastic item to be created needs to be hollow. A molten tube is created with blow molding by using compressed air, which blows up the tube and forces it to conform to the chilled mold. Variations of blow molding include injection, injection-stretch, and extrusion blow molding.

With injection blow molding uses a perform, which is taken to a blow mold and filled with compressed air. As a result, it conforms to the interior design of the blow mold. With injection-

stretch blow molding, a the plastic is stretched prior to being formed. Otherwise, it is essentially the same as the injection process.

With continuous-extrusion, a molten plastic tube is continuously created. At the appropriate times, the tube is pinched between two mold halves. Then, a needle or a blow pin is inserted into the tube and blows compressed air up the part in order to force it to conform to the mold interior. With accumulator-extrusion, the molten plastic material is gathered in the chamber before it is forced through a die in order to form a tube.

Thermoforming

Thermoforming uses a plastic sheet, which is formed with the mold by applying air or through mechanical assistance. The air pressure used can be nearly zero psi, or several hundred psi. At 14 psi, which is equivalent to atmospheric pressure, the pressure is created by evacuating the space between the mold and the sheet. This is known as vacuum forming.

Transfer Molding

Transfer molding is generally used only for forming thermosetting plastics. It is similar to compression molding because the plastic is cured into an infusible state through pressure and heat. Unlike compression molding, however, transfer molding involves heating the plastic to a point of plasticity prior to being placed into the mold. The mold is then forced closed with a hydraulically operated plunger.

Transfer molding was initially developed as a method for molding intricate products, such as those with many metal inserts or with small, deep holes. This is because compression molding sometimes disturbed the position of the metal inserts and the holes of these types of products. With transfer molding, on the other hand, the liquefied plastic easily flows around the metal parts without causing them to change position.

Reaction Injection Molding

Reaction injection molding, or RIM, is one of the newer processes used in the plastics industry. It differs from liquid casting in that the liquid components are mixed together in a chamber at a lower temperature of only about 75 to 140 degrees Fahrenheit before it is injected into a closed mold. Here, an exothermic reaction occurs. As a result, RIM requires less energy than other injection molding systems. Reinforced RIM, or R-RIM, involves adding materials such as milled or chopped glass fiber in the mixture in order to increase the stiffness.

Compression Molding

Compression molding is the most common process used with thermosetting materials and is usually not used for thermoplastics. With this process, the material is squeezed into its desired shape with the help of pressure and heat. Plastic molding powder and other materials are added to the mix in order to create special qualities or to strengthen the final product. When the mold is closed and heated, the material goes through a chemical change that causes it to harden into its

desired shape. The amount temperature, amount of pressure, and length of time utilized during the process depends on the desired outcome.

Extrusion

The process of extrusion is usually used to make products such as film, continuous sheeting, tubes, profile shapes, rods, coat wire, filaments, cords, and cables. As with injection molding, dry plastic material is placed into a hopper and fed into a long heating chamber. At the end of the chamber, however, the material is forced out of a small opening or a die in the shape of the desired finished product. As the plastic exits the die, it is placed on a conveyor belt where it is allowed to cool. Blowers are sometimes used to aid in this process, or the product may be immersed in water to help it cool.

Benefits

Plastic has benefited our society in a number of ways. In fact, plastic has helped aeronautics technology take giant steps forward over the past 50 years, including advancements in satellites, shuttles, aircraft, and missiles. As a result, civilian air travel has improved, as well as military air power and space exploration. In addition, the building and construction, electronics, packaging, and transportation industries have all benefited greatly from plastic.

Usage

Plastic in Aeronautics

Plastics were first introduced to the world of aerospace during World War II, mostly because other materials were limited. During the war, plastic slowly started to be used as a substitute for rubber in items such as fliers' boots and fuel-tank linings. Eventually, it became the preferred material for these applications. Plastic was then used with airborne radar systems and viewed as a significant advancement in this technology because it allowed waves to pass through with minimal loss.

The fact that plastic was able to withstand heat also lead to its being recognized as an important material in aerospace technology. Today, plastics are used in the solid fuel boosters form rockets and in the ablative shields for reentry of space shuttles.

