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FOREWORD
SK Ray
P
Senior Executive Vice President - Corporate Affairs Reliance Industries Ltd, Mumbai
lastics have transformed the world of materials. Products made from plastics cater to every segment of our economy, be it agriculture, housing, textile, healthcare, infrastructure, automobiles, appliances, aviation, electrical, electronics and households. No wonder, demand for plastics in the world has surpassed that of metal in volume terms and is still growing. In a developing country like India, its relevance is all the more significant.
Notwithstanding the impressive growth over past few decades, demand for plastics in India continues to be relatively small. It has recently crossed the 10 million tonnes mark and is growing at double digit rate. Per capita usage of plastics in India is abysmally low signalling huge untapped potential. Packaging is the largest end-use segments for plastics. Here it has gone beyond the simple function of ‘containment’ to ensuring safe and hygienic products, convenience and a major opportunity of branding and promotion. From bulk packaging of commodities to one time use for food, toiletries, cosmetics, and healthcare products, plastic products are omnipresent.
Plastics has recently crossed the 10 million tonnes mark and is growing at double digit rate. Per capita usage of plastics in India is abysmally low signalling huge untapped potential.
The size of Indian Packaging industry is more than US$ 25 billion in turnover and is growing at ~12 percent rate per annum. However, our per capita use of packaging is still only 4.3 kg as against Germany’s 42 kg and China’s 20 kg. Nearly 70 percent of packaging caters to food and beverage sector. This underscores the importance of packaging. Plastics material forms the largest segment of the packaging pie at 37 percent, followed by paper and paperboard at 34 percent.
Sustainability has become an important criterion in the pursuit of growth and development. It is an issue which specifically confronts the packaging sector in a paradoxically adverse manner. Often, at the designing stage itself, manufacturers today are ensuring that their packaging is recyclable, as consumers are live to its potential environmental footprints. Plastic is one of the most eco- friendly materials. These help in reducing weight and are easy to re-use and recycle. This brand new issue of ET polymers focuses on packaging and sustainability. It features articles on emerging trends in packaging; and adoption of sustainability as one of the business goals. Trust our readers would enjoy reading this issue. I would also like to welcome the new editor of ET Polymers, Mr Niranjan Mudholkar, and wish him all the very best.
Editorial Advisor
February-March 2014 | The Economic Times POLYMERS | 3
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Volume 14 Issue 6 February - March 2014
CHIEF EXECUTIVE OFFICER Tarun Rai CHIEF FINANCIAL OFFICER Subramaniam S PUBLISHER, PRINT & PRODUCTION CONTROLLER Joji Varghese
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Printed and published by Joji Varghese for and on behalf of owners Worldwide Media Pvt Ltd, The Times of India Building, Dr DN Road, Mumbai 400001. Printed at JRD Printpack Private Limited, 78, Resham Bhavan, 7th Floor, Veer Nariman Road, Churchgate, Mumbai - 400 020. Editor: Niranjan Mudholkar. Published for February - March 2014 Disclaimer: All rights reserved worldwide. Reproducing or transmitting in any manner without prior written permission prohibited. All photographs, unless otherwise specified, are used for illustrative purposes only. The publisher makes every effort to ensure that the magazine’s contents are correct. However, we accept no responsibility for any errors or omissions and accept no responsibility for any loss or damage caused as an effect thereof. The information provided in this publication is for general use and may not be appropriate for the specific requirements and / or conditions of the reader/s. The opinions expressed by experts are their own and in no way reflect those of the publisher.
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A
A new beginning
shoe company once sent two of its sales representatives to a remote African country. The two employees were required to explore the market and report back on the viability of opening stores in that country. A week later, both came back and submitted their two-liner reports. The reports almost matched each other for the first half. It was the remaining halves that completely differentiated the reports and, consequently, the approach of the two employees. One of them said, ‘Very few people use footwear in this country. Bad choice for opening our stores’. We have indeed The other said, ‘Most people in this region don’t use footwear. embarked on a Hence, great scope for selling our shoes’. new journey. And The crux of the matter is elementary. As Sherlock Holmes once said to Dr Watson, his friend and companion, “You see but do not observe.” The first employee only saw. The second one not only saw but also observed and even analysed. And that helped him sense an opportunity. We at ‘The Economic Times Polymers’ magazine believe that it will be our job to present not just the facts but also the observations and the analysis, so that you – our readers – can sense the opportunities. Of course, we have just started, and we have started with a fresh approach and an all new team.
it couldn’t have happened at a better time. The Indian plastics industry is on the verge of a whole new world of possibilities.
We have indeed embarked on a new journey. And it couldn’t have happened at a better time. The Indian plastics industry is on the verge of a whole new world of possibilities. You will see (and perhaps some of you may already know) the figures and statistics across various articles as well as the Cover Story that clearly underline the industry’s huge potentials. What it needs now is a big push in terms of the right environment and the right kind of policies. And we are quite certain that this will happen. Of course, we are all geared up to play our role of being a catalyst in the change and become a robust industry platform. We will be working very closely with the industry, the associations as well as the government agencies to ensure that we remain on the right track. So be with us and tell us how we can add value to this great industry.
Editor Niranjan Mudholkar
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CONTENTS 18
8
COVER STORY Industry’s veteran leader sees a bright future despite the current gloom
26
News
22
Event: The future is here
25
Products
29
Event: Arabian frontier
32
Packaging: Stable is suitable
36
Technology: Ready for the next stage
38
Infrastructure: Welcome to the park
42
Market: Power of plastics
44
Packaging: Packed with goodness
48
Infrastructure: Investment hubs
54
Innovation: Smart materials for smart phones
PACKAGING Impactful packaging designs determine the success of a brand campaign
12
MARKET In growth mode
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SUSTAINABILITY From a ‘me too’ to a game changer
14
FEATURE - GREEN SERIES Labelling innovation
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NEWS - National
Pluss Polymers gears up for global partnerships
L
eading manufacturer of specialised polymers and phase-change materials Pluss Polymers is going global to tap new markets and strengthen its existing base across the world. The year 2014 will see a heightened visibility for the company on international platforms as it increases its participation in plastic and polymer exhibitions in markets like Turkey, Russia and Thailand. Pluss Polymers, which is already exporting to Istanbul, took part in a trade exhibition to leverage its business into newer markets of Turkey. The company has a strong distributor base in Thailand and is in advanced talks of appointing distributors in Indonesia, Malaysia, Singapore and ASEAN.
T
Pluss Polymers - pluss PCM For Cold Chain Transport
Samit Jain, Director, Pluss Polymers affirmed, “With these forays, we are sure to steadily expand our market base to newer regions, besides fortifying our existing associations.”
Sandvik Asia at Petrotech 2014
S
andvik Asia showcased its offerings at the recently concluded Petrotech 2014. Sandvik exhibited a broad Program of high performance tubular materials which contribute to improved productivity, reliability and cost efficiency in demanding O&G applications. Sandvik’s heat exchanger tube program includes imperial and metric sizes, from outside diameter 12 mm up to 40 mm, supplied in straight lengths up to 30 meters, or as U-bent tubes. While Hydraulic and instrumentation tubes come in a comprehensive range of corrosion-resistant stainless steels and nickel alloys covering outside diameters from 3 to 50 mm available in all sizes, as straight or coiled tubings.
Clariant to acquire Plastichemix Industries
C
lariant Chemicals (India) Ltd has announced its intent to acquire Plastichemix Industries, a pioneer in the masterbatches business in India. Plastichemix, which has production facilities at Rania, Kalol and Nandesari
Clariant sees a bright future for masterbatches
A new plastic park in the state of Odisha
in Gujarat, is a leading supplier of Black, White, Additive, Filler & Colour masterbatches, Flushed Pigments & Mono-Concentrates and Engineering Plastics Compounds. The deal closure is planned for Q1, 2014. Dr Deepak Parikh, Vice-Chairman and MD, Clariant Chemicals (India) Ltd said, “Clariant continues to reshape its portfolio and maintain profitability in its core businesses by exploring organic and inorganic business opportunities. This acquisition reinforces our long term growth strategy in India and will further elevate our market position. Clariant sees a bright future for masterbatches business in India and we are happy to forecast double digit growth in the near future creating value for all our stakeholders.”
he Minister for Chemicals & Fertilizers and Statistics & Programme Implementation has sanctioned setting up of a Plastic Park in Odisha. The Plastic Park will be set up by a Special Purpose Vehicle called ‘Paradeep Plastic Park Ltd’ at Siju Village, Kujanga Tehsil of Jagatsinghpur District in Odisha. The Plastic Park being established near IOCL, Paradeep Refinery will have the necessary state-of-the art infrastructure and would facilitate investments by micro, small, medium and large units in the Plastic Park and is expected to create vast employment opportunities in the region. Earlier a Plastic, Polymer and Allied Cluster with all requisite infrastructure facilities was approved and is being set up at Balasore, at a project cost of Rs81.90 crore. The grant from the Government of India for this cluster is Rs58.28 crore. About 60 percent of the grant has already been released.
DSCL forays into polymer compounding
D
CM Shriram Consolidated Ltd (DSCL) has signed a JV agreement for its polymer compounding business with the US based Axiall Corporation. Accordingly, Axiall a manufacturer of chloro-vinyl, aromatics and building products, will acquire a 50 percent stake in in Shriram Vinyl Polytech (SVP), a 100 percent subsidiary of DSCL. This will give SVP access to Axiall’s polymer compounding technology and market knowledge. Axiall’s products can be used in high-performance plastics, pulp and paper production, packaging and many other applications. Axiall manufactures a line of custom and other vinyl-based building and home improvement products like window profiles, siding, pipe and fittings, mouldings and trim, and decking.
8 | The Economic Times POLYMERS | February-March 2014
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NEWS - International
US plastics manufacturing industry continues to grow positively
A
ccording to SPI, the US plastics industry trade association, fuelled by innovation, technology and production efficiencies, the US plastics manufacturing continues to register positive growth. An in-depth data analysis of the plastics industry’s 2012 performance globally and in the U.S. is detailed in the newly released reports titled, ‘The Definition, Size and Impact of the US Plastics Industry,’ and ‘Global Business Trends, Partners, Hot Products’. “Plastics continue to rank higher than the rest of the US manufacturing sector’s key growth areas,” said William R. Carteaux, SPI’s president and CEO. “The industry has remained highly competitive by finding innovative solutions and efficiencies, as well as by expanding its international reach to new markets.” Economists attribute the US plastics industry’s continued growth to positive trends in overall economic health and an abundant supply of inexpensive natural gas. While the nation’s employment began improving in 2013, the plastics industry has been steadily recovering
US$13.1 billion
US trade surplus
L’Oréal selects Siemens’ PLM software
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lobal cosmetics leader L’Oréal SA has selected Siemens’ Teamcenter software to help optimise its packaging development processes, reduce timeto-market, and improve product innovation and quality. Teamcenter, the world’s most widely used product lifecycle management (PLM) system, will be deployed globally as L’Oreal’s corporate product data management system and will be used by everyone involved in the company’s product development processes. Martin Rhein, L’Oréal Group Operations CIO, said: “Teamcenter was selected because of the PLM portfolio’s breadth, adaptability to the L’Oréal Processes and Data Model requirements
since the 2008-2009 recession. The latest figures indicate that plastics industry employment in 2012 included 892,000 people in 15,949 facilities across the country. The industry kept pace by growing 0.1 percent per year from 1980 to 2012, which is better than manufacturing as a whole. Plastics manufacturers shipped more than US$373 billion in goods and invested more than $9.6 billion on new capital equipment in 2012. Also reflecting the improving US economy, apparent consumption of plastics industry goods grew 5.7 percent from US$237.6 billion in 2011 to US$251 billion in 2012. The US industry is gaining ground over other world markets due to its abundant new sources of natural gas via shale. While the US trade surplus was US$13.1 billion, Mexico and Canada remained the US plastics industry’s largest export markets. The industry exported US$13.6 billion to Mexico and US$12.5 billion to Canada. China is the industry’s third largest export market.
and user-friendly interface, and because of the knowledge demonstrated by Siemens PLM Software during the selection phase.” “The Teamcenter system will help optimise our engineering and manufacturing processes,” said Philippe Thuvien, L’Oréal Group Development and Packaging Director. “It will allow us to share packaging configurations and innovative ideas between different technical departments, standardize specifications, and thus help to reduce time and product cost. We will also be able to capture and manage our corporate know-how, creating a solid foundation for a future of innovation and growth.”
Sasol to boost polyethylene production
S
asol Ltd recently inaugurated its new ethylene purification unit, known as the Ethylene Purification Unit 5 (EPU5) in Sasolburg, South Africa. Located at the Sasol Polymers Plant in Sasolburg, the Rand1.9 billion ethylene purification unit aims to address the growing demand for polyethylene material. The plant will also ensure better utilisation of Sasol’s existing downstream polyethylene facilities. David Constable, CEO, Sasol Ltd, said, “Through the installation of the new ethylene splitter, considerable production capacity has been freed up to produce more ethylene. Our investment in EPU5, together with a new compressor unit in Secunda, will provide the South African plastics industry with an additional 47,000 tonnes of polyethylene annually.”
10 | The Economic Times POLYMERS | February-March 2014
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MARKET
In Growth mode PLASTICS INDUSTRY WOULD BE A DIRECT BENEFICIARY OF INCREASING PER CAPITA INCOME, RISING CONSUMERISATION AND IMPACT OF URBAN INDIA, SAYS A REPORT FROM PLASTINDIA FOUNDATION
F
uelled by increasing level of plastics usage in automobiles, consumer packaging and impact of increased infrastructure spending, the plastics industry is set to double per capita consumption in next five years. This is revealed in an exhaustive study on plastics industry by Plastindia Foundation. The study titled ‘Report on Indian Plastics Industry 20122016’ covers all aspects and concludes that the growth prospects of this industry are bright as the per capita consumption of polymers industry in the country during 2012-13 was low at just 9.7 kg as compared to 109 kg in US, 45 kg in China and as high as
India is a growing market for plastics and consumes about 11 million tonnes annually against a global consumption of 275 million tonnes per year. JR Shah, Chairman, National Executive Council, Plastindia 2015
Automotive industry accounts three percent of the industry’s growth
Total Polymer Consumption: 2012-13 (In KT) Polymer PP PVC PET Engg. Polymers BOPET PS / EPS EVA Others
Consumption 3,100 2,370 570 500 410 325 135 102
Source: PlastIndia Foundation Committee
32 kg in a country like Brazil. Plastics industry would be a direct beneficiary of increasing per capita income, rising consumerisation and impact of modern ways of living particularly in urban India. While sharing the highlights of the report, JR Shah, Chairman, National Executive Council, Plastindia 2015 said that, “India is a growing market for plastics and consumes about 11 million tonnes annually against a global consumption of 275 million tonnes per year and worldwide, the plastics and polymer consumption is growing at an average rate of 10 percent and is expected to touch 16.5 million tonnes by 2016.” “The plastics industry is conscious of its responsibilities as the consumption increases” said Subhash Kadakia, President, Plastindia Foundation. “Increasing capacity of plastics recycling is a priority. We are working closely with many authorities to increase the efficiency of waste management processes. Plastindia Foundation is continuously embarking upon education initia-
The Plastindia Foundation estimates the demand for polymers to jump to 16.5 million metric tonnes by 201617 from 11 million tonnes during 2012-13, resulting in consumption rising by 10.8 percent CAGR.”
12 | The Economic Times POLYMERS | February-March 2014
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MARKET
tives at various levels in our society,� he concluded. The report points out that about 30,000 processing units with 113,000 processing machines have created manufacturing capacity of 30 million metric tonnes per annum. This has been achieved with a 13 percent CAGR of processing capacity during last five years. The industry has invested US$5 billion in the machinery and it is expected to make further project investment of US$10 billion for further increase in capacities during the next five years. The Plastindia Foundation estimates that the demand for polymers to jump to 16.5 million metric tonnes by 2016-17 from 11 million tonnes during 2012-13, resulting in consumption rising by 10.8 percent CAGR. The Foundation estimates major polymers manufacturing capacities during the same period to reach 15.2 million metric tonnes from 10.4 million metric tonnes respectively. Infrastructure industry accounts for 12 percent of the industry’s growth Thus, the new capacity addition in major polymers such as PE, PP, PVC, PS and PET by 2016-17 is estimated at 4.8 Increasing capacity of million MTs. Some of the major producers in the industry inplastics recycling is a clude Reliance Industries, IOC, Haldia Petrochem and Gail. As priority. We are working against this, the report estimates the total polymer (Thermoplasclosely with many tics and Thermosets) consumption to grow 10.7 percent CAGR authorities to increase from 11.8 million MTs in 2012-13 to 17.6 million MT. the efficiency of waste India is expected to be among top ten packaging consumers management processes. in the world by 2016 with demand set to reach US$24 billion.
Subhash Kadakia, President, Plastindia Foundation
The growth in sector wise consumption of PE is estimated by the Plastindia Foundation from 3.4 million MTs in 2012-13 to 4.9 million MTs by 2016-17, recording a 9.6 percent CAGR. There are also tremendous growth prospects of 17 percent CAGR for PET consumption from one million MTs in 2012-13 to 1.9 million tonnes by 2016-17. Similarly, the Foundation report visualises tremendous potential for Bottle grade PET for Indian market. It estimates this sector to achieve 20 percent CAGR from 0.6 million MTs in 2012-13 to 1.25 million MTs by 2016-17. This is based on the estimated per capita consumption of only 500 grams (0.5 KG) in Officials at the release of the report: L-R - Lalit Singh, Francis Pinto, JR shah and Subhash Kadakia India as compared to world average of 2.7 kg and USA consumption of 6.7 kg. Polymer processing industry: An overview Further, the thermoplastic polymer conIndia Per Capita Consumption in 2012-13 9.7 kg (Compared to US: 109 kg, sumption is estimated to grow from 11 million China: 45 kg, Brazil: 32 kg) MT during 2012-13 to 16.2 million MTs and Virgin Polymer consumption in 2012-13 11.8 MMT further to 20 million MTs by 2020. PackagNo. of processing units About 30,000 ing industry is growing at 15 percent annually, No. of processing machines About 113,000 valued at US$15.6 billion. Flexible packaging Processing capacity 30 MMT industry accounts for 35 percent of this conProcessing Capacity CARG 13% last five years sumption, followed by 14 percent industrial, No. of plastic machinery manufacturing units About 200 13 percent rigid packaging, 12 percent by infraInvestment in Machinery About US$ 5 billion structure, 10 percent by consumer durables and lifestyle, nine percent by agriculture, three perInvestment required for next five years US$ 10 billion (Project investment) Source: Industry (Through PlastIndia Foundation) cent by automotive and four percent others. February-March 2014 | The Economic Times POLYMERS | 13
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FEATURE GREEN SERIES
Labelling
innovation
WITH YUPO IN MOLD LABELING (IML), LABELS CAN BE NOW ATTRACTIVE, AS DURABLE AS THE PACKAGE ITSELF, COST EFFECTIVE AND ALSO ECO-FRIENDLY
O
ne of the worst nightmares of any FMCG company is to see the labels torn off or accidentally removed from its products on a store shelf. The label is what distinguishes one product from another and a company could simply lose its market share and business if its product is displayed without any labeling or with an improper one.
IML: The answer
Now imagine a label that is not stuck on the container but is actually an integrated part of the container itself. Well, you don’t have to imagine because it is now possible. With In Mold Labeling (IML), not only can the traditional labeling defects be prevented but packaging can also made to stand out on store shelves. Moreover, this labeling is environment friendly and cost effective compared to the other methods.
Different at the start
IML is different from other labeling methods. And the difference starts even before the container is actually formed. At the front end of the molding cycle, just before the previously formed container is ejected, in-mold labels are inserted before the mold closes. Along with the plastic to be blown or injected into the mold, the label is embedded into the walls of the container during the molding process itself. Thus, it can be destroyed or recycled only with the container itself.
More efficient, less material
Contrary to other labeling methods, IML does not require an
Disposal of Yupo - Burning it. Since the polypropylene material is made up of carbon and hydrogen, carbon dioxide (CO2) and water (H20) are generated when burned with sufficient air. Chlorine-based gases and nitrogen oxide, etc., are not generated. In addition, Yupo scraps can be recycled.
Green is clearly moving on from being a mere buzz word to a trend with significant business potential. Companies will need to take a closer look at their product portfolios and rethink their business models to benefit from this. Prashant Mandewal, GM Business Development, Mitsubishi Chemical India P Ltd additional process after the bottle is finished. In fact, IML will make the work flow more efficient. As the labeling process is eliminated with IML, the bottle neck in the filling line will be optimised and the filling capacity can be increased. The IML process can also reduce the amount of resin to produce the plastic package, because the label will be integrated part of the plastic wall. IML can also increase the compression strength of the container. It increases the speed and productivity while eliminating steps in production and increasing labe-
14 | The Economic Times POLYMERS | February-March 2014
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GREEN SERIES FEATURE
ling quality, offering a more consistent and correct label placing compared with other methods. So, it is an effective way of greening your operations while also increasing the efficiency.
Quality and variety
Just after molding, every single container is inspected for leaks, and a simple quality control machine can also assure that all the bottles have labels in correct position. IML will also not have any flagging or wrinkles. IML has three main types: standard white labels, white smooth surface and translucent labels. IML translucent labels give an astonishing no-label look that will impress consumers. Metallic, holographic, high gloss and foil stamping are all possible finishing techniques on IML to make products stand out.
Sustainability
While IML considerably saves on the time and resources required, it has a positive impact on the environment. Let’s take the example of an average food products company, which uses around 300 million bottles in HDPE per year. This company would need 600 million labels per year, which is about 75,000 rolls of self adhesive labels. Each roll - after labels have been applied - produces a waste of approximately three kilos in release liner. This translates into a total waste of 225,000 kg per year. As 24 trees are required for one tonne of paper, this leads to a wastage of 5,400 trees. The total amount produced and used currently cannot be recycled with all of it reaches the landfills. IML can directly cut down on this environmental damage and companies using IML can claim credits.
YUPO IML Advantages Hundred percent Green. Cost effective compared to other decoration processes. Label can be regrinded with the container. Low waste at all levels of supply chain. Inventory, space cost can be saved. Increases wall strength for better shape and container weight can be reduced by up to 10%. Hundred percent water proof and resists chemical stains and scratching. No defects (i.e. flagging, curling, peeling). Saves post labelling cost. Glue, heat energy and time can be saved. Being liner-less substrate, it avoids wastage. No extra heat required. Hence reduces carbon footprint compared to shrink sleeve uses. Enhances product look and product durability. Applied by robotic arm without human handling, thus reduces scope of contamination. Hence ideal for pharma, oil and food packaging. ness models to benefit from this. The transformation will not be limited to targeting a newer product sub-segment, but rather will require re-creating a whole new business model around it.
Japan Headquartered Yupo Corporation has been a pioneer in promoting the IML process by being a Going truly ‘Green’ prominent global supplier of synthetic papers used Globally, the market for ‘Green Product’ is estimated at US$190 in IML. To keep pace with the evolving industry requirements, billion and expected to grow at about 15 percent y-o-y. ‘Green’ Yupo has been adopting advanced technologies and has been is clearly moving on from being a mere buzz word to a trend adapting to the dynamic market situations. With production with significant business potential. Companies will need to take lines in Japan and the US, Yupo has manufactured high quality a closer look at their product portfolios and rethink their busisynthetic papers for more than 40 years. In fact, Yupo’s presence in the IML market is Some applications of IML world-renowned. Besides the IML products, Yupo’s Detergent product packs Food packs Others product range is also deployed widely across the Detergents, dishwashers Ketchup, mayonnaise, etc Adhesives labelling industry – synthetic papers for pressure Cleaning products Fruit juice packs Automotive car products sensitive base films, direct thermal base films, tags, Shampoos Pet foods Motor oil label and more. So it is quite natural to associate Fabric softeners Liquid chocolate Agricultural medicines Yupo’s name with IML.
Going GREEN
is now cost effective
For more information, contact: Prashant Mandewal, GM Business Development, Mitsubishi Chemical India Pvt Ltd. Ph: +919987183330; Email: IDA3048@cc.m-kagaku.co.jp & prashant_mandewal@yahoo.com
February-March 2014 | The Economic Times POLYMERS | 15
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PACKAGING
It is often seen that the nutrients in a health drink usually lose their effectiveness over a period of time. To counter this, the cap of the Tata Activate bottle (patented) releases nutrients into the drink only after it is opened. This ensures an extended shelf life for the product.
New horizons FROM CONSUMER CONVENIENCE TO LOGISTICS EFFICIENCY AND FROM PRODUCT SAFETY TO SUSTAINABILITY, PACKAGING INNOVATIONS ARE OPENING UP A WHOLE NEW WORLD OF OPPORTUNITIES By Chakravarthi AVPS
P
ackaging is ‘an art of presentation and the science of protection of the product’. In other words, it can also be defined as the one which ensures safe delivery of goods from manufacturing to the end-customer in sound condition. Packaging plays a major role across the gamut of supply chain through various features like protection, safety and compatibility; these are basic benefits. The value added features are of greater utility in rapidly changing retail environ-
Attributes of sustainable packaging Reducing packaging and maximising the use of renewable or reusable materials. Using lighter weight material. Reducing CO2 emissions through reduced shipping loads. Demonstrating compliance with regulations regarding hazardous chemicals and packaging and waste legislation. Optimising material usage. Using materials which are from certified, responsible sources. Reducing the flow of solid waste to landfill.
Packaging with a distinctive design supports the brand strategy. High quality printing with vibrant graphics using unique materials will not only help engage consumers but also offer a better brand identity in today’s crowded markets. ment. These include providing tamper evidence, anti-counterfeiting, track and trace etc. There are other features like user convenience, unit dispensing, adhering to regulations and so on, which are prone to end-user needs. Packaging has a significant impact on the efficiency and effectiveness of retail supply chains, where improvements can be achieved through the adaptation and development of the concept of packaging logistics. Packaging always reflects a brand’s identity. From healthcare and cosmetics to bulk chemicals / paint containers when a product is the leader in its segment, unique packaging helps the product to sustain its position. Packaging with a distinctive design supports the brand strategy. High quality printing with vibrant graphics using unique materials will not only help engage consumers but also offer a better brand identity in today’s crowded markets.
16 | The Economic Times POLYMERS | February-March 2014
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PACKAGING
Packaging also helps build a relation between a brand and the end user. Some kinds of packaging have also an impact on the users with regards to how they perceive the brand, every time the product is used. Of course, a positive experience for the user always helps in building brand loyalty. Packaging innovations have hugely helped in the logistics sphere. Although the flexible intermediate bulk containers have been in use for few decades, they are still considered to be one of the best options when compared to rigid containers. In fact, these solutions have evolved with times. With technology advanc-
Although flexible intermediate bulk containers have been in use for few decades, they are still preferred over rigid containers. In fact, these solutions have evolved with times.
Growth of Indian packaging industry The large growing middle class, liberalisation and organised retail sector are helping growth in packaging industry. Thanks to the ever-growing FMCG and retail sector, the packaging industry across India is experiencing an exponential growth. The sales turnover of Indian packaging industry is likely to touch US$ 43.7 billion by 2016 The total turnover of the packaging industry in India at present is US$ 27.6 billion and expected to grow to around US$ 43.7 billion by 2016, whereas the global turnover is about US$ 550 billion. The Indian packaging industry has been growing at 12 percent per annum against the global growth rate of five per cent. India’s per capita consumption of packaging is only 4.3 kg per person per annum, as against Germany’s 42 kg and China’s 20 kg, which is very low compared to global standards. Initiatives are needed to convert the large unpacked commodities into processed, packed and well-presented commodities. There is a scope for innovation, entrepreneurship as well as logistical advancements; there are about 22,000 packaging companies in the country, comprising of raw material manufacturers to machinery suppliers to ancillary material out of which about 85 percent of them are MSMEs.
ing, they are now available in different proportions like U-Panel construction, circular / tubular construction, Baffle construction, four side panel construction and round construction. creased by adopting lighter packaging. For example, the bendA European bottle manufacturer has recently come out with ing stiffness of paperboard affects consumer experience and the an innovative design which enables the neck of one bottle to tuck rigidity of packages. Some lightweight paperboards produced by into the bottom of another bottle. This design has helped a great leading paper board makers provide the requisite thickness and extent of space saving while packing them on a pallet and has also stiffness at lower basis weights thereby enabling significant savings eliminated usage of secondary shippers as well. While ideas are through a yield advantage. The same phenomenon applies to rigid unlimited, the designs needed to be operation friendly as well. plastic containers as well. Thus, sustainable packaging will always Fortunately, we are witnessing great innovabe a Win-Win situation for manufacturers tive designs which are mostly driven by marand users in the long run. ket demands. In case of pharmaceutical products, drugs Because of the fact that disposal by conneed gentle handling during packaging. And sumers has become one of the largest waste it is important that packs should be hermetistreams in the supply chain, great opporcally sealed for higher product safety. A solutunities for supply chain optimisation are tion to achieve hermetically sealed packs for achieved by using less packaging of directblister, blow-fill-seal pouches, vials and other to-consumer shipments. products is to overwrap them into a horizonA typical example: Dell wanted to go for tal flow wrap. These flow wraps consist of a a greener and a cost efficient way to package foil laminate that is able to increase the shelf its computers by eliminating foams, corrugatlife of the product as well as to ensure 100 ed and moulded paper pulp. The solution was percent MVTR and OTR properties. sustainably sourced bamboo packaging and the company’s efforts have resulted in elimiThe author is CEO & Managing Director, Ecobliss Unique designs not only help products nating over 8.7 million pounds of packaging, India; and Chairman, Indian institute of Packagcreate a brand identity but also provide an Logistics performance can also be ining, Hyderabad. edge in the market February-March 2014 | The Economic Times POLYMERS | 17
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COVER STORY
Supreme
Growing demands for cars will further boost the plastics industry
Confidence
THE INDUSTRY WILL DEFINITELY BOUNCE BACK TO EXPLOIT ITS FULL POTENTIAL IF THE CHALLENGES FACED BY IT ARE ADDRESSED URGENTLY, BELIEVES VETERAN INDUSTRY LEADER MP TAPARIA, MD, THE SUPREME INDUSTRIES LTD By Niranjan Mudholkar
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here is a certain enthusiasm about Mahaveer Prasad Surajmal Taparia, MD, The Supreme Industries Ltd. MP, as he is lovingly known to the industry, has energy levels to match those of anybody at least five decades younger to him. And yet, the man who has played a huge role in not only building his own organisation but also the industry remains absolutely down to earth. There is the wisdom of a man in his late seventies; and there is also the humility that comes after having accomplished so much, yet the veteran industry leader remains sincerely passionate and immensely confident about the Indian plastics industry. Your editor caught up with him at his office recently for an
India has touched only certain areas of opportunities to grow in plastics. I am confident that with a suitable initiative, the country will deliver 12 percent to 15 percent volume growth annually in plastics consumption.
