Plastic export set to double to $15 billion by 2015
Export of plastics from India is estimated to double to $15 billion by 2015. In order to achieve the targeted growth, the export sector is focusing more on value-added products, newer markets and roping in more manufacturers into exports.
The $7.1 billion plastics exports had grown 30 per cent last year, despite the slowdown in the US and European markets. The off-take by European countries has registered a negative growth till August this year. The US exports has been growing at around four per cent. Among the major markets, the European countries account for $1.5 billion exports from India, US $739 million, China $876 million and UAE $372 million, said R P Kalyanpur, executive director, Plastics Export Promotion Council (Plexcouncil)
“Among these markets, UAE and GCC as a region holds high growth potential. The region accounts for 11 per cent of exports and it can go up to 17 per cent by 2015. The region consumes a total of 3.4 million tonne of plastics and this is set to grow to 5.5 million tonne by 2015. The presence of a huge diaspora in the region makes it easy to establish India as a source market,” said Satish Khanna, general manager, AL Fajer Information and Services, the organisers of Arabplast-2013 in Dubai.
Focusing on value-added products is another way in which the export target could be achieved. “Value-added products bring in 30 to 60 per cent more revenue and the share of such products has been growing up in the recent years. Five years back value-added products accounted to less than 50 per cent of the exports and now they have gone up to 65 per cent,’ said Kalyanpur. Plastic films/sheets, packaging materials, woven sacks, flexible intermediate bulk containers and writing instruments are some of the categories witnessing good growth.
Even in European countries some of the value-added products have registered positive growth. Plexcouncil also has been focusing on newer markets like Latin America, CIS countries and South Africa. Last year, exports to Columbia grew by 24 per cent, Venezuela by 19 per cent and Panama by 34 per cent. The council also has been encouraging export activities among the manufacturers, who have been supplying to the large domestic market. In the long term, the industry is also looking forward to having dedicated plastic processing parks, which could probably take it to a level close to that in China.