Plastic materials are also used in the making of helicopters because they are rigid and durable, yet flexible enough to withstand the vibrations made by helicopters. The fact that plastic is both lightweight and strong also has its advantages in the field of aerospace because the weight of the aircraft can be reduced by using plastic. This results in improved aerodynamics, which leads to improved fuel efficiency and performance. In fact, reducing the weight of a jetliner by just one pound saves $1,000 in fuel during the liner's lifetime.

Plastics in the Building and Construction Industry

Plastics play a significant role in the building and construction industry as well. In fact, the industry is the second largest consumer of plastic, followed only by the packaging industry. In the construction industry, plastics are used for items such as pipes and valves. They are also used for decorative elements and heavy-duty uses because they are so easy to handle, are durable, and are attractive. Some decorative places plastics are commonly found include bathroom units, plumbing fixtures, flooring, siding, panels, insulation, windows, doors, gratings, glazing, and railings.

Within piping and valves, plastics are highly used because of their superior resistance to corrosion. In fact, they can be used for everything from freshwater to saltwater, from crude oil to laboratory waste. In addition, they are much lighter than other materials and easier to install. They are also less expensive.

Plastics and the Use of Electronics

Plastics are used with electronic devices for a wide number of purposes. Due to the thermal and insulating properties of plastic, it is ideal for use in house wiring. In fact, nearly all modern homes use plastic electrical connectors, switches, and receptacles.

Small appliances also take advantage of plastic. Plastic is durable, yet lightweight and attractive. Therefore, it is great for making small appliances such as can openers, food processors, microwave ovens, mixers, coffee makers, shavers, irons, and hair dryers. Even refrigerators use a special plastic foam for insulation purposes, while the interior is made from plastic that is durable and easy to clean. Without plastic, these products would last about half as long and would use 25-30% more energy.

Computers as we know them today would probably not exist without plastic. Plastic made smaller computers possible by being able to house all of the electronics necessary within a dust free and well-insulated environment. Components such as circuit boards and computer chips are able to be miniaturized without losing their abilities - or while also improving their performance - thanks to the use of plastic.

Of course, plastic has also made it possible to introduce electronics to children at younger ages. Even newborns can enjoy electronic toys to stimulate and entertain them as they grow. Thanks to plastic, these toys can be made to be safe and durable.

Plastics and Packaging

Plastic is so versatile, it can be used for a variety of packaging purposes. If the product needs to be well protected, the plastic can be rigid and tough. If, on the other hand, the packaging needs to be convenient to carry, the plastic can be flexible. Or, a combination of the two can be achieved. Furthermore, the packaging can be designed into any shape or size desired and it can be clear or any color imaginable.

Plastic packaging helps keep people, the earth, and animals healthy in a number of ways. For example, plastic packaging is used by medical facilities to dispose of needles and other items that may be contaminated. Similarly, fragile medical devices are often shipped in plastic containers because they can be precisely designed to prevent them from being damaged during shipping. Intravenous bags are also made with special see-through plastic to help the medical staff monitor the flow and intake of important nutrients and medicines.

Plastic is also used to store a variety of goods commonly found in the home. By creating shatterproof bottles with plastic, family members are protected from harm if the product should accidentally fall. Leak proof and child-resistant packaging can also be created with plastic.

Use of Plastic in Transportation

Plastic is a popular choice when making modes of transportation because it is tough, resistant to corrosion, durable, lightweight, and easy to color. For these reasons, plastic is found in the fenders, bumpers, trunk lids, housings for headlights and sideveiw mirrors, grilles, hoods, doors, and wheel covers.

Through the use of plastic, the average passenger car has lost 145 pounds since 1988. The lighter weight translates to better fuel efficiency and has saved approximately 21 million barrels of oil.

Trains and busses also take advantage of plastic. Modern designs use plastic in the window and door frames and in the seating. Subway cars use plastic for the seats, the seat covers, in making the carpeting, in creating the handles, in the interior panels, and even in the polycarbonate windows.

