1 OVERVIEW ON INDIAN PLASTIC INDUSTRY NOVEMBER 2008

2 PRESENTATION OUTLINE ABOUT PLASTINDIA FOUNDATION CURRENT TRENDS & DEVELOPMENST IN THE INDIAN PLASTICS MARKET WHY INDIA INVESTMENT AND JV OPPORTUNITIES OVERVIEW OF PLASTINDIA 2009 TRADE SHOW – DESTINATION INDIA

3 ABOUT PLASTINDIA FOUNDATION

4 PLASTINDIA FOUNDATION - BACKGROUND Apex body of major associations, organisations and institutions connected with plastics. Objective to promote the development of plastics industry. Assists the growth of plastics and related materials and their products. Dedicated to the national progress through plastics. The Founder Member Associations of Plastindia Foundation cater to 55,000 units of the plastic industry.

5 Founder MembersActivity & Website The All India Plastics Manufacturers Association – Mumbai Raw Material, Machinery, Processors, Mold & Dies, etc. Organisation of Plastics Processors of India – Mumbai Processors Indian Plastics Institute – MumbaiEducation & Technical Consultancy Indian Plastics Federation – KolkataProcessors & Machinery Gujarat State Plastic Manufacturers Association – Ahmedabad Processors & Machinery The Plastics Export Promotion Council – Mumbai Exports Central Institute of Plastics Engineering & Technology – Chennai Technical and Educational Institution PLASTINDIA – FOUNDER MEMBERS

6 PLASTINDIA - CHARTER Facilitating export led growth of the Indian plastic industry. Help doubling plastics processing capacity & consumption by Make India the third largest consumer of polymers in the world. Make India a preferred sourcing base of plastic products in the world. 35% of our production should be exported by each and every processor / converter. Showcasing Indian plastic industry to the world by participating in shows. Promote and boost export business volumes and revenues.

7 PLASTINDIA - CHARTER contd… Facilitating setting-up of product design centres at institutes. To support technical institutes to help increase technically qualified man-power available to the industry, for meeting demands. Project an appropriate and progressive image of ‘Brand India’. Help conserve energy, scarce materials, natural resources & protect the environment. Promote scientific recycling of plastics. Encourage co-operation amongst related organisations & institutions. Encourage use of plasticulture techniques for improvements in agriculture, horticultural & floricultural sectors.

8 INDIAN PLASTICS INDUSTRY

9 New approach and initiatives ensure Govt. of India support to the Plastic Industry Release of the book on ‘National Policy On Petrochemicals’ by Hon’ble Minister for Chemicals, Fertilizers & Steel Mr. Ram Vilas Paswan & by Mr. B.K. Handique, Hon’ble Minister of State for Chemicals, Fertilizers and Parliamentary Affairs was a great mile stone for the growth of the Indian Plastic Industry. It will facilitate increase of scales of operation with use of advance of technology. Plastic industry in India is on a defined path of abundant opportunities with release of this policy. FAVOURABLE PETROCHEMICAL POLICY

10 SOUND & SOLID FOUNDATION Growth rate: 12% - 15%. Contribution to the exchequer: US $ 1.8 billion. Potential to increase if exports touch 1/3rd of production. Of course this could be possible if central excise duty is reduced from 14% to 8% is effected. Per capita consumption of 6 kg set to double in the next 3 years. Exports growth rate: 21% p.a.

11 SOUND & SOLID FOUNDATION contd… Today the export value of plastic goods stands at approx. USD 3.6 billion. Capacity of polymers – 4.6 millions tonnes, to be enhanced by 2 million tonnes by In 2007 – the processing capacity had increased by one million. The short to long term target of the industry is to be on par with the world average per capita consumption of 27 kgs. with the use of latest technology.

12 POLYMER INDUSTRY CONSUMPTION (2010) China India (3 rd ) 14.1% 8.1% 3.3 India to be 3rd largest polymer consumer by (MMT) 2010 (MMT) ( 3 rd ) (10 th )

13 PACKAGING:50% of PLASTIC CONSUMPTION Indian Plastics Packaging Demand (Mn. Tonnes) Growth Flexible Packaging1312% Woven Sacks / Multi filaments % Rigid Packaging % Total %

14 PLASTICS IN TRANSPORTATION Production base for all major auto manufacturers US $ 8 billion auto industry 5.6 million production capacity Emerging global production base Will provide the necessary impetus to polymer consumption, from 43 KTA (in 2002) to 150 KTA (in 2010)

15 INDIAN PLASTIC GOODS EXPORTS Moulded, Soft Luggage Items 3 % Ropes, Twines, Yan, Bristle 2 % Floor Coverings 2 % Fishnet, Fishing Lines 2 % Electrical accessories 1 % PVC Pipes, Fittings 2 % PVC Sheeting, Film 1 % PVC Fabricated Goods 0.47% Toys, Games, Dolls 0.44% PVC Leather Cloth 4 %

16 PROVEN PRODUCTS, QUALITY PEOPLE Exporting to 157 countries in Europe, North & South America, Middle East, Africa, CIS/Russia etc. Products categories are covered by HS codes – 3917 to 3926 & For dies & moulds – exporting to 112 countries covered under HS codes – & respectively. Technical training for plastics professionals by CIPET.

