Vijay Merchant emphasizing the importance of recycling and proper waste management practices, is industry veteran Vijay Merchant in an interview with Lekhraj Ghai of POLYMERUPDATE

1. INDUSTRY INSIGHTS
Making a Strong Case for Plastics in the Environment – Interview with Vijay Merchant
The plastics industry has enjoyed a dream run for more than 50 years and plastics have influenced human life
makingit more convenient,efficientandhygienic.Today,life withoutplasticsisdifficulttoimagine.However,in
recentyears the industryhas come underattack overconcerns aboutthe impact of plastics,particularlyplastics
waste,onthe environment.Aneasytargetbecause of itswidespreaduse,plasticshave gainedthe tagof beinga
nuisance.
Dispelling myths and fallacies about plastics, and emphasizing the importance of recycling and proper waste
managementpractices,isindustryveteranVijayMerchantinaninterviewwithLekhraj Ghai of POLYMERUPDATE.
Vijay Merchant
Vijay Merchant is a commerce graduate and has done post graduate
studies in business management from the Indian Institute of
Management (IIM), Ahmedabad, where he was awarded a merit
scholarship in 1966 and majored in Finance & Marketing. After initial
training with the Mafatlal Group Central Finance Division, he headed a
large consumer products agency house, serving FMCG companies in
South India for 10 years. Over the last 30 years, Mr. Merchant has worked
on several national bodies of both the plastics industry and packaging
industry on critical issues of development of small scale industries. Mr.
Merchant has been President at All India Plastic Manufacturers
Association (AIPMA) for three terms and also a founder member of the
Indian Centre for Plastics in the Environment (ICPE) created at the
instance of the Ministry of Environment and Forests, Government of
India. He has also served on national bodies of Indian Institute of
Packaging (Ministry of Commerce), Indian Merchants Chamber,
Enviroplast Plastindia Foundation and Indian Plastics Institute and was
the Honorary Editor of industry journal Plastics News for 10 years.
Besides, for over a decade Mr. Merchant has been actively involved in environmental issues of the plastic and packaging
industries in global forums. As a professional with a passion for environment protection, Mr. Merchant has served as a live
link between society, the government and the plastics industry, initiating projects and programmes and also sharing these
with Asian neighbours and associations in western countries.
Interviewof Vijay Merchant (VM) with Lekhraj Ghai (LG):
LG: Please tell us about the plastics recycling industry in India.
VM: Plastics recycling in India dates back to more than 50 years when only a handful of companies like Union
Carbide,NOCIL,PolychemandDCMShrirammanufacturedpolymersthattooinlimitedquantities.Because of the
existing License Raj and the some of the Government’s socialist policiesthere were many restrictions on the
importof polymers.While the applicationsof plasticswere on the rise inother countriesthere wasa scarcity of
polymers in India, which gave birth to innovative recycling activities all over the country.
LG: How many plastics recycling companies exist In India at the moment?
VM: Itis verydifficulttocome upwithanexactnumberasmostof itisinthe unorganizedsector.Thereare some
recyclersthatare registeredwithlocal municipalitiesandgrampanchayats,butthere isa largerpercentage that
operatesoutof slums,shantiesandcottages,whichare difficulttonumerate.Forinstance,inthe Dharavi locality
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2. INDUSTRY INSIGHTS
in Mumbai,whichhousesone of the largestslumsinthe world,there are close to 1500 recyclers.There are such
recycling pockets in other localities of Mumbai such as Bhandup, Goregaon and Malad, and many recyclers are
now migratingto fartherplaceslike Dahisar,Vasai andNala Sopara.Plasticsrecyclershave mushroomedall over
the country and exist in almost every state.At present, there could be around 10,000 to 15,000 recyclers in the
countryof which60%–65% fall inthe unorganizedsector.Gradually,owingtomandatoryrequirementsandother
factors such as growth in scale, more and more recyclers are getting registered with local bodies and the
unorganized sector, which accounted for almost 80% of the recyclers about 10 years ago, is shrinking.
LG: Isn’t the unorganized sector bad for the economic growth of the country?