Of course, other means of transportation, such as bicycles, roller skates, kayaks, canoes, skateboards, snowboards, surfboards, motorcycles, and even some athletic shoes take full advantage of plastic in their creation.

Types

Plastic has become increasingly important in our every day lives. With so many different types of plastics, products meeting a broad range of consumer needs are available. For the most part, plastics are organic high polymers, which means they are made of large chainlike molecules that contain carbon. These polymers are changed into a plastic state either as they transition from a small-molecule chemical to a solid, or shortly after. Basically, large chainlike molecules are created by hooking together short-chain molecules. The precise process used to created this change, however, results in different types of plastics.

Thermoplastics Versus Thermosets

Plastic materials are divided into two basic groups: thermoplatics and thermosets. Thermoplastic materials are made of long molecules with side chains or with groups that are not attached to the other molecules. As a result, thermoplastics can be repeatedly melted and solidified through heating and cooling without a chemical change taking place. This means scraps created when

processing thermoplastics can be reused. Thermoplastics are generally supplied to manufacturers in pellet form in order to be melted down and used.

Thermosets, however, cannot be reprocessed because they form crosslinked structures during processing. Scrap created when thermoset plastics are processed, therefore, must be discarded or used as a filler in other products. Thermoset plastics are supplied to manufacturers in liquid form or a solid molding powder that has been partially polymerized. They can be formed into their desired shape with or without pressure and heat or chemicals can be used to polymerize them.

Oddly enough, the line is not clearly drawn between thermoplastics and thermosets. In fact, some types of plastic are made as a combination of the two.

Indian Plastic IndustryOver the years, India has made significant progress in the industrial world with healthy economic growth. On purchase power parity basis, it is one of the top five global economics and is expected to be the third largest by the turn of this decade. Plastics, one of the fastest growing industries in India, have a vital role to play. Indian Plastics Industry is expanding at a phenomenal pace. Major international companies from various sectors such as automobiles, electronics, telecommunications, food processing, packing, healthcare etc. have set-up large manufacturing bases in India.

Therefore, demand for plastics is rapidly increasing and soon India will emerge as one of the fastest growing markets in the world.           The next two decades are expected to offer unprecedented opportunities for the plastic industry in India. This would necessitate industry initiatives to foster investments, grow the market, upgrade quality standards, enhance global participation, encourage Indian industry, to adopt and adapt to world class technology and manufacturing practices          

Despite instability in International prices of polymer materials in 2006 - 07, plastics industry in the country has consolidated its performance by consuming about 5.0 million tonnes of polymers, as compared to Chinese consumption of about 30 million tonnes in 2007. Indian plastics industries are enthusiastic about the acceleration of the growth engine in the next 3 to 5 years due to capacity expansion of existing petrochemical complexes and setting up of new crackers in the country currently.

Reliance Industries Ltd., (RIL) has about 75% share of Indian Petrochemical Cracker capacity, followed by medium sized capacity of Gas Authority of India Ltd. (GAIL) and Haldia Petrochemicals Ltd., (HPL). RIL has ambitious plan of augmenting its PP capacity from 1010 KT to 2600 KT by the year 2010. Indian Oil Corporation (IOC) has also planned an 800 K tonnes naphtha cracker at Panipat at an investment of Rs.6300 crores to produce 800 KT of PE and PP each at Panipat.

IOC would also be setting up a production capacity 150 KT PP at Chennai by year 2009 as well as styrene, which is not being produced in India. These positive factors of availability of polymeric materials would infallibly be harbinger in accelerating the growth of plastics sector in the near future.

