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The Indian plastics converting industry
essentially consists of about 12000 processors consuming about 4
million tons of polymers, possibly even 5 million tons, including
recycled materials. Consumption levels in this fragmented industry
are indeed very small and therefore the converters are ill equipped
to face increasing global competition, particularly from China.
The relatively weak economy of last year and high
price volatility almost crippled the smaller converters. Supreme
Industries, undoubtedly the largest Indian plastics processor; with
polymer consumption of over 90,000 tons, showed an increase of about
10% in sales volume and more than 17% increase in sales turnover
between the financial years 2001 & 2002.
The achievement of Supreme Industries is certainly
very laudable and provides some lessons to the Indian plastics converters.
One of the important aspects of this performance is the achievement
of more than 50% increase in export business. In fact, exports by
Supreme of US$7.63 million compared to the Indian industry total
of US$940 million (including almost US$500 million of polymer exports),
indeed is a very remarkable achievement.
Some of the products exported were under severe competitive situation.
However, the focus was also on exports of value added products like
cross- laminated film, cross-linked PE foam, PVC fittings of several
standards.
Though exports constitute only about 5% of Supreme's total business,
it has helped the company to develop not only the quality consciousness
to meet International norms, but the mental attitude to face global
competition. The Indian plastics converting industry can certainly
take some leads from the performance of this large and progressive
converter from India.
We, from www.plastemart.com,
would like to congratulate the Supreme Group for this spectacular
performance and showing the path to the Indian processors
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