Plastics Machinery Manufacturers Association of India (PMMAI)

Plastics Processing Industry : An Overview

• No of Processing units 10-11 ~ 22,000 (published)

• Processing Capacity 29.7 MMT

• Processing Capacity growth CARG 13 % last 5 years

• Polymer cons. in 12-13 11 MMT

• No of processing Machines ~ 113,000

• No. of known plastics machinery manufacturing units : ~ 200

• Present Domestic Machinery Market ~ Rs.3000 Cr pa.

• Employment in Machinery Sector ~ 1.2 Mn (Direct +

Indirect)

Emerging processing Industry

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Estimated Sector wise Processing Industry (Excluding Mortality)

Installed Capacity being ~ double the amount processed!

March, 2013

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Injection Moulding 72230 9425

Blow Moulding 9010 1300

Extrusion Total 31620 19000

Monolayer Film 9300 1610

Multilayer 1300 1050

BOPP 36 700

PPTQ Film 2950 640

Raffia 1780 2700

PO Pipes 1400 1560

RPVC Pipe 5200 5410

Others 9654 5330

Total 112860 29725

No. of Machines Installed

Installed Capacity (KT)

Industry Growth : from 2000-01 to 2012-13

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Despite hiccups, growth foreseen

CARG %• No. of Machines : ~ 7%• Polymer Consumption : ~ 10%• Installed Capacity : ~ 11%

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No. of MachinesInst. Cap. / Consumption (KT)

Opportunities by 2020…….

…..Project investment to the tune of 65,000 Rs. Cr.5 5

30000

Plastics Machinery : Growing share of Imports

Total Machines Added (2002-03 to

2012-13) : 7.3% CARG

Need to enhance share of domestic machines

3110 4705 6482 5872

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Growth in :: Domestic Machine Sale : 5.1% Imports : 27.2%

Technology….

• 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:• Higher Input Cost –

– Technology parts from imports average 25% to 50% of material costs. Attract 7.5% customs duty• Seek customs duty reductions • Government policies to encourage domestic manufacturing

– Taxation at every transaction adds to the costs (our system adds 6% to cost)• Seek reduction in tax incidence, support GST

Internal Factors:– High inventories & High inventory carrying cost– Capability of supply chain– Low productivity

• Need Efficient supply chain, vendor development & common vendors base• Improve operational efficiency through process and system improvements• Technological upgradation of equipments

– Low productivity of labor due to low skill level• 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?

• Market data since 2005 indicates that 1/3rd of machines imported in India are Used Machines…..– These machines suffer from

• 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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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

April 22, 2023

And we speak in one voice….

….together we grow!

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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

• PMMAI is non-profit organization created to promote the advancement of

Plastics Machinery Manufacturing Industry of India

• PMMAI will do so with cooperation and coordination at national and

international level

• PMMAI will facilitate development of skilled manpower for the industry

• 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

• Technology upgradation by sharing information amongst members and enhancing Government support.

• Enhance production efficiencies thru’ cluster formation and vendor development

• Industry growth through domestic as well as export market development.

• Represent to Government and other bodies to highlight issues relating to policy affecting Plastic Machinery Manufacturers.

• To have (over 50%) plastic Indian machine manufacturers as its members and represent all stakeholders

• Promote interest of all stakeholders

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Strategy

• Technology upgradation by sharing information amongst members • Technology upgradation through Government programs• Enhance production efficiencies thru’ cluster formation and vendor

development• Industry growth through domestic as well as export market

development.• Promote interest of all stakeholders • Represent to Government and other bodies to highlight issues

relating to policy affecting Plastics Machinery Manufacturers.• To have (over 50%) plastics Indian machine manufacturers as its

members and represent all stakeholders

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Action Plan

• Strengthen PMMAI membership

• PMMAI will help strengthen the network of industries providing auxiliary

equipment as well as input raw materials for prime equipment.

• Affiliation with other national and regional associations.

• Inclusion in PlastIndia foundation as constituent member

• 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)

• Hold joint Seminars for the benefit of member companies to share information

on best practices adopted for improving quality, productivity etc.  

• Trade Show delegation & study tours

• Organize Road shows - B2B Meetings at select high growth areas

• PMMAI will promote it’s independent identity, keeping in minds its position vis-à-

vis Government ministries

• 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

• Represented to Government for increasing duty drawback for Plastics machinery – duty drawback increased to 2% from 1%

• Represented to Government for additional countries as focus market for Plastics machinery – Addition of USA and Europe for 1 year

• Include Plastics processing machinery in Focus product scheme

• Separate HS codes for Plastics Machinery which is presently clubbed under “others category” – shall be used for export incentive schemes

• 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.

• Recommendations for reduced duty are under consideration with Revenue Secretary.

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Activities Undertaken (Cont’d)

• Representation to reverse customs duty reductions under PTA/FTA – In fresh FTAs plastics machinery is not included in reduced customs duty category.

• Restrict used machinery imports – Presently under review with Tariff Commission.

• PMMAI has joined Capital Goods Sector Skill Council (CGSC) and participating in preparation of National occupational standards (NOS) content. Core Skills for PMMAI

• 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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• 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

• Categories of Members :– Ordinary Members :

• Turnover >3 Cr• Will have voting rights• Admission Fee : Rs.25,000/- (one time)

Membership

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- Associate Members : • All others• Will not have voting rights• Admission Fee : Rs.10,000/- (one time)

Membership

• Voting Rights :

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Annual Turnover in Rs. Crores No of Shares

More than 3 Crores and upto Rs.25 Crores 1

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 3

More than 250 Crores and upto Rs.500 Crores 4

More than 500 Crores and upto Rs. 1,000 Crores 5

More than 1000 Crores and upto Rs. 10,000 Crores

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More than 10,000 Crores 7Annual Subscription:Ordinary Member based on gross annual turnover in Plastics and ancillary Machines and printing machines

Further details will be available from Secretary General

Invitation

• 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