TABLE 1- Current Indian Petrochemicals Capacities (in KT)     Producer & Location PP HDPE LDPE HD/LL PTA PS PVC

    RIL, Hazira 350 - - 400 - - 300

    RIL, Jamnagar 600 - - - 800 - -

    RIL Patalganga 60 - - - 300 - -

    IPCL, Nagothane 60 - 80 220 - - -

    IPCL, Vadodara 75 - 80 - - - 55

    IPCL, Gandhar - 160 - - - - -

    GAIL, Auriya - 100 - 160 - - 150

    HPL, Haldia 210 200 - 260 - - -

  Finolex, Pisranpar - - - - - - 130

    LG Poly, Vizag - - - - - 80 -

Supreme, Mumbai - - - - - 240 -

    Chem Plast, Metturdam - - - - - - 60

    DCW, Sahupuram - - - - - - 60

    DCM, Shriram, Kota - - - - 400 - 35

    RPRL, Abu - - - - - 16 -

    BASF Styrenics, Bharuch - - - - - 60 -

  TOTAL 1355 460 160 1040 1500 360 790    Grand Total 5665

 Typical Polymer consumption pattern of different polymers     Polymer KT

    LDPE/EVA 275  

    LLDPE 550 1745

    HDPE 920  

    PP   1300

    PVC   1000

    PS   225

    PET Film 135  

    Bottle 100 235

    SAN/ABS   90

    Polyamide 35  

    Polycarbonate 72  

    Polyacetal 8 125

    PET/PBT 7  

    Others 3  

    Thermoset   100

    Total 4820  

To manufacture finished products, polymers are processed through various types of techniques namely extrusion, injection moulding, blow moulding and rotomoulding. Various products manufactured through these processes are highlighted in the following exhibit.

Classification of Plastic Products by Type of process used    

  Extrusion Films and Sheets, Fibre and Filaments Pipes, Conduits and profiles, Miscellaneous applications

Plastic ProductsInjection Moulding Industrial Injection Moulding, Household Injection

Moulding and Thermo-ware/ Moulded luggage

      Blow Moulding Bottles, containers, Toys and Housewares

      Roto moulding Large circular tanks such as water tanks

The polymer consumption in India according to various processes is provided as follows :                 Process (%) Share in Total consumption in India

    Extrusion 60.0

    Injection Moulding 25.0

    Blow Moulding / Stretch Moulding 06.0

    Rotomoulding 01.0

    Other Processes 08.00

The Indian plastic processing industry is highly fragmented and comprises 25,000 firms. Barring 10% - 15% of the firms, which can be classified as medium scale operations, all the units operate on a small-scale basis.          

The top 100 players account for just 20% of the industry turnover. The total number of players in the sector is more than 25,000. However, the degree of fragmentation, worldwide, is a large and despite the small size of operations of the players, they are able to operate profitably. Further, the high growth in demand ensures that the market is able to absorb the excess capacity in quick time. Overall, the degree of competition can be considered high in the Indian plastic processing industry.          

The sector has a significant presence of the unorganised sector, which accounts for more than 70% of the industry turnover. More than 95% of the firms in the industry are partnership, proprietorship or private limited companies. Further, these small companies get significant advantages in taxes. These firms thus provide significant level of competition to the organised sector companies, which combined together are making losses.

The organised sector companies thus need to build up significant brand image to survive against the competition from the unorganised sector. The key organised sector players include Nilkamal Plastics Limited and Supreme Industries Limited.

Indian Plastic Industries –Current Scenario.    Major Raw Material Producers 15 Nos.

Processing Units 25,000 Nos.

    Turnover (Processing Industry) Rs.85,000 Crores

    Capital Asset (Polymer Industry) Rs.55,000 Crores

    Raw Material Produced approx 5.3 MMT

    Raw Material Consumed approx 5.1 MMT

    Employed Direct/Indirect 3.3 Million

    Export Value approx US $ 1.90 Billion

    Revenue to Government approx. Rs.7300 Crores 

Trends in Plastic IndustryNanotechnology is an exciting technological advancement that has the potential to contribute significantly to the future of plastic. Through nanotechnology, special nanocomposites can be created that will be more dent, heat, and scratch resistant. Yet, the thermoplastic resins used to create the plastic can still be processed with the same equipment currently used to process resins.

Through the use of nanotechnology, the plastics industry hopes to achieve several amazing new accomplishments. For example, it may be possible to create auto body paints that are completely scratch-resistant. Or, many materials and products currently in use can be reduced further in size while improving efficiency. Memory chips the size of a postage stamp, yet capable of holding the data equivalent to 25 DVD's, is also on the horizon through the use of nanotechnology. Similarly, solar panels that can be manufactured at a much lower cost then they currently are may be able to be produced with nanotechnology.