17 MAJOR THRUST AREAS Packaging Infrastructure Automobiles Agriculture Consumer Goods Healthcare Conservation of Resources

18 EXPORT THRUST AREAS Plastic Moulded Extruded GoodsPVC Fabricated Goods Polyester FilmMaster Batches Plastic Woven Sacks/Fabrics/Bags (Raffia)PP-PVC Compounds Writing InstrumentsPlastic Bangles, Imitation Jewellery Ropes, Twines, Yarn, BristlesMoulded Soft Luggage items Fish Nets, Fishing LineLenses Toys, Dolls, GamesGRP, FRP Products Plastic Raw MaterialsPlastic Elec. Accessories LaminatesPoly-Lined Jute Goods Floor CoveringsOptical Goods PVC Leather ClothGarbage and Shopping Bags PVC Rigid, Flexible Pipes, FittingPick-up Bags PVC Sheeting, FilmFurniture, Chairs, Tables, etc.

19 PLASTICS PRODUCT EXPORT Value in USD Million Source : The Plastics Export Promotional Council, Mumbai ProductApril'06 -March'07April'07 – March'08 Plastic raw materials Plastic Moulded Extruded Goods Polyester Film Plastic Woven Sacks/Fabrics/Bags Human Hair/Human Hair products Writing Instruments Laminates Moulded/Soft luggage items Hard Resilene Lenses PVC Leather Cloth/Foam Leather

20 DIRECTION OF INDIAN PLASTICS EXPORT Value in USD Million Source : The Plastics Export Promotional Council, Mumbai Country USA China UK UAE Netherlands Spain Italy Saudi Arabia Belgium Germany

21 MACHINES REQUIRED BY AdditionsCARG % Injection Moulding34,10068,61534,5156 Blow Moulding5,30016,02810,72810 Monolayer Film5,15012,7287,5788 Multilayer Film5653,6983,13318 Woven Sacks m/c1,1001, PP/PE Pipes Plant5401, TQ PP Film Plant1,4602,6461,1865 Fibre & Filaments Total --  58,945 Source: Plastindia survey

22 KEY GROWTH SECTORS Polymers Demand (kt) Stupendous growth in all sectors, key sectors as below Sector Potential by 2010 Packaging 6,200 Infrastructure 2,500 Agriculture 1,500 Consumer Goods 500 Other Moulding 940 Health Care 160 Conservation of Resources 300 Total12,100

23 FIBC MARKETS US FIBC Consumption :190KT Thailand 7% Indonesia 3% India 10% China 5% Mexico 31% Domestic Prodn 17% Others 1% Canada 1% Turkey 25%

24 WHY INDIA?

25 FAVOURABLE OVERALL BUSINESS ENVIRONMENT Established democracy and stable government. Judiciary of high international standards. Speedy reforms in legal framework for industry & business. Setting up of SEZs to overcome bottlenecks of infrastructure and create business friendly policies. Abundant technically skilled manpower. Large and growing captive market. Favourable Government initiatives and policies.

26 WELL POSITIONED PLASTICS EXPORTS India - The emerging global sourcing hub for plastics. Plastics Export Promotion Council of India, a founder member of Plastindia Foundation, is actively promoting exports of plastics products from India. Exports for year : US$ 3.6 billion. Target for year : US$ 4.3 billion. Wide spectrum of scales of manufacturing. Competitive advantages. All leading countries import from India.

27 COMPARATIVE WAGES: DISTINCT ADVANTAGE Wages is USD for a McDonald’s Cashier

28 India has one of the largest road and rail networks in the world. Road 3.3 million kms of road. Road network being upgraded across the country. Rail 63,140 kms of rail. Railways run 4000 cargo trains daily. Annually, transport over 5 billion passengers and over 350 million tonnes of cargo. Work force of 1.54 million. Source: National Highway Authority of India INFRASTRUCTURE INDIA – ROAD & RAILWAYS

29 INFRASTRUCTURE – PORTS & AIRPORTS Ports India has a coastline of almost 7500 kilometres. There are 12 major ports and 187 minor and intermediate ports. Airports India has 126 airports in total. Facilities at most of the airports are being upgraded Over 10 domestic airlines flew 59.3 million passengers in

30 LOW COST OF LIVING Adequate and affordable public transportation. Well-developed residential areas. Reasonable food prices. Good quality & low cost healthcare. Excellent educational facilities.

