Transcript Plastics Processing Machinery Manufacturers of India

Plastics Machinery Manufacturers
Association of India (PMMAI)
Plastics Processing Industry : An Overview
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No of Processing units 10-11
 ~ 22,000 (published)
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Processing Capacity
 29.7 MMT
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Processing Capacity growth CARG  13 % last 5 years
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Polymer cons. in 12-13
 11 MMT
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No of processing Machines
 ~ 113,000
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No. of known plastics machinery manufacturing units : ~ 200
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Present Domestic Machinery Market  ~ Rs.3000 Cr pa.
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Employment in Machinery Sector
 ~ 1.2 Mn (Direct + Indirect)
Emerging processing Industry
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Estimated Sector wise Processing Industry
(Excluding Mortality)
Injection Moulding
Blow Moulding
Extrusion Total
Monolayer Film
Multilayer
BOPP
PPTQ Film
Raffia
PO Pipes
RPVC Pipe
Others
Total
No. of
Machines
Installed
Installed
Capacity (KT)
72230
9425
9010
1300
31620
19000
9300
1610
1300
1050
36
700
2950
640
1780
2700
1400
1560
5200
5410
9654
5330
112860
29725
March, 2013
Installed Capacity being ~ double the amount processed!
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Industry Growth : from 2000-01 to 2012-13
Inst. Cap. /
Consumption (KT)
CARG %
• No. of Machines
: ~ 7%
• Polymer Consumption : ~ 10%
• Installed Capacity
: ~ 11%
No. of Machines
Despite hiccups, growth foreseen
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Opportunities by 2020…….
30000
…..Project investment to the tune of 65,000 Rs. Cr.
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Plastics Machinery : Growing share of Imports
3110
4705
6482
5872
Total Machines Added (2002-03 to
2012-13) : 7.3% CARG
Growth in ::
Domestic Machine Sale : 5.1%
Imports : 27.2%
Need to enhance share of domestic machines
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Technology….
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Indian technology competes globally –
– Compounding Lines
– Tape Lines & looms
– Multilayer Film plants
– Pipe plants
– Injection Moulding Machines
– Rotomoulding Machines
– Thermoforming Machines
– Auxiliary equipments such as bag making machines, Material conveying
systems, Mold temperature controllers & chillers etc.
….We command respect world-wide!
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We lose due to higher Cost of Production
External Factors:
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Higher Input Cost –
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Technology parts from imports average 25% to 50% of material costs. Attract 7.5% customs duty
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Seek customs duty reductions
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Government policies to encourage domestic manufacturing
Taxation at every transaction adds to the costs (our system adds 6% to cost)
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Seek reduction in tax incidence, support GST
Internal Factors:
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High inventories & High inventory carrying cost
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Capability of supply chain
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Low productivity
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Need Efficient supply chain, vendor development & common vendors base
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Improve operational efficiency through process and system improvements
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Technological upgradation of equipments
Low productivity of labor due to low skill level
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Train manpower to impart requisite skills and periodically refresh the skills
Framing new strategies for cost reduction
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Longer Delivery Times
• Why is delivery time of Indian Machines longer than manufacturers
of Far East?
– Longer lead times for parts
• Need to develop efficient supply chain, common vendor base can help
– Availability of trained and skilled manpower
– Most have not adopted modern manufacturing processes & systems
such as forecasting, advance planning with use of ERP
Joint effort and Government support
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Quality of workmanship suffers
• We do not maintain consistency in production processes
– Operators are not trained for requisite skills & discipline in working
– No pre-requisite qualification and training for contract labor
• Inadequate planning leads to rushing the product in assembly closer
to delivery date
– Need to develop forecasting and planning processes
Joint effort and Government support
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Are Used Machines really cheaper?
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Market data since 2005 indicates that 1/3rd of machines imported in India
are Used Machines…..
– These machines suffer from
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Old Technology
Quality capability
High energy consumption
Poor control and high polymer consumption
Low productivity, high breakdown maintenance cost
Are these machines really cheap?
At first glance these look cheap but user need to be informed of
hidden costs in such a deal.
Mindset to be changed by coordinated efforts
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Need of the hour…
Internal Actions:
– Showcase our best in class Indigenous technology
– Develop common vendor base for essential parts to achieve cost competitiveness
– Share best practices amongst all members
– Invest in best manufacturing facility, systems & practices
External Support:
– Communicate Industry strengths to Government Ministries and Institutes
– Represent our issues and requirements
– Promote training and skill development programs for industry manpower
Cooperate and Coordinate Joint Efforts
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And we speak in one voice….
Purpose:
- Can be heard at national & international level
- Network of decision makers & Specialists
- Market, Statistics, economy linkages
- Technology, Exports, Business promotion
- Laws, Taxes, Government co-ordination
- e-business, Seminars & Industry portals
- Publications / Information sharing
….together we grow!
July 7, 2015
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Plastics Machinery Manufacturers
Association of India (PMMAI)
To create competitive advantage for our customers.
To provide comprehensive process solutions
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PMMAI - Main Objectives
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PMMAI is non-profit organization created to promote the advancement of
Plastics Machinery Manufacturing Industry of India
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PMMAI will do so with cooperation and coordination at national and
international level
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PMMAI will facilitate development of skilled manpower for the industry
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PMMAI will develop industry-academia linkage
To increase Indian Plastics Machinery’s global contribution
2% (2010-11)  6% (2016-17)  10% (2020-21)
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Vision
• Indian plastics machinery industry will be a global
player providing to customers leading technology
products at competitive price. We shall contribute
to the success of the processing industry and earn
their patronage as a preferred supplier of
machinery. We shall be dominant player in the
domestic market.
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Vision - Alternate
• By using inclusive and cooperative approach to
raise the level of Indian Plastics Machinery to the
world-scale in terms of Quality, Technology , Cost
Competitiveness and Process Standards, and
thereby create value for plastic industry and
nation.
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Mission
• We shall raise the level of Indian Plastics Machinery
to the world class in terms of Quality, Technology ,
Cost Competitiveness and Process Standards
through Inclusive and cooperative approach and
create value for the plastics industry.
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Mission - Alternate
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Technology upgradation by sharing information amongst
members and enhancing Government support.
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Enhance production efficiencies thru’ cluster formation and
vendor development
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Industry growth through domestic as well as export market
development.
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Represent to Government and other bodies to highlight issues
relating to policy affecting Plastic Machinery Manufacturers.
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To have (over 50%) plastic Indian machine manufacturers as its
members and represent all stakeholders
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Promote interest of all stakeholders
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Strategy
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Technology upgradation by sharing information amongst members
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Technology upgradation through Government programs
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Enhance production efficiencies thru’ cluster formation and vendor
development
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Industry growth through domestic as well as export market
development.
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Promote interest of all stakeholders
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Represent to Government and other bodies to highlight issues
relating to policy affecting Plastics Machinery Manufacturers.
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To have (over 50%) plastics Indian machine manufacturers as its
members and represent all stakeholders
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Action Plan
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Strengthen PMMAI membership
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PMMAI will help strengthen the network of industries providing auxiliary
equipment as well as input raw materials for prime equipment.
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Affiliation with other national and regional associations.
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Inclusion in PlastIndia foundation as constituent member
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PMMAI will facilitate in identifying gaps in skills, standards and capabilities and
will help to fill these through knowledge sharing seminars, workshops and training
programs.
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Action Plan (Cont’d)
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Hold joint Seminars for the benefit of member companies to share information
on best practices adopted for improving quality, productivity etc.
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Trade Show delegation & study tours
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Organize Road shows - B2B Meetings at select high growth areas
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PMMAI will promote it’s independent identity, keeping in minds its position vis-àvis Government ministries
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Regular representation to parent Ministry and interaction with Government
Ministries and agencies
Industry Members are welcome to provide their suggestions
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Activities Undertaken
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Represented to Government for increasing duty drawback for Plastics machinery – duty
drawback increased to 2% from 1%
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Represented to Government for additional countries as focus market for Plastics
machinery – Addition of USA and Europe for 1 year
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Include Plastics processing machinery in Focus product scheme
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Separate HS codes for Plastics Machinery which is presently clubbed under “others
category” – shall be used for export incentive schemes
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Separate HS code for technical items used in construction of machinery, - HS code
have been generated by DHI and proposal sent to Department of Commerce.
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Recommendations for reduced duty are under consideration with Revenue
Secretary.
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Activities Undertaken (Cont’d)
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Representation to reverse customs duty reductions under PTA/FTA – In fresh FTAs
plastics machinery is not included in reduced customs duty category.
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Restrict used machinery imports – Presently under review with Tariff
Commission.
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PMMAI has joined Capital Goods Sector Skill Council (CGSC) and
participating in preparation of National occupational standards (NOS)
content. Core Skills for PMMAI
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Set up TUF Scheme –PMMAI has requested subsidized interest for
technology upgradation similar to Textile machinery TUF scheme. DHI
to provide draft scheme
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Membership
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PMMAI is a company limited by shares not for profit under section 25
of the companies act, 1956
Governing body constitutes of 10 elected members, Governing body is
the Board of Directors
Who can become members:
– Manufacturers having manufacturing facility in India
• Primary processing machinery
• Post forming processing machinery
• Auxiliary equipments
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Categories of Members :
– Ordinary Members :
• Turnover >3 Cr
• Will have voting rights
• Admission Fee : Rs.25,000/- (one time)
- Associate Members :
• All others
• Will not have voting rights
• Admission Fee : Rs.10,000/- (one time)
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Membership
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Voting Rights :
Annual Turnover in Rs. Crores
No of
Shares
More than 3 Crores and upto Rs.25 Crores
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More than 25 Crores and upto Rs.50 Crores
2
More than 50 Crores and upto Rs.100 Crores
2
More than 100 Crores and upto Rs.250 Crores
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More than 250 Crores and upto Rs.500 Crores
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More than 500 Crores and upto Rs. 1,000 Crores
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More than 1000 Crores and upto Rs. 10,000 Crores
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More than 10,000 Crores
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Annual Subscription:
Ordinary Member based on gross annual turnover in Plastics and
ancillary Machines and printing machines
Further details will be available from Secretary General
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Invitation
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Plastics Machinery Manufacturers Association of India (PMMAI)
invites all of you to be part of this association - to support Industry’s
cause and contribute to progress and enhance market share of All
Domestic machinery Manufactures
Together We Prosper!
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Thank You