Published On: Sat, Jun 11th, 2011

Crude oil price rise hits plastic industry

As steep hike in crude oil prices in international market affected the projected growth of Indian

plastic industry, the possibility of increasing re-cycled plastic products now looked to be the most viable alternative for maintaining a healthy growth trajectory.

This was informed here today by Mr Ashok Goel, President, Plastindia Foundatiion, the apex body of seven major associations of the country’s Rs 1,50,000 crore plastic industry.

Speaking to newsmen prior to his meeting with West Begal Commerce and Industry minister Partha Chatterjee to discuss the possibility of setting up a model plastic plant in the state with a projected investment of Rs 25 crore by next year, Mr Goel said the international crude oil prices which had now touched the 110 USD per barrel mark actually played the role of ‘spoil sport’ for mainintaining around 15 per cent annual growth of the Indian plastic industry as a whole.

The steep rise in oil prices had indirectly affected the import of raw materials which in turn caused about three to four per cent reduction in the overall productivity as well as revenue of the plastic industry, Mr Goel observed.

However, he said, as a viable alternative to maintain the projected growth trajectory and make up for the losses the industry players have now decided to put more emphasis on the growth of recycled plastic products which presently comprised around 28 per cent of the whole production.

“We plan to take up the level of production of recycled plastic products to over 38 per cent by the end of this year before increasing it further from next fiscal, the Plastindia President observed.

Referring to his plan to upgrade the plastic technology further and make them more eco-friendly following strict environmental norms which considered plastic products as non bio-digradable item, Mr Goel said as per the proposal to set up at least five model plastic plants in as many metros across the country by 2014, they wanted to prove the positive and much larger contribuion of plastics in almost every sector in the country.

About the growth of plastic related industry in the East as well as in the Northeast unlike the previous years, Mr Goel said the Assam government in association with the public sector Gas Authority of India Limited(GAIL)was setting up a 2.2 lakh tonne capacity gas cracker unit at Dibrugarh within the next 18 months.

The industry also a plan to pump in more money in similar projects at Haldia in south Bengal ,Mr Goel said but refused to elaborate.

Incidentally,Plastindia Foundation is planning to hold an international fair cum exhibition for about a week from February one next year in New Delhi. About 1800 plastic units including about 500 from about 40 countries around the globe would participate in the 8th international fair, being held after every three years,he said.



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