31 OPPORTUNITIES GALORE India can be amongst the largest polymer processing hub by 2012 India – A haven for out sourcing Overall low cost structure Paradigm shift in the downstream processing industry Consolidation of fragmented capacities FDI in the downstream processing industry Technology upgradation Strategic location : Efficient utilisation of the vast coast line and ports.

32 INVESTMENT & JV OPPORTUNITIES

33 SEZ’s IN INDIA AND BENEFITS TO INVESTORS Readymade and upgrading of infrastructure and ensuring uninterrupted and cheap power to investors at the SEZ. Investors will be able to own 100% of downstream assets at the site. The fiscal benefits in SEZ include: Customs and excise duty exemption on purchase of all capital goods, raw materials and spares. Domestic procurement of goods for development, operation and maintenance. A 100 per cent income-tax umbrella for the five years.

34 MORE ON SEZ’s 50 % tax exemption for the next five years and 50% of the ploughed back export profit for the next five years. Full income tax exemption on export profits for the first five years and 50% for the next five years. Exemption from service tax at construction stage, and no duty on project imports. Also offered are exemption from minimum alternate, and sale taxes.

35 JV FRIENDLY ENVIRONMENT IN INDIA Plastindia Foundation has been organizing summits in association with plastic industry associations worldwide to enhance mutual co-operation, appoint agents and enter into joint ventures. Healthy democracy, minimal bureaucracy. Business process transparency. Import taxes at par with developing countries i.e. just 5 – 10 %. Genuine government commitments to growth (double digit growth rates for the past decade) Overall, progressive policies, growth friendly environment.

36 PROCESSING INDUSTRY: GLOBALLY COMPETITIVE Sophisticated higher capacity machines. Enhance design capabilities, technological know-how. Intelligent manufacturing. Global practices in production, quality & design. Innovation, technology & consultancy Export base (EOU’s). FDI in the downstream sector. Upcoming petrochemical SEZs.

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38 TOP 4 COUNTRYWISE EXPORT TRENDS With each of these 4 countries, current exports is over USD 100 Million Value (USD Million), Source: Plastics Export Promotion Council, Mumbai

39 SNAPSHOT OF U.K PLASTICS INDUSTRY Plastics - a 17.5 billion Pounds industry. Total value of processing sector – 12.4 billion Pounds. U.K. plastic processors consume 4800 ktonnes of material UK is one of the top 5 processors of plastics in the EU with about 4.8 million tonnes of materials processed here. Key strength: Plastic Packaging Innovation

40 OVERVIEW OF PLASTINDIA 2009 TRADE SHOW DESTINATION INDIA

41 PLASTINDIA 2009 Online Space Booking Already Commenced ! Unprecedented Response! Ensure, you are there by Logging on to: Concurrent Event SOURCE FROM INDIA – PRODUCTS

42 WHY PLASTINDIA 2009 Largest exhibition in India, 7 th in its series Globally, next to the K-Fair Internationally recognised, with over 40 participating countries Varied concurrent events to address key issues and serve niches Other premium display segments at the exhibition will be: –Engineering Components –White Goods –Construction Articles –Railway Articles –Packaging –Furniture –Healthcare –Rotomoulded / Blow Moulded Products Finally, global convergence at Plastindia 2009

43 WHY PLASTINDIA 2009 The forthcoming 7th International Plastics PI 2009 Exhibition would be one of the biggest shows in the world. About 1500 exhibitors, of which 1100 domestic exhibitors & 400 overseas exhibitors from 40 participating countries would be exhibiting their wares in a gross area covering sq. mts. Over 100,000 visitors from world-over are expected to visit the show. This growth is singularly due to the enormous support extended by the members of the plastics industry and a business environment created assiduously by the Government of India alongwith the state governments all over the country for the international community to feel at home.

44 PLASTINDIA 2009: SUSTAINED MONENTUM Gross Exhibition Area (sq. m.) Expected area in Plastindia 2009, sq. m.

45 India – China Plastics Industry Summit 2009 February 3, 2009 (Business Opportunities and Trade Complementation) India – USA Plastics Industry Summit 2009 February 5, 2009 (Strategic Co-operation, Market Sharing & Trade Complementation) A Two Day International Business Conference February 6 & 7, 2009 A One Day Asian Recycling Conference To be held concurrently during PLASTINDIA 2009 Exhibition PLASTINDIA 2009 – SUMMITS & CONFERENCES

46 India can be your next growth partner country in the Plastic Industry. Visit and Explore INDIA UNPLUGGED To seize the immense opportunities

47 THANK YOU SEE YOU AT PLASTINDIA 2009