Growth of PET Film Industry in India

Ashish Gupta

Presentation made at the 4th conference (2016) in Mumbai organized by Elite conferences Flow of Presentation

• BOPET Film manufacturing • Types of Films ( Thick - Thin) • Film Application • Film advantages • Global Scenario • Indian Scenario • Challenges and Concerns • Strategies

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences PET ( BOPET)Film Production

Input : PET chips or Direct cast

Machine configurations Annual Output TPA 20000 36000 Line Width Meter 6.7 8.7 Thickness Range Microns 8 + 8 + Production Speed m/min 325 500 New Lines with line width 8.7 meter wide PET Film Classification

• Thin Film - Less than or equal to 50 microns thickness - Account for about 70% of the BOPET film market - Major use in Packaging and Industrial applications

• Thick Film - More than 50 microns thickness - Account for about 30% of the BOPET film market - Major use in Optical films, Digital , PV cells, Electrical & Industrial applications

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Thin Films applications

Flexible Packaging

Metallic Yarns Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Thick Film applications

Cards Solar Back sheet Digital Printing

Cable Insulation Protective Sheet X rays LCD Panel Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Growth of PET film in India

• Flexible Packaging industry which is growing at 12-15% Per capita consumption of Flexible Packaging India : 4 Kg Taiwan : 19 kg

Germany : 43 kg ( Source: FICCI)

• Ability of Indian Manufacturers to capture the Export markets

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Advantages of Flexible Packaging

• Reduces Food spoilage and wastage - Prolongs • Convenience , small pack sizes • Uses Less Energy to manufacture • Improves Transport efficiency

25 trucks of Rigid packaging = 1 truck of Flexible Packaging -> Less fuel consumption Flexible Packaging Saves Transportation Miles & Fuel Consumption

6 kg of 60 kg of beverage = 50 kg of = = 3 kg of Aluminum = 1.5 kg of Rigid PET Flexible

Source : FPA

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Global BOPET Film Scenario

• More than 300 BOPET lines in the world (175 approx. in china, - 30 in India) • 2016: Demand ( 4 mn T) Capacity ( 5.5 mnT)

Source: Industry Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Indian BOPET Scenario

YEAR 2016

Domestic Demand : Approx 380 KT per annum Export Supply : Approx 90 KT per annum Imports : Approx 20 KT per annum

• 1 New line will be commissioned Demand Growth in Domestic : 10 -12 % p.a every year for next 2 years

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Location -BOPET film manufacturing units

Manufacturing units : North India & West India Major Markets : North India, West India

Major Indian Suppliers : Polyplex, Jindal , UFLEX , SRF , Ester, Vacmet, Garware etc

New Entrants ( last 4 years) : Sparsh, Chiripal , Sumilon etc

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Strategies of the BOPET manufacturers

• Export to increase the line Utilization rates • Capture new Export markets from the Global Players like SKC, Dupont etc • Value added products - Coated films ( chemical , PVDC etc) - Metallized films - White Films

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Challenges faced by the Indian BOPET film industry

• Recycling issues of PET films used in Flexible Packaging with Multi layer films • Environmental ministry focus on non recyclable multi layer • Global Overcapacity in BOPET film manufacturing industry • Imports from China

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Outlook of Indian BOPET film industry

• Thin films will be a very competitive segment with low margins for some period • Companies will try to build volumes on the commodities • Focus on Value added products ( coated, chemical, etc) • Small duration closures may happen with some players • Should they start focussing on Thick film ?

Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences Any Questions ?

Write to : [email protected] Call : +91-9811788529

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Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences