Global Country Study Report On ‘Plastic Industry of Sri Lanka’ w.r.t Business Opportunities for Gujarat and West Bengal Part-1

Global Country Study Report
On
‘Plastic Industry of Sri Lanka’
w.r.t
Business Opportunities for Gujarat and West Bengal
Submitted To
SAL Institute of Management
Institute Code: 807
Under the Guidance of
Dr. Pooja Sharma
Associate Professor
In partial Fulfilment of the Requirement for the degree of
Master of Business Administration(MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared By:
Students of
MBA A (Semester – III)
Group No: 10
Month & Year: December 2017

Students Declaration
We, following students, hereby declare that the Global/ Country Study Report on Plastic
Industry of Sri Lanka is a result of our own work and our indebtedness to other work
publications, references, if any, have been duly acknowledged. If we are found guilty of
copying any other report or published information and showing as our original work, or
extending plagiarism limit, I understand that we shall be liable and punishable by GTU, which
may include ‘Fail’ in examination, ‘Repeat study & re-submission of the report’ or any other
punishment that GTU may decide.
Enrolment No. Name Sign.
168070592044 Kapadiya Vaibhav Vinodbhai
168070592071 Parmar Hiren Rasiklal
168070592029 Gajjer Parth Nareshbhai
168070592062 Mer Manish Vithalbhai
Date: December 2017 Place: Ahmedabad

Company Details
Name of the Company Aangee Corporation
Address of the company S-50, Sidhhi Vinayak Ind.
Estate, New Cotton Mill
Compound, Amraiwadi,
Ahmedabad – 380 026.
Sub – Segment of the Selected Industry in
which company is dealing
Masterbatch
Product/Service offered by the company (to
be studied by group)
Masterbatch
Contact Person’s Name, and Vinod Makwana,
Designation Sales Manager
Contact details 9979771006
Date of Company Visit (Proposed) 16/01/2018 to 26/01/2018

Turnitin Originality Report
GROUP 10 PLASTIC INDUSTRY OF SRILANKA by JIGAR NAGVADIA
From Group 13 (GCSR)
• Processed on 29-Nov-2017 15:03 IST
• ID: 593010765
• Word Count: 13359
Similarity Index
10%
Similarity by Source
Internet Sources:
10%
Publications:
0%
Student Papers:
7%
sources:
1
6% match (Internet from 09-Feb-2015)
http://www.mumbai.mission.gov.lk/downloads/product_catalogue.pdf
2
4% match (Internet from 27-Nov-2017)
https://en.wikipedia.org/wiki/Flag_of_Sri_Lanka

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Preface
Master of Business Administration programme more concern with Skills, Knowledge
and Attitude. As we are students of M.B.A. it is one of the golden opportunity for us
to study business with Sri Lanka with respect to Gujarat & West Bengal. Specifically,
we researched about Plastic Industry including Economic, Social, Political,
Geographical aspect of Sri Lanka as well as Gujarat & West Bengal.
This Global Country Study Report includes major information about Sri Lanka, Gujarat
and West Bengal. We had also included STEEPLED and SWOT analysis of Sri Lanka,
Gujarat and West Bengal. This report includes major information regard with Import
Export possibilities between Sri Lanka, Gujarat and West Bengal.
As the Indian economy is in developing phase, it requires more foreign exchange for
surviving through necessary import of various material. Foreign exchange only can be
earned through Export activity by an economy. We had considered all the aspect of
business opportunities and prepared report with opportunity for export of Plastic Raw
Material (for Plastic Process Units) in Sri Lanka.

ii
Acknowledgement
Present of any person is because of his past. Past is because of those who were with
him and what they had done with him. If good people were in past with him then his
present and future is good. Any person has skill because he had learned about that.
Every person gets skill from different persons some from parents, some from their
elders, some from their teacher, and some from their co-worker. We are having skill
because of our parents and faculties. They had taught us a lot thing. So, we are
thankful to our parents and faculties and Gujarat Technological University.
We are thankful to Dr. Pooja Sharma who guided us for this report and she had guided
us in every topic of this report. We are also thankful to our Dr. Viral Bhatt (Director of
SAL Institute of Management) and all our friends and family members who helped us
in this report.

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Executive Summary
Being students of MBA, the GCSR project gives us an opportunity to explore real time
project. We had researched on Plastic Industry and its business opportunity in Sri
Lanka, Gujarat and West Bengal.
In the first chapter, we have included the overview of Sri Lanka as far as Geographic
Location, Languages, Population, Religions, National Anthem, Currency and Exchange
Rates, Economic Scenario etc have been included.
In the second part of the report, we have included the major industries of Sri Lanka.
Apart from this, we also included the its impact in growth of the Sri Lankan economy.
We have included the various statistics with respect to the industries and market
shares. And also done the steepled Analysis of Plastic Industry of Sri Lanka and Gujarat.
In third Part, we have included the overview of West Bengal and the contribution of
Plastic Industry in West Bengal. We have also done the SWOT Analysis of Plastic
Industry of West Bengal.
Later on, the general findings regarding the report has been drawn and concluded
with Business Opportunities between Sri Lanka. Gujarat and West Bengal.

Table of Contents
Chapter 1: Overview of Sri Lanka...........................................................................1
1.1 Overview of Sri Lanka...............................................................................................1
1.2 Geographic Location of Sri Lanka.............................................................................3
1.3 Language..................................................................................................................5
1.4 Currency...................................................................................................................6
1.5 Religion.....................................................................................................................7
1.6 Flag of Sri Lanka .......................................................................................................8
1.7 National Anthem of Sri Lanka ................................................................................12
1.8 Overview of Political Scenario and Ruling Parties .................................................14
1.9 Overview of Economic Scenario ............................................................................16
1.10 Latest news with respect to Sri Lanka .................................................................19
1.11 Recent and Major Development of Sri Lanka......................................................22
Chapter 2: Overview of Industries Trade and Commerce in Sri Lanka ................... 23
2.1 List of Industries in Sri Lanka..................................................................................24
2.2 Contribution of industries in national GDP............................................................29
2.3 Import Export Statics .............................................................................................31
2.4 Major Players in Sri Lanka......................................................................................35
2.5 Plastic Industry Gujarat..........................................................................................40
2.5.1 Sub Segments of Plastic Industry in Gujarat ...................................................42
2.5.2 Contribution of Plastic Industry National GDP................................................43
2.5.3 Major Players in Plastic Industry.....................................................................44
2.5.4 Local Taxes & Duties in Plastic Industry..........................................................45
2.5.5 Incentives from Gujarat Government for Plastic Industry..............................45

Chapter: 3 About Plastic Industry in Sri Lanka ...................................................... 46
3.1 Overview of Plastic Industry in Sri Lanka...............................................................47
3.2 Sub-Segment of Plastic Industry in Sri Lanka.........................................................48
3.3 Contribution of Plastic Industry in National GDP of Sri Lanka...............................49
3.4 Major Player of Plastic Industry in Sri Lanka..........................................................51
3.5 Major Player in Sub Segment of Plastic Industry...................................................52
3.6 Incentives from Government of Sri Lanka for Plastic Industry..............................53
3.7 Justification for Selecting Plastic Industry .............................................................54
Chapter: 4 STEEPLED & SWOT.............................................................................. 55
4.1 STEEPLED Analysis of Plastic Industry in Sri Lanka ................................................55
4.2 STEEPLED Analysis of Plastic Industry in Gujarat...................................................64
4.3 Comparative STEEPLED Analysis............................................................................68
4.4 SWOT analysis of Plastic Industry in Sri Lanka.......................................................73
4.5 SWOT analysis of Plastic Industry in Gujarat .........................................................74
Chapter: 5 About the West Bengal....................................................................... 75
5.1 Overview of West Bengal & Geographic Location.................................................75
5.2 Population..............................................................................................................78
5.3 Official Language....................................................................................................79
5.4 Ethnic Group ..........................................................................................................80
5.5 Natural Resource ...................................................................................................81
5.6 Transportation Connectivity of Gujarat with West Bengal ...................................83
5.7 Contribution of West Bengal National GDP...........................................................86
5.8 Contribution of Plastic Industry in National GDP ..................................................87
5.9 Major Players of the Plastic Industry in West Bengal............................................88
5.10 Local Taxes and Duties Applicable in Plastic Industry .........................................89
5.11 Special Benefits by Government of West Bengal to Plastic Industry ..................90

5.12 SWOT Analysis of Plastic Industry in West Bengal ..............................................92
Chapter 6Findings & Conclusion .......................................................................... 93
6.1 Findings in Terms of Comparative analysis of Plastic Industry in Gujarat, West
Bengal & Sri Lanka W.R.T. Specific Bilateral Trade opportunity..................................93
Trade opportunities between Gujarat and Sri Lanka...............................................93
Trade opportunities between West Bengal and Sri Lanka.......................................94
6.2 General Findings of the Report..............................................................................96
6.3 Conclusion..............................................................................................................97
Bibliography .................................................................................................................98

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Chapter: 1 Overview of Sri Lanka
1.1 Overview of Sri Lanka
➢ Sri Lanka has maritime borders with India
to the northwest and Maldives to the
southwest. Sri Lanka has a documented
history that spans over 3000 years, but there
are theories to suggest that Sri Lanka had
pre-historic human settlement dating back
to at least 125000 years.
➢ Its geographic location and deep
harbours made it of great strategic
importance from the time of the ancient Silk
Road through to World War II. Sri Lanka is a
republic and a unitary state governed by a presidential system. The capital, Sri
Jayewardenepura Kotte, is a suburb of the largest city, Colombo. It is also an
important producer of tea, coffee, gemstones, coconuts, rubber, and the
native cinnamon, the island contains tropical forests and diverse landscapes
with a high amount of biodiversity.
➢ Sri Lanka has a rich cultural heritage. The first known Buddhist writings of Sri
Lanka, the pali canon, date back to the Fourth Buddhist council in 29 BC Sri
Lanka was known from the beginning of British Colonial rule until 1972 as
Ceylon.
➢ A republic and a unitary state governed by a semi prudential system, it has had
a long history of international engagement, as a founding member of the South
Asian Association for Religion Corporation (SAARC), and a member of the
United Nations, the commonwealth of Nation, the G77, and the Non-Aligned
Movement. Along with the Maldives, Sri Lanka is one of the only two South
Asian Countries rated “High” on the Human Development Index (HDI), with its
HDI rating and per capita income the highest among South Asian Nations.
Source: https://en.wikipedia.org/wiki/Outline_of_Sri_Lanka

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General Information about Sri Lanka
Common English Country Name Sri Lanka
Archaic name Ceylon
Official English country name The Democratic Socialist Republic of Sri
Lanka
Largest City Colombo
Official Languages English, Sinhalese, Tamil
Calling Code +94
ISO 3166 code LK
Adjective Sri Lankan
Internet country code top-level
domain
lk
Statistics of Sri Lanka
Particulars 2015 2016 2017
Population 21.1 21.3 21.4
GDP (Us $ Bn) 81.2 82.6 84
GDP Per Capita (Us$) 3849 3887 3927
Real GDP Growth (%) 4.8 4.3 4.5
Inflation (%) 0.9 3.7 5.8
Unemployment 4.4% 4.5% 4.0%
Source: IMF and central bank of Sri Lanka Unemployed Data from Emerging
Market Research

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1.2 Geographic Location of Sri Lanka
➢ Sri Lanka lies on the Indian Plate,
a major tectonic plate that was
formerly part of the Indo-Australian
Plate. It is the Indian Ocean
southwest of the Bay of Bengal,
between latitudes 5° and 10°N, and
longitudes 79° and 82°E.
➢ Sri Lanka is separated from the
mainland portion of the Indian Sub
continental by the Gulf of Mannar
and Palk Strait. According to Hindu
mythology, a land bridge existed
between the Indian mainland and Sri
Lanka. It now amounts to only a chain
of limestone shoals remaining above
sea level. Legends claim that it was
passable on foot up to 1480 AD, until Cyclones deepened the channel. Portions are
still as shallow as 1metre, hindering navigation.
➢ Sri Lanka has 103 rivers. The longest of these is the Mahaweli River, extending 335
kilometres (208 ml). These waterways give rise to 51 natural waterfalls of 10
meters or more. The highest is Banbarakanda Falls, with a height of 263 meters
(863 ft.).
➢ The island consists mostly of flat to rolling coastal plains, with mountains rising
only in the south-central part. The highest point is pidurutalagala, reaching 2524
meters (8281 ft.) above sea level.
➢ Sri Lanka has 45 estuaries and 40 lagoons. Sri Lanka’s mangrove ecosystem spans
over 7000 hectares and played a vital role in buffering the force of the waves in
2004 Indian Ocean tsunami. The island is rich minerals such as limonite, feldspar,
graphite, silica, kaolin, mica, and thorium. Existence of petroleum and gas in the

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Gulf of Mannar has also been confirmed and the extraction of recoverable
quantities is underway.
➢ Sri Lanka’s coastline is 1340 km long. Sri Lanka claims an Exclusive Economic Zone
(EEZ) extending 200 nautical miles, which approx. 6.7 times Sri Lanka’s land area.
The coastline and adjacent waters support highly productive marine ecosystem
such as fringing coral reefs and shallow beds of coastal and estuarine seagrasses.
Source: https://www.indexmundi.com/sri_lanka/#Introduction
https://en.wikipedia.org/wiki/Sri_Lanka#Geography
https://www.cia.gov/library/publications/resources/the-world-
factbook/geos/ce.html
http://www.worldometers.info/world-population/sri-lanka-population/

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1.3 Language
Several languages are spoken in Sri Lanka within the Indo-Aryan, Dravidian and
Austronesia families. Sri Lanka accords official status to Sinhalese and Tamil. The
languages spoken on the island nation are deeply influenced by the languages of
neighbouring India, the Maldives and Malaysia.
Official languages Sinhalese Tamil
Semi official language English
Others Malay, Pali, Portuguese Creole, Vedda,
Gypsy Telugu, Sri Lankan sign languages
Formerly spoken and Extinct Arwi, Ceylon ,Dutch Rodiya
Source: https://en.wikipedia.org/wiki/Languages_of_Sri_Lanka
http://ahsss04.tripod.com/sri_lanka_case_study.htm

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1.4 Currency
• The Currency of Sri Lanka is Sri Lankan Rupee
• Frequently used currency in Sri Lanka is Sri Lankan notes 20, 50, 100, 500, 1000
and 5000.
• Rarely used currency in Sri Lankan notes Sri Lankan notes 10, 200 and 2000.
Exchange Rate
Year
LKR to
US Dollar
LKR to Euro LKR to INR LKR to Australian $
2017 152.67 179.63 2.37 114.62
2016 146.6 153.1600 2.17522 102.6100
2015 135.86 157.0300 2.0797 105.5800
2014 135.86 176.6800 2.1154 114.4200
2013 130.57 166.0600 2.3146 130.4400
Source:https://www.cia.gov/library/publications/resources/the-world-

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1.5 Religion
Percentage Religion
70.2% Buddhism
12.6% Hinduism
9.7% Islam
7.4% Christianity
0.1% Other
➢ Most of the people of Sri Lanka believe in Buddhism
➢ And Hinduism is the second most religion which is followed by people of Sri
Lanka
Ethnicity: -
Particulars Percentage
Sinhalese 74.9%
Sri Lankan Tamil 11.2%
Sri Lankan Moors 9.2%,
Indian Tamil 4.2%
Other 0.5%
Source: https://www.cia.gov/library/publications/resources/the-world-

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1.6 Flag of Sri Lanka
Flag of British Ceylon (1815-1948):-
➢ The banner was in use until 1815, when the reign of the last King of the
Kandyan Kingdom, King Sri Vikrama Rajasinha, was brought to an end with the
Kandyan nobility's signing of the Kandy
convention on 2 March proclaiming King
George III as King of Ceylon and
replacing the Lion flag with the Union
Flag as the national flag of Ceylon. The government of British Ceylon used its
own flag. The Lion Flag was taken to England and kept at the Royal Hospital
Chelsea.
Flag of Ceylon (1948-1951):-
➢ In 1948 the flag was adapted as the national flag of the Dominion of Ceylon,
however the flag underwent several
changes in 1953 and again in 1972.
During the same year four leaves of
the Bo tree were added to the four
corners of the Sri Lankan National flag
under the direction of Nissanka
Wijeyeratne. At the time, he was Permanent Secretary to the Ministry of
Cultural Affairs and Chairman of the National Emblem and Flag Design
Committee. Prior to 1972, the corners of the flag were occupied by symbols
depicting spearheads. The four Bo Leaves added by Wijeyeratne reflect the
core principles of Mettha (loving kindness), Karuna (compassion), Upeksha
(equanimity) & Muditha (happiness).

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Flag of Ceylon (1952- still continues):-
➢ The flag of Sri Lanka also called the lion flag or Sinha flag consist a Gold lion
holding a kastane sword in its right for paw in a maroon background with four
gold bo leaves in each corner of
the background. Around border
there is a gold stripe and also
green and saffron coloredvertical
stripe.
➢ The four bo leaves represent four main aspect of Buddhism Metta, Karuna,
Mudita and Upekkha.
➢ The stripes represent two mainly minority groups. The saffron stripe
represents Tamils and the green represents Muslims, and the maroon
represents the majority Sinhalese.
➢ Size of flag in proportion of 1:2 Width and Length.

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Description of Sri Lankan Flag
Symbol Represents
The lion Represents the bravery of the Sinhalese Ethnicity.
The bo leaves
The four Buddhist virtues of loving-kindness, compassion,
sympathetic joy and equanimity.
The sword of the lion
The sovereignty of the nation and the bravery of its
people.
The curly hair on the
lion's head
Religious observance, wisdom and meditation.
The eight hairs on lion's
tail
The Noble Eightfold Path.
The beard of the lion Purity of words.
The handle of the
sword
The elements of water, fire, air and earth that the country
is made of.
The nose of the lion Intelligence.
The two front paws of
the lion
Purity in handling wealth.
The vertical orange
stripe
The Tamil ethnicity.
The vertical green
stripe
The Muslim faith and Moor ethnicity.

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The Gold border round
the flag
Unity of Sri Lankans.
The maroon
background
This represents the Sinhalese ethnic majority.
Source: https://en.wikipedia.org/wiki/Flag_of_Sri_Lanka

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1.7 National Anthem of Sri Lanka
➢ The national anthem of Sri Lanka is in major three languages Sinhala, English
and Tamil and it is also known as Sri Lanka Matha.
➢ This anthem wrote by Mr. Ananda Amarakoon influenced by Tagore
➢ And On 22nd November,1951Sri Lanka adopted its national anthem
Sinhali (English word) English Translation
Sri Lanka Matha, Apa Sri Lanka
Namo Namo Namo Namo Matha
Sundara siri barini
Surendi athi sobamana Lanka
Dhanya dhanaya neka
Mal palathuru piri, jaya bhoomiya ramya
Apa hata sapa siri setha sadana
Jeewanaye Matha!
Piliganu mena apa bhakthi puja
Namo Namo Matha, Apa Sri Lanka
Thou Mother Lanka,
Oh Mother Lanka we salute, salute,
salute, salute Thee!
Plenteous in prosperity, Thou,
Beauteous in grace and love,
Laden with grain and luscious fruit,
And fragrant flowers of radiant hue,
Giver of life and all good things,
Our land of joy and victory,
Receive our grateful praise sublime, we
worship, worship Thee.
Oh Mother Lanka! We salute, salute,
Obawe apa widya
Obamaya apa sathya
Obawe apa shakti
Apa hada thula bhakthi
Oba apa aloke
Aapage anuprane
Oba apa jeewana we
Apa mukthiya obawe
Thou gavest us Knowledge and Truth,
Thou art our strength and inward faith,
Our light divine and sentient being,
Breath of life and liberation.
Grant us, bondage free, inspiration.
Inspire us for ever.

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Nawa jeewana demine
Nnithina apa pubudu karan Matha
Gnana weerya wadawamina ragena
Yanu mena jaya bhoomi kara
Eka mawekuge daru kala bawina
Yamu yamu wee nopama
Prema wada sama bheda durara da
Namo Namo Matha, Apa Sri Lanka
In wisdom and strength renewed,
Ill-will, hatred, strife all ended,
In love enfolded, a mighty nation
Marching onward, all as one,
Lead us, Mother, to fullest freedom, we
worship, worship Thee
Oh Mother Lanka! We salute, salute,
Source: https://en.wikipedia.org/wiki/Sri_Lanka_Matha

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1.8 Overview of Political Scenario and Ruling Parties
Post Name Party Since
President
Mr.Maithripala Sirisena
Sri Lanka Freedom
Party
9 January 2015
Prime minister
Mr. Ranil Wickremesinghe
United National Party 17 August 2015
➢ The President is a head of state, head of government and commander in chief
for arm forces.
➢ President appoints cabinets ministers responsible to parliament.
➢ Parliament has 225 members among them 196 members are elected in multi
seats and 29 by proportional representation.
Ruling Party: United National Party or UNP
Other Major Parties of Sri Lanka
➢ Eelam People's Democratic Party or EPDP [Douglas DEVANANDA]
➢ Janatha Vimukthi Peramuna or JVP [Anura Kumara DISSANAYAKE]
➢ Jathika Hela Urumaya or JHU [Karunarathna PARANAWITHANA and Ven
Hadigalle WIMALASARA THERO]]
➢ New Democratic Front or NDF [Shalila MOONESINGHE]
➢ Sri Lanka Freedom Party or SLFP [Maithripala SIRISENA]
➢ Sri Lanka Muslim Congress or SLMC [Rauff HAKEEM]
➢ Tamil National Alliance or TNA [Rajavarothiam SAMPANTHAN]

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➢ United National Front for Good Governance or EYJP (coalition includes UNP)
➢ United National Party or UNP [Ranil WICKREMESINGHE]
Political Stability of Sri Lanka
➢ The index of Political Stability and Absence of Violence/Terrorism measures
perceptions of the likelihood that the government will be destabilized or
overthrown by unconstitutional or violent means, including politically-
motivated violence and terrorism.
➢ As per interpretation it is clearly specify that Sri Lanka is not Politically Stable
Country.
➢ Sri Lanka was facing Civil War it was an armed conflict fought on the island of
Sri Lanka.
➢ From 23 July 1983, there was an intermittent insurgency against the Sri Lankan
government by the Liberation Tigers of Tamil Eelam (the LTTE, also known as
the Tamil Tigers), which
➢ They fought to create an independent Tamil state called Tamil Eelam in the
north and the east of the island.
➢ After a 26-year military campaign, the Sri Lankan military defeated the Tamil
Tigers in May 2009, bringing the civil war to an end as well as political
atability.
Source: https://en.wikipedia.org/wiki/Sri_Lankan_Civil_War
http://www.theglobaleconomy.com/Sri-Lanka/wb_political_stability/