insightful interaction on the industry’s current scenario and the way ahead. “We will not talk about Supreme today; we can have another discussion on that later. Today, we will talk only about the Indian plastics industry,” he clarifies. Of course, MP is well aware of the ground realities. He knows that India consumed 11 million tonnes of plastics in the year 2012-13 against the world consumption of around 290 million tonnes. “In fact, the consumption trend has slowed down dramatically in the current year. It is expected that the growth this year may be around four percent.” Indeed, it has been a tough year for the entire economy. “Consumer appliances, automotive, construction and all the other consumers of plastics have slowed down big time. So obviously this has had a negative
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COVER STORY
Huge imports of plastics products are coming with increasing volume, year after year. Most of these imports are heavily under-invoiced. This puts the local producers in a very uncompetitive position.
impact on our industry,” MP says. By now, my tea has been served. MP prefers Green tea, reflecting his health consciousness. The discussion now India’s consumption shifts to the industry’s of plastics in 2012-13 health. He points out against the global figure of 290 that normally the industry million tonnes growth is higher than the GDP. “So even with the GDP numbers of 4.5 percent to 4.9 percent, plastics should have delivered at least eight percent. That has not been the case.” And yet, he says that even the four percent growth is actually a big thing considering the current scenario. “You need to put things in perspective to understand this. Rupee has depreciated sharply and substantially. Many people today don’t even have the working capital. Given this situation, a four percent growth is also noteworthy.” So if the industry can grow four percent despite the challenging circumstances, imagine its potential if it gets a good, conducive environment for progress. “In fact, the opportunities for growth are absolutely immense. There are many significant areas of growth going forward,” he says. MP then lists out these opportunity avenues. He draws attention to that fact that the export of agricultural products, horticultural products, meat and fish are contributing substantially in the country’s export initiative. “More and more processed foods are produced and consumed domestically and exported annually. There is and will be increasing require-
11 million tonnes
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COVER STORY
Domestic appliances sector will also be a key driver for the plastic industry.
term potential for these industries remains huge. “It is expected that the demand for these products will go on increasing as larger percentage of population move to have higher discretionary spending power. And all these applications require increasing need of plastics,” underlines MP with a smile on his face, which almost says that the transformation is just around the corner. Even a Plastindia Foundation report corroborates this saying that the automotive, retail and infrastructure sectors will drive douPlastics can play a greater role in addressing the nation’s infrastructure needs. bling of per capita plastics consumption in just five years. ment of suitable packing material to extend the life of these prodWhile it has huge potential, the export of plastics products is ucts. Plastics will play a key role to be used as packing material to woefully dismal from our country. MP, a self-proclaimed stickler extend life of these products.” for numbers, throws more figures to substantiate this point. “InThis is the time when my photographer walks in, apologisdia exported 4.4 million tonnes of plastics products in the year ing profusely for being late. He was caught in a traffic jam. “Of 2012-13 against 90 million tonnes of plastics products in the course, I understand traffic woes; I am a resident year 2012 from China. There is a crying need to of Mumbai, after all,” MP says with genuine boost manufacturing, with more focus on labour understanding. “The traffic around this place is intensive jobs. Plastics is the right fit to create particularly bad because of the road construction huge employment in manufacturing to cater The demand work happening around. But it will help us in to the increasing potential of export of plastics for domestic the long run”, he adds, moving the discussion to products,” he explains. appliances, the country’s infrastructure projects. We are all MP strongly believes that India has touched automobiles and aware of the need to boost India’s infrastructure. only certain areas of opportunities to grow in lifestyle products In fact, India needs to invest more than US$ one plastics. “I am confident that with a suitable will go on increasing trillion on infrastructure projects before 2020 to initiative, the country will deliver 12 percent to as larger percentage 15 percent volume growth annually in plastics meet its economic needs. MP is happy to note of population move that while plastics already play a significant role consumption. It will offer huge employment to have higher in improving the country’s sewerage system, sanopportunity. The increase in exports of plastics discretionary itation, potable water supply, road construction products is quite desirable as it is a large net forspending power. All and power, it can play a greater role in addresseign exchange saver. And the country may reach these applications ing the nation’s infrastructure needs. 30 million tonnes consumption of plastics by require increasing While sectors like domestic appliances, au2025,” he informs. need of plastics.” tomobiles and lifestyle products haven’t really Of course, if India is to fully exploit the podone well in the recent times, the mid-to-longtential of the plastics industry, there is an urgent 20 | The Economic Times POLYMERS | February-March 2014
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COVER STORY
India. Besides the challenges like power supply and labour issues, SMEs face another big problem. “The cost of money to them discourages those entrepreneurs to run the business profitably and make further investments. They can neither increase their capacities nor access new technologies. It means a lot of money, and money is very expensive for them,” MP explains. He then also draws attention to the huge imports of plastics products coming into India with increasing volume, year after year. “Most of these imports are heavily under-invoiced. This puts the local producers in a very uncompetitive position. Suitable mechanism has to be in place to check the under-invoiced imports of plastics products,” he says. MP is also quite upset the way VAT rates are applied to plastics products. “They are quite high, as if plastics products are luxury goods.” With 12 percent excise duty coupled with VAT rates ranging from 12.5 percent to 14.5 percent on several of these products make them extremely expensive. MP says India needs to learn from countries like Brazil where plastics industry is treated as a priority sector and enjoys much lower interest rates. The export of “This provides a huge incentives to the industry plastics products need to address challenges facing the industry. and the entrepreneurs in that country. We really is woefully dismal MP highlights inadequate power supply and oblook forward to suitable encouragement to enfrom our country, solete labour laws as the key issues. “We do not able the plastics industry to contribute with its considering its have 24x7 supply of quality power in most of the true might to boost our country’s economy in potential. India States.” He should know; his company operates exported 4.4 million near future,” he adds. I notice that he still hasn’t more than 20 plants across the country. “And started with his Green tea. Apparently, it’s still tonnes of plastics our antiquated labour laws are discouragement hot for him. products in the year enough for people looking to put up large labour The discussion now moves to another Green 2012-13 against 90 intensive plastics product manufacturing plants.” and equally hot subject that of environment. million tonnes of He believes that by not providing suitable All industry associations today promote plastics plastics products in conditions for new plants to be set up, the as a Green product. I ask him to explain this the year 2012 from country is being deprived of a great opportuphenomenon. “It is simple. Plastic processing China. nity. “We have recently seen a trend. With lais absolutely green as there is no discharge. Yes, bour getting short in China, investments are there are environmental problems but those are now moving from China to the neighbouring primarily due to the littering habits of people. South East Asian countries. I believe that this can and should Basically, we need to have a strong mechanism to check this and easily move to India. Today, we see many entrepreneurs coming at the same time also encourage recycling activities. But manufacup from these South East Asian countries because of the turing of plastics is completely green,” he insists. availability of the two key factors in those “You must also appreciate the fact that by using plastics in countries: good power supply and a variety of applications like furniture, material handling crates sound labour laws that are in sync and so on, we are actually saving trees which would have been with the current times. If India otherwise cut for wood to cater to these requirements. And imcan implement these two things, portantly, plastic products are also quite attractive,” he further then I am very confident that more elaborates adding that all industry associations and the industry and more people will establish their is committed to do all that it can do to minimise the impact of plants in this country and it will beplastics on the environment. come an exports hub. We have the MP also points out that the industry has also been makknow-how, the expertise and the raw ing significant progress on the research and development front. materials, but we need the correct and “That’s the reason why we see more and more entrepreneurs conducive environment. We need to see working on new developments and coming out with innovative huge reforms in our labour laws.” products. Plastic is a wonder material and it presents immense MP is right. Today, plastics products possibilities to create newer innovative products and applications are manufactured largely by SME units in on an ongoing basis,” he says, signing off on a positive note. February-March 2014 | The Economic Times POLYMERS | 21
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EVENT
The Future
is here
THE 2015 EDITION OF PLASTINDIA AIMS TO GET BIGGER AND ASPIRES TO ACHIEVE GREATER AMBITIONS WITH ‘EXCHANGE IN ABUNDANCE AND EXPANDING HORIZONS’
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lastindia Foundation has recently The ninth edition of Plastindia 2015 scheduled announced the launch of the to be held from February 5-10, 2015 at Pragati ninth edition of Plastindia Maidan, New Delhi, is supported by the Min125,000 2015. Through this much istry of Chemicals and Fertilizers. With strong sq m awaited trade fair, the international participation, Plastindia 2015 The exhibition area at Plastindia 2015, which Foundation aims to take will have over 2,000 exhibitors from over 40 will have over 2,000 the industry forward on its path as one of the countries and over 150,000 business visitors. exhibitors from over fastest growing sectors in the economy. The It will cover an exhibition area spread over 40 countries and over 150,000 business plastics industry was present in full strength 125,000 sq m. visitors at the launch, with industry reflecting optimism Joining hands with the Plastindia Foundation that the resilience displayed in the past 25 years will are major internationally acclaimed partners such as ensure its success and see it reach new heights and meet Messe Dusseldorf, EUROMAP – The European Plastics and overcome future challenges. Each of them believed that India and Rubber Manufacturers Association, the British Plastics Fedis one of the fastest growing markets for plastics in the world. Plastindia 2015, which is among the top three international KEY ATTRACTIONS FOR THIS EXHIBITION platforms for the plastics Industry, was formally launched by 24th ASEAN Plastics Forum Avinash Joshi, IAS, Joint Secretary-Petrochemicals Division, DeProplast 2015 - finished goods section: This will showcase the forays partment of Chemicals & Petrochemicals, Ministry of Chemical made by the Indian processed plastics sector. and Fertilizers, Government of India in the presence of the Guest PLASTICON Awards: To encourage and recognize innovation and of Honour, Nirmal Thakkar (Managing Director of TIPCO Ingrowth in all facets of Indian plastic industry and to honour significant contribution made by Indian business enterprises, Institutions, NGOs and dustries). Also present on the occasion were Subhash Kadakia, individuals who have excelled in their endeavour. President Plastindia Foundation; JR Shah, Chairman, National Wiintech: Worldwide Intercluster Initiative for new materials and Executive Council, LK Singh, Co-Chairman - National Executive processes focused on Clean TECHnology – The European Gateway to Council, Rajeev Chitalia, Vice President and Rajiv Raval, Hondevelop business and technology opportunities. ourable Treasurer.
Dignitaries at the announcement of PlastIndia 2015.
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EVENT
About PlastIndia Foundation
A key objective of the exhibition is to emphasise India’s position as the world’s sourcing hub for plastics finished products.
eration, Adsale Exhibition Services, Messes Pilatus International Co among others. The Foundation’s main objective is to promote the development and growth of the Indian plastics industry and is dedicated to national progress through plastics. In his welcome address, Subhash Kadakia, President of the Plastindia Foundation said, “The exciting developments of the recent past, ranging from the Wiintech cluster initiative, to the push for TUFs implementation and the unprecedented show of strength at K 2013 gives me immense confidence in the future
The exciting developments of the recent past, ranging from the Wiintech cluster initiative, to the push for TUFs implementation and the unprecedented show of strength at K 2013 gives me immense confidence in the future of Indian plastics. Subhash Kadakia, President of the Plastindia Foundation
of Indian plastics. The ninth edition of this event will be bigger, better and aspire to achieve much greater ambitions. It promises ‘Exchange in Abundance – Expanding Horizons’. This is the biggest business platform for our industry and I invite you to join us in our continued quest towards becoming responsible global leaders in plastics.” Launching the latest edition, Avinash Joshi said that “The industry has unlimited potential to be a world leader if it continues to believe in itself as it has done so far.” Joshi also stated that “Plastindia 2015 would bring in a lot of opportunity to the
PlastIndia Foundation is the apex body of major Associations, Organisations, and Institutions connected with plastics including Government and Semi-Government Organisations. The main objective of the Foundation is to promote the development of Indian plastics industry and to assist the growth of plastics and related materials and their products. It is dedicated to the national progress through plastics and is striving hard to make India a preferred sourcing base for plastics products for the world. Working as a catalyst, the Foundation works to build awareness of the significant contribution made by plastics to society and the environment. It also creates a positive policy framework with all statutory entities and increases per capita consumption of plastics, encourage exports thereby significantly contributing to national growth. In order to enhance the image and the growth of Indian plastics industry, the Foundation holds world-class exhibitions in India at regular intervals, where it provides opportunities to demonstrate the industry’s capabilities.
various stakeholders as it will be among the biggest in the world.” Elaborating this view, JR Shah, Chairman National Executive Council, Plastindia Foundation, said, “With the main objective of Plastindia Foundation being the promotion, development and growth of the Indian plastics industry in India, we have initiated steps to be the driving force for the MSME’s by facilitation, counselling and advising them on the processes and steps to avail of the Technology Upgradation Fund offered by the Government of India.” He continued by stating, “This will be an eye-opener to many and emphasize India’s position as the world’s sourcing hub for plastics finished products.” The six-day mega event, Plastindia 2015 will bring under one roof major global and Indian plastics industry innovators. The exhibition and conference will reveal the cutting edge technological developments, equipments and products. Plastindia 2015 takes further the innovations from the earlier version, in that; it will concurrently host Proplast 2015 and an International Conference to draw the attention of the entire business fraternity. Eminent academicians, consultants, professionals, technocrats, research scientists and industry experts will participate and share their views during various seminars. The previous exhibitions organized by the Plastindia Foundation, have already established India as a desired destination to the global plastics industry players as well as depicting the eagerness of Indian entrepreneurs to absorb and deliver to the growing market demands. Every exhibition organized by the Plastindia Foundation have bettered the previous one and grown to become a much sought after event, both nationally and internationally.
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PRODUCTS
K
Kabra Extrusiontechnik recently Demonstrated Hi-Speed Flat Drip Irrigation Tube Extrusion Line
abra Extrusiontechnik Ltd. (KET) has successfully demonstrated its high speed Flat Drip Irrigation Tube extrusion line. The company has recently introduced first most advanced FLAT Drip Irrigation Tube extrusion line to Indian customers. The state of the art technology will change the dynamics of the INDIAN irrigation industry. Considering the libral government policies introduced in the agriculture sector it can be said that the requirement for high speed, quality and technologically advanced equipments are a necessity to fulfill the growing market requirements. The line consists of extruder for best homogenous melting of polymer blends, Servo driven haul off, dual coiler with arrangement of precise setting and control laying steps (pitch) for uniform laying of tubes for best quality coils. Other special equipment from Metzerplas are Servo driven inserting unit: 600 – 800 drippers/ min, Vision system for visual inspection and control for high speed production up to 180mts/ min depending on the dimensions of the drip tube. During the demonstration the displayed line was operating at a speed of 150mtrs/ min and 16 x 0.8 mm tube size with flat drippers welding perforation.