VM: Indeed,mostsuchrecyclersconducttheirbusinessoperationsincashandas theyhave no financial records,
it becomes difficult to impose taxes. However, it should be taken into consideration that most of them are
uneducatedorpoorlyeducatedand are yet tryingto make an honestlivingratherthanstayingunemployedand
creatingmischief orbeinganuisance tothe society.Inaway,theyare self-employedindividualswhohave honed
their skills in the field of recycling. Although uneducated, they are often able to accurately identify the type of
plastic just by looking at a piece of plastic waste.
LG: How does India’s recycling industry compare with that in Europe or America?
VM: In the U.S. and eveninEuropeancountrieslike Germany,BelgiumandAustria,waste collectiontakesplace
ona much largerscale.There are alsostringentregulatorylimitsonemissionsandeffluenttreatmentrestrictions,
due to which the recycling facilities, although fewer in number, are mostly large-scale operations. The cost of
labour is also much higher than in India and consequently most recyclers in the West have automated plants,
which require much less manpower.
LG: What about the rest of Asia, say China?
VM: The number of small-scale recyclers in China is gradually going down as a consequence of Green Fence—
China’snew policyonthe importof scrapmaterial.NotonlyisChinanotallowingmixedandcontaminatedwaste
to enterthe country but alsohas enforcedstringentinternal healthandsafetyregulations.The largerlegitimate
recyclersare still inoperationwhile smalleronesare eithershuttingdownormovingtorecyclingindustrial parks
where they are made to comply with the new rules and regulations concerning waste collection and sorting
processes,emissions,watertreatment,qualityandhygiene standards.ScrapfromEuropeandAmericahasstarted
heading to other South East Asian countries where the preliminary washing and sorting takes place and is then
sent to China for recycling.
LG: How important is technological innovation in plastics recycling?
VM: The increasing applications of plastics and the replacement of other materials like glass and metal with
plastics for packaging has resulted in more sophisticationin processing and recycling and the use of specialized
materials. The world is moving away from rigid, heavycontainers to flexible packaging in which plastics play an
importantrole.Flexiblepackagingofteninvolvesmulti-layerfilms,whichcouldbe just5to7 micronthickbutmay
contain up to seven layersof different materials like variousplastics, metals and certain nylons. Each packaging
layer imparts distinct properties and functions such as preventing aroma loss, moisture absorption and
contamination.Whensuchapackagingmaterial endsupaswaste,itbecomesdifficulttorecycle itbecauseof the
presence of the multiple layers. This is probablyone challenge that the global recycling industry is facing at the
moment. However, there have been certain innovations to improve the sorting process by the use of optical
sensorsandfloatationdevices.Forinstance,recyclersare now able toseparate HDPE caps and BOPPlabelsfrom
PET bottles and recycle all of them individually thanks to the improved segregation processes.Moreover, post-
consumer PET bottles used to be a nuisance in India 8–10 years ago when the technology needed for recycling
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3. INDUSTRY INSIGHTS
PET was not available. After the technology was brought in, it was soon mastered by Indianrecyclers and today
almostall PETbottlesinIndiaendupbeingrecycled.Atthe sametime,Indianrecyclershavedevelopedindigenous
technologies,whichallow themtorecycle evenmixedandcontaminatedplasticwaste intowovenproductssuch
as carpets, mats, conference folders and gift items.
LG:What are the recentinnovationsinthe fieldof plasticsrecycling?Whatare the advancementsandemerging
technologies in the field of plastics recycling that India can adopt?
VM: Machinery for the recyclingindustryisoftenimportedintoIndiafromthe West.Similarly,there are certain
recycling technologies that have been brought in and implemented in India; for example,making three-layer
sheets of recycled PET for food-contact applications in which the middle layer is composed of recycled waste.
Anothertechnology,whichoriginatedinGermany,inuse inIndiaisbottle-to-bottle recyclinginwhichthe recycled
material isas pure as the virginmaterial.InChina,recyclersuse atechnologytomake plasticlumberoutof scrap
material. Large quantities of plastic waste enters China through Hong Kong, which after washing and cleaning is
recycledto make plasticlumber.The recycledproductis resistantto crackingand splittingandto all typesof rot
and mould.The plasticlumberisusedprimarilyasa buildingmaterial andreplaceswoodinvariousapplications.