Currently, nanotechnology is used in the creation of numerous materials. Materials reinforced through nanotechnology are used in thermoplastics, as they are capable of resisting heat, are flame retardant, provide dimensional stability, and are capable of conducting electricity. These nanocomposites are used in such places as the body side molding of vehicles, automotive parties, and fuel-line components. They are also used with hard drives in order to make them more conductive.

Plastic nanotubes are also being created with nanotechnology. These nanocomposites are generally 50 to 150 nanometers in diameter and are used to conduct electricity. While these nanotubes have the current carrying capacity of copper, they are extremely flexible. They are also very lightweight and durable. This technology is expected to be able to lead to the creation of conductive paints, caulks, coatings, sealants, fibers, and adhesives. The thick sheets and tubes are also considered to be potentially valuable to the automotive, aerospace, and chemical industries.

Finally, special nanocomposite foams have already been created. Over time, these foams will likely replace solid plastic because they are much lighter, yet look the same as solid plastics. Potential uses for these foam nanocomposites include coffee cups, fast food containers, home insulation, carpet padding, disposable diapers, seat cushions, and packaging material.

Plastic recycling is becoming an increasingly large business. In fact, just in the period from 1990 to 1999, the number of plastic recycling plants grew from 923 to 1,677 - an amazing 81% increase. Currently, the largest number of plastic recycling facilities are in the Midwest, with the second largest concentration being in the Southern United States. In addition, plastic recycling is a relatively simple process after the various types of plastic have been separated from one another.

Key Components of the Industry

TechnologyInjection molding is a special manufacturing technique used to make parts from plastic materials. In order to accomplish this, the molten plastic is injected into a mold at a high pressure. The mold it is injected into is the inverse design of the desired shape in order to produce the shape in the way it needs to be designed.

The mold used in the injection molding process is made from a moldmaker, or toolmaker. The mold itself is made of metal, which is usually either aluminum or steel. It is then precision-machined in order to create all of the features needed to form the part in the way it is needed. This process is used to create very tiny components for items such as cell phones to large items, such as the entire body panel used for a car. Other common items made with injection molding include outdoor furniture and bottle caps.

The raw material used in injection molding is called resin. Usually, it is in pellet form first and is melted by force and heat before it is injected into the mold. The plastic then flows toward the chamber and solidifies. This forms what is known as the attached frame. The frame is made of the sprue and runners. The sprue is the main channel the plastic flowed through from its molten resin reservoir. The runners are used to transport the molten resin to the gates, which are the points of injection. The sprue and runner is cut off and thrown away after the product is produced. Some molds are even designed Injection Molding.

Supply ChainThe plastics industry value chain can be divided into broad segments:

Raw material suppliers who supply the petrochemical and chemical feedstocks and additives

Plastics producerswho manufacture the different types of plastic resins

Plastics compounderswho prepare plastic formulations by mixing or/and blending polymers and additives into process ready pellets

Plastics machinery manufacturerswho manufacture the machinery used in the industry

Plastics convertersWho form the plastic resins and compounds into finished products

Plastic product distributors/usersOEM manufacturers, retailers etc who put plastic products onto the market

Plastics end-of-life businessesWaste management companies, recyclers and energy-from-waste operators

Human ResourceMachine setters, machine operator, and tender have the responsibility of setting up and tending to the machines that transform plastic compounds, such as pellets, powder, and syrup, inot products such as auto parts, toys, and tubing. Although a variety of methods can be utilized to change the plastic into a useful product, injection molding is the most commonly used method.

A typical injection molding machine has about 25 different controls, all of which can be adjusted. The machine setter is responsible for setting up these machines before they are used to ensure all settings are where they need to be. The setter is also usually responsible for repairing any problems the machinery may have.