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1.9 Overview of Economic Scenario
➢ Sri Lanka’s economic performance remained broadly satisfactory in 2016 and
early 2017 although recent floods and droughts adversely affected
macroeconomic performance. Policy measures supporting fiscal consolidation
and monetary tightening contributed to an improved outlook, against the
backdrop of the $1.5 billion IMF-supported program agreed in 2016 to meet
balance of payment needs.
➢ Sri Lanka is a lower middle-income country of 21.2 million people with per
capita GDP in 2016 of $3,835. Since the civil war ended in 2009, the economy
has grown on average at 6.2 percent a year, reflecting a peace dividend and a
commitment to reconstruction and growth, but there have been signs of a
slowdown in the last three years.
➢ Official reserves increased to a level equivalent to 4.0 months of merchandise
imports by June 2017, after bottoming out in April at 3.0 months. However,
the external current account deficit and continuously low FDI remain
challenges to raising foreign exchange in a structured way.
➢ The economy is projected to grow by 4.6 percent in 2017 and marginally
exceed 5.0 percent in the medium-term, driven by private consumption and
investment. The government is committed to implement an ambitious
medium-term reform agenda aimed at improving competitiveness,
governance and public financial management that would achieve long-term
benefits.
Source: CIA World Fact book - This page was last updated on July 9, 2017
Particulars Score
Doing business ranking (out of 189) 83
Urban population (%total) 15
Life expectancy (in years) 74

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Annual GDP Growth Rate of Sri Lanka
➢ Sri Lanka Plan to create Knowledge base social market economy as well as they
also plan to develop export oriented economy for their wealth maximization.
➢ Main Economy sector of Sri Lanka are Tourism, Textile, Appeal, Tea, Rice
production and Agricultural Production.
➢ Sri Lanka has one of the lowest taxes to GDP Ratio in the world and creating
jobs for bottom 40 % as become a challenge.
Source: https://tradingeconomics.com/sri-lanka/gdp-growth-annual
➢ Sri Lanka’s Gross Domestic Product (GDP) reached $81.3 billion in 2016 with a
GDP per capita of $3,835. The GDP growth rate in 2016 was 4.4 percent down
from 4.8 percent in 2015.
➢ According to the Central Bank of Sri Lanka, GDP is projected to grow
approximately 5.0 percent in 2017 admid the adverse impact of unfavorable
weather conditions, and is expected to improve gradually thereafter to a
projected 7.0 percent by 2020.
➢ The World Bank expects GDP to grow by approximately 4.7 percent in 2017
and marginally improve to 5.0 percent in the medium term driven by private
consumption and investment. Inflation on a year-to-year basis was 8.4
percent in April 2017.
➢ Inflation is expected to be 6.0 percent in 2017 and remain at 6.0 percent in
2018 per Asia Development Bank projections.
Source: https://www.export.gov/article?id=Sri-Lanka-Market-Overview

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Sri Lankan GDP composition by end use
Household consumption 67.6%
Government consumption 8.6%
Investment in fixed capital 27.6%
Investment in inventories 3.9%
Exports of goods and services 21.4%
Import of goods and services -29.1%
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/ce.html

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1.10 Latest news with respect to Sri Lanka
➢ Brandix named Sri Lanka’s Exporter of the Year for 5th successive year
• The Brandix Group has topped Sri Lanka’s ranking of exporters for the
fifth consecutive year in 2016 to be declared the country’s Exporter of
the Year by the Export Development Board (EDB) at a ceremony
presided over by President Maithripala Sirisena today.
• The coveted top award across all categories of exports was among five
Presidential Export Awards presented to the Group at this high-profile
event to recognise contributions by export companies to the national
economy.
Source:http://www.lankabusinessonline.com/brandix-named-sri-lankas-
exporter-of-the-year-for-5th-successive-year/
➢ Chevron props Sri Lanka’s economic growth through exports to Pakistan
• Chevron Lubricants Lanka PLC celebrates another key achievement of
exporting the first consignment of Havoline PRO DS ECO 5 OW-20
Synthetic Dexos-1 licensed premium engine oil, designed especially for
hybrid vehicles, to Pakistan.
• The first consignment was shipped on August 25, 2017, from Chevron’s
state-of-the-art lubricant blending facility in Sapugaskanda, which was
commissioned in December 2014. This is a good testimony to the
technology capabilities of the high-tech blending and modern
warehouse facility to be able to generate foreign revenue through non-
traditional exports.
• “This new opportunity will further expand their offshore business that
ensures greater economies of scale to be more competitive in the two
export markets: Bangladesh and Maldives, coming under the full
purview of Chevron Sri Lanka operation. They have grown their export
sales volume by double digit on a year-on-year basis over the past
several years.
Source: http://www.dailymirror.lk/article/Chevron-props-Sri-Lanka-s-
economic-growth-through-exports-to-Pakistan-135465.html

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➢ Plastic industry claims and lobbying intensify, but regulator insists ban stays
• Some progressive restaurant operators are embracing the ban on
polythene by using alternatives, while others say they are unprepared
for the ban next month. Polythene manufacturers are continuing to
lobby in the media and elsewhere to protect their interests ahead of
September 1 and force the government to back down.All Ceylon Apana
Salawa Sangamaya said alternatives are limited, saying materials such
as banana leaves are not widely available.
• The group claims that using thicker lunch sheets cost three times more
and the cost will have to be passed on to consumers.
Source:http://www.sundaytimes.lk/170820/news/plastic-industry-claims-
and-lobbying-intensify-but-regulator-insists-ban-stays-255474.html
➢ Sri Lanka, Pakistan among Asia’s most undernourished countries
• Almost 27 percent of the population of Timor Leste remains
undernourished, and more than 1 in 10 people report being hungry.
Afghanistan, Sri Lanka and Pakistan are other Asian countries with the
highest rates of undernourishment in the region. The rate of
undernourishment is as high as 26.8 percent in Afghanistan, 22 percent
in Sri Lanka and 22 percent in Pakistan, as per latest data by the Asian
Development Bank.
Source: http://www.thedailystar.net/health/health-alert/sri-lanka-pakistan-
among-asia-most-undernourished-countries-asian-development-bank-adb-
1462051

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➢ Sri Lanka have hit rock bottom, says Marvan Atapattu
• 'Rock bottom' are the words former Sri Lanka captain Marvan Atapattu
uses to describe the current state of affairs of cricket in his home
country. The 46-year-old pointed to the lack of structure at the school
level for the drastic dip in the quality of cricket in the island nation. The
team was recently left clueless as Virat Kohli and his men completed a
whitewash across three formats.
Source: http://www.cricbuzz.com/cricket-news/97064/sri-lanka-cricket-
team-have-hit-rock-bottom-says-former-captain-marvan-atapattu

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1.11 Recent and Major Development of Sri Lanka
Sea Port and Airport Development
• Colombo South Port Expansion
• Hambantot a Port Development
• Expansion of Bandaranaike International Airport
• Development of secondary international Airport at mattala
Development of High Mobility road Network
• Colombo- Katunayake Expressway – CKE (25km)
• Southern Highway (126km)
• Outer Circular Highway – OCH (29.2 km)
• Colombo – Kandy Highway (99km)
Power and Energy
• Norochcholai Coal Power Project
• Upper Kothmale Hydro Power Project (UKHP)
• Trincomalee Coal Power Project
Source: http://www.investsrilanka.com/why_sri_lanka/developed_infrastructure

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Chapter: 2 Overview of Industries Trade and Commerce in
Sri Lanka

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2.1 List of Industries in Sri Lanka
Tea Industry:
➢ Sri Lankan tea known as Ceylon tea in 1867 spanning in only 19 acers while
now satisfying 19% of Global demand. Sri Lanka is third largest exporter of
tea to the world. Currently, Sri Lanka
exports green tea to more than 40
countries.
➢ The Major buyers are United Arab
Emirates, Russian Federation and
Jordan. With Sri Lanka's awe-inspiring
status of being the number one
manufacturer cum exporter of orthodox black tea, the tea export trade from
Sri Lanka is simply at US$ 1.5 billion.
Apparel Industry:
➢ Sri Lanka’s apparel industry is the most significant and dynamic contributor for
Sri Lanka’s economy. The industry has
enjoyed epic growth levels over the past
four decades and is today Sri Lanka’s
primary foreign exchange earner accounting
to 40% of the total exports and 52% of
industrial products exports. This industry,
entirely privately held has successfully
exploited the opportunities in the Global market.

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Rubber & Rubber based products:
➢ The history of Sri Lanka’s rubber plantation industry began way back in 1876
with the planting of 1,919 rubber seedlings - the origin of an uninterrupted and
profitable supply chain.
➢ This agricultural commodity has since become of strategic significance with
respect to the global rubber industry. In year 2016 Sri Lanka ranks among the
world's top ten largest producers and 7th
largest exporter in natural rubber. Sri
Lanka Rubber Industry consists of two
closely independent sectors; the rubber
plantation industry which producers raw
rubber and high value new product
innovations in finished rubber goods. Presently, Sri Lanka produces about
153,000 metric tons of natural rubber annually.
Gem, Diamond & Jewellery:
➢ Sri Lanka, long associated with the international gem and jewellery trade, has
been known as the cradle of treasures for its precious, natural gemstones.
➢ Both the artisan culture of jewellery
craftsmanship and Sri Lanka’s gem industry
has been widely acclaimed in literary works
dating as far back as 250 B.C.
➢ The entire industry retains approximately
600,000 people including miners, cutters
and polishers, dealers, jewellery designers,
manufacturers and craftsmen, marketers and sales people.

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Food & Beverage:
➢ Many decades ago, Sri Lankan trade focused solely on Agri- products in primary
phase. Subsequently, with global trends moving towards health-conscious
consumers, currently include processed food and other value-added products
including organic, environmental friendly, sugar free and low salted products.
➢ Sri Lankan Food Manufacturers & Suppliers offer processed fruits, vegetables
and juices, confectionery and bakery products, processed food, rice and
cereals, animal feed, and residues of the milling industry while Sri Lankan
Beverage Manufacturers & Suppliers (besides tea) export mineral water,
bottled drinking water and alcoholic beverages.
Seafood:
➢ Seafood product sector plays an important role in Sri Lanka’s Social and
economic life. The Sector contributes about 2.7% to country’s GDP. End of the
civil unrest detained three decades in the country, fisheries sector has a
significant scope to increase the level of contribution through exploiting high
seas for tuna fishing & value addition.
➢ With the opening up of the Northern and Eastern areas of the island nation,
65% of oceanic area is now free for fishing.
➢ A fishing fleet of 1700 boats operate around the island's waters and supply
approximately to 75 medium and large-scale export companies, 32 of which
utilize the EU-approved processing plants. The sector has generated close to
2.4 million direct and indirect jobs.
Ceramic & Porcelain:
➢ The availability of a vast range of body shapes and intricate decoration
techniques give Sri Lanka a competitive edge in delivering high quality elegant,
contemporary and traditional ceramic and
porcelain designs to the world.
➢ The island is endowed with excellent raw
materials such as high-quality quartz,
feldspar, dolomite and China clay. Purity

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and quality of these raw materials contribute immensely to the high standard
of the product.
Plastic:
➢ Plastic processing is a flourishing, industry in Sri Lanka for over 45 years.
Currently Sri Lanka has over 400 companies engaged in plastic processing. A
total sum of Rs.15 Bn has been invested in plastics processing in Sri Lanka.
Almost 50% of this has come through Foreign Direct Investments.
➢ Out of this 66 % of total investment is exclusively for processing of plastic
products for the export market.Pipe and profile extrusions, cast film extrusion,
injection moulding and EPS moulding are some plastic processing technologies
used by companies in the local industry in their craft. Today, the industry
produces nearly 120,000MT per annum.
Footwear & Leather:
➢ From colourful rubber thongs to genuine leather shoes, Sri Lankan footwear
exporters have already established themselves as quality conscious suppliers
to well-known international brands.
➢ The footwear industry has significant potential to be a key contributor to Sri
Lanka's economy, and already provides high end products to Mark & Spencer,
Bata France, H.H. Browns, Clarks, Aerosoles and Nike. A diverse range of shoes
including canvas and rubber boots, thongs, sports shoes, and leather shoes are
produced, using a variety of raw materials.

