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2004 was a water shed for the polymer industry due to steep increase in price
of all polymers. However, the non-vinyl masterbatch
business is growing unabated. Total demand in
India for non-vinyl masterbatches is estimated
at 120 KT. Anti fibrillation masterbatches comprises
almost 50% of this demand, outstripping demand
for color masterbatches. Exhibit 1 describes the
estimated consumption of non-vinyl masterbatches
in India during 2004.
| Exhibit 1 |
| Demand Estimate of Non-Vinyl
Masterbatches by types in India - 2004 |
| Type |
|
KT |
% |
KT |
% |
| Colour |
|
|
|
50 |
41.7% |
| |
White |
27 |
22.5 |
|
|
| |
Black |
15 |
12.5 |
|
|
| |
Others |
8 |
6.7 |
|
|
| |
|
|
|
|
|
| Antifibrillation |
|
|
|
60 |
50.0% |
| |
|
|
|
|
|
| Additive |
|
|
|
10 |
8.3% |
| |
|
|
|
|
|
| |
UV |
1 |
0.8 |
|
|
| |
Antiblock/slip |
4 |
3.3 |
|
|
| |
Nucleating |
0.5 |
0.4 |
|
|
| |
Modifier |
0.5 |
0.4 |
|
|
| |
Flame retardant |
1 |
0.8 |
|
|
| |
Others |
3 |
2.5 |
|
|
| |
|
|
|
|
|
| Grand total |
|
|
|
120 |
100.0% |
The total non-vinyl masterbatches in 2004 grew
to 120 KT at almost 15%. Polyolefin consists of
the major use of non vinyl masterbatches Almost
85 % of the total 120 KT is consumed in Polyolefins.
Exhibit 2 summarizes the distribution of masterbatches
in various polymers.
| Exhibit 2 |
Demand estimate of non-vinyl
masterbatches by polymers in India -2004
|
| Polymer |
KT |
% |
| PE/PP |
102 |
85 |
| Styrenics |
7 |
5.8 |
| ETP |
4 |
3.3 |
| PET |
7 |
5.8 |
| |
|
|
| Total |
120 |
100.0 |
The growth of masterbatches in India can be attributed
to two large markets - raffia & film, which
continued to grow well due to the growth of the
packaging segment. Food packaging was responsible
for growth in film sector, while cement, fertilizer
and food packaging were responsible for growth in
raffia.
Exhibit 3 summarizes the distribution of non-vinyl
masterbatches according to the application sectors.
Raffia users find masterbatch providing an economy
due to the use of filler. It is believed that
more than 10% of masterbatch is incorporated in
raffia. Its usage is still on rise and is expected
to reach almost 15 % in the next 2-3 years.
| Exhibit 3 |
|
|
| Demand estimates of non-vinyl
masterbatches by application sector in India
- 2004 |
| Application Sector |
KT |
% |
| Raffia |
60 |
50 |
| Film |
43 |
35.8 |
| Moulding |
13 |
10.8 |
| Fiber |
4 |
3.3 |
| |
|
|
| Total |
120 |
100 |
While most of the masterbatches are supplied by
the domestic producers, about 6 KT is imported.
The main players in the import business are:
· Ampacet for PE/PP film
· Clariant for ETP/Fiber
· Schulman for BOPP film The local producers have also started exports,
mainly to the Middle East and Africa. It is estimated
that 4 KT of masterbatch was exported in 2004.
Exhibit 4 describes the supply of masterbatches.
| Exhibit 4 |
| Demand estimates of non-vinyl
masterbatches by supply in India- 2004 |
| Source |
KT |
% |
| Domestic |
118 |
98.3 |
| Import |
6 |
5.0 |
| Export |
4 |
3.3 |
| |
|
|
| Total |
120 |
100 |
The regional distribution is somewhat skewed in
favour of the western region. It is estimated the
western region consumes only 45%, but produces 70%
of the total masterbatch demand. The manufacturers
in the western region have to sell their products
to the other regions. Exhibit 5 summarizes the regional
distribution.
| Exhibit 5 |
| Regional distribution of
non-vinyl masterbatches in India- 2004 |
| Region |
Supply (%)
|
Consumption(%) |
| West |
70 |
45 |
| North |
17 |
20 |
| South |
10 |
25 |
| East |
3 |
10 |
| |
|
|
| Total |
100 |
100 |
There are about 15 producers with sales of more
than 2 KT/year. Plastiblends India Ltd. is indeed
the largest Indian player with annual sale of 16
KT in 2004. Superpack and Soltex are two major producers
of antifibrillation masterbatch for raffia sector.
There are about 20 players with the business of
1KT/year. However, the total number of producers
could be very high. We estimate at least another
150 that have noticeable sale of average 750-800
MT/year. Exhibit 6 provides a list of masterbatch
producers in India.
| Exhibit 6 |
| Major masterbatch producers-
India 2004 |
| Company |
Apparent Supply |
| |
KT |
% |
| Plastiblends India |
16 |
13.6 |
| Soltex |
9 |
7.6 |
| Superpack(Bajaj) |
8 |
6.8 |
| Plastichemix |
6 |
5.1 |
| Calco |
5 |
4.2 |
| Poddar |
5 |
4.2 |
| Shreyas |
5 |
4.2 |
| Aalekh |
4 |
3.4 |
| SCJ |
4 |
3.4 |
| Tara Holding |
4 |
3.4 |
| Aalok |
2 |
1.7 |
| Bankeem |
2 |
1.7 |
| K K Poly |
2 |
1.7 |
| Perfect Color |
2 |
1.7 |
| Pradeep |
2 |
1.7 |
| Rajeev |
2 |
1.7 |
| |
|
|
| Total major |
78 |
66.1 |
| |
|
|
| Others (> 1 KT/yr) |
20 |
16.9 |
| |
|
|
| All others (150 number) |
20 |
16.9 |
| |
|
|
| Grand total |
118 |
100.0 |
The packaging sector is expected to grow very well
in this decade. Since the growth of the masterbatch
sector is pegged to the growth of the packaging
sector, the masterbatch business is poised for good
growth. It is estimated to grow by 12-14%, if not
higher, in the next few years.-
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