Many leading plastics pipe processors witnessed demonstration of this hi-tech line and were amazed with the overall performance in terms of drip inserting capacity, line speed and the quality of tube and coils. The first state of the art such line has been supplied, at Paragon - Baroda and Kothari - Solapur. For further information contact – info@kolsitegroup.com
February-March 2014 | The Economic Times POLYMERS | 25
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PACKAGING
An emotional
connect
AN IMPACTFUL PACKAGING DESIGN ATTRACTS CUSTOMERS MORE THAN A PRODUCT WHICH IS PRESENTED IN PLAIN, STAID PACKAGING. By Vimal Kedia
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ere’s a thought: How many times have you been tempted to try out a new product or brand at a supermarket because the packaging design caught your attention while you were shopping? You were even willing to forgo your brand loyalty for once, just to indulge in your emotional intent. An attractive, eye-catching packaging design almost never fails to impress potential customers and is one of the key indicators of high product recall and sales. Simply put, what a logo does for the brand and marketing, the packaging design does for sales!
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PACKAGING
Why is it so important? There are a plethora of products and brands on supermarket shelves today fighting for the buyer’s attention. Making an informed choice can be a time consuming task for any customer. The only way that a particular product can immediately attract a customer’s attention and be chosen from among the other brands is by displaying a creatively designed packaging. People are habitually drawn towards visually appealing products. For a potential customer, a brand identity is communicated through what he/she sees on the shelf. An impactful packaging design attracts customers more than a product which is presented in plain, staid packaging. Colours play an interesting role in packaging designs; a lot depends on the combination of colours used for the customer to connect with a particular product. A bar of Cadbury for example is always associated with the colour purple and similarly would be the soap Liril that is associated with the colours yellow and green; it emits freshness in the minds of the consumers almost immediately.
Today, a combination of technology and efficiency can bring out the most impactful packaging designs that have the power to determine the success of a brand campaign. It is not surprising to know that the first sale of a product happens with the packaging design. Thereafter, the product sells on its quality, marketing campaign as well as word of mouth. If the design is attractive, customers will definitely want to pick it off the shelves depending on the eye appeal and shelf throw.
Overall brand strategy Packaging design is a brand manager’s topmost priority after clearing the taste and performance of the product being packed. In addition to being the first influencer of sale, packaging designs also influence customer’s brand perception and play an important
From the colour, shape, material, graphics, functionality, affordability to product protection, an effective packaging design should always reflect and represent the company and brand personality.
role in maintaining the product’s competitive advantage. If a very good product is packed in a shabby packing, the breadth of the market will not be too much and the brand will continue to sell only in select markets. Both the product and packaging design has to be top-notch to be a winner on the shelf.
The detailing There is so much more to creating an impactful packaging design for a product than meets the eye. From the colour, shape, material, graphics, functionality, affordability to product protection, an effective packaging design should always reflect and represent the company and brand personality. The first thing that needs to be considered is the approximate cost of the packaging. It is a lost exercise if a fantastic packaging design with a high visual appeal is created at a high cost for a market which cannot afford expensive packaging or does not understand its value. Secondly, we need to design a package which will withstand the transit logistics conditions prevailing in the region. For this, a full-fledged transit trials should be conducted ensure that the product reaches safely from the manufacturer to the retailer. Thirdly, it should be user friendly. Customers should be able to handle the product with minimum effort while the product inside stays intact. Every aspect of the packaging right from labelling, typography, materials to the imagery used has gone through an evolution cycle. And today a combination of technology and efficiency can bring out the most impacting packaging designs that have the power to determine the success of a brand campaign. February-March 2014 | The Economic Times POLYMERS | 27
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PACKAGING
Designer’s role Sustainable packaging requires a concerted effort from many individuals in the entire supply chain. A packaging designer’s role has to be in conjunction with several ideologies – the companies’, retailer’s and consumer’s, among others. Generally, a packaging designer has to create a design considering factors like the cost, aesthetics, competition benchmark and the overall marketability of the product. The designer must engage in market research techniques and study the consumer behaviour by conducting real-time trials with a panel of potential buyers. The designer needs to bring all these characteristics to the brand and ensure the commercialisation of the product without affecting the cost.
Technology People’s perceptions and emotions keep changing. In order to maintain their first level connect and relationship with customers, brands will similarly have to undergo changes to meet customer expectations. As a result, the trend of packaging designs has evolved significantly over the years. From the days of simple packaging to modern technology aided designs, the concept has come a long way. However, the underlying strategy is that the effective messaging
must speak to the customer directly. Today, there are many software programmes available to conceptualise a real time packaging design along with rendering and decorations. There are also engineering softwares which can predict to some extent, the performance of a bottle in terms of top loading, wall thickness and other engineering aspects. Apart from this, there are many prototyping options like SLS, SLA, Acrylic and other formats. Similarly, digital proofing a paper and plastic laminate is also possible today before a product goes in for commercial production. It is a lost exercise Companies are rising to capitalise on the imif a fantastic portance of an effective and impacting packagpackaging design ing design to contribute to higher product recall with a high visual and subsequent sales of their brands. Research appeal is created shows that using visual appeal as a key attentionat a high cost for grabber of people’s minds can be a game changer. Like PepsiCo’s Quaker Oats, where an attractive, a market which colourful packaging turns the blandest of foods cannot afford expensive packaging into a visual treat.
or does not understand its value.
The author is Managing Director, Manjushree Technopack Ltd
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EVENT
Arabian Frontier THE SECOND EDITION OF PLASTIVISION ARABIA WILL BE HELD DURING APRIL 7-10, 2014 AT THE EXPO CENTRE SHARJAH IN ASSOCIATION WITH THE ALL INDIA PLASTICS MANUFACTURERS’ ASSOCIATION
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fter the impressive launch of Plastivision Arabia in 2012, the second edition of Plastivision Arabia will be held in April at the Expo Centre Sharjah. After the grand success of Plastivision India, the All India Plastics Manufacturers’ Association (AIPMA) is now focusing on exports for the Indian plastics industry. Plastivision Arabia 2014 is a step ahead in this direction. Plastivision Arabia 2014 has generated tremendous interest due to the combination of the World Expo in 2020 and the FIFA World Cup in 2022. Together, these events are set to provide considerable momentum to regional plastics players, who are expecting demand to swell in the run up to these events. While Dubai is set to spend over US$18 billion for the World Expo 2020, Qatar has earmarked a staggering US$200 billion for the FIFA World Cup in 2022, which could propel plastics usage much over a conservative estimate of nearly six Officials at Plastivision India 2013, which saw 110,000 visitors from around the world. metric tonnes, said Jayesh Rambhia, Past President, AIPMA Through Plastivision Arabia 2014, AIPMA now also wants to focus on exports and Chairman of Plastivision Arabia 2014. Rambhia further added “Combine this with economies that are cruising in the fast ucts and opening up new IN A NUTSHELL lane, the region’s plastics producers will have to look at acquiring markets in plastic converWhat: Plastivision Arabia 2014 new machinery and technology to keep pace with the expected sion,” said Dr Abdulwahab Where: Expo Centre Sharjah heavy surge in consumption of plastics.” Al-Sadoun, Secretary GenWhen: April 7 to 10, 2014 Also, Gulf Petrochemicals and Chemicals Association eral, GPCA. The inaugural Highlights: Consultants’ Clinic, (GPCA) will organise the fifth International Conference for PlasPrint Pack Arabia exhibition Placement Pavilion, Business tics Conversion (PlastiCon 2014), which will be held alongside and conference will also be Opportunity Pavilion, Product Plastivision Arabia. “Titled ‘Exploring Growth through Innovaheld alongside Plastivision Design & Innovation Pavilion and tion in the Plastic Conversion Industry’, PlastiCon 2014 will Arabia, and will feature a Green Pavilion. focus on the role of innovation in developing new plastic prodlatest printing and packagWebsite: www.plastivisionarabia.com / ing technology, materials www.aipma.net and machinery. The second While Dubai is set to spend Arabia Mold too will be over US$18 billion for the held alongside Plastivision Arabia, in association with World Expo 2020, Qatar has DEMAT, the organiser of world-renowned EuroMold, the earmarked a staggering world’s leading fair for mold-making & tooling, design and US$200 billion for the FIFA application development. World Cup in 2022, which Speaking ahead of the upcoming trade fair, Saif Mohammed could propel plastics usage Al Midfa, CEO, Expo Centre Sharjah, said: “These mega events much over a conservative are going to have tremendous impact on the region’s plastics proestimate of nearly six ducers. Plastic products are heavily used in infrastructure projects, metric tonnes. apart from packaging.” Apart from infrastructure projects, milJayesh Rambhia, lions are going to fly into the region, providing a strong boost Past President, AIPMA and to plastics consumption. Together, these events form a compreChairman of Plastivision Arabia hensive sourcing as well as networking platform for the entire 2014 regional print, packaging, plastics and mold-making industry. February-March 2014 | The Economic Times POLYMERS | 29
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SUSTAINABILITY
From a ‘me too’ to a
game changer
SUSTAINABLE MODELS OF GROWTH WILL BE REWARDED IN THE NEAR FUTURE, BELIEVES THE TEAM AT POLYGENTA
1.5 million Bottles
Number of PET bottles converted by Polygenta’s Nashik plant per day to produce roughly 10,000 MTs per annum of sustainable premium PFY
H
undreds of billions of plastic bottles go as tally friendly business and products. Our technology allows us to waste every year after they have served their be low cost producer of recycled polyester, with a level of quality purpose. At Polygenta, we assurance and performance comparable to the love plastic bottles, we view ‘virgin’ polyester, because we can scale our plants them as the fruit of brilliant and convert cheap polyester waste (such as colBased on an human ingenuity and of oured bottles or fabric waste). independent life large capital investment. Do we really consider We believe that sustainable models of growth cycle analysis, the bottle as a waste when we drink from it? No, will be rewarded in the near future, as quality the primary instead we believe that these bottles are a formimanagement processes have been introduced 40 energy demand dable source of plastics which can be recycled years ago by the Japanese industry in particular back to bottles, yarns and fabrics or films. and have become the norm. Our goal is to add a to manufacture So, Polygenta exist because we own a techdimension of sustainability to the growth of the polyester polymer nology and a large commercial plant (in Nashik, virgin polyester industry: we see ourselves as an using the ReNEW Maharashtra, India) where we convert every day enabler of the existing polyester business with a process is lower 1.5 million of clear and coloured bottles. Our humble but tangible contribution to its sustainthan consumed recycled, sustainable polyester is cost competiable growth. when conventional tive with its ‘virgin’ equivalent, produced by the Polygenta Technologies Ltd (PTL) is a leadvirgin petrochemical petrochemical industry from oil. We believe that ing manufacturer of Polyester Filament Yarn feedstock is used. low cost is necessary to sustain an environmen(PFY), which uses post-consumer PET bottles 30 | The Economic Times POLYMERS | February-March 2014
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SUSTAINABILITY
Environment friendly process
(i.e. a high-grade polyester) as its feedstock. Polygenta’s plant located in Nashik (Maharashtra, India) converts 1.5 million bottles per day to produce roughly 10,000 MTs per annum of sustainable The process saves 0.7 barrels of oil and 0.20 cubic premium PFY. PTL also has meters of landfills with recycling of every one ton of plans to expand this capacity Polygenta is the only PET waste. significantly. company in India to The process has zero discharge of liquid effluents. We achieve this with our produce 100 percent The process saves energy than a conventional proprietary ‘ReNEW’ prorecycled Polyester polyester manufacturing. cess. ReNEW chemically Filament Yarn (PFY) C02 emissions are notably lower in comparison to ‘de-constructs’ the long chain using post-consumer peer companies. ‘poly-ester’ hard plastic that PET bottles PET bottles are made of into their original ‘building blocks’ of individual esters in liquid form. After high purity filtration of this liquid, these esters can be substituted for high-grade convenFleece, Backpacks and Soft Luggage, Home furnishings, and Autional polyester petrochemical feedstock refined from crude oil tomotive. Polygenta also supplies high performance textile grade (PTA and MEG). chips and POY to supply chain partners for specialty products With its unique approach to recycling PET bottles, fundaand applications. mentally different from the prevalent ‘mechanical technologies’, At Polygenta, sustainability is at the heart of the business, ReNEW has a number of advantages in terms of energy, effluent, where every day over one million PET bottle ends in the landfill water use, and product quality. Based on an independent life cycle without any definite solutions. Here is a company that uses its analysis, the primary energy demand to manupatented ‘ReNEW’ chemical re-processing of facture polyester polymer using the ReNEW these bottles and converts to highly sustainable process is lower than consumed when convenPFY which is inherently superior to convenIn coming years tional virgin petrochemical feedstock is used. tional mechanical reprocessing for these postPolygenta has Polygenta focuses on four products: high consumer PET bottles. a considerable quality textile DTY, POY and chips and the sale Nevertheless with this technology the comexpansion plan of recycled ester to 3rd party polyester plants. pany offers its supply chain partners and ultiwith new glycolysis In essence, ReNEW applies sophisticated chemimately all the consumers a better choice for imunit and seek for cal processes and controls – comparable to those proving the environment and promoting a more more and cheaper used in high-end refining to generate high-pusustainable planet. sources of polyester rity feedstocks PTA and MEG – to an environIn coming years Polygenta has a considerwaste like ‘textilementally preferred feedstock (i.e. polyester PET able expansion plan with new glycolysis unit and bottles saved from landfills rather than crude oil, seek for more and cheaper sources of polyester to-textile’ recycling with its higher environmental impact). that will convert the waste like ‘textile-to-textile’ recycling that will The full range of quality recycled filament convert the large volumes of textile waste into large volumes of yarn is available in the range of 50-300 denier sustainable yarns. textile waste into for a wide range of applications including Sports sustainable yarns.” Apparel, Casual Fashion, Outdoor Wear, Polar Article authored by Polygenta technical team February-March 2014 | The Economic Times POLYMERS | 31
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PACKAGING
Stable is
suitable
TO AVOID STABILITY FAILURE AND GAIN UNDERSTANDING OF THE SENSITIVITY OF YOUR DOSAGE, THE PERFORMANCE OF THE DRUG’S PACKAGE SHOULD BE STUDIED AT THE SAME TIME THE PERFORMANCE OF THE DRUG ITSELF IS BEING EVALUATED. By Zuzana Sabova–Kepic and Ashish Mathpal
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harmaceutical companies aim to delivering safe and effective drugs to patients. One aspect of achieving this objective is conducting stability studies that demonstrate to regulatory organisations that a drug’s formulation is safe and effective. Stability studies are conducted on each drug and its package to assure that the drug will meet this goal for the shelf-life indicated. Too often, pharmaceutical companies focus on stability studies with minimal consideration for package performance, not realising that a stability test failure may have nothing to do with the drug itself, rather the failure can be attributed to its packaging. To avoid stability failure and gain understanding of the sensitivity of your dosage, the performance of the drug’s package should be studied at the same time the performance of the drug itself is being evaluated. Package integrity
Recommendations for optimising package permeation rates Cavity dimensions must allow for proper clearance between the dosage and the lid stock to enable efficient product feeding and proper sealing of the lid stock to the blister. For cavities deeper than 6 mm or with a deep draw ratio greater than 3:1, pre-forming with plug assist is recommended. Design reinforcing or strengthening ribs perpendicular to the machine direction. The ribs should have a width-to-depth ratio between 2:1 and 3:1 to avoid underforming. Sufficient air evacuation ports must be included in the rib design to achieve full forming.
can be determined very early in the stability test’s timeline. In doing so, a potential cause for failure can be identified and corrected, allowing companies to prevent delays in the launch process due to package failures. This ensures that the drug’s packaging is performing as intended and will pass stability. This article covers three guiding principles relevant to barrier films that pharmaceutical companies can employ to reduce the risk of failure, understand the barrier required to pass stability, avoid over-packaging and potential delay.
