The British Plastics Federation Indian Plastics Industry

Overview of Plastics Industry Industry Assets = $12.5bn Total Value = $9.2bn Turnover = $7.6bn Export Value = $1.9bn Contribution to the exchequer = $1.3bn (Amongst top 7 contributors to the exchequer)

The Polymer Industry In Numbers With a per annum growth = % (1.5 – 2% UK) Plastic Processing Units = 22,000 (UK 5,500) > 100 large processors ( share about 35% of industry) 45% based in Western region Machinery manufacturers = 200 Machines per annum supplied = 3000 (15% of which are also exported) Additional machines will be required by 2010 = 51,600 New Moulds and Dies required by 2010 = 15,000

Machines Required By 2010 Additional Investment Plastics Processing Machinery - US$3.3bn

Growth of Plastics Industry Consumption of Plastic Polymers4.7 Mil Tonnes18.9 Mil Tonnes Employment In Plastic Industry2.5 Million9.5 Millions Plastic Industry’s Turnover $ 7.6bn$28.9bn Export of Plastic ProductsUS$ 1.9bnUS $ 10.2bn Contribution to the Exchequer$1.3bn$3.5bn Source: Organisation of Plastic Processors of India

Global Rank in Polymer Consumption RankCountry1988 (MMT) Country2000 (MMT) Country2010 (MMT) 1USA16.6USA27.3USA38.9 2Japan6.4China14.4China31.3 3Germany4.3Japan9.1India12.5 4China3.7Germany6.4Japan11.5 5Italy3.1S. Korea4.7Germany9.4 6CIS2.4Italy4.7S.Korea7.4 7France2.4France4.1Italy6.8 8UK2.2UK3.5Brazil6.7 9Taiwan1.9Brazil3.4CIS6.2 10S Korea1.8India3.3France6.1 16India 1.6

Plastics Demand Estimates India (ktonnes) Commodity Thermoplastics LDPE LLDPE HDPE PP PVC PS EPS2030 PET Bottles45100 PET Film55100 SUB TOTAL

Exports of Plastics Parts (not including film products) - £ millions AAGR (%) INDIA % McKinsey report showed Indian manufacturing exports are likely to grow to… $48 billion in 2003 $300 billion in 2015 Imports of Plastics Parts (not including film products) - £ millions AAGR (%) INDIA %

Growth Driven by... Agriculture Chemicals Consumer Goods Electronics Environmental technology Food processing/packaging Healthcare Infrastructure IT hardware/software Light engineering Packaging Plastics Transportation Telecommunications

Consumption Growth

Young and Educated Half of 1.2 Billion under 25 Universities Create 3.6m graduate p.a.

Labor costs: A comparison of current and projected hourly wage costs (US$ per hour)

SPARE SLIDES

Opportunity Envelope Develop India as a competitive global base for plastics products Investments in processing sector for domestic markets Investments in processing sector for domestic markets Through Technology Transfer / JV / 100 % Subsidiary Transplant Technology to Improve Domestic Market Transplant Technology to Improve Domestic Market Major outsourcing base for value added exports Major outsourcing base for value added exports Through 100% EOU / investment in SEZ Finished Product Exports - Cars, Electronic Goods etc. Finished Product Exports - Cars, Electronic Goods etc. Supply Plastics Fabrication Machinery / Ancillaries Supply Plastics Fabrication Machinery / Ancillaries Through JV / 100% Subsidiary Exports of Machinery, Moulds & Dies to the Region Exports of Machinery, Moulds & Dies to the Region Opportunity waiting to be tapped

Imports of Plastics Parts (not including film products) - £ millions AAGR (%) CHINA % USA % INDIA % HONG KONG % VIETNAM % MALAYSIA % POLAND % HUNGARY % CZECH REPUBLIC % GERMANYna % FRANCEna % SPAINna % TOTAL %

Exports of Plastics Parts (not including film products) - £ millions AAGR (%) CHINA % USA % INDIA % HONG KONG % VIETNAM % MALAYSIA % GERMANY % FRANCE % SPAIN % POLAND % CZECH REPUBLIC % HUNGARY % TOTAL %

Global Rank in Polymer Consumption RankCountry1988 (MMT) Country2000 (MMT) Country2010 (MMT) 1USA16.6USA27.3USA38.9 2Japan6.4China14.4China31.3 3Germany4.3Japan9.1India12.5 4China3.7Germany6.4Japan11.5 5Italy3.1S. Korea4.7Germany9.4 6CIS2.4Italy4.7S.Korea7.4 7France2.4France4.1Italy6.8 8UK2.2UK3.5Brazil6.7 9Taiwan1.9Brazil3.4CIS6.2 10S Korea1.8India3.3France6.1 16India 1.6

Overview of Polymer Industry Staggering growth in plastics consumption Polymer consumption doubled in last 6 years Consumption per head very low 3kg per head (global average=17kg)