After the machine has been set up by the machine setter, the machine operator monitors the gauges. He or she is responsible for making any adjustments that may be necessary to maintain quality, such as changing the inputs, the speeds, and the pressures. After the product has been created and cooled within the injection-molding machine, the tender removes the product and loads it into its packaging.

The majority of workers in the plastic molding industry must wear earplugs and safety glasses to protect themselves from the loud noises created by the machines and from flying pieces of plastic. Most modern machines, however, are enclosed. This minimizes the employee’s exposure to noise and dust. Despite the modern machinery, some workers in the plastic molding industry also must were face masks or special self-contained breathing apparati if the plastic they work with emits dangerous fumes.

ExportsRAW MATERIALS PVC, Polypropylene, Polyethylene, Polystyrene, ABS, Polyester Chips, Urea / Phenol Formaldehyde, Masterbatches, Additives, etc

PACKAGINGPP / 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.

FILMSPolyester Film, BOPP Film, Mesh, Metallised / Multilayer Films, Photo Films.

A RANGE OF CONSUMER GOODSToothbrushes, cleaning brushes, hair brushes, nail / cosmetic brushes, combs, moulded furniture (chairs, tables, etc.) houseware, kitchenware, insulated moulded houseware, microwave re-heatable containers, mats and mattresses, water bottles, gifts and novelties, a range of stationery items like files, folders, mathematical instruments, etc.

WRITING INSTRUMENTSPens, ball pens, markers, sign pens, refills, etc.

TRAVELWAREMoulded 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 FITTINGSCisterns, toilet seats, bathroom fittings, etc.

CONSTRUCTIONPVC profiles, doors, windows, etc.

TARPAULINS LAMINATES FISHNETS / FISHING LINES CORDAGE / ROPES / TWINS EYEWEAR Lenses, spectacle frames, goggles, etc.

Major Players in Indian Market

Maharashtra Polybutenes LtdMaharashtra Polybutenes Ltd was formerly known as Herdillia Polymers Ltd. The company was formed in 1988 and has been manufacturing Polybutenes since 1994.

Maharashtra Polybutenes Ltd (MPL) brings you international quality ‘HERMAVIS’ polybutenes from its plant located in Navi Mumbai. The plant is based on technology from FINA TECHNOLOGY Inc, USA. The location of plant close to major consumers in and around Navi Mumbai makes it ideal for the users.

The plant can produce up to 9000 MTPA of various grades of polybutenes. MPL polybutenes are marketed under brand name of “HERMAVIS”.

HERMAVIS polybutenes are available in wide varieties of Viscosity and Molecular Weights.

Astral Polytechnik Ltd

Astral Polytechnik Limited is the first licencee of Lubrizol of USA (formerly known as BF Goodrich a fortune 500 company) and have equity joint venture with Specialty Process LLC of USA (manufacturing CPVC plumbing system since 25 years) to manufacture and market the most advanced CPVC plumbing system for the first time in India.

Astral Polytechnik Limited was established in 1999 with a single minded purpose to manufacture absolutely the best plumbing system in India. Astral today manufactures CPVC plumbing systems for both residential and industrial applications, and also ASTM solvent weld lead free PVC plumbing system.

Astral Polytechnik Limited is equipped with state of art production facilities at Ahmedabad and Himachal Pradesh to manufacture plumbing systems from ½” to 6” with all kinds of necessary fittings. The company has tie up with Specialty Process LLC of USA to incorporate latest technology and quality control programs which are widely accepted at global level and to develop CPVC plumbing systems as per Indian plumbing market.

Kemrock Industries & Exports LimitedA leader in the field of fibre reinforced composites, Kemrock delivers standard as well as customised Composite Solutions from its state-of-the-art facility located close to Vadodara in the western part of India. The provision of high-quality engineered advanced composite solutions and reliable, quality services, complying with customer own specifications as well as the highest national and international standards ensure the complete package from design through to installation.

Established in 1981, Kemrock is a single point destination in the concept design, prototype development, product testing, manufacturing, quality management, logistical support, installation and after sales service of composite materials.