LG: Does the recycling of scrap exported from the West take place in India too?
VM: There are a few export-orientedunitsandspecial zonesinthe countrywhere suchwaste isrecycledandre-
exported, but on a very small scale. Rules concerning the import of plastic waste into the country have been
tightened in an effort to better waste management within the country. However, it is not that the recycling
capacityinIndiaisnotsufficienttohandlethe importedwasteandmanyrecyclersoperate atlowerratesbecause
of the poor waste collection practices in the country. Probably less than 5% of the total consumption wouldbe
from waste that comes from outside of India.
LG: What are the challenges faced by the recycling industry in India?
VM: The Indianrecyclingindustryischallengedbythe lackof infrastructureandsupportforsmall recyclers.These
recyclers primarilydeal with mixed wet and dry waste and need to carry out washing and cleaning of the waste
before it can be recycled. This results in the release of effluent and dust and debris. As small-scale recyclers do
not have the financial capabilities of setting up effluent treatment plants or even install dust filters, they get
blamed for creating pollution. Similar such hardships of recyclers have been addressed successfully by China’s
governmentthroughthe formationof recyclingclustersandthe provisionof commoneffluenttreatmentplants.
The Indian government’s Department of Science and Technologyhas taken up a project to see if such recycling
clusters could be formed in various parts of the country where common effluent treatment plants and other
facilities like laboratories can be provided.
LG: What is the mantra for successful management of plastics waste in India? How is the plastics industry in
India contributing towards prevention and control of plastic litter?
VM: For efficient management of plastics waste in India, brand owners need to play an active role in the
preventionandcontrol of plasticlitter.Itneedsto be understoodthatthe plasticsindustryisnot creatingwaste
butis merelyconvertingplasticgranulestofinishedproductsasperthe requirementsof the customer.Likeinthe
West,brand ownersshouldcome forwardand share the responsibilityof managingplasticwaste and make real
effortsandnotmere symbolicgestures.Atthe sametime,thegovernmentshouldprovideadequateinfrastructure
so that local municipalitiesandotherbodiescancarry outwaste collectionineconomicallyviable quantitiesand
minimize excesscontamination.Itisunrealistictoexpectthe 10,000 odd plasticsprocessorstopickplasticwaste
from across the country.The job of waste collectionhasto be done by the municipalities,grampanchayats and
otherlocal bodies.Alsorequiredare stringentwastemanagementrules,whichneedtoextensivelycommunicated
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4. INDUSTRY INSIGHTS
and enforced.A consistentsocial campaignagainstlitter,involvementof non-governmentalorganization(NGOs)
and sufficientfundingare alsorequisitesforsuccessful managementof plasticwaste inthe country.The plastics
industry in its own right is playing a responsible role by trying to spread awareness to control litter. There have
beenvariousawarenessprogramsandworkshopsthathavebeenorganizedbythe industryinschoolsandhousing
societiesinbigmetropolitancities,insmallertownsandhillstationslikeMatheran,DarjeelingandKalimpongand
eveninvariousplacesinNortheastIndia.For example inMatheran,whichisthe smallesthill stationinIndiaand
an eco-sensitive zone, all sorts of waste from various packaged productsused to accumulate in the valley.With
the help of industry groups, NGOs, the municipal council, local shopkeepers, hoteliers and school students a
cleanliness drive was conducted, wherein wheel barrows, waste collection bins, sign boards for anti-litter
messagesandcompactor machinesforcrushingPET bottleswere provided.Atthe same time,knowledge about
the handling and recycling of plastic waste was communicated to the locals, civic bodies as well as the visitors.
Today, Matheran is one of the cleanest hill stations in Maharashtra and this model, in which the industry joins
handswithlocal bodiesandcitizenstofightlitterandenhance recycling,hasbeenreplicatedinvariousotherhill
stations and eco-sensitive zones across the country.
