The Indian plastics processing industry is highly fragmented and small and tiny players constitute majority of the units. Injection moulders dominate the Indian plastics processing sector. Polyethylene bag and sheet producers dominate the extrusion segment, highlights the Organisation of Plastics Processors of India. India ranks 8th in the world in total plastic consumption. However, Indian per capita consumption is 4kg, against the world average of around 20kg. The consumption of recycled plastic constitutes approx. 30% of total consumption. India is expected to be the 3rd largest consumer of plastics after US and China by 2010 (expected polymer consumptions then - USA 38.9 MMT; China 31.3 MMT and India 12.5 MMT). Demand for plastic polymers in the next 5 years is expected to grow at CAGR of 15%. Polythene and Polypropylene will continue to dominate polymer demand in India. Demand of all polymers in India is expected to reach 12 million tonnes by 2011. Indian Petrochemical Industry is facing intense competition from the Middle East countries where price of feedstock ranges between one-fifth to one-tenth the prices prevailing in international markets. Market Moves Capacity Addition • Reliance Industries Ltd. • Indian Petrochemicals Corporation Ltd. • Gas Authority of India Ltd. • Haldia Petrochemicals Ltd. • Chemplast Sanmar Ltd. • DSCL New Projects • Indian Oil Corporation Ltd. • Gas Authority of India Ltd. • Oil & Natural Gas Corporation/Mangalore Refinery and Petrochemicals Ltd Current Issues The key issues impacting the growth of the Indian Plastics Processing Industry are: • High level of excise duty and VAT compared to similar products manufactured from other raw materials like aluminium, steel etc. • Presence of a large grey market. • Lack of an organised and proper solid waste management leading to ban on usage of many plastic products. • Lack of quality infrastructure like power, roads, ports etc