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Handloom:
➢ Historically, Sri Lanka has traded textile with nations like India, China and
Middle Eastern countries, and the handloom textile industry is one of the
country's oldest traditional crafts.
➢ These items are designed for niche markets where
handmade products of high value are preferred.
Sri Lankan handloom producers are capable of
supplying numerous products to such markets in
Italy, Germany, France, UK, Norway, Netherlands
and Maldives, which are some of the largest buyers for Sri Lankan handloom
textile products.
Coconut Industry:
➢ coconut is one of the major plantation crops in Sri Lanka which accounts for
approximately 12% of all agricultural produce in Sri Lanka. Total land area
under cultivation is 395,000 hectares and
about 2,500 million nuts are produced per
year according to data of 2016.
➢ Sri Lanka is very popular in world market
for Desiccated Coconut (DC) and Brown
fiber. Distinguish white colour and
characteristic taste of Sri Lankan DC has
ranked Sri Lanka at 4th position of world export market for all kernel products.

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2.2 Contribution of industries in national GDP
LKR Millions

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Composition of Industry Sector 2016
Source: Annual report of Sri Lankan Govt. year 2016
http://www.treasury.gov.lk/documents/10181/12870/2016/c36d6610-d6e7-4b1c-
ab35-238a4db56b88
LKR Millions

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2.3 Import Export Statics
Top Countries Imports by Sri Lanka
Country Value imported in 2016 (USD thousand)
World 19500757
China 4270756
India 3824968
United Arab Emirates 1067273
Singapore 1030316
Japan 949829
Malaysia 642030
United States of America 539987
Thailand 514463
Taipei, Chinese 495929
Hong Kong, China 465914
Source: International Trade Centre
http://www.trademap.org/Country_SelProductCountry.aspx?nvpm=1|144||||TOTA
L|||2|1|1|2|1|1|2|1|1

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Products Sri Lanka Imports
Code Product Value imported in 2016 (USD thousand)
'TOTAL All products 19500757
'27 Mineral fuels, mineral oils and
products of their distillation;
bituminous substances; mineral
...
2333657
'84 Machinery, mechanical
appliances, nuclear reactors,
boilers; parts thereof
1750152
'87 Vehicles other than railway or
tramway rolling stock, and parts
and accessories thereof
1499702
'85 Electrical machinery and
equipment and parts thereof;
sound recorders and
reproducers, television ...
1375800
'60 Knitted or crocheted fabrics 797059
'39 Plastics and articles thereof 710110
'52 Cotton 680256
'25 Salt; sulphur; earths and stone;
plastering materials, lime and
cement
625156
'72 Iron and steel 597597
'71 Natural or cultured pearls,
precious or semi-precious stones,
precious metals, metals clad ...
514211
L|||2|1|1|2|1|1|2|1|1

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Export by Sri Lanka in Major Country
Country Value exported in 2016 (USD thousand)
World 10545893
United States of America 2810220
United Kingdom 1045080
India 753481
Germany 509881
Italy 428902
Belgium 338187
United Arab Emirates 292867
China 215493
Netherlands 208334
Japan 203819
L|||2|1|1|2|1|1|2|1|1

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Major Products Sri Lanka Exports
Code Product Value imported in 2016 (USD thousand)
'TOTAL All products 10545893
'61 Articles of apparel and clothing
accessories, knitted or crocheted
2702979
'62 Articles of apparel and clothing
accessories, not knitted or
crocheted
1895072
'09 Coffee, tea, maté and spices 1525048
'40 Rubber and articles thereof 801756
'85 Electrical machinery and
equipment and parts thereof;
sound recorders and
reproducers, television ...
241796
'71 Natural or cultured pearls,
precious or semi-precious stones,
precious metals, metals clad ...
215216
'08 Edible fruit and nuts; peel of
citrus fruit or melons
192946
'03 Fish and crustaceans, molluscs
and other aquatic invertebrates
182379
'21 Miscellaneous edible
preparations
173847
'27 Mineral fuels, mineral oils and
products of their distillation;
bituminous substances; mineral
...
163562
L|||2|1|1|2|1|1|2|1|1

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2.4 Major Players in Sri Lanka
Tea Industry
1. Akbar Brothers Pvt Ltd
2. Jafferjee Brothers Exports Pvt Ltd
3. George Steuart Teas Pvt Ltd
4. Empire Teas Pvt Ltd
5. Anverally And Sons Pvt Ltd
6. Ceylon Tea Services Plc
7. Imperial Tea Exports Pvt Ltd
8. Union Commodities Exports Pvt Ltd
9. Unilever Lipton Ceylon Ltd
10. Finlays Colombo Plc
Source:
http://www.srilankabusiness.com/pdf/industry_capability_reports/tea.pdf
Apparel Industry
1. Brandix Apparel Ltd.
2. Mas Intimates (Pvt.) Ltd.
3. Hirdaramani International Exports Ltd.
4. Omega Line Ltd.
5. Mas Active Trading Pvt. Ltd.
6. Smarts Shirts Lanka Ltd.
7. Eam Maliban Textiles Pvt. Ltd.
8. Bodyline Pvt. Ltd.
9. Crystal Martin Garments Pvt. Ltd.
10. Linea Aqua Pvt. Ltd.
Source:
http://www.srilankabusiness.com/pdf/industry_capability_reports/apparel-
new.pdf

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Rubber & Rubber based products
1. Loadstar (Pvt) Ltd.
2. Trelleborg Lanka (Pvt) Ltd
3. Ansell Lanka (Pvt) Ltd
4. Lalan Rubber (Pvt) Ltd
5. Eu Re Tec (Pvt ) Ltd
6. Industrial Clothing Pvt Ltd .
7. Venigross (Pvt) Ltd
8. Associated Ceat ( Pvt ) Ltd
9. Global Rubber Industries (Pvt) Ltd
10. Vechenson (Pvt) Ltd
Source:
http://www.srilankabusiness.com/pdf/industrycapabilityreportrubberandruu
berbased.pdf
Gem Diamond & Jewellery
Diamonds Gems Jewellery
Lanka Diamond Polishing
Ltd
Ellawala Exports Pvt Ltd Tropical Findings Pvt Ltd
Diamond Cutters Ltd Gem Paradise Wellawatta Nithyakalyani
Jewellers
Brooky Diamond Pvt Ltd Priyanta Gems Alankara S K R Pvt Ltd
Colandiam Pvt Ltd Sapphirus Lanka Pvt Ltd Blue Diamonds Jewellery
Worldwide Plc
Nisol Diamonds Pvt Ltd Punsiri Gems Natural Sapphires Ceylon
Pvt Ltd
Source: http://www.srilankabusiness.com/pdf/incapreportgemsjewel.pdf

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Food & Beverage
1. Lanaka Canneries Ltd
2. Cbl Natural Foods Pvt Ltd
3. S A Silva And Sons Lanka Pvt Ltd
4. Prima Ceylon Limited
5. Nestle Lanka Plc
6. Ceylon Biscuits Ltd
7. Maliban Biscuit Manufacturies Pvt Ltd
8. Aminovit Pvt Ltd
9. Serendib Flour Mills Pvt Ltd
10. Edna Cocoa Products Pvt Ltd
Source:
http://www.srilankabusiness.com/pdf/industry_capability_reports/food-and-
beverage-sector-2017.pdf
Seafood
1. Tabrobane Seafood Pvt Ltd
2. Global Seafood Pvt Ltd
3. Jay Sea Food Processing Pvt Ltd
4. Island Seafood Exports Pvt Ltd
5. Tropic Fishery Pvt Ltd
Source:
http://www.srilankabusiness.com/pdf/industry_capability_reports/fisheries-
2017.pdf

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Ceramic & Porcelain
1. Noritake Lanka Porcelain Pvt Ltd
2. Dankotuwa Porcelain Ltd.
3. Royal Fernwood Porcelain Ltd
4. Lanka Tiles Plc
5. Ceramic World Pvt Ltd.
6. Midaya Ceramic Company Ltd.
7. Art Decoration International Pvt Ltd.
8. Royal Ceramic Lanka Ltd
9. Piramal Glass Ceylon Plc
10. Samson Rajarata Tiles Pvt Ltd
Source: http://www.srilankabusiness.com/pdf/industry_capability_reports/ceramic-
sector-2017.pdf
Plastic
1. Aqua Packaging Pvt Ltd
2. Mainettech Lanka Pvt Ltd
3. Snackings Pvt Ltd
4. J F Packaging Pvt Ltd
5. Akhtari
6. Phoenix Industries Ltd.
7. Lanka Plastic Industries (Pvt) Ltd.
8. Polydime International Pvt. Ltd.
9. Ceylon Polymer Pvt. Ltd.
10. Sdd Polymer (Pvt) Ltd
11. Avi Additives Pvt. Ltd.
Source: http://www.srilankabusiness.com/exporters-directory/plastic-products-
exporters-in-sri-lanka.html

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Footwear & Leather
1. Ceylon Leather Products Plc
2. D. Samson Industries Ltd
3. Bata Exports (Pvt )Ltd
4. Bettans Exports (Pvt) Ltd
5. Lakpa Footwear (Pvt)Ltd
6. Kavin Polymers (Pvt) Ltd
7. Cat Walk Industries (Pvt) Ltd
8. Service Shoes Lanka (Pvt) Ltd
9. Selakta International (Pvt) Ltd
Source:http://www.srilankabusiness.com/pdf/industry_capability_reports/footwear
-industry-2017.pdf
Handloom
1. Selyn Exporters Pvt Ltd.
2. Barbara Sansoni Exports Pvt Ltd.
3. Kandygs Handlooms Exports Ltd.
4. Ic Collection Pvt Ltd.
5. Asian Fabrics Ltd.
6. Ko-Lanka Pure Silks Pvt. Ltd.
7. Suntex Handloom Industries
8. Kelani Fabrics
Source:http://www.srilankabusiness.com/pdf/industry_capability_reports/ha
ndloom-2017.pdf

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2.5 Plastic Industry Gujarat
➢ A wide range of plastics raw materials are produced to meet the material needs of
various sectors of the economy. These polymeric materials are broadly
categorized as commodity, engineering and specialty plastics. Commodity plastics
are the major products that account for bulk of the plastics and in turn for
petrochemical industry. Commodity plastics comprise of Polyethylene (PE),
Polypropylene (PP), Polyvinyl Chloride (PVC) and Polystyrene.
➢ While engineering and specialty plastics are plastics that exhibit superior
mechanical and thermal properties in a wide range of conditions over and above
more commonly used commodity plastics and are used for specific purpose. These
include styrene derivatives (PS/EPS & SAN/ABS), polycarbonate, poly methyl
methacrylate, polycarbonates, poly oxy methylene (POM) plastics etc.
➢ Plastics are derived from organic products. The materials used in the production
of plastics are natural products such as cellulose, coal, natural gas, salt and, of
course, crude oil. Crude oil is a complex mixture of thousands of compounds. To
become useful, it must be processed. The production of plastic begins with a
distillation process in an oil refinery.
➢ The distillation process involves the separation of heavy crude oil into lighter
groups called fractions. Each fraction is a mixture of hydrocarbon chains (chemical
compounds made up of carbon and hydrogen), which differ in terms of the size
and structure of their molecules. One of these fractions, naphtha, is the crucial
element for the production of plastics.
➢ The two major processes used to produce plastics are called polymerisation and
polycondensation, and they both require specific catalysts. In a polymerisation
reactor, monomers like ethylene and propylene are linked together to form long
polymers chains. Each polymer has its own properties, structure and size
depending on the various types of basic monomers used.

