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Growth of PET Film Industry in India

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Growth of PET Film Industry in India Growth of PET Film Industry in India Ashish Gupta Presentation made at the 4th Polyester 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 Printing, 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 shelf life • 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 glass = = 3 kg of Aluminum = 1.5 kg of Rigid PET Flexible Plastic 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 plastics • 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 Flexstreet – BOPET and BOPP Film Industry Consultants - Sourcing Advisors - Industry Consulting - Better Manufacturing Solutions Presentation made at the 4th Polyester conference (2016) in Mumbai organized by Elite conferences.
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