Kemrock manufactures in-house the resin systems, non-crimp technical fabrics and carbon fibre used in the production of an extensive range of composite products. Produced using a wide range of manufacturing techniques, Kemrock serves major industrial sectors such as:

Water and Waste Treatment Chemical Processing Wind Energy Oil and Gas Construction Mass Transportation Telecommunications Aerospace

World Plastic IndustryLast few years have been tumultuous for plastics and petrochemical sector due to steep rise in oil prices, which has adversely affected the global economies. However, considering the feed stock advantage and abundance of oil reserves newer petrochemical complexes are being established in Middle-east countries. i.e. Oman, Saudi Arabia, UAE, etc.

It is projected that by the end of 2010, Ethylene capacity in Middle-East would reach to about 35 million tons per annum and Polypropylene (PP) capacity to touch about 7 million tonnes per annum.

The US Petrochemical sector may lose Export competitiveness as most of the Ethylene capacities in USA are Ethane based, which are not cost competitive and are capable to produce only Polyethylene (PE). Similarly, the revamping of European Petrochemical Complexes would be imperative as they are based on old and expensive technology and are not cost competitive with the Middle-East companies having the biggest advantage of raw material at their door-step. China, Middle-East and India would be the major global players, where expansion and augmentation of existing petrochemical capacity would take place in the next 5 years. Worldwide Plastics Industry witnessed a steady growth in the year 2007 which is reflected in the increased consumption figures of all types of Plastics materials.          

Asia has been world’s largest plastics consumer for several years, accounting for about 30% of the global consumption excluding Japan, which has share of about 6.5%. Next to Asia is North America with 26% share, then Western Europe with 23% share in the global market.          

The key growth segment remains “Packaging” which accounted for over 35% of the global consumption. Amongst the individual Plastics Materials, Polyolefin accounted for 53% of the total consumption, (PE with 33.5%, PP with 19.5%) followed by PVC – 16.5%, PS-8.5%, PET & PU - 5.5%, Styrene copolymers (ABS, SAN, etc) – 3.5% other engineering & high performance & speciality plastics, blends, alloys, thermosetting plastics – 13%.          

In recent years, significant aspect of plastics material growth globally has been the innovation of newer application areas for plastics such as increasing plastics applications in automotive field, rail, transport, defence & aerospace, medical and healthcare, electrical & electronics, telecommunication, building & infrastructure, furniture, etc.          

Plastics have become the key drivers of innovations & application development. Polymer-Electronics is one such area which has opened up new avenues for plastics; from organic light emitting diodes to electro-optical and bio-electrical complements, from low-cost plastic chips to flexible solar cells. New plastics can conduct electricity and emit light.

While polymers will not replace silicon as semiconductors, they do offer completely new opportunities for low-priced mass-manufactured products. Radio-frequency identification (RFID) tags in smartcards for identification and access control, payment and ticket systems, price labels, product tracking systems in the logistics chain or packaging that monitors product quality – many things are in offing. Growth-trend of plastics has proved that there has been a quiet “Plastics – revolution” taking place in the material – sector.

Global Per capita consumption of Plastics is ( in Kgs)           World Average 26

    North America 90

    West Europe 65

    East Europe 10

    China 12

    India 5.0

    South East Asia 10

    L. America 18 

World-wide, the plastics and polymer consumption will have an average growth rate of 5% and it will touch a figure of 227 million tons by 2015. Globally, it is projected that PET (Bottle grade) will have the highest growth rate of about 11% AAGR(Annual Average Growth Rate) amongst all polymers, followed by PP, PE, PVC and PS in the descending order, as depicted in the Figure.

Furthermore, the grades of PE(HDPE, LLDPE, LDPE) are expected to grow about GDP growth annually up to 2020. The forecast about global polyethylene demand is as follows:          

• Global polyethylene demand is estimated to grow an average 4.4% annually through 2020. This is    about 1% above the expected global GDP growth.          

• LLDPE is expected to experience the fastest growth, with an average annual growth rate of 6.2 percent. This comes at the expense of LDPE, which is expected to grow only 1.8% during the same    period.          

• HDPE growth is estimated to average 4.6 percent.