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➢ There are three broad types of PE, viz: Low-density Polyethylene (LDPE), High-
density Polyethylene (HDPE) and Linear Low-density Polyethylene (LLDPE). Major
plastic materials like PE and PP are derived from Ethylene and Propylene
respectively, while other plastics such as PVC, PS & ABS and PC are produced from
benzene, butadiene and another feedstock.
➢ To manufacture finished products, polymers are processed through various types
of techniques namely extrusion, injection moulding, blow moulding and roto
moulding. Various products manufactured through these processes are
highlighted in the following table.
Classification of plastic products by type of process
Plastic
Products
Extrusion Films and Sheets, Fibre and Filaments
Pipes, Conduits and profiles,
Miscellaneous applications
Injection moulding Industrial Injection Moulding,
Household Injection Moulding and
Thermoware/ Moulded luggage
Blow moulding Bottles, containers, Toys and
Housewares
Roto moulding Large circular tanks such as water tanks

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2.5.1 Sub Segments of Plastic Industry in Gujarat
As the Gujarat is one of the growing state of India having multiple clusters of
Industries. Plastic industry is one of those industries have many sub sectors or
segment in the industry. It can be divide as below.
Pipe
➢ Gujarat has consumption of plastic pipe due to agricultural business in Gujarat.
It is first requirement of the farm and demand of pipe in Industries as well as
in building. While on other hand there is global demand in pipe segment of
Plastic Industry.
PET
➢ Polyethylene terephthalate is growing day by day in the market of Gujarat. It
is very attractive segment of plastic industry which holds the use of plastic
products.
Rot moulding
➢ Roto moulding is like a casting of plastic by heating process on plastics and
polymers. It can be done by using various kind of material related to polymer,
masterbatch and other additives.
Masterbatch
➢ Masterbatch is one the segment of plastic industry which has importance in
another segment of plastic industry too. Applicability of masterbatch is for
colouring the plastic products during the time of its manufacturing.
Major of the plastic units are in Dahej, Sanand, Vatava, Naroda-Ahmedabad, Dhoraji
(Rajkot)

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2.5.2 Contribution of Plastic Industry National GDP
Plastic Industry contributing 8% in national GDP of India
Industry Group Unit Employment Investment (Rs. In
lacs.)
Rubber & Plastic products 7012 68608 364827.64
Source: groupwise msme report ( em part -ii ) from 02/10/2006 to 31/03/2014
http://www.ic.gujarat.gov.in/documents/pagecontent/INDUSTRIES-INGUJ-
2014-report.pdf

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2.5.3 Major Players in Plastic Industry
Name of Company Market Share
Reliance Industries Ltd. 43.2%
Indian Oil Corporation 8.2%
ONGC Petro Addition
Ltd.
9.2%
HPCL-Mittal Energy Ltd. 2.9%
JBF Industries Ltd. 1.2%
Source: Report on plastic industry, 2017 by PlastIndia Foundation
http://www.plastindia.org/plastic-industry-status-report.html

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2.5.4 Local Taxes & Duties in Plastic Industry
Goods & Service Tax (IGST+CGST) 18%
Export Duty 10%
Source: DGFT, CBEC
https://cbec-gst.gov.in/gst-goods-services-rates.html
2.5.5 Incentives from Gujarat Government for Plastic Industry
➢ Interest subsidy @ 7% per annum out of interest payable on the term loan
availed from bank or financial institutions as per RBI guidelines during the
operatives period of scheme for fixed capital investment with the maximum
amount of ₹1 crore per annum for period of 5 years from the date as opted by
the enterprise.
➢ “Gujarat is among the few states to enunciate a separate policy for the plastics
industry. The activities are focused to derive more advantage from Gujarat’s
Scheme for Financial Assistance to Plastics Industry, available for an operative
period from January 1, 2015 to December 31, 2019.
➢ There are some non monetory benefits from Government like Plast India
research foundation, The Plastic Export Promotion Council, etc.
Plastic Parks
Location in Gujarat Area (Acres)
Sanand 140
Dahej 100
Source: Incentive Schemes of Government of Gujarat Under Industrial Policy 2015 and
Industrial Policy 2009 Page No. 159
http://ic.gujarat.gov.in/documents/Industrial-Policy-2015-BOOKLET-31-01-2017.pdf
http://www.thehindubusinessline.com/news/national/plastics-manufacturing-set-
to-grow-at-20-in-gujarat/article9017256.ece

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Chapter: 3 About Plastic Industry in Sri Lanka

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3.1 Overview of Plastic Industry in Sri Lanka
Size of Plastic Industry:
➢ There are nearly 800 tiny, small, medium and few large processors in Sri Lanka.
Nearly 180,000 tonnes of plastics raw material is consumed / processed in the
country. This does not include import of finished plastics articles.
➢ The size of the industry is estimated at 100-150 million LKR and it is safe to
assume that the industry may be providing direct and indirect employment to
over 100,000 people.
Opportunities in Plastic Industry of Sri Lanka:
➢ In every developing country Plastics processing industry grows at twice or
thrice the GDP growth rate in the country. Sri Lanka is not an exception. The
plastics processing industry is expected to grow at least by15% CAGR-
compounded annual growth rate.
➢ With changes in purchasing power in tune with change in lifestyle,
urbanisation, growing demand for convenience and packed foods, growth of
modern retails outlets, the demand will be reflected in the consumption of
plastics raw material also. The domestic demand of Sri Lanka will be dominated
in key sectors like pipes, packaging, consumer goods, infrastructure products-
water tanks, electrical, building materials.
➢ Agriculture offers great potential for plastics industry, use of plastics helps to
conserve water, improve yield, productivity, preservation of soil nutrients,
storage and transportation of grains and agricultural produce. Plastics can
offer Low Cost Housing to meet the housing requirements of the poor class.
➢ Besides meeting growing demand for domestic markets, Sri Lanka can aim to
play a dominant role in the export of plastics products to other countries. With
its strategic location, it can emerge as a hub for the international markets. This
requires a strategic planning committed support from the government with an
eye for the future.
➢ In Sri Lanka, there are lesser production of plastic coloured Masterbatch. As a
supplier of Colour Masterbatch it is one of great opportunity for Indian
Exporter to supply in market of Sri Lanka.

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3.2 Sub-Segment of Plastic Industry in Sri Lanka
According to Export development board of Sri Lanka Plastic Industry can in
three major segments as follow.
Plastic Processing Technologies available in Sri Lanka
• Pipe and Profile extrusion
• Cast Film Extrusion
• Blown Film Extrusion
• Injection moulding
• Extrusion blow moulding
• Rotational moulding
• EPS moulding
Other Sub – Process used in Sri Lanka:
• Laminating
• Printing
• Weaving
• Thermoforming
Major allied Industries are as follows:
• Water Supply and sanitation
• Telecommunication
• Construction
• Packaging
• Automobile
• Medical
• Electronics & Consumer durables

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3.3 Contribution of Plastic Industry in National GDP of
Sri Lanka
➢ The Industry sector, which accounted for 27.7 percent to GDP regained its
momentum in the first half of 2016. The sector grew by 5.2 percent during the
first half of 2016, compared to a moderate growth of 2.5 percent growth in the
same period of 2015 reflecting the expansion of construction activities and
manufacturing of food and beverages, textiles and apparel and mining and
quarrying sectors.
➢ However, sub-sectors such as manufacturing of chemical products and basic
pharmaceutical products, rubber and plastic products and non-metallic
mineral products contracted. During the first half of 2016, construction and
mining and quarrying sub-sectors grew by 8.5 percent and 1.5 percent
respectively.
➢ Meanwhile, manufacturing of furniture, coke and petroleum products and
manufacturing of paper and paper products sub-sectors showed a
considerable growth.
Composition of Industry Sector 2016
➢ The manufacturing sub-sector, which accounted for 59.9 percent of the
Industry sector and 16.6 percent of GDP, grew by 3.9 percent in the reference
period compared to a 4.5 percent growth recorded in the first half of 2015
driven by higher performance of food, beverages and tobacco, textile, wearing
apparel and manufacturing of furniture sub-sectors.

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Composition of Manufacturing Sector 2016
Performance in Industrial Sector: 2014-2016
Source: Fiscal Management Report 2017
http://www.treasury.gov.lk/documents/10181/12876/2017/360b3514-
d267-4836-9890-713ce8955b70

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3.4 Major Player of Plastic Industry in Sri Lanka
Company Products
Central Industries Plc Pipes, tubes, ducts and hoses, plastic
Ecochem Pvt Ltd Plastic Products, Other Chemical
Products nes, Starches, Glues, Enzymes
North Sails 3 Dl Lanka Pvt Ltd Plastic Products, Other Plastic Products
nes, Made-Up Textile Articles
Pet Packaging Pvt Ltd Plastic Products
Shanthi Plastic Pvt Ltd Plastic Products
Nawaloka Polysacks Pvt Ltd Sacs & Bags of Plastics,
Duro Pipe Industrial Pvt Ltd PVC Pipes
Source: http://www.srilankabusiness.com/exporters-directory/plastic-products-
exporters-in-sri-lanka.html

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3.5 Major Player in Sub Segment of Plastic Industry
Gloves Mitts Mittens Exporters in Sri Lanka
➢ Mainettech Lanka Pvt Ltd
➢ Brandix Hangers Pvt Ltd
➢ Ceylon Knit Trend Pvt Ltd
Sacs Bags Of Plastics
➢ Aqua Packaging Pvt Ltd
➢ Plastic Pakaging Pvt Ltd
➢ J F Packaging Pvt Ltd
➢ Primex Lanka Plastic Pvt Ltd
➢ New Global Polymers Pvt Ltd
➢ Orient Lanka Plastic Pvt Ltd
Starches Glues Enzymes
➢ Ecochem Pvt Ltd
➢ Chemcel Pvt Ltd
➢ Dip Products Katuwawala Pvt Ltd
Source: http://www.srilankabusiness.com/exporters-directory/plastic-
products-exporters-in-sri-lanka.html

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3.6 Incentives from Government of Sri Lanka for Plastic
Industry
➢ Government of Sri Lanka providing some benefits to the plastic processor
export units.
➢ Exemption in Income Tax, 5-15%
➢ Exemption in import duty for Temporary Importation for Export Processing
Source:http://www.srilankabusiness.com/pdf/fiscalincentives_for_non_boi_r
eadmore.pdf
http://www.ft.lk/business/plastics-industry-poised-to-grow-at-10-15/34-
327184

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3.7 Justification for Selecting Plastic Industry
➢ Plastic usage in Sri Lanka is 2,65,000 tonnes / annum.
➢ In Sri Lanka there are many plastic processing units which are at growing stage
as well as Government of Sri Lanka providing benefits to the plastic products
exporter.
➢ There is Ceylon Oil Corporation only as manufacturing unit for plastic raw
materials.
➢ Out of total imports of Sri Lanka Plastics and article of thereof (HS chapter 39)
imported in year 2016 of710110 thousand USD. This stands at 6th position out
of all imports.
➢ Plastic raw materials are by products of oil refinery which only one Ceylon Oil
Corporation in Sri Lanka.
➢ While India has large no. of manufacturer for plastic raw materials as well as
one of the largest refineries of world is in Gujarat Reliance with capacity of
1,240,000 barrel per day.
➢ As per the data of Department of Commerce Export of plastic (HS 39) India to
Sri Lanka was 50,787.48 in the year 2014-15 than increase 26.71%, 64,354.33
in the year 2015-16.
As per points mentioned above we can justify that there is an opportunity for the
export of plastic material to Sri Lanka.
Source: Department of Commerce www.commerce.nic.in
https://en.wikipedia.org/wiki/List_of_oil_refineries

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Chapter: 4 STEEPLED & SWOT
4.1 STEEPLED Analysis of Plastic Industry in Sri Lanka
Social
➢ Society is mostly affected by the culture which is common signs, beliefs and
system among the people. As Sri Lankan people follows the mixes modern
elements with traditional aspects and is known for its regional diversity.
➢ Plastic usage increasing in Sri Lanka due adaptiveness of the Sri Lankan.
➢ Sri Lankan believes that the cost should be optimum of their consumption and
that thing is growing plastic industry of Sri Lanka.
➢ People was using metal kitchen utensil but in this era people uses both Plastic
utensil as well as metal too.
Technological
➢ Sri Lanka is one of the developing countries which adopt new technology which
provides qualitative of work and high productivity. Some machines mentioned
below are currently adopted by Sri Lankan companies belonging to plastic
industry.
Injection Moulding Machines (Horizontal)

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Injection Molding Machines (Vertical)
PET, Injection Stretch Blow Molding
Machines
LDPE/LLDPE/HDPE/PP Film Blow
Machines

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Bag Making Machines
Recycling & Palletizing Machines
Machines For Mould Making Industry
CNC Milling Machines
Vertical Turret Milling Machines

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High Precision Surface Grinder
Source: Data compiled from various machine suppliers in Sri Lanka

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Economic
Contribution of various industry to GDP of Sri Lanka
Source: Fiscal Management Report 2017 by Govt. of Sri Lanka
Sri Lankan GDP composition by end use
Household consumption 67.6%
Government consumption 8.6%
Investment in fixed capital 27.6%
Investment in inventories 3.9%
Exports of goods and services 21.4%
Import of goods and services -29.1%
Source: https://www.cia.gov/library/publications/the-world-factbook/geos/ce.html
➢ The capacity of Sri Lankan plastic processing industry in 2016was nearly
140,000 MT per annum.
➢ Annual average growth rate of around 10%. – 12%.