LG: What innovations have been witnessed in plastics waste management?
VM: The hierarchyof the “reduce,reuse and recycle”principle appliestoplasticswaste as well.Inthe case that
mechanical recyclingof plasticsisnotpossible,there are otherinnovativeapplicationsinwhichplasticwaste can
serve a useful purpose; for instance, in road construction. Plastic waste when added to bitumen increases the
strength properties and the life of the road. My presentation on this subject received the award for the best
presentation in IdentiPlast 2007, a global conference and the plastics industry’s most important gathering on
recycling and recovery of plastics. This model has been tested at various stretches in Mumbai, Bengaluru and
Chennai,andthe resultshave beenphenomenal.The plasticactsas a goodbinderandthe road doesnotcrack or
developpotholes.Itisone of the pilotprojectsof the IndianCentre forPlasticsinthe Environment(ICPE),which
is working on refining the model and promotingit with various municipalities.Another applicationis generating
fuel from waste plastic that is economically challenging to recycle. By using depolymerization and pyrolytic
conversion techniques, waste plastics can be converted to petroleum fuels similar to diesel and gasoline. Co-
processing or using plastic waste as a source of energy, replacing natural fuels such as coal, in variousindustrial
processessuchas cementkilnsisprobablythe last sustainable optionformanagingplasticwaste.These are the
optionsavailable forrecoveringthe maximumpossible value outof plasticswaste whenrecyclingisnot possible
or economically viable.
LG: What sustainable practices should be adopted by the industry to better recycling?
VM: India has a large pool of capable scientists and researchers; for example, the CSIR-Indian Institute of
Petroleum(CSIR-IIP), one of the leadingconstituentlaboratoriesof the Council of Scientific&Industrial Research
(CSIR), undertakes research and development activities for optimum utilization of petroleum products. The
industry can benefit from such professionals and their guidance should be sought for minimizing energy
consumptionandreducingpollution.Moreover,the industryshouldworktogetherwithvarioussuchlaboratories
informingthemaboutthe advantagesanddisadvantagesof a particularwaste product and inturn learningfrom
them about catalysts and additives that could further optimize their processes.
LG: What are your views on the “blanket bans” and partial bans on plastic products that are proposed by the
government?
VM:InIndia,the plasticsindustryisunfairlyblamedforcreatingplasticlitterandunwarrantedbansare demanded
on various plastic products. The authorities and lawmakers need to understand that plastics processorsare not
the ones creating waste and litter can be prevented and controlled like in other countries. For example, the
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5. INDUSTRY INSIGHTS
proposed ban on PET for pharmaceutical packaging applicationson the basis of a report that claims that PET
containsphthalatesandendocrinedisruptorscreatedanunnecessaryscare inthe ministryandlegislaturedespite
the fact that the judiciaryhas alreadydismissednumeroussuchfrivolousPILsagainstPET packaging in the past.
The industryhasalso provedbeyonddoubtthat PET is a universallysafe andenvironmentallyfriendlypackaging
material and is used for pharmaceutical packaging across the world. Moreover, moving from plastics to glass or
metals would be retrogressive and would result in increased cost to the society and environment.
LG: Whatare your thoughts on biodegradable andcompostable plastics?Do you see potential forrapid growth
in the bioplastics market in India?
VM: At present, the applications of bioplastics in India are limited.Biodegradable plastics essentially result in a
waste of resourcesasthe itemsmade ofbiodegradableplasticsare intendedtobe usedandthrownorcomposted.
Whereas, in the case of conventional plastics there is always the option to recycle and use it for a variety of
applications.Thereare certainapplicationsinwhichbiodegradable plasticsare desired;suchasgarbage bagsand
in medicine andhealthcare.The marketforbioplasticscanbenefitfrommore clarityaboutthe propertiesof the
material being used and the material should be tested as per its intended application.
LG: How is the plastics industry contributing towards Swachh Bharat Abhiyaan or Clean India Campaign
advocated by Prime Minister Modi?
VM:The industryplaysitspartandconductsvariousawarenesscampaignsandschoolprogrammesthroughwhