Number of masterbatch manufacturer in India has rapidly increased in recent years and this situation reflect partly the growing demand of using plastic masterbatch in the second most populous country in the world. This can be considered as a good sign for Vietnamese masterbatch manufacturer who wants to entering this lucrative market. In this article, we will discuss several opportunities as well as drawbacks and challenges that companies may have.
Overview of plastic industry in India and how does it affect masterbatch manufacturer in this country?
The plastic masterbatch manufacturing and processing industry is now considered to be one of the most developed industries in India with a high annual growth rate of 16%, along with a turnover of more than 20 billion USD. This market is surrounded with 25,000 companies and is providing jobs for over 3 million employees. In 2009, the domestic productivity itself had reached 5.72 million tones of polymer and plastic.
India – the potential market with various opportunities for masterbatch manufacturer around the world
In comparison with other countries, masterbatch industry in India is also the market with highest growing rate in the world with the annual 16% consumption growing rate (compared to 10% of China – the second largest marketing and 2.5% of the UK). Particularly, along with the development of masterbatch manufacturer, plastic processing industries with high growth rates serving other industries are also the country’s strengths such as electronics, automobiles, medical equipment, consumer goods and packaging-technology-related products like pallet, PE film, etc.
What is the main technique used by India’s masterbatch manufacturer?
Regarding to the main processing technologies applied in plastic industry in India, the injection molding techniques hold the first position with 58% masterbatch manufacturer applied this technique. Following injection molding are extrusion molding and blow molding accounted for 30% and 10% of the total market, respectively. Other techniques are negligible with only 2% in production.
The increasing demand in India has promoted the invasion of Vietnamese masterbatch manufacturer
Although the total export turnover of Vietnam to India is still quite modest, especially the plastic industry only accounted for 15.9 million USD (in 2011 – according to the statistics of Vietnam Trade Promotion Department), but according to experts, India is a promising market for Vietnamese masterbatch manufacturer because its standards and requirements are suitable with the technology and production capacity of most Vietnamese plastic enterprises.
According to Viettrade, the growth rate plastic industry in this populous country (estimated by the total value of masterbatch manufacturer) is approximately 2-2.5 times higher than its GDP, which means that the growth rate as well as the demand in using plastic masterbatch products in India is many times higher than the average development of other industries. This circumstance indicates that their efforts in accelerating technology and production capacity have opened up various opportunities Vietnameses companies to export raw materials (filler masterbatch, color masterbatch, plastic additives, etc.) to supply this development.
Stable development in India is beneficial for foreign masterbatch manufacturer
Along with that, the level of stable in economic development leads to the increasing use of plastic products in different industries, consequently leading to many opening opportunities for masterbatch manufacturer. It is expected that the total revenue of the plastic industry in India will reach USD 10 billion by 2020 with more than 40,000 new technology and machines being installed and applied into production. Several industries/sectors will be considered as the leading prospects such as: developing new applications and products, high-tech machines developing, technology transferation, high-tech product completion, etc.
What are the advantages of Vietnamese masterbatch manufacturer over Indian companies?
Plastic industry in recent years has been mainly known as a plastic processing industry because it has to import 80% of materials. This is in contrast to the biggest advantage that Vietnamese masterbatch manufacturer is owning regarding to the production of Filler Masterbatch (an additive plastic masterbatch) which is the main material in the production of plastic pellets from the ownership of large limestone resources in the North and Central. Even in comparison to the two major manufacturing markets of the world which are China and India, Vietnam has the huge advantage from the better and more stable quality of input material resources. In addition, we also have cheaper labor costs.