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➢ Contribution of plastic industry together with rubber industry is 5% to Sri
Lankan GDP
➢ Sri Lankan economy has peaceful domestic environment, favourable
government policies and improved investor confidence have facilitated Plastic
Industry to demonstrate a commendable performance.
➢ The improved performances in plastic industry contributed towards the high
economic growth of Sri Lanka.
➢ Government have often been accompanied by reversals in economic policy.
Source: http://www.treasury.gov.lk/strong-resilient-economy
http://www.srilankabusiness.com/plastic/

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Environmental
➢ The highest percentage (93%) of recyclers use PP (Polypropylene) as a raw
material in plastic recycling industry in Sri Lanka compared to other polymers.
➢ Environmentally, plastic is a growing disaster. Most plastics are made from
petroleum or natural gas, non-renewable resources extracted and processed
using energy-intensive techniques that destroy fragile ecosystems.
➢ The manufacture of plastic, as well as its destruction by incineration, pollutes
air, land and water and exposes workers to toxic chemicals, including
carcinogens.
➢ Plastic packaging – especially the ubiquitous plastic bag – is a significant source
of landfill waste and is regularly eaten by numerous marine and land animals,
to fatal consequences.
➢ Synthetic plastic does not biodegrade. It just sits and accumulates in landfills
or pollutes the environment. Plastics have become a municipal waste
nightmare, prompting local governments all over the world to implement
plastic bag, and increasingly polystyrene (Styrofoam), bans.
➢ Plastic pollution may not even be visible to the naked eye as research is
showing that microscopic plastic particles are present in the air at various
locations throughout the world and in all major oceans. Plastic is now
ubiquitous in our terrestrial, aquatic and airborne environments - that is, it's
everywhere.
➢ In January, 2016 president Maithripala Sirisena revived a dormant law
introduced in 2007 that all polythene used should be more than 20 microns in
thickness.
➢ Four months after the ban, bags below 20 microns are still being manufactured
and distributed.
➢ The Central Environment Authority (CEA) which is authorised for monitoring
manufacturers and distributors of polythene said it was difficult to gauge the
thickness of the polythene without proper equipment and many
manufacturers were getting away scot free.

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➢ President Maithripala Sirisena banned the sale of plastic bags, cups and plates,
as well as the burning of refuse containing lower quality plastic.
Source:https://www.lifewithoutplastic.com/store/how_plastics_affect_the_e
nviron ment#.Wde452iCxPY
http://www.sundaytimes.lk/160501/news/sri-lanka-among-the-dirty-five-
191570.html
https://phys.org/news/2017-09-sri-lanka-plastic-garbage-crisis.html
Political
Main office holders
Office Name Party Since
President Material Sirisena Sri Lanka Freedom Party 9 January 2015
Prime Minister Ranil Wickremesinghe United National Party 17 August 2015
➢ The current coalition Government led by President Sirisena and Prime Minister
Wickremesinghe follows a pro-business stance with an emphasis on expanding
exports, upgrading industry, and boosting private investment and public-
private partnerships.
➢ Plastic Industry of Sri Lanka is growing their export day by day due to very
active political leader which directly leads to import of raw material in Plastic
Industry.
Political Stability in Sri Lanka
Source: http://www.theglobaleconomy.com/Sri-Lanka/wb_political_stability/

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Legal
➢ Legal factor including consumer protection law, national environmental act,
health and safety law, import duty and VAT of plastic products.
➢ Plastic processing units are depended on law that’s why they need to improve
quality of plastic raw material to improve finish products.
➢ Sri Lanka banned plastic bags (polythene) and other disposable products in
September, 2017 after the collapse of the Sri Lanka’s biggest dump led to a
rubbish disposal crisis.
Ethical
➢ Sri Lankan Plastic Industry’s sustainability incorporates its entire production,
human resources and supply chain process.
➢ LEED Platinum and Gold Certified entities practice international standards of
recycling, effluent treatment and waste management practices.
➢ Sri Lanka stands out as a reliable source that pays fair wages to its workers and
child labour or forced labour is not at all used in its businesses.
Demographical
➢ Population of Sri Lanka 22,409,381 (July 2017 est.) according to CIA
➢ Demographic change is another factor that needs to be consider in Sri Lanka
growing middle class consumer demand for products in which plastic
constitute a fundamental component.
➢ Due to high cost of living people prefers plastic material as low-cost product.

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4.2 STEEPLED Analysis of Plastic Industry in Gujarat
Social
➢ The commodity Plastic uses in the major products.
➢ People of Gujarat believes in lowest cost and optimum utilisation of resources
➢ Usage of plastics in high volume and wide range of applications, such as film
for packaging, photographic and magnetic tape, clothing, beverage and trash
containers and a variety of household products
Technological
➢ The Gujarat Plastic Processing Industries it has seen a shift from low
output/low technology machines to high output high technology machines.
➢ There has been some major technological advancement of global standards
leading to the achievements like world largest integrated clean room FIBC
manufacturing facility world’s largest water tank manufacturing In Gujarat.
➢ Gujarat market is world largest market for roto-moulded water tanks.
➢ In Gujarat’s Technology needs are critical in areas like high production and
automatic blow moulding machines, multilayer blow moulding, Stretch/blow
moulding machine, specific projects involving high CAPEX like PVC calendaring,
multilayer film plants for barrier films, multilayer cast lines, BOPP and
nonwoven solely on imported technology or machinery.

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Economic
➢ Gujarat is one of the high growth states in the country.
➢ Average annual Gross State Domestic Product (GSDP) growth rate of Gujarat
from 2004-05 to 2015-16 was 12.02 per cent.
➢ Gujarat has achieved the distinction of being one of the most industrially
developed states and contributes about a quarter to India’s goods exports.
➢ There are 13 major industry groups that together account for around 82.05 per
cent of total factories, 95.85 per cent of total fixed capital investment, 90.09
per cent of the value of output and 93.21 per cent of value addition in Gujarat's
industrial economy.
➢ Gujarat, along with Maharashtra accounts for 65 per cent of the national
plastics industry.
➢ Plastics account for over 15 per cent of India’s GDP
➢ Plastics processing and manufacturing is set to grow at a healthy 20 per cent
rate in Gujarat. This was stated by the All India Plastics Manufacturers'
Association (AIPMA)
➢ “Gujarat is among the few states to enunciate a separate policy for the plastics
industry. The activities are focused to derive more advantage from Gujarat’s
Scheme for Financial Assistance to Plastics Industry, available for an operative
period from January 1, 2015 to December 31, 2019.
➢ Gujarat, along with Maharashtra accounts for 65 per cent of the national
plastics industry.
➢ According to AIPMA, Indian plastics industry is growing at a rate of over 15 per
cent against an average projected growth of 7.5 per cent. Nearly 50,000 micro,
small and medium enterprises are involved in this industry. Plastics account for
over 15 per cent of India’s GDP.
Source:http://www.thehindubusinessline.com/news/national/plastics-
manufacturing-set-to-grow-at-20-in-gujarat/article9017256.ece
https://www.ibef.org/states/gujarat-presentation

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Environmental
➢ While the use and benefits of plastic are manifold it invariably gets branded as
a polluting material.
➢ The myth regarding the polluting characteristics of plastic needs to be
addressed. Plastic is the chemically inert substances and they do not cause
either environmental or health hazards.
➢ If it can be collected and disposed of or recycled as per laid down guidelines or
rules then the issue of plastic waste can be suitably addressed. In fact, there is
wide scope for industries based on re-cycling of plastics waste.
Source: Gujarat Pollution Control Board http://gpcb.gov.in/
https://vibrantgujarat.com/writereaddata/images/pdf/Environment.pdf
Political
➢ The consistency of government of the plastic industries in Gujarat for an
exclusive zone for the industries all around growth.
➢ The region is said to contribute about 65% of the country’s total plastics
production. According to Atul Kaunga, secretly of the Gujarat State Plastic
manufacturer’s association(GSPMA) the government should have announced
a collective purchase policy for the small plastic manufacturing sector and also
offer an incentive and reduce government taxes on power supply to the small-
scale industries.
Legal
➢ As per norms there are some legal obligations in plastic industry, Gujarat
Goods and Services Tax Act, June 2017, consumer protection act, Pollution
control
➢ Plastic products will attract GST rates of 18 per cent and 28 per cent.
➢ Legal aspects of Gujarat are in favour of all industry related to the plastic
manufacturing and allowing to establish plant in various region of Gujarat.

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Ethical
➢ The use of plastic in India was largely limited to the household customers
durables and packaging. Plastics are also widely used in infrastructure, health
care and agriculture.
➢ People uses only qualitative as mentioned by Government in the pollution
control guideline.
Demographical
➢ The population of Gujarat census data show that it has total population of 6.3
crore. Which is approximately 4.99% of the Gujarat population.
➢ The plastic industries in Gujarat is spread across the country employing about
4 million people over 2000 exporters.
➢ Gujarat has enough resource export of Plastic Material.
Education
➢ In Gujarat literacy rate is 70.71% also male female both are literate so they can
do a business.
➢ Due literacy people aware for the benefits of using Plastic Articles
Population
➢ The population of Gujarat was 60383628 crores according to the 2015 census
data.

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4.3 Comparative STEEPLED Analysis
Sri Lanka Gujarat
Social
• Society mostly affected by the
culture which is common signs,
beliefs and system among the
people. As Sri Lankan people
follows the mixes modern
elements with traditional
aspects and is known for its
regional diversity.
• Plastic usage increasing in Sri
Lanka due adaptiveness of the
Sri Lankan.
• Sri Lankan believes that the cost
should be optimum of their
consumption and that thing is
growing plastic industry of Sri
Lanka.
• The commodity Plastic uses in the
major products.
• People of Gujarat believes in
lowest cost and optimum
utilisation of resources
• Usage of plastics in high volume
and wide range of applications,
such as film for packaging,
photographic and magnetic tape,
clothing, beverage and trash
containers and a variety of
household products.