The Global PE Demand in terms of1000 tons per year upto 2020 is projected.           

Similarly, Polyethylene (PE) dominates the future capacity addition amongst different polymers by 2008, which is evident from the Global Commodity Polymer Capacity Additions between 2004 – 2008.

Financial Snapshot of the industry

By 2011 - 12     Demand Potential 12.5 MMT

    Additional Employment 4.0 Million

    Investment Potential Rs.84,000 Crores               

VISION 2015 – Indian Plastics Industry:     Consumption of Polymers @ 15% CARG 18.9 Million tonnes

Turnover of plastics Industries Rs.1,33,245 crores

    Additional Employment Generation 7 Million

    Requirement of AdditionalPlastics Processing Machines 68113 Nos

    Additional Capital InvestmentIn Machines (2004-2015) Rs.45,000 crores

Strategic AnalysisIndustry Analysis, the Plastic Industry

The economy affects the plastic industry in many areas. You can find plastic in almost every industry from automotive to medical devices. Even the price of gas can shape the plastic industry. Over the next three years the top three areas that will increase are food containers, consumer electronics, and medical devices. While others areas such as automotive, housing, and packaging will decrease somewhat. The decrease is due impart of Asia’s cheep labor and a weak US dollar. The US is in competition with China to build faster and cheaper injection molds. If this does not change the suppliers could be phased out here in the US.

General Environment

Over the next three years the plastic industry will increase slightly in a few areas. The top three areas include food containers, consumer electronics, and medical devices. The spike in petroleum, that produces plastic resin, has driven the cost of products up in all areas. This factor will continue to increase thru 2010. The food industries US demand for plastic containers will rise about five percent annually thru 2010. According to Foodproductiondaliy.com, “Items such as plastic bottle and jars will be dominate plastic container type thru 2010”. Consumer Electronics will increase tremendously over the next three years. In 2007 the Fourth quarter sales hit a record breaking $48.1 billion dollars. That is a 7% increase from 2006. The large increase is due to the holiday season. “Consumer electronics will be the shining star of holiday retail sales, accounting for 22% of all gifts given,” says CEA economist Shawn DuBravac. “Two of the top five items on adults’ holiday wish lists are consumer electronics, and four of the top five items on the teen list are CE devices. Holiday sales will be particularly jolly for the video game category (hardware and software), laptop computers etc.

Porter’s five force analysis of plastic marketThe likelihood of new entry

The likelihood of new entry in this industry is high.

More and more industries trying to enter in this due to high demand in plastic

Government policies in this industry facilitates new entry

Existing brands in plastic industry like sintex, reliance, IOC etc have high loyalty

Existing firms may react aggressively to new entrants

Existing firms like sintex, reliance etc have strong control on supplies.

The power of buyers

The stronger the power of buyers in an industry the more likely it is that they will be able to force down prices and reduce the profits of firms that provide the product.

Buyer power will be higher in plastic industry if:

Sintex industries have limited big buyers so each one is very important to firm

So buyers can easily switch over to sintex’s competitors if sintex’s price is high

The power of suppliers

The stronger the power of suppliers in an industry the more difficult it is for firms within that sector to make a profit because suppliers can determine the terms and conditions on which business is conducted.

Suppliers are not that powerful :

As more number of suppliers in this industry so can easily switch over to others

Switching to another suppliers is not that difficult

The degree of rivalry

This measures the degree of competition between existing firms. The higher the degree of rivalry the more difficult it is for existing firms to generate high profits.

High rivalry as high number of similar sized firms

Plastic industry requires high investment so cost of leaving the industry is high

High capacity utilization by this industry so competitive in nature

The market is shrinking so firms are fighting for their share of falling sales

Brand loyalty in this industry is low so customers can easily switch over to others

The substitute threat

This measures the ease with which buyers can switch to another product that does the same thing. The ease of switching depends on what costs would be involved and how similar customers perceive the alternatives to be.

In this industry customers can easily switch over to others and perceived effect is same not much difference.

So substitute threat is high in this industry.

Bibliography