Suitable design To optimise the barrier of the blister, pharmaceutical engineers should prepare and plan upfront, taking into consideration the drug’s sensitivity, the choice of materials available and the type of machinery available. Not all machines are capable of processing every material optimally – especially barrier materials – so be sure to discuss compatibility of machines and materials with your
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machinery and material suppliers, respectively. The packaging engineer should also pay close attention to package design and tooling. A successful package design and subsequent tooling design can improve barrier performance dramatically. The next consideration is establishing the thermo-forming conditions. This ensures that the package achieves the expected barrier performance and is not vulnerable to compromise. Good sealing is a critical aspect in attaining package integrity. Consult with your lid stock supplier for sealing recommendations as sealing conditions will vary with pack layout, foil type and manufacturer, line speed and machine type. The selection of sealant is dependent upon the polymer that is in contact with the foil coating. If the contact layer is consistent, no change in conditions is required.
Are Your Testing Methods Sufficient? In addition to using the correct design and thermoforming techniques, pharmaceutical companies must examine their blister packages in a variety of ways to ensure that the performance of the package matches the theoretical barrier expectations.
Leak detection Test
Too often, pharmaceutical companies focus on stability studies with minimal consideration for package performance, not realising that a stability test failure may have nothing to do with the drug itself, rather the failure can be attributed to its packaging.
One of the most common methods used to test blister packages for leakage is the methylene blue test. The package is placed into a vacuum chamber that is partially filled with a mixture of water and methylene blue dye. The packages are submerged in the liquid and held in place while a vacuum is drawn on the chamber. The package is held at a specified vacuum level for a specified time period. The chamber is vented to atmospheric pressure and each card is inspected to determine if there is evidence of blue dye in the cavities and/or seal areas. One limitation of this method is that the actual samples tested cannot be used for subsequent weight gain testing. A statistical sampling is used to verify that the process is producing acceptable blister cards. There are also new testing techniques based on over-pressurising or under-pressurising the blister cavity that do not use methylene blue dye. They too can reveal whether or not the blister package has open channels. These methods are nondestructive and can be used to inspect 100 per cent of the samples to be evaluated in the stability test. If no leaks or open
Guidelines for successful tooling design ďƒŹ For maximum flexibility, all thermoforming moulds should be designed as dedicated moulds with features recommended for high-barrier materials. Dedicated moulds provide more uniform thickness distribution than universal moulds which results in improved barrier performance. ďƒŹ Use a dedicated cavity dimension for each pill size and pill shape. When standard cavities are used for multiple sizes or shapes, the large cavity design increases the surface area of the cavity which in turn increases moisture permeation of the cavity when packaging smaller pills. ďƒŹ Calculate the theoretical barrier of the package.
channels are found during leak detection testing, be advised that micro channels or stress cracks in the lid stock may be present which go undetected. As a result, additional tests are needed to verify seal integrity as well as ensure proper thickness distribution of the film.
Polarised film test This test is used to examine the blister for stress in the sealing flange area. The blister must be made of transparent film and be backed with a reflective background, such as foil lid stock or a second piece of polarised film. Hold the blister card under the polarised film at a 45 degree angle to the film. If there is stress in the sealed area, there will be a colour differential. If there is stress in the formed blister cavity, the colour will change from
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brown to blue (in some cases) and then to more brilliant colours as the stress increases. For PVdC materials, shades of grey will indicate stress.
High intensity light test This simple test will check for cracks in the foil and should be done every time you run a stability test. Take the sealed blister card to a dark room and shine a flashlight through one side of the card. Look for any light coming through the foil and plastic. If blister packages are made out of opaque film that prevents light from penetrating the blister card, run a few packages with clear material and conduct the test to ensure there are no pinholes in the seal.
Magna-Mike test
Weight gain test procedure (Summary) First, the sample size must be statistically significant. Typically, six to 10 blister cards with desiccants in each card is sufficient for each International Committee for Harmonisation (ICH) condition. (The ICH has set up four conditions for stability studies: 40°C/75% RH ; 30°C/65% RH ; 30°C/75% RH and 25°C/60% RH). Each blister pack is placed into a properly marked package holder and weighed to determine its initial weight (day zero). Next, the samples are placed into the humidity chamber with the desirable ICH conditions. Samples should be weighed preferably every day for 10 days (at least every other day). More frequent weighing early in the study allows for more rapid assessment of the performance of the cards under test. After 10 days, the test frequency can be reduced to one weighing per week. The first 10 days are important when measuring low barrier materials such as 40g PVdC at high ICH conditions as desiccant tablets will become saturated quickly and plotted data will not be linear. Weight gain results are reported as weight gain (WGdayX) in g/package and plotted on a graph. When interpreting the results, the packaging engineer should check the graph for linearity. Non-linearity may indicate a problem with the samples, saturated desiccant tablets or the data collection method. Similarly, packaging engineers should also check the variation between samples to determine whether or not their design, package and process are robust.
This test measures the thickness distribution of the blister cavity. The Magna-Mike is a handheld thickness gauge that uses magnetism to perform reliable and repeatable measurements. These measurements are performed by holding the gauge’s magnetic probe to one surface of the test material and placing a small steel target ball on the opposite surface. A Hall-effect sensor built into the probe measures the distance between the probe tip and target ball. Due to the nature of this test, only certain points of the blister can be measured, rather than the entire blister cavity.
Microtome test This is another test to measure thickness distribution. A laser microtome is used to cut an epoxy mould of the blister cavity for microscopic examination. The test is more timeconsuming and expensive than the Magna-Mike and is not appropriate for machine setup or trial. The test measures a continual line around the parameter of the cavity and assumes that if the cavity is round, it will have the same thickness distribution throughout. For capsules, two cuts are required: one running lengthwise and one running the width of the cavity. Although this test will not measure the thickness distribution of the entire blister cavity, it does measure more points than the Magna-Mike test, thereby giving the packaging engineer a greater understanding of the blister’s barrier thickness.
Weight gain test The single most important test for a blister pack is the weight gain test with desiccant. This test, which takes approximately 40 days, is similar to USP <671>, a test that gauges the moisture permeability for multiple unit containers used for capsules and tablets. By conducting weight gain testing on packages filled with desic-
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cant, the permeation of the package can be studied independently from the drug dosage. Assuming the weight gain results are linear, the next step is to use this data to calculate the moisture permeation rate per day for each cavity. These weight gain results are then compared to the theoretical results determined during the design phase using a barrier prediction method such as Finite Element Analysis (FEA). The results of the weight gain test compared to the theoretical barrier prediction method used should not show a difference greater than 10 percent to 20 percent. If the final numbers are within this percentage, the packaging engineer will have documentation that his package successfully passed stability at the end of the 40-day weight gain study. If the comparison results are greater than 20 percent, the packaging engineer can stop the
Some thermoforming and sealing guidelines to assure a high-quality blister Use proper forming temperature for your material. Forming temperatures vary with material type, thickness and manufacturer, thermoformer, speed, timing and mould temperature. To achieve fully formed blister cavities, avoid cooling the laminate before forming and ensure you have sufficient force to form the parts. For cavities deeper than 6 mm or with a deep draw ratio greater than 3:1, use plug assist in combination with air pressure to improve thickness distribution and barrier performance. Different lid stocks require different sealing conditions. For example, when the lid stock is sealed against the PVC side of the laminate, use standard PVC films sealing station set-up.
efits for research and development. To help determine the best barrier protection for a drug, the packaging engineer can reference the catalogue of weight gain data for different cavity shapes and materials and gain an understanding of design limitations or the forming process. The test is also beneficial for package transfer activities, such as site transfers, because it allows the company to evaluate the other site’s standards and compare them to its own standards. This helps to ensure consistency of packaging performance across packaging sites.
Conclusion
stability study early recognising that the package has failed. The weight gain test provides the information needed to determine what packaging changes are required and a new stability test can begin, thereby saving costs and avoiding potential lengthy launch delays. If after several months, the stability test is not producing favourable or as expected results, the packaging engineer will have enough information to determine that the package is not the reason for failure and alternate causes should be investigated. Furthermore, the weight gain test provides a wealth of information that has significant ben-
The three principles: Suitable design, correct thermoforming and sufficient examination will produce quality blister packages which will perform as predicted. While the stability study with the In addition to using dosage focuses on testing the drug for efficacy the correct design and safety, the weight gain test with desiccant and thermoforming separates the performance of the drug from techniques, the performance of the package by testing the pharmaceutical package directly without the drug’s influence. companies must Combining this information assists in idenexamine their tifying issues with package integrity rapidly, blister packages in and helps the pharmaceutical industry bring a variety of ways drugs to the market without delays attributed to ensure that the to packaging.
performance of the package matches the theoretical barrier expectations.
The authors are respectively, Manager, Barrier Packaging, Analytic Lab and Lead Technical Specialist, Honeywell Healthcare and Packaging; and Technical Manager, HC&P, UOP India Pvt Ltd.
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TECHNOLOGY
Ready for
the next stage
ABSORBING THE NEWER TECHNOLOGIES BROUGHT BY THE US AND EUROPEAN COMPANIES, INDIAN PLAYERS ARE GEARING UP TO PLAY A MAJOR ROLE IN THE DEVELOPING AND UNDER DEVELOPED MARKETS By Samit Jain
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ndiaâ&#x20AC;&#x2122;s share in the global consumption of polymers is around six percent followed by US and China who are the world leaders. After the economic liberalisation in 1991, polymers industry has seen an unprecedented growth. Sectors such as automobiles, white goods, packaging, construction and telecom have flourished since 1991. These sectors form the major part of the polymer consumption in India. According to a recent report of Global Data the per capita consumption of plastics in India has
With the large multinational players setting up their own manufacturing units in India, local players have not only become their source of raw materials in India but they are also on the global supplier list.
Many large multinational players have set up their own research and development facilities in India
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increased to 7.4 kg in 2010 from 1 kg in 1980. This is still far below the world average of 26 kg and there is a large untapped potential. Commodity plastics have formed the major share of the market in India. Consequently major capacity additions have been focused on PE, PP, PVC, PET and SBR. With the automotive and white goods industry growing significantly over the past decade, the demand for high performance polymers has increased manifold. Initially these polymers were being imported but with the improvement in technology over the years; many local players have emerged. Currently, almost all the speciality raw materials are being manufactured locally. With the large multinational players like Ford, GM, Nissan, Samsung, LG, etc setting up their own manufacturing units in India, local players have not only become their source of raw materials in India but they are also on their global supplier list supplying to locations across the world. India is on its way to become the global sourcing hub for polymers and polymer related products. Many large multinational players have set up their own research and development facilities in India due to the availability of low cost skilled manpower. India is no Indiaâ&#x20AC;&#x2122;s score on India is no longer just a source of polymer products but also the longer just a source of polymer products recycling of plastics centre for churning out innovative products but also the centre for churning out waste. Germany, which innovative products for the developed recycles 90 percent of the plastics waste and developing countries. Many low cost other Asian countries. It has created a healthy comgenerated. polymers are being developed in these petitive environment. Now these compounders are research centres and the technology is shared making their presence felt globally as well. One can see around the world. a host of FMCG products; the packaging industry too has Another area of improvement has been the emerinnovated. Organisations have set up their own R&D in-house gence of equipment manufacturers in the India. Some of the best to develop new materials and efficient production techniques to quality equipment required for manufacturing and research in further lower the costs of packaging materials. It has led to several polymers are now being made in the subcontinent. India is no players coming up in this domain. longer dependent on the technology coming in from the West or In the past few years there has been an increased emphasis Japan. We are doing it ourselves and doing it well. on the environmental problems caused by polymers. Recycling The allied industry of polymers has also flourished over the of polymer waste is the way to go and the West has taken huge past decade. Polymer compounding industry is on a boom comstrides in this with Germany recycling more than 95 percent of peting with global players of DuPont, Rhodia, DSM, and the the plastics waste generated. India is still lagging behind by a likes. Availability of technology, manpower and machines in Inbig margin at around 40 percent but one can see several positive dia, equivalent to global standards, has led these multinationals signs. Technology suited to Indian waste is being developed by to set up their own polymer compounding units supplying not organisations and localised recycling is also beginning to happen only within the country but also serving as a base to supply to in India. Overall, the polymer 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 manuAnother area of improvement has facturing plants. This has exposed the Indian engineers to newer been the emergence of equipment methods and technologies. Indian companies are absorbing this manufacturers in the India. Some of and are set to play a major role in the developing and under dethe best quality equipment required for veloped countries in the near future.
40%
manufacturing and research in polymers are now being made in the subcontinent.
The author is Director, Pluss Polymers.
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INFRASTRUCTURE
Welcome to the
Park
THE DEPARTMENT OF CHEMICALS & PETROCHEMICALS HAS FORMULATED THE ‘PLASTIC PARK’ SCHEME WITH A VIEW TO SYNERGISE AND CONSOLIDATE THE CAPACITIES THROUGH CLUSTER DEVELOPMENT.
T
he share of India in world trade of plastics is very low. The Indian plastics industry is large but highly fragmented with dominance of tiny, small and medium units and thus lacks the capacity to tap this opportunity. Department of Chemicals & Petrochemicals has formulated this scheme with a view to synergise and consolidate the capacities through cluster development.
Scope The scheme support setting up of a need based ‘Plastic Parks’, an eco system with requisite state-of-the-art infrastructure and enabling common facilities to assist the sector move up the value chain and contribute to the economy more effectively. The scheme will be demand driven. The grant shall be by way of one time grant-in-aid to the
Objectives of the scheme Increase the competitiveness, polymer absorption capacity and value addition in the domestic downstream plastic processing industry through adaptation of modern, research and development led measurers. Increase investments in the sector through additions in capacity and production, creating quality infrastructure and other facilitation to ensure value addition and increase in exports. Achieve environmentally sustainable growth through innovative methods of waste management, recycling, etc. Adopt a cluster development approach to achieve the above objectives owing to its benefits arising due to optimization of resources and economies of scale.
special purpose vehicle (SPV) formed by the State Government or any of its agencies such as State Industrial Development Corporation (SIDC) in association with user enterprises representing the plastic sector / sub sector. The Scheme Steering Committee (SSC) shall approve the project components and funding thereof depending upon the merits of the proposal. The project cost, for the purpose of this scheme, includes the cost of the above items and land, subject to the condition that it shall be the responsibility of the SPV to bring in land as its contribution. In addition, plant & machinery for production purposes shall be responsibility of the SPV / member units and shall not be funded out of the scheme. The ownership of the above components including individual production units, being funded out of the grant under the Scheme should rest with the SPV. The scope of the Grant in-aid shall only be for the development of common infrastructure facilities to be held with the SPV and shall not be available to production units, if any, owned by SPV.
Funding Pattern The Government of India would provide grant funding up to 50 percent of the project cost subject to a ceiling of Rs. 40 crore per project. The remaining contribution in the SPV will be from the State Government or State Industrial Development Corporation or similar agencies of State Government, beneficiary industries
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Components in a typical plastic park Infrastructure to support production units like roads, water supply, drainage, electricity supply including captive power plant, effluent treatment plant, telecommunication lines, solid / hazardous waste management, incinerator, etc. Buildings for support services like administrative buildings, crèche / canteen / hostel / rest and recreation facilities, facilities for labour, marketing support system, etc. Buildings and equipment / machinery for common facilities for characterization, prototyping & virtualization, non-destructive material testing, incubation, training, warehousing, plastic recycling, tooling, designing, Research & Development, etc. Administrative and other management support including the salary of CEO for the project implementation period. Assistance for engaging engineers/ architects / construction management / other experts.
For representation only
and loan from financial Institutions. The equity contribution of the State Government or State Industrial Development Corporation or similar agencies of the State Government shall be at least 26 percent of the cash equity of the SP (excluding value of any land given as equity). In the event of user enterprises/beneficiary industries/ private developers/JV partners not bringing in the required equity contribution with in a period of one year from the date of final approval of the project, the deficit of cash equity (excluding value of land given as equity) shall be financed by the State Government or State Industrial Development Corporation or similar agencies of the State Government. Cost escalation due to any reason has to be borne by the State Government or its agency. Interest earned on central grant by the SPV would be treated as a part of the central grant.
Financial assistance Each of the projects proposed to be implemented by a Special Purpose Vehicle (SPV) shall be eligible for grant funding under the scheme up to 50 percent of the project cost (as mentioned in the previous section) not exceeding Rs40 crore per project subject to the following: (a) A minimum of 25 per cent of the Grant-inaid should be earmarked for common enabling facilities dedicated to plastic processing industry like characterisation, prototyping & virtualisation, non-destructive material testing, incubation, training, warehousing, plastic recycling, tooling design, Research
Besides the above mentioned components aimed at creation of infrastructural facilities, the scheme shall also support initiatives which are soft in nature to ensure that the capacity of the beneficiary SPV and member enterprises is suitably strengthened in order to absorb, implement and sustain the proposed initiatives. These illustratively could include surveys / studies, sensitization / awareness generation, skill development / training at various levels, exposure visits, etc. The above list of common facilities is illustrative and each park could have its own specific requirements based on the nature of units being set up and the products proposed to be manufactured in the parks. & development, etc. (b) Assistance for Administrative and other management support of SPV including the salary of CEO for the project implementation period shall not exceed five percent of Grant-in-aid of the overall project cost. (c) Assistance for engaging engineers / architects / construction management / other experts for execution of civil works shall not exceed five percent of Grant-in-aid of the overall project cost. Assistance for soft initiatives shall be over and above the grant provision for infrastructure components and shall be to an extent of 75 percent of the cost of soft interventions not exceeding Rs 50 lakh per project. This amount may be met from within the total grant to be given for each project. SPVs may dovetail funds from other sources as well for the project, provided there is no duplication of funding for the same component / intervention. February-March 2014 | The Economic Times POLYMERS | 39
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The soft initiatives shall be funded during the project implementation phase. Subsequently, it will be the responsibility of the SPV to undertake such initiatives on its own.
Implementation framework Department of Chemicals and Petrochemicals will call for preliminary proposals from State It is mandatory for a park to have its effluent treatment plant. Governments interested in setting up of Plastic parks. The State Government or its agency such as State Industrial Development Scheme Steering Committee (SSC) Corporation or any equivalent state entity as identified and recThe Department of Chemicals and Petrochemicals will be the ommended by the respective State Government, shall submit the coordinating Department providing overall policy, coordination preliminary proposals. and management support to the scheme. A Scheme Steering Based on the merits of the preliminary proposals and commitCommittee (SSC) will be constituted under the Chairmanship ment of the State Government, SSC shall accord “in-principle” of Secretary (Chemicals and Petrochemicals). The SSC may inapproval to the project. Projects proposing to enter manufacturduct representatives of the industry associations, R& D instituing of medium-high end products shall be given preference. Upon tions and other expert/ technical agencies as members or special getting the in-principle approval, the applicant shall prepare a Deinvitees. tailed Project report (DPR) and submit it to the Department. Final approval shall be accorded by the SSC based on the appraisal Special Purpose Vehicle (SPV) and recommendations of the DPR by the Programme Manager Assistance under the scheme will be available to a Special Pur(PM) subject to the applicant complying with certain criteria. pose Vehicle established for the purpose of setting up a plastic The “in-principle” approval accorded by the SSC shall be park. The SPV should be a distinct legal entity formed by the valid for a period of six months, with-in-which the SPV has to State Government or its agency such as State Industrial Developcomply with the conditions and apply for final approval, failing ment Corporation or any equivalent state entity as identified and which “in-principle” approval shall lapse, unless a specific extenrecommended by the respective State Government in association sions is granted by the SSC against a specific request by the SPV with user enterprises representing the plastic sector / sub sector. justifying the extension. The SPV will ordinarily be a Company registered under Companies act 1956. Any other structure will be subject to the approval by SSC.
Points in the preliminary proposal Proposed location of the park. Background of the State agency and their financial strength. Conceptual background of the project. Proposed product mix. Broad cost estimates and proposed means of finance. Participation of the State Government or its agencies / undertaking with equity stake in the proposed SPV in addition to facilitation in terms of getting necessary assistance for external / access infrastructure. Investment in infrastructure (project cost minus cost of land) per acre of proposed plastic park. Total project cost in terms of number of times of grant-in-aid of Government of India. Readiness for project execution.
Programme manager Department shall avail of the service of a professional agency with appropriate expertise and competence to assist in effective implementation of the Scheme. This agency, termed as Programme Manager (PM), shall perform the following functions including assisting the Department in various functions like Devising operational guidelines for the Scheme roll out; Sensitisation of the industry/ potential beneficiaries on the scheme and its benefits through workshops/ road shows/ campaigns; Formulating evaluation criteria for selection of Projects based on expression of Interest/ Preliminary Proposal and evaluating the received proposals; Appraisal of the DPRs indicating financial viability, commercial sustainability and socio-economic impact for according final approval to the projects; Monitoring the Scheme progress and furnishing regular reports; and Release of grant to the SPVs based on achievement of milestones along with time lines as approved by SSC. Programme Manager’s association with the Special Purpose Vehicle (SPV), in terms of handholding and contributing for
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making the contract effective and enforceable, will be such, so as to ensure that there will be no conflict of interest. The fee payable to the PM for the said period of handholding shall be separate from the grant being given to projects.
Role of the State Government Promotion of the industrial infrastructure is normally done by the State Government, industry being the State subject. Accordingly, the State Government is envisaged to play a pro-active role in the following areas: a) State Government shall nominate and recommend the state agency such as State Industrial Development Corporation (SIDC) for execution of the project. b) State Government or its agency shall share the project cost in setting up of the plastic park in the State by the SPV as indicated in para IV ‘Funding Pattern’. c) Mandatory equity participation in SPV by State Government or its agency. d) Providing the necessary assistance for external/ access infrastructure as roads, Power, Water supply etc. e) Providing requisite land to the project, wherever needed, in appropriate mode. f ) Providing necessary project related clearances on expeditious basis. g) Providing flexible and conducive labour environment and consider special facilities like exemption of stamp duty etc. for the SPV/ units. h) Extending the benefits of other related schemes to the SPV/ member enterprises for increasing viability of the projects.
Release of funds
Criteria for final approval Establishment of SPV. Land in possession of SPV. Land should be procured and registered / transferred in the name of SPV. Quality of infrastructure, gauged by investment proposed in infrastructure (project cost minus cost of land) per acre of proposed in plastic park. (d) Total Project cost in terms of number of times of grant-in-aid from Government. Commitment of the State Government or its agency to bear the remaining project cost as detailed in para IV ‘Funding Pattern’. Execution of share subscription agreements between the SPV and its members. Equity participation by State Government or its agency is mandatory. Establishment of Escrow / Trust and retention Account in Schedule A Bank. Willingness of the financial institution to lend to the project in case external funding is envisaged. A copy of the final sanction letter should be provided. Mobilisation of at least 20 percent of equity contribution of the members including the cost of land by the SPV.
The release of Grant-in-aid will be subject to the identification of milestones and time limits for each milestone to be decided by SSC. The following schedules shall be adopted for release of Grant-in-aid to the SPV: (a) 20 percent as mobilisation advance, on Final Approval of the project, achieving the financial closure and getting the bank guarantee as decided by SSC. (b) 35 percent as second instalment. (c) 35 percent third installment and (d) 10 percent as final instalment. Second installment would be released after the utilisation of at least 60 percent of the first installment and after the proportionate expenditure has been incurred by the SPV. Third installment would be released after the utilisation of at least 100 percent of 1st and 60 percent of second installments and after the proportionate expenditure has been incurred by the SPV. Final installment would be released after SPV has mobilised and spent its entire share in proportion to grant and after 25 percent of the units in the park have become operational.
collecting user charges from the members/ user. SPV should ensure that the services of the Common Facility Centres (CFCs) created under the scheme are extended to the cluster in general, in addition to the member enterprises. The assets acquired/ created wholly or substantially out of Government grant except those declared as obsolete and unserviceable or condemned as the procedure laid down in General Financial Rules (GFR) shall not be disposed off without prior approval of the sanctioning authority.
Recall of the Central grant The Scheme Steering Committee retains the right to recall the central grant along with applicable penal interest in case of unsatisfactory use of the grant including compromise with the quality envisaged, or partial / incomplete implementation of the project.
O&M of Assets SPV should be responsible for O&M of assets created under the scheme by way of
Telecom towers to support a park’s telecom lines are must.
Source: Department of Chemicals & Petrochemicals, Ministry of Chemical and Fertilizers, Government of India
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Power of
plastics
GERMANY BASED IGUS GMBH, THE WORLD’S LEADING MANUFACTURER OF ENERGY SUPPLY SYSTEMS INCLUDING CABLES AND ALL ACCESSORY COMPONENTS, IS FURTHERING STRENGTHENING ITS COMMITMENT TO INDIA
I
ndia will emerge to be a key growth market for Germany based igus GmbH. igus, which is the world’s leading manufacturer of energy supply systems including cables and all accessory components, recently completed ten years of successful operations in India. The company, which has also pioneered research in the field of Tribopolymers, also leads the world market in the field of high performance polymer bearings. igus recently announced a slew of significant initiatives and growth plans for the India market. In the last one decade, igus has introduced, educated and grown the Indian market for innovative use of plastic technology in dry-tech bearings, high flexiTo mark the 30th anniversary of its dry-tech product group ‘iglidur’, igus has started the commemorative world ble cables and energy supply chains. Today igus supplies to diverse and fast growing tour of a retrofitted micro car. This micro car, fitted with iglidur components puts the resilience, reliability and potential of its innovative plastic technology to test, as it embarks on a round-the-world-trip. The small retrofitted sectors such as automotives, machine tools, car will travel across 20 countries in nine months. Source: igus GmbH robotics, medical, packaging, steel, food, textile, material handling, ports, cement, mining, energy, etc. continuously for the last couple of years and India is the top 10 fastest growing markets for igus globally. The company expects to Committed to India double its growth in the country over the next three years to esigus India grew nearly 25 times in the Indian market in the last tablish its undisputed leadership in the market for plastic bearing, 10 years with nearly 40 percent growth in the last financial year. high flexible cables and polymer cable chains. igus is continually igus India ranks first among its subsidiaries in growth percentage investing in India, to both enhance its sales organization as well as infrastructure for assembly, storage and distribution. It looks to expand its current network of 11 offices to over 16 across regions To further support our in the coming year and will double its sales force to support the growth plan, we would growth plans. look at investing in a Since its inception, igus India has remained debt free while state of art factory with being on a strong growth path, continuously investing into the lothe highest production cal operations. “To further support our growth plan and maintain standards in near future. the leadership position igus GmbH in the near future would look Marc Poensgen, at investing in a state of art factory with the highest production Head, International Group standards based on Lean methodologies,” said Marc Poensgen, Development – Asia, igus GmbH. Head, International Group Development – Asia, igus GmbH. 42 | The Economic Times POLYMERS | February-March 2014
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Further, he announced, “We are investing heavily in three strategic initiatives to support our growth plans for India: First, we introduced a record number of 145 product novelties and extensions at Imtex Forming 2014. We continue to invest more in material and product development. In dry-tech polymer bearings, we have over 8,000 items in local stock which today replace millions of metallic bushings, self aligning bearings, rod ends and linear guides which demands often continuous lubrication. Secondly, we are investing in delivery speed to ensure products from stock and are dispatched in 24 hours time or on the same day, to anywhere in the country. igus has no minimum order quantity, even one unit is possible. And finally, we are helping our customers reduce process and development costs significantly by investing in over 22 online tools specially for engineers besides other user friendly tools such as product finder, service life prediction, customised online catalogs with price and delivery displays, etc. which makes it extremely user friendly and reliable. Together these are meant to take the plastics for longer life philosophy that igus has practiced and continues to practice to a whole new dimension and scale”
Wide applications Elaborating on the significance and potential applications of igus innovative technology, Antony P Kurian, COO igus India, said, “Modern energy chains and chainflex cables from igus help to design and operate machines that are efficient in terms of energy and costs. Energy consumption can be drastically reduced by using the igus ready chain systems as is proven by the over 5,000 cranes running across India. Metal chains are being increasingly replaced by lighter yet rugged plastic energy chains even in the toughest of working conditions. The Chandrayan project telescope was also equipped with igus cable management system which eventually was part of the discovery of water in Moon. Thousands of gallons of oil in lubrication and millions of manhour in maintenance have been saved by the use of our dry-tech bearings which run without lubrication and maintenance be it in an auto rickshaw or a packaging line.”
Marc Poensgen speaking at a recent conference
igus India grew nearly 25 times in the Indian market in the last 10 years with nearly 40 percent growth in the last financial year. It ranks first among its subsidiaries in growth percentage continuously for the last couple of years and India is the top 10 fastest growing markets for igus globally.”
To mark the 30th anniversary of its dry-tech product group ‘iglidur’, igus embarked on an ambitious practical test to demonstrate the capabilities of the extensively tested and amply proven innovative plastics technology. A team from Cologne University of Applied Sciences under the leadership of Johannes Thomé and the igus bearing developer Michael Krug took up the project ‘plastination’ of a micro car. The aim was to replace everything possible with igus plastics, viz, brake pedal, windscreen wipers, window lift mechanism, shift unit, seat console, handbrake, alternator, throttle valve and the convertible roof. Attention was even paid to ensure visual likeness as well.
Metal chains are being increasingly replaced by lighter yet rugged plastic energy chains even in the toughest of working conditions. Antony P Kurian, COO, igus India
This retrofitted car has started its journey from India at the Auto Expo 2014 and will go on to a strenuous round-the-world trip along tarmac, gravel and mud tracks and roads across four continents. Post India it will travel to China, Japan, South Korea and Taiwan. The igus car will then make a trip to America followed by Canada. In the next part of the journey the micro car will travel to Brazil, before making its way back to Europe. Patrick Carl, International Head of iglidur Product Group, commented, “We take great care that the components manufactured are always precisely tailored to the needs of the customers. This is one of the reasons why, we have a broad range of custom-made solutions, in addition to our standard products.” February-March 2014 | The Economic Times POLYMERS | 43
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PACKAGING
Packed with
goodness
OF ALL THE MATERIALS USED FOR PACKAGING, THE ONE SINGLE MATERIAL WHICH DRASTICALLY CHANGED THE SCENARIO IS ‘PLASTICS’. PLASTICS TODAY CAN CLAIM THE HIGHEST GROWTH RATE AMONG ALL PACKAGING MATERIALS, GLOBALLY AS WELL AS IN INDIA. By Prof CS Purushothaman
A
nything and everything around us today is packaged. Packaging has become a part of our lives. Today, we are not able to imagine a life without packaging. What is packaging and do we really need it? This question can be answered only when we really imagine our life without packaging. The importance of anything is realised only when we are devoid of it, the same thing holds good for packaging as well.
During the days of Adam and Eve, there was no need for packaging. Wants were limited and all those wants were easily available. But as civilisation developed, the human race moved from place to place and it needs and wants also increased. Thus, the concept of packaging took birth. About a decade earlier, drinking water was available in plenty. Even while travelling in trains, we used to have water from each station. Today, we are not sure of the quality of water at the station and hence drinking water
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Critical functions of packaging Contains: It holds the products in a specified volume of the bag or carton pack. Small objects are typically grouped together in one package during transport for efficient handling. Alternatively, bulk commodities (such as salt) can be divided into packages that are in a more suitable size for individual households. Protects: Protection of the objects enclosed in the package from shock, vibration, compression, temperature etc. Preserves: A barrier from oxygen, water vapour, dust etc. Identifies: Identifies one product from another through its labelling. A bottle of water and bottle of spirit can be identified by a package. is packaged. We all carry a bottle of ‘Bisleri’ or ‘Aquafina’. When we want chilled water, we have bottled water kept in the freezer and have it. Fortunately, today the air we breathe is not packaged. But then, for a person climbing the mountain glaciers needs packaged air (Oxygen). Why? It is not available in the required quantity. Its distribution is not enough. So, ‘Packaging is not an Absolute Need, but a Derived Need’. You need mangoes in the non-mango season, so it has to be packaged. It is human being’s wants today that have resulted in packaging. You need a television set; hence it has to be distributed from the factory and stores. It cannot be just sent as-is because distribution will fail to deliver the goods in good and safe condition, hence packaging is needed. ‘When Distribution Fails, Packaging Steps In’.
Functions of packaging
Educates: Information on how to use, transport, recycle or dispose of the package or product is often contained on the package or label. Dispenses: Features which add convenience in ease of dispensing, dosing, distribution, opening, re-closing, use and re-use.
With passage of time, the packaging industry and packaging techniques have undergone drastic changes. The stress has always been at reducing the after-use waste, reusing the containers wherever possible and recycling the waste to a maximum extent possible. Packaging does a lot of functions, but the critical functions are that it contains, protects, preserves, identifies, educates and dispenses.
Packaging can be described as covering the product with one or more suitable materials for ease in handling, transportation and marketing. Packaging not only differentiates one brand from another, but also at times, gives a preview of the product being sold. In techniThe role of cal words, packaging is defined as ‘the science, packaging continues art and technology of enclosing or protecting from the coordinated products for distribution, storage, sale and use’. system of preparing Packaging also refers to the process of design, goods to the end evaluation and production of packages. use. Packaging Most of the time, packaging is accompacontains, preserves, nied with attractive and informative labelling. protects the product A package label is any written, electronic or during its transport graphical message on the container of the packand informs the aged product. The role of packaging continues customers about from the coordinated system of preparing goods the properties of the to the end use. Packaging contains, preserves, protects the product during its transport and inproduct during its forms the customers about the properties of the sale. product during its sale.
Plastics for packaging Of all the materials used for packaging, the one single material which drastically changed the scenario is ‘Plastics’. The invention of plastics revolutionised packaging. So little wonder that plastics today can claim the highest growth rate among all packaging materials, globally as well as in India. A study by Pira International (See box) indicates the global trend in the use of plastics packaging for 2011 and 2016.
Performance When the packaging requirements are tough, plastics are often the answer. Sometimes, they are the only answer - performing tasks no other material can perform and providing consumers with products and services no other material can provide. Different plastics offer differ-
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ent qualities, giving manufacturers and consumers the freedom to choose the type of plastic that best suits the application. Plastics can be rigid when protection is needed or flexible for convenience’s sake. They can be clear or opaque. They can also be moulded into a wide variety of shapes and sizes. Offering safety, quality, convenience and savings, plastic packaging meets needs.
Safety by design
Global trends in the use of plastics packaging Segment Flexible packaging Flexible plastic packaging Flexible foil packaging Flexible paper packaging Rigid plastic packaging Board packaging Metal packaging Glass packaging Other packaging
2011 20.4% 13.6% 1.7% 5.1% 22.1% 30.5% 15.6% 6.7% 4.7%
2016 (Estimated) 21.6% 14.9% 1.7% 5.0% 24.4% 29.4% 14.3% 6.4% 3.9%
In medical facilities, plastic packaging offers a superior ability to protect products against contamination and, consequently, patients against infection. The chemical resistance, transparency and toughness of plastics enhances safety and efficiency in both, the laboratory and day-to-day hospital use. Plastics, which can Source: Pira International conform to any shape and guard against impurities, are the perfect materials for shipping and storing intricate slippery. Plastic packaging for shampoos, harsh medical instruments. For uses such as seechemicals and motor oil make at home tasks through intravenous bags and break-resistant easier and less hazardous. Extremely containers, plastic packaging has proven indisChild-resistant plastic closures and leaklightweight and pensable in modern medical care. In the home, proof plastic containers for medicines and chemmoulded to promote break-resistant, shatterproof and no-spill plastic icals provide safety for tots and peace of mind easy handling, bottles cut down on injuries and clean-ups anyfor parents, while tamper evident closures and plastic containers where where the floor is hard and hands may be shrink-wrap bands made of plastic help protect allow consumers to consumers from tampering. Food-service outlets enjoy the savings and their customers rely on plastic packaging to of beverages, protect food products against contamination and detergents and retain desired temperatures, longer. other products in the Single-serve plastic packaging for condi‘large economy size’. ments not only preserves freshness and flavour, but also ensures the consumer a sanitary portion while cutting down on food waste.
Urban requirement Plastic packaging moulds itself to modern lifestyles. Today’s working parents and busy homes rely on its convenience and the services it provides. Microwave ovens have become a near necessity in American homes (in fact, they are already becoming so in urban India), and plastic trays are the package of choice for consumers. Microwave cooking enables active people to eat well without spending their limited leisure time on food preparation. The elderly, too, benefit from the ease of microwavable food packaging. Plastic packaging also preserves flavour and saves time in conventional cooking and storage. Squeeze bottles for condiments, boilin-bag dishes, re-sealable bags for everything from shredded cheese to cereal, freezer bags that protect food against ice crystals, precooked food that are microwavable in the package, all contribute to quality meals in the home. Extremely lightweight and moulded to promote easy handling, plastic containers allow consumers to enjoy the savings of beverages, detergents and other products in the ‘large economy 46 | The Economic Times POLYMERS | February-March 2014
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size’. Plastic packaging, which can be transparent without being fragile, enables consumers to see what they are getting and to serve themselves. In addition to saving space in today’s smaller living quarters, plastic packaging can be as decorative as it is serviceable. Further, it would not leave rust rings on counters and fixtures. For a host of personal and home products, plastic packaging works well and looks good, too.
Recycled plastic soft-drink bottles are being used to create new products such as new bottles, fibre-fill for winter clothing, carpeting and building materials. Recycled plastic milk jugs and soft-drink bottle base cups are being used to create drainage pipes, buckets and plastic ‘lumber’ for boat docks. Mixed plastics are being recycled into landscaping ‘timber’ and outdoor benches. Plastic packaging can be disposed of safely in landfills. When incinerated, plastics – with their high energy content - help the waste mix burn more efficiently, enhancing waste-to-energy conversion and leaving less ash for disposal.
Consumer choice
Plastic packaging continues to have the wrap on consumer preference. Freshness, storage stability and ease of preparation are among the consumer goals driving the popularity of plastic food packaging. New ideas include plastic containers for cereal, coffee, Commercial aspects spices and baby food, as well as squeeze bottles that allow portion Use of plastics for shipping and storage will continue to grow. control of juice concentrates and keep contents fresh in the refrigStrong, durable and tear resistant, plastic packaging saves energy, erator for up to five weeks. Freezer-to-oven-to-table, plastic food space and money. Plastic containers, which generally require less packaging is now available for both, microwave and conventional energy to manufacture than other packaging, also require less fuel oven use. Plastic container design itself is participating in cookto transport than heavier materials. Additional ing, with innovations such as tapered popcorn savings come from reduction in shipping damboxes that keep the kernels in the hot oil and age and elimination of the need for additional microwavable cake mixes with reusable trays. Plastic containers, packing materials, such as partitions between In other types of packaging as well, consumwhich generally individual products. Strong enough for stacking ers and hospitals, schools and other institutions require less energy and mouldable into shapes - saving space, plastic that serve them increasingly are turning to plasto manufacture than tics. Safe, sanitary, easy-of-use and economical; containers can maximise warehousing room and other packaging, lower storage costs. plastic packaging is the shape of the future. also require less fuel Meeting unique packaging needs - from antistatic protective packaging for electronic compoThe author is Former Chair Professor & Director at to transport than nents to shelf-stable containers for products that SIES School of Packaging heavier materials. once required costly cold storage - are a speciality of plastics. Because they can be moulded to fit contours, plastics provide the ultimate protection in packaging office machines, entertainment units, computer components and other delicate products. They are tough enough to withstand the stress of transportation, yet capable of screening out even the smallest particle of dust, plastic packaging delivers. These factors all add up to savings for producers and merchants and can result in lower prices for consumers.
Some myths After their intended use, plastic containers often can be used again - for the same or a different purpose. Plastic grocery sacks can take wet swimsuits home from the beach or garbage to the bin. In the hands of ingenious consumers, plastic milk jugs become planters and plastic soda bottles are converted to bird feeders. February-March 2014 | The Economic Times POLYMERS | 47
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Investment hubs TO MAKE THE COUNTRY AN IMPORTANT HUB FOR BOTH DOMESTIC AND INTERNATIONAL MARKETS, THE GOVERNMENT HAS DECIDED TO ATTRACT MAJOR INVESTMENT THROUGH THE PETROLEUM, CHEMICALS & PETROCHEMICAL INVESTMENT REGIONS (PCPIRS). WE PRESENT A COMPREHENSIVE FACT SHEET.
T
he Petroleum, Chemicals and Petrochemical industry in India is well established and has recorded a steady growth over the years. The industry offers a wide scope for development that contributes positively to economic growth and regional development. The future
Mind boggling numbers The said PCPIRs are expected to create infrastructure worth Rs39,744 crore covering roads, rail, air links, ports, telecom, power, water treatment, sewerage, effluent treatment and green buffers etc. The industrial investment in these regions is expected to be to the tune of Rs4,86,180 crore and the employment generation is expected to be to the tune of about 30 lakh persons over a period of a time.
outlook for the industry is bright with positive developments anticipated in various chemical sub sectors. To promote investment in this sector and make the country an important hub for both domestic and international markets, the government has decided to attract major investment, both domestic and foreign, by providing a transparent and investment friendly policy and facility regime under which integrated Petroleum, Chemicals & Petrochemical Investment Regions (PCPIRs) could be set up. The PCPIRs would reap the benefits of co-siting, networking and greater efficiency through the use of common infrastructure and support services. They would have high-class infrastructure, and provide a competitive environment conducive for setting up businesses. They would thus result in a boost to manufacturing, augmentation of exports and generation of employment.
The concept A PCPIR would be a specifically delineated investment region
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Guidelines for consideration a PCPIR Proposal Potential generation of additional economic activity and future growth, including generation of additional employment. Potential investment from domestic and foreign sources for production of goods & services. Potential linkages for Petroleum, Chemical and Petrochemical investment facilities both domestically and internationally. Willingness and commitment of the State Government. Interest of major anchor industry including PSUs. Present infrastructure linkages to the proposed site, and estimated cost of required addition/ upgradation. Land availability, especially close to a port Port connectivity/port condition (available draft, existing facilities, natural calamity risk). A PCPIR would be a combination of production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services.
with an area of around 250 square kilometres planned for the establishment of manufacturing facilities for domestic and export led production in petroleum, chemicals & petrochemicals, along with the associated services and infrastructure. A PCPIR would be a combination of production units, public utilities, logistics, environmental protection mechanisms, residential areas and administrative services. It would have a processing area, where the manufacturing facilities, along with associated logistics and other services, and required infrastructure will be located, and a non-processing area, to include residential, commercial and other social and institutional infrastructure. The minimum processing area for the PCPIR will be about 40 percent of the total designated area, i.e., around 100 sq km. The processing area may or may not be contiguous. The PCPIR may include one or more Special Economic Zones, Industrial Parks, Free Trade & Warehousing Zones, Export Oriented Units, or Growth Centres, duly notified under the relevant Central or state legislation or policy. All the benefits available under the relevant legislation or policy will continue to remain available to the said Zones or Parks, as the case may be, forming part of the PCPIR. The PCPIR could cover existing settlements/industries & estates/ services and would therefore benefit from and be complementary to the region. The concerned state government may not acquire the entire area comprising the PCPIR, but it will notify the same under the relevant Act for proper planning and zon-
Maintenance of ecological balance and sustainable development in the region and ensure conformity with Environmental Laws in force.
ing to ensure coordinated development. (The word ‘state’ as used herein shall include Union Territory). Each PCPIR would have a refinery/ petrochemical feedstock company as an anchor tenant. The internal infrastructure of the PCPIR will be built and managed by a Developer, or a group of Co-developers. The external linkages will be provided by Government of India and the concerned state government. The users of external as well as internal infrastructure will pay for its use, except to the extent that the government supports the service through budgetary resources.