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Technological
• Sri Lanka is one of the
developing country which
adopts new technology which
provides qualitative of work and
high productivity.
• Some machines mentioned
below are currently Sri Lankan
companies of plastic industry
mostly adopting.
• The Gujarat Plastic Processing
Industries it has seen a shift from
law output/low technology
machines to high output high
technology machines.
• There has been some major
technological advancement of
global standards.
• The Gujarat market is world
largest market for roto-moulded
water tanks.
Economical
• Sri Lankan economy has peaceful
domestic environment,
favourable government policies
and improved investor
confidence have facilitated
Plastic Industry to demonstrate a
commendable performance.
• The improved performances in
plastic industry contributed
towards the high economic
growth of Sri Lanka.
• Government have often been
accompanied by reversals in
economic policy.
• The prices of polymer have
distributed generally to the
inflation and are a cause of
concern to the plastic processing
industries.
• Such are the inflationary impact
of 56 to 105 percent increase the
prices of plastic polymers, that
the industries have represented
to the government for a cut in
import duty on the commodity.

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Environmental
• The highest percentage (93%) of
recyclers use PP (Polypropylene)
as a raw material in plastic
recycling industry in Sri Lanka
compared to other polymers.
• The myth regarding the polluting
characteristics of plastic neds to
be addressed. Plastic is the
chemically inert substances and
they do not cause either
environmental or health hazards.
Political
• The current coalition
Government led by President
Sirisena and Prime Minister
Wickremesinghe follows a pro-
business stance with an
emphasis on expanding exports,
upgrading industry, and
boosting private investment and
public-private partnerships.
• Plastic Industry of Sri Lanka is
growing their export day by day
due to very active political leader
which directly leads to import of
raw material in Plastic Industry.
• The consistency of government
of the plastic industries in Gujarat
for an exclusive zone for the
industries all around growth.
• The region is said to contribute
about 65% of the country’s total
plastics production. According to
Atul Kaunga, secretly of the
Gujarat State Plastic
manufacturer’s
association(GSPMA) the
government should have
announced a collective purchase
policy for the small plastic
manufacturing sector and also
offer an incentive and reduce
government taxes on power
supply to the small-scale
industries.

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Legal
• Legal factor including consumer
protection law, national
environmental act, health and
safety law, import duty and VAT
of plastic products.
• Plastic processing units are
depended on law that’s why
they need to improve quality of
plastic raw material to improve
finish products.
• As per norms there are some
legal obligations in plastic
industry, Gujarat Goods and
Services Tax Act, June 2017,
consumer protection act,
Pollution control.
• Legal aspects of Gujarat are in
favour of all industry related to
the plastic manufacturing and
allowing to establish plant in
various region of the Gujarat.
Ethical
• In definition, Sri Lankan Plastic
Industry’s sustainability
incorporates its entire
production, human resources
and supply chain process.
• LEED Platinum and Gold
Certified entities practice
international standards of
recycling, effluent treatment
and waste management
practices.
• Sri Lanka stands out as a reliable
source that pays fair wages to its
workers and child labour or
forced labour is not at all used in
its businesses.
• The use of plastic in India was
largely limited to the household
customers durables and
packaging. Plastics are also
widely used in infrastructure,
health care and agriculture.
• The customer of market for
automobiles and electronic
goods and both major users of
plastics and they also used plastic
for plastic pipes,
buckets,measuring cups, plastic
containers etc.

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Demographical
➢ Population of Sri Lanka
22,409,381 (July 2017 est.)
according to CIA
➢ Demographic change is another
factor that needs to be consider
in Sri Lanka growing middle class
consumer demand for products
in which plastic constitute a
fundamental component.
➢ In Sri Lanka rise in plastic
requirement is responsible for
increase in standard of living.
• The population of Gujarat census
data show that it has total
population of 6.3 crore. Which is
approximately 4.99% of the
Gujarat population.
• The plastic industries in Gujarat is
spread across the country
employing about 4 million people
over 2000 exporters.
• In Gujarat literacy rate is 70.71%
also male female both are literate
so they can do a business

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4.4 SWOT analysis of Plastic Industry in Sri Lanka
Strength
➢ Large domestic market
➢ Skilled work force
➢ Export promotion for plastic processed products
Weakness
➢ Low profitability
Opportunities
➢ Developing economy
➢ Adoption of technology
➢ Growing demand for plastics
➢ Income Level is a constantly Increasing
Threats
➢ High Competition
➢ Technological problems
➢ Large Foreign companies

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4.5 SWOT analysis of Plastic Industry in Gujarat
Strength
➢ Large network manufacturing Facility
➢ Large variety of products
➢ Easy Availability of Raw Materials
➢ Good incentive for export activity
➢ Availability of All the Geographical Resources
➢ Advantages of Industrial and Special Economic Zones
Weakness
➢ Insufficient Infrastructure
➢ Lack of Scientific storage and processing
➢ Government inference
➢ Poor Linkage between other industries
Opportunity
➢ Integration of technology is increasing productivity and efficiency
➢ Improving export trade and tools
➢ Facilitate higher production and storage Capabilities
Threats
➢ Ban on products
➢ High tax
➢ Environmental Issues
➢ Effect of major Industries
➢ Large scale industries

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Chapter: 5 About the West Bengal
5.1 Overview of West Bengal & Geographic Location
➢ West Bengal is an Indian state located in Eastern India on the Bay of Bengal.
➢ It is India's fourth most populous state, with over 91 million inhabitants (as of
2011). It has an area of 88,752 km2 (34,267 sq mi).
➢ West Bengal includes 14 Districts including Kolkata.
➢ The state capital is Kolkata (Calcutta), the seventh-largest city in India.
➢ West Bengal Governing by Keshari Nath Tripathi and Chief Minister of West
Bengal is Mamata Banerjee.
➢ As of 2015, West Bengal has the fifth-highest GSDP in India. GSDP at current
prices (base 2004–2005) has increased from 208,656 crores in 2004–05 to
800,868 crores in 2014–2015.

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Geographic Location
➢ West Bengal is an Indian
state located in Eastern India on
the Bay of Bengal.
➢ West Bengal is on the
eastern bottleneck of India,
stretching from the Himalayas in
the north to the Bay of Bengal in
the south.
➢ The state has a total area
of 88,752 square kilometres (34,267 sq mi).
➢ The Darjeeling Himalayan hill region in the northern extreme of the state is a
part of the eastern Himalayas
mountain range. In this region is
Sandakfu, which, at 3,636 m
(11,929 ft), is the highest peak in
the state.
➢ The narrow Terai region
separates the hills from the North
Bengal plains, which in turn
transitions into the Ganges delta towards the south.

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➢ The Rarh region intervenes between the Ganges delta in the east and the
western plateau and high lands.
➢ A small coastal region is in the extreme south, while the Sundarbans mangrove
forests form a geographical landmark at the Ganges delta.
➢ West Bengal offers definite advantage as the traditional domestic market in
Eastern India, the Northeast and the land-locked countries of Nepal, Bhutan
and Bangladesh, which are easily accessible. The state is also an entry point to
markets in Southeast Asia, via the Northeastern states.
➢ Kolkata, which is a metropolitan city, which has a comparatively low cost of
mainataining a business as compared to the cities such as New Delhi,
Bangalore, Chennai, Hyderabad and Mumbai.
Source: https://en.wikipedia.org/wiki/West_Bengal
https://wb.gov.in/portal/web/guest/maps;jsessionid=zzLnF9gAFv48tWKHuBJ
GK5bC

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5.2 Population
As per details from Census 2011, West Bengal has population of 9.13 Crores, an
increase from figure of 8.02 Crore in 2001 census. Total population of West Bengal as
per 2011 census is 91,276,115 of which male and female are 46,809,027 and
44,467,088 respectively.
Particulars Data 2011
Actual Population 91,276,115
Male 46,809,027
Female 44,467,088
Population Growth 13.84%
Sex Ratio 950
Total Child Population (0-6 Age) 10,581,466
Literacy 76.26 %
Male Literacy 81.69 %
Female Literacy 70.54 %
Religious Data 2011
Hindu 70.54 %
Muslim 27.01 %
Source: http://www.census2011.co.in/census/state/west+bengal.html

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5.3 Official Language
➢ English and Bengali are the two official (presumably, first official) languages of
West Bengal.
➢ But, on May26, 2011 West Bengal’s CM Mamta Benerjee announced that
Bengal will now have as many as six "second official" languages which include
Urdu, Gurmukhi, Nepali, Ol-Chiki, Oriya and Hindi.
➢ English has been the official language for all forms of official communication
since the Raj era, and in the state's lower levels of administration.
➢ The Bengali Language has been derived from Magadhi Prakrit, Pali and
Sanskrit. Which is the main language of West Bengal and mother tongue of
majority of the people.
➢ Gurmukhi is actually a script, not a language, a devnagari derivative used to
write Punjabi.
➢ Gorkhali is spoken by the people of Nepali descent in the West Bengal’s hill
districts.
➢ And Ol-Chiki, the language of the Santhal tribes, has a script which was only
invented in 1925 by Pandit Raghuram Murmu.
➢ Urdu, assumed to be spoken by the state's large Muslim population, is spoken
by less than 5 per cent of the state's 2.3 crore Muslims.
Source:https://en.wikipedia.org/wiki/West_Bengal

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5.4 Ethnic Group
➢ As per the provisional results of the 2011 national census, West Bengal is the
fourth-most-populous state in India with a population of 91,347,736 (7.55% of
India's population).
➢ Bengalis, consisting of Bengali Hindus, Bengali Muslims, Bengali Christians and
a few Bengali Buddhists, comprise the majority of the population.
➢ The Marwadi and Bihari non-Bengali minorities are scattered throughout the
state; various indigenous ethnic Buddhist communities such as the Sherpas,
Bhutias, Lepchas, Tamangs, Yolmos, and ethnic Tibetans can be found in the
Darjeeling Himalayan hill region.
➢ The Darjeeling district also has a large Nepali immigrant population, making
Nepali a widely spoken language in this region. West Bengal is also home to
indigenous tribal Adivasis such as Santhal, Munda, Oraon, Bhumij, Lodha, Kol,
and Toto tribe.
Religion Percentage
Hinduism 70.54%
Islam 27.01%
Christianity 0.72%
Buddhism 0.31%
Sikhism 0.07%
Source: https://en.wikipedia.org/wiki/West_Bengal#Demographics

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5.5 Natural Resource
➢ West Bengal stands third in the country in terms of mineral production. The
state contributes about one-fifth to the total production of minerals in the
country.
➢ There are good possibilities of obtaining mineral oil and natural gas in the areas
near the Bay of Bengal, in Purba Medinipur, Sundarbans, South 24 Parganas
and North Bengal plains.
➢ West Bengal is the third largest state for coal production, accounting for about
half of India's total.
➢ Coal is extracted from about 228 mines in the Raniganj and Asansol region of
Bardhaman district.
➢ Limestone which is used in cement industry is mined in Bankura, Purulia,
Darjeeling and Jalpaiguri.
➢ There are copper mines in Jalpaiguri and Darjeeling. Small quantities of low
quality iron-ore are mined in Bardhaman, Purulia, Birbhum and Darjeeling.
➢ There are manganese in the Jhargram region of Paschim Medinipur, Purulia
and Bardhaman. Wolfram is mined at Jhilimili in Bankura.
➢ As record of 2013, forest area in West Bengal is 16,805 km2 (6,488 sq mi),
which is 18.93% of the state's geographical area, compared to the national
average of 21.23%.
➢ Reserves and protected and unclassed forests constitute 59.4%, 31.8%, and
8.9%, respectively, of forested areas, as of 2009. Part of the world's largest
mangrove forest, the Sundarbans is located in southern West Bengal.

