1. How do you think the fall of GDP in 2012 and 2013 effect the future of the plastics industry?
Fall in GDP affects all the sectors of the Indian economy. We are witnessing sub-5% GDP growth, the worst in many years. This clearly indicates that moderating performance of the manufacturing sector is taking a toll on the overall growth. As a result the plastics industry as also suffered. However, the future does look promising as even the GDP growth is now with an upward trend. The size of the India’s plastics industry ay touch Rs. 1.7 lac crore by 2015 on account of rising consumption of the material for producing various goods.
2. Sources say that the Indian government plans to spend $1 trillion dollars on infrastructure by 2020, which would lead to a huge increase in the manufacturing of plastics goods. What is your opinion?
The planned expenditure in infrastructure will surely give a boost to the manufacture and consumption of plastics goods. The services section which includes infrastructure is forecast to grow exponentially. Plastics today find a wide use in the following sectors – buildings, roads, agriculture and similar infrastructure sectors and will thus get a boost.
3. Market experts forecast that the Indian plastics industry would be over $1.5 trillion by 2020. What is your take on that?
Current per capita consumption of plastics in India is a meagre 9.7 kgs as compared to 109 kg of USA, 45 kg of China and 32 kg of Brazil. By year 2020, per capita consumption is slated to increase to 20 kgs and total consumption to 20 million tons against current 12 million tons. Overall, the plastics industry has matured over the last decade. The Europeans and the Americans see India as a large consumer base leading them to set up technology intensive manufacturing plants. This has exposed the Indian engineers to newer methods and technologies. Indian companies are absorbing this and are set to play a major role in the developing and under developed countries in the near future. We thus have no doubts that targets of 2020 will be achieved.
4. What would the role of Rajoo Engineers Ltd. be in the plastics industry?
Rajoo Engineers has always taken the lead to provide world class technologies at the door step of the Indian plastics industry. We, at Rajoo have led in adopting and Indianising the technology to make it affordable. Rajoo Engineers is fully set with new opportunities and technologies which will be act as catalyst in this growth story of coming years. We are planning to widen out product portfolio by adding new product like WPC (Wood Plastics Composites). WPCs are neither a product of the woodworking industry nor of the plastics industry. This has the consequence that companies from both sides have a particular focus with regard to applications. Today the WPC material is still far from being fully understood as an alternative for both manufacturers and consumers. We would be also spending more resources in producing most energy efficient and fully automatic machines which will be one of the key growth drivers.
5. Recycling of plastics is expected to increase leaps and bounces in the future, as remains of plastics have increased and processing virgin plastics has become resource consuming. How would the current plastics industry be affected? When can we expect Rajoo Engineers Ltd. to enter the recycling industry?
We have no plans in providing technologies for the plastics recycling industry but for sure, we are continuously developing plastics processing machines which can convert recycled plastics to finished products. Even our current machines in all sectors - film, sheet, foam today use a high blend of recycled plastics.
6. How would you forecast the export and import for the plastics industry?
Exports of plastics product is poised to increase at greater levels than before. Acceptance of Indian products world-wide has increased and even the pricing has become more competitive. This has happened due to increase in economies of scale coupled by using energy efficient machines. We are Rajoo Engineers have contributed in this direction. As far as export is concern, export of Indian plastics processing machines is insignificant but poised to increase. Indian companies continue to adopt international standards and to enhance technology which is being offered at affordable price levels.
7. With all these developments, where do you think India’s position in the plastics industry on a global front, will be?
By year 2020, India is poised to become the third largest plastics consuming nation in the world following USA and China. USA consumption has reached saturation level, while China’s higher levels of consumption are primarily due to exports. India has the advantage of high population and is expected to maintain high economic growth. This should propel India’s plastics consumption to new levels in coming years.