State government’s role The State Government would play the lead role in setting up of the PCPIR. It would identify a suitable site, prepare the proposal and seek approval as elaborated below. It will notify the PCPIR area under the relevant Act, and acquire/ assist in acquiring the land necessary for setting up of the infrastructure, processing and non-processing areas. The acquisition of land if any must be in accordance with law and must provide for rehabilitation as per the laid down norms. As far as possible, acquisition of agricultural land may be avoided. The State Government, applying for a PCPIR, will ensure that after notifying the area, all physical infrastructure and utilities linkages under its jurisdiction are provided within a stipulated time frame. The State Government will notify a nodal Department, which will coordinate these linkages. This Department February-March 2014 | The Economic Times POLYMERS | 49
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along with relevant authorities will facilitate all clearances required from the State Government. In particular, the State Government will be responsible for providing/facilitating the infrastructure including Power connectivity and availability of reliable and good quality power. The units may also seek open access as per the regulations of the State Electricity Regulator Commission. The State Governmentâ&#x20AC;&#x2122;s responsibility will also include provision of bulk requirements of water; road connectivity (State roads); sewerage and effluent treatment linkages, from edge of PCPIR, to the final disposal sites; and appropriate infrastructure to address the health, safety and environmental concerns. The State Government may also notify an additional package of incentives for the develA guideline for consideration of the proposal is Land Availability, especially close to a port opment of the PCPIR. The State Government would constitute a Management Board for development and management of the PCPIR, with functions as will be the nodal department of the Government of India for the detailed below. This may be done under the relevant state Act; the PCPIRs. A High Powered Committee constituted by the Govstate will legislate a new Act if necessary. ernment of India will scrutinise applications for setting up the PCPIR, and subsequently monitor and expedite the progress of Institutional framework implementation. The Department of Chemicals and Petrochemicals (DoC&PC) A Management Board constituted by the concerned state government for each PCPIR, under the relevant legislation, will be responsible for the development and management of the PCPIR. It will also be empowered to issue/expedite state level approvals. If the state legislation permits, the Board may be an SPV in a corporate form headed by a CEO with sufficient autonomy, with the participation of the Developer or Co-developers, as well as The Government of India will consider under this the anchor tenant. In addition the State Government should also Policy all applications for establishment of PCPIRs constitute a supervisory body as a PCPIR state level Empowered and approve expeditiously such proposals as are Committee to: a) monitor, review and appraise the functions and found feasible. It will constitute a High Powered Committee to ensure necessary coordination among the performance of the PCPIR, b) deal with issues relating to discentral ministries and state government, and also putes between the stakeholders, and c) Any other function as may monitor the progress of environmental and other be prescribed by the State Government.
Central Governmentâ&#x20AC;&#x2122;s role
clearances, as well as development of the PCPIR, at required intervals.
Government of India will ensure the availability of external physical infrastructure linkages to the PCPIR including Rail, Road (National Highways), Ports, Airports, and Telecom, in a time bound manner. This infrastructure will be created/upgraded through Public Private Partnerships to the extent possible. Central Government will provide the necessary viability gap funding through existing schemes. Wherever necessary, requisite budgetary provisions for creation of these linkages through the public sector will also be made. Government of India will also support the state government concerned, and its agencies, in the dissemination of information, with a view to promoting domestic as well as global investment in the PCPIR.
Procedure The application for notification of a PCPIR shall be moved by the State Government concerned to the nodal Ministry namely Department of Chemicals & Petrochemicals. The State Government will attach with its application a Project Proposal as per format at Annex 2. DoC&PC would ensure, in consultation with the State Government, and the central Ministries concerned, that the proposal is as per this Policy and then place it before the High Powered Committee for its recommendations. DoC&PC will place the recommendations of the High Powered Committee before the Cabinet Committee on Economic Affairs for decision. The Note submitted to the CCEA for approval of a PCPIR will clearly state the commitments of GoI to the provision of infrastructure (National highways, Railways, Ports, Airports, Telecom) in a time bound manner. Each PCPIR will be notified separately by DoC&PC after
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CCEA approval in each case. Each concerned central Ministry will then prepare detailed project reports, and obtain financial approvals to the same expeditiously as per extant guidelines of Ministry of Finance. Department of C&PC will enter into a Memorandum of Agreement with the State Government concerned, indicating the respective commitments, with timelines, of the Central and State Government, after the PCPIR has been approved by CCEA and notified by Department of C&PC. The Management Board will, after notification of the PCPIR, prepare a detailed master plan using the expert assistance of a technically qualified consultant. The consultant will be selected after following a transparent process. The master plan will consist of a regional development plan specifying land use for processing and non-processing areas, as well as technical details regarding the number and nature of downstream units that may come up in the PCPIR, based on available feedstock. It will be prepared in consultation with the anchor tenant, if in place by then. The master plan as finalised through the above process, shall be appraised by the competent authority under the relevant state law to give it appropriate statutory status. In case an amendment is required to the concept and design of the project, as encapsulated in the preliminary project report submitted by the State Government, the same may be done in accordance with procedure provided in the State Law. Proposals for setting up units in the PCPIR will be granted approval by the Management Board, or such authority to which these powers are delegated, after obtaining such clearances as are necessary. Such clearances and approvals will be granted within a stipulated period of time, as prescribed by the concerned state government.
Functions of the management Each Management Board will undertake such measures as it thinks fit for the development, growth, operation and management of the PCPIR. These measures will include: Preparation and enforcement of the detailed Master Plan. Providing the necessary infrastructure within the PCPIR, either directly or through Developer(s). Selection of Developer/Co-developers and entering into concession agreements with them for the development and maintenance of infrastructure internal to the PCPIR. Promotion of investment, both foreign and domestic, into the PCPIR. Promotion of production within, and exports from, the PCPIR. Granting approvals for, and facilitating clearances to units within the PCPIR. Review of the functioning and performance of the PCPIR. Regulation of levy of user or service charges or fees or rent for the use of infrastructure / properties in the PCPIR. Exercise of authority to delegate, enter into or create SPVs for specialised services. Any other functions as may be prescribed by the State Government.
Developer and co-developer The Developer is a legal entity - Government, private or a Public Private Partnership- that develops, builds, designs, organises, promotes, finances, operates, maintains or manages a part or whole of the infrastructure and other facilities in the PCPIR. The Developer would be selected by the State Government/ Management Board through a transparent mechanism. The required land within the PCPIR will be made available to the Developer by the State Government, through the PCPIR Management Board, by way of a concession. A Co-developer will be a legal entity- Government, private or
a Public Private Partnership- that assists the developer in providing infrastructure facilities in the identified area or to undertake various operations after entering into an agreement with the developer for providing the same. The benefits of tax holidays as provided under Section 80(I) (A) of the Income Tax Act for development, operation and maintenance of power plants, airport, ports, waste management facilities, water treatment plants, etc. would be available to the Developer / Co-developers.
Units in the PCPIR
Existing and proposed infrastructure for external linkages, including rail, road, port, airport and telecom, is to be provided upto and within the PCPIR location.
Any chemical or related industry / service that will support chemical industry in the investment region for manufacturing, stocking, trading including logistics and utilities with local linkages, and for which site is available as per the approved detailed Master Plan, will be eligible for being set up in the PCPIR, and may apply to the Management Board in such form as will be specified by the authority concerned. The Management Board, or the authority to which
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INFRASTRUCTURE
such powers are delegated, will allot sites to units through a transparent process as specified. A unit located in PCPIR, whether in SEZ or elsewhere, may produce / export goods and services except those prohibited either for manufacture or export under the EXIM Policy or any other Act in force. Rejects, waste, and scrap arising out of the produc-
*Processing area to include
Total area, with location/demarcation on map. Existing units and vacant land available. Land acquired and proposed to be acquired. The existing and proposed processing activities in the PCPIR. The feedstock required for the anchor unit(s), with its source and availability.
*Non-processing area
Identified areas with location/demarcation on map. Existing and proposed availability of basic and social infrastructure, trained manpower, educational institutions and training facilities etc. Whether the state government has identified a) an anchor tenant; if so, the proposed investment plan of the anchor tenant, if available; b) Developer(s). (Note: Details of the procedure adopted/ proposed to ensure transparency in the selection of Developer(s) may also be provided.) The time frame by which a detailed Master Plan would be formulated and adopted. A rapid Environmental Impact Assessment (EIA) report. Estimated potential for generation of additional economic activity and future growth, including potential investment from domestic and foreign sources. Existing and proposed infrastructure for external linkages, including rail, road, port, airport and telecom, as well as infrastructure such as power, water as per manual on water supply norms and details of cost sharing with local bodies, if any and effluent disposal as per CPCB norms to be provided upto and within the PCPIR location. Financial aspects of the proposal, including source, mode of financing the project and assessment of viability of the project. Proposed management structure of PCPIR including the administrative, regulatory and development functions; the nodal department/officer of the state government may also be indicated. The commitment of the state government in providing/ upgrading basic infrastructure in PCPIR and the cost estimates of the same. The external linkages for which support is required from the Central Government, and their tentative costs.
The PCPIRs would reap the benefits of co-siting, networking and greater efficiency through the use of common infrastructure and support services.
tion process could be exported or sold outside the SEZ. Export of Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) items would be as per the law in force.
Exit options In case the Developer, or any Co-developer, is unable to discharge his functions, or violates the terms and conditions of the concession agreement, the same may be transferred to a new Developer/ Co-developer under terms and conditions to be provided in the concession agreement between the Developer/Co-developer and the Management Board. Any unit that wants to exit out of the PCPIR will be allowed subject to payment of applicable dues and in compliance with the agreement with the Management Board in this regard.
Dispute resolution mechanism The concession agreement(s) executed by the Management Board with the Developer/Co-developer(s), and the agreements with the anchor tenant and other units, may contain the condition that any dispute, difference or controversy of whatever nature arising under or out of or in relation to any Agreement (including its interpretation) between the parties in the PCPIR, shall be notified in writing by either party to the other party and such dispute, difference or controversy shall, in the first instance be attempted to be resolved amicably by mutual consultation and if no solution is arrived after such consultation, the same may be referred to the International Centre for Alternate Dispute Resolution, New Delhi or such other rules as may be mutually agreed by the parties, and shall be subject to the Arbitration and Conciliation Act 1996 and amendments made thereto from time to time.
Format for project proposal* The Project Proposal to be provided by the State Government, along with its application to the Department of Chemicals and Petrochemicals, GOI for setting up a PCPIR will include, inter alia, the legal framework in the State under which the PCPIR is proposed to be formed, including whether this would be under an existing Act or under a new legislation to be enacted for this purpose. It will also include the location along with demarcation of the identified area with map and clearly identifiable landmarks. Source: Department of Chemicals & Petrochemicals, Ministry of Chemical and Fertilizers, Government of India
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STATEMENT OF OWNERSHIP Statement about the ownership and other particulars about newspaper entitled THE ECONOMIC TIMES POLYMERS as required to be published in the first issue of every year after the last day of February.
FORM IV (See Rule 8) 1. Place of Publication:
The Times of India Building Dr. D. N. Road, Fort, Mumbai 400 001
2. Periodicity:
Bi-Monthly
3. Printer’s name:
Mr. Joji Varghese for the Proprietors, Worldwide Media Private Limited
Nationality:
Indian
Address:
The Times of India Building, Dr. D. N. Road, Fort, Mumbai 400 001
4. Publisher’s name:
Mr. Joji Varghese for the Proprietors, Worldwide Media Private Limited
Nationality:
Indian
Address:
The Times of India Building, Dr. D. N. Road, Fort, Mumbai 400 001
5. Editor’s name:
Niranjan Mudholkar
Nationality:
Indian
Address:
The Times of India Building, Dr. D. N. Road, Fort, Mumbai 400 001
Names and addresses of individuals who own the newspaper and partners or shareholders holding more than one per cent of the total capital as on February 28, 2014 in the company- Worldwide Media Private Limited (Owner), The Times of India Building, Dr. D. N. Road, Mumbai 400 001
Bennett, Coleman & Co. Limited (Shareholder holding more than 1% of total capital), The Times of India Building, Dr. D. N. Road, Mumbai 400 001
I, Joji Varghese, hereby declare that the particulars given above are true to the best of my knowledge and belief.
(Joji Varghese) Date: March 1, 2014 Signature of the Publisher
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INNOVATION
Smart materials
for smart phones
INNOVATION IN PLASTICS HAS ENABLED THE CREATION OF A SMART PHONE THAT’S THINNER, HAS MORE DURABLE WALLS, AND HAS AN ANTENNA-INTEGRATED FRAME
S
ince the invention of smart phones, manufacturers have worked towards making them increasingly thin, compact and lightweight to keep pace with growing consumer demands. In addition, an emphasis on aesthetics has led consumers to increasingly value the look and feel of a device, alongside its functionality, further challenging OEMs to design a phone that is smaller yet visually appealing. To address these customer demands, Xiaomi has selected Sabic’s LNP Thermocomp compound, LNP Thermocomp LDS and Lexan EXL resin (all trademarks of Sabic) to create its new Mi2A smart phone. This smart phone is designed to meet complex technical specifications without sacrificing design and aesthetic appeal, allowing it to stand apart from the competition. “As consumers continue to seek out smaller, thinner smart phone devices that are Xiaomi Inc found multi-functional, manufacthe new grade of turers are increasingly lookLNP Thermocomp ing for new ways to consolicompound to be date parts while ensuring that especially wellthe materials comprising the suited for making more compact device remain a device frame as compatible,” said Matthew it delivered the Gray, Global Marketing Didesired balanced rector, Consumer Electronics, from Sabic’s Innovative mechanical Plastics division. “We delivproperties. ered a combination of materials which enabled Xiaomi to integrate the antenna into the frame of the phone.” The new grade of LNP Thermocomp compound, along with LNP Thermocomp LDS, was used by Xiaomi to create the new smart phone frame, which required strength, stiffness and impact resistance, as well as the integrated antenna. This feature is attractive because it can reduce the size of the smart phone device and eliminate the secondary process of incorporating a separate antenna into the phone, both of which may help the customer to reduce assembly time and cost. Additionally, the Lexan EXL resin
The Lexan EXL resin enables a variety of rich colour options.
was selected to allow for rich, jewel-toned colours for the backing of the device. The two LNP Thermocomp compounds enable reduced weight, parts reduction and thin-wall strength. Xiaomi Inc found the new grade of LNP Thermocomp compound to be especially well-suited for making a device frame as it delivered the desired balanced mechanical properties such as stiffness and strength, in addition to good impact resistance. It also helped provide a surface that enabled a high yield rate for non-conductive vacuum metallisation and painting, two processes that are often used on device frames. Xiaomi also selected LNP Thermocomp LDS compound for the laser direct structuring of the antenna itself. Laser direct structuring is a sophisticated process used for integrating electronic and mechanical functionality into a single module, and the process is made possible due to the properties of the compounds used in the antenna. An integrated antenna can ultimately help device makers reduce the depth of a phone to less than 10 mm and consolidate space, enabling greater design freedom. The Lexan EXL resin enables a variety of rich colour options while also providing other important features such as superior impact resistance, low temperature ductility and chemical resistance. It also enables improved processability over other polycarbonate resins, helping the customer reduce cycle time and increase manufacturing efficiency, which can ultimately lead to lower production costs.
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