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Source:
https://en.wikipedia.org/wiki/Geography_of_West_Bengal#Natural_resources

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5.6 Transportation Connectivity of Gujarat with West Bengal
Transportation can be done through major four ways Roadways, Railway, Seaway and
Airway. Gujarat to West Bengal Distance Roadway 2,202.8 km, Railway
➢ As of 2011, the total length of surface road in West Bengal is over 92,023 km
(57,180 mi)
➢ National highways comprise 2,578 km (1,602 mi) and state highways 2,393 km
(1,487 mi).
➢ As of 2011, the total railway route length is around 4,481 km (2,784 mi).
➢ Kolkata is the headquarters of three zones of the Indian Railways – Eastern
Railway and South Eastern Railway, and the Kolkata Metro, which is the newly
formed 17th zone of the Indian Railways.
➢ Netaji Subhas Chandra Bose International Airport at Dum Dum, Kolkata, is the
state's biggest airport.
➢ Bagdogra Airport near Siliguri is a customs airport that offers international
service to Bhutan and Thailand, besides regular domestic service.
➢ Kazi Nazrul Islam Airport, India's first private sector airport, serves the twin
cities of Asansol-Durgapur at Andal, Bardhaman.
➢ Kolkata has a major river port in eastern India. The Kolkata Port Trust manages
the Kolkata and the Haldia docks.
➢ There is passenger service to Port Blair on the Andaman and Nicobar Islands
and cargo ship services to ports in India and abroad, manage by the Shipping
Corporation of India.

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➢ Ferries are a principal mode of transport in the southern part of the state,
especially in the Sundarbans area.
➢ Kolkata is the only city in India to have trams as a mode of transport, and these
are managed by the Calcutta Tramways Company.
Road Way
➢ Distance between Gujarat to West Bengal 2171 km. It is connected via NH 19 and
NH 27.
Golden Quadrilateral

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5.7 Contribution of West Bengal National GDP
Economic Overview
➢ As of 2015, West Bengal has the fifth-highest GSDP in India.
➢ GSDP at current prices (base 2004–2005) has increased from 208,656 crores in
2004–05 to 800,868 crores in 2014–2015.
➢ GSDP percent growth at current prices has varied from a low of 10.3% in 2010–
2011 to a high of 17.11% in 2013–2014 and the growth rate was 13.35% in
2014–2015. The state's per capita income has lagged the all India average for
over two decades.
➢ Per capita NSDP growth rate at current prices has varied from 9.4% in 2010–
2011 to a high of 16.15% in 2013–2014. The growth rate was 12.62% in 2014–
2015.
➢ West Bengal Net Domestic Products was at US$ 120.93 billion over 2014-15.
➢ West Bengalwas at 5th position in year 2013-14 with contribution of 6.75%
➢ West Bengal was at 6th Rank in the year 2015–16 with Nominal GDP $
141Billion
Source: https://www.ibef.org/states/west-bengal-presentation
http://statisticstimes.com/economy/gdp-of-indian-states.php

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5.8 Contribution of Plastic Industry in National GDP
Plastic Industry contributing 8% in national GDP of India
Industry Group Unit Employment Investment
(Rs. In lacs.)
Rubber & Plastic products 7012 68608 364827.64
Source: groupwise msme report ( em part -ii ) from 02/10/2006 to 31/03/2014
http://www.ic.gujarat.gov.in/documents/pagecontent/INDUSTRIES-INGUJ-
2014-report.pdf

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5.9 Major Players of the Plastic Industry in West Bengal
➢ Haldia Petrochemicals Ltd.
➢ Gail
➢ Arunil Polyccraft Pvt. Ltd.
➢ Bishwanath Polypack Pvt. Ltd.
➢ Jayvee Organics & Polymers Pvt. Ltd.
➢ KPL International Ltd.
➢ Mahabir Plastic Industries
➢ National Mouldings Co. Ltd.
➢ Rama Plastic Udyog
➢ UCP Polymers Pvt. Ltd.
➢ Accurate Polymers Pvt. Ltd.
➢ Alom Poly Extrusions Ltd.
➢ Climax Pipe Pvt. Ltd.
Source: Indian Plastic Federation http://ipfindia.org/MembersDirectory.aspx

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5.10 Local Taxes and Duties Applicable in Plastic Industry
As the VAT, Excise, Service tax etc. had been discontinued by the Indian Government
by implementing Goods & Service Tax throughout the India Including West Bengal too.
Goods & Service Tax (IGST+CGST) 18%
Export Duty 10%
Source: DGFT, CBEC
https://cbec-gst.gov.in/gst-goods-services-rates.html

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5.11 Special Benefits by Government of West Bengal to Plastic
Industry
A web portal connecting entrepreneurs, investors and professional experts for West
Bengal’s MSMEs and Start upshttp://www.wbidc.com/home/entrepreneur_zone.htm
➢ Funding and Investment – The portal connects investors andentrepreneurs by
matching their interest based on the project proposals.
➢ Credit Assessment – The proposals submitted by the entrepreneurs are
evaluated based on financial parameters.
➢ MSME Equity Fund Digital Gateway – The portal offers digital gateway for
application and transparent identification of eligible proposals.
➢ Mentoring and Professional Support - The portal offers platform for connecting
an entrepreneurs and Professional Experts / Bankers/ Professional
Institutions/ Consultants/ Industry Leaders for providing mentoring and
professional support to guide the entrepreneur to next level of business and
make the project investment ready or guide for expansion.
➢ Government Incentives – The site offers a quick look at the fiscal and non-fiscal
incentives available to MSMEs.
➢ Statutory Compliances – The website makes the aspiring entrepreneurs aware
about the compliance requirement for starting a business.
➢ Single Application Gateway (SAG) – It is a virtual single point, which receives
all applications of the entrepreneurs for both entitlements to compliances as
well as Government incentives.
➢ Capital investment subsidy 15% to 30% upto 50lakh

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➢ Interest subsidy on term loan 6% to 7.5 %
➢ Electricity duty 50% waiver for 5 years from date of commencement of
production
➢ Subsidy for patent registration
➢ Plastic Park in 496 acres at Barjora
Plastic Parks in India
Source:http://suvidhagroup.in/Pdf-Files/publication1.pdf
http://www.startupbengal.in/content/about_us
Plast India Foundation report

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5.12 SWOT Analysis of Plastic Industry in West Bengal
Strength
➢ Large network manufacturing Facility
➢ Large variety of products
➢ Support from Local Authority
➢ Easy Availability of Raw Materials
➢ Good incentive for export activity
➢ Availability of All the Geographical Resources
Weakness
➢ Lack of Scientific storage and processing
➢ Poor Linkage between other industries
➢ Insufficient mechanization and labour
Opportunity
➢ Adoption of technology
➢ Growing demand for plastics
Threats
➢ Ban on products
➢ Environmental Issues
➢ Effect of major Industries

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Chapter: 6
Findings & Conclusion
6.1 Findings in Terms of Comparative analysis of Plastic
Industry in Gujarat, West Bengal & Sri Lanka W.R.T. Specific
Bilateral Trade opportunity
Trade opportunities between Gujarat and Sri Lanka
Points Gujarat Sri Lanka
Export Gujarat and Maharashtra
contribute 46% Share in Export of
India as per the data of 2016.
Gujarat exported products worth
$ 59.58 billion in Global Market
Sri Lanka exports Articles of
Clothing, Cofee-tea, Rubber to
USA, UK and India. Out of these
USA at first, UK second and
India third
Import Gujarat imports Crude oil, Steel,
Wood, Electronics, Heavy
Machineries from UAE, China,
USA, Germany, Africa, Australia,
Thailand.
Sri Lanka imports Minerals Fuel,
Machinery, Vehicle from China,
India and UAE.
Bilateral
trade
Gujarat is Exporting Alloyed Steel
and article(Brass), Heavy
Machineries, Textiles, Plastics and
Articles of thereof (HS 39)
Sri Lanka exports some Plastic
articles to Gujarat and also
supply Ceylon Tea and Spices to
the Gujarat

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Bilateral
trade w.r.t.
Plastic
Industry
Gujarat is one of the states of
India having largest refineries like
Reliance which directly lead to
larger production of the polymer
due to that ancillary industries of
Plastic Industry are more. Gujarat
having huge capacity to Supply
polymers and Plastic Products
Sri Lanka import Plastic and
articles of thereof (HS 39) in the
year 2016 from world
710,110,000 USD out of those
China was at first 106,228,000
USD and India was at second
with 101,812,000 USD and
thirdly Imported from Saudi
Arabia
Source:
http://www.trademap.org/Country_SelProductCountry.aspx?nvpm=1|144||
||39|||2|1|1|1|1||2|1|
http://www.thehindu.com/news/cities/mumbai/business/maharashtra-
gujarat-corner-46-of-indias-exports-study/article8411933.ece
Trade opportunities between West Bengal and Sri Lanka
Points West Bengal Sri Lanka
Export West Bengal is majorly known for
Fabric. They export tea, leather
products, Food processing,
Electronic, Fabrics to USA, UAE,
UK, Canada.
Sri Lanka exports Articles of
Clothing, Coffee-tea, Rubber to
USA, UK and India. Out of these
USA at first, UK second and
India third
Import West Bengal imports Crude oil,
Steel, Electronics, Heavy
Machineries from UAE, China,
USA, Germany.
Sri Lanka imports Minerals Fuel,
Machinery, Vehicle from China,
India and UAE. Out of these
China at first and India second

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Bilateral West Bengal is Exporting Steel
and article(Brass), Machineries,
Fabrics, Plastics and Articles of
thereof (HS 39) and Coal.
Sri Lanka exports some Plastic
articles to West Bengal and also
supply Ceylon Tea and to the
West Bengal
Bilateral
trade w.r.t.
Plastic
Industry
There are oil refineries in West
Bengal which directly leads to
plastic industry. West Bengal has
capabilities to supply Sri Lankan
units.
Sri Lanka import Plastic and
articles of thereof (HS 39) in the
year 2016 from world
710,110,000 USD out of those
India was at second with
101,812,000 USD.

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6.2 General Findings of the Report
➢ India at second rank out of all those country from Sri Lanka Imports.
➢ Plastic & Articles of thereof (HS 39) imported of 710110 USD in the year 2016
which was at 6th Rank.
➢ India producing raw material of plastic because it has many oil refineries out
Reliance one of the largest refinery of world with capacity to produce
12,40,000 barrels per day.
➢ Sri Lanka’s only refinery situated in Sapugaskanda has capacity of 50,000
barrels per day.
➢ India has free trade agreement with Sri Lanka as well as there is no tax for
Exports.
➢ Reason behind Plastic usage is that Geography of Sri Lanka not suits to steel
and other metals are costly than the plastics.
➢ Plastic usage in Sri Lanka 2,65,000 tonnes / annum.
➢ There less number of manufacturing unit for plastic raw materials.
➢ Sri Lankan Government promoting Export of plastic processing Units.

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6.3 Conclusion
➢ On the basis of above data, we can conclude that the there is opportunity for
exporters of Gujarat and West Bengal as well.
➢ Sri Lanka is one of the developing country which is going through the economic
development.
➢ Sri Lankan Government promoting plastic processing units and its export units
with incentives and benefits which forces to hike in export of Plastic products
which directly leads to usage of raw material.
➢ Sri Lanka have to import raw material (Polymer, Masterbatch, etc.) from other
countries like India.
➢ There is positive trend from last three years for Plastic Exports from India to
Sri Lanka.
➢ There is huge opportunity in trade plastics and articles of thereof (HS 39) with
Sri Lanka

Global Country Study Report On ‘Plastic Industry of Sri Lanka’ w.r.t Business Opportunities for Gujarat and West Bengal Part-1

Global Country Study Report On ‘Plastic Industry of Sri Lanka’ w.r.t Business Opportunities for Gujarat and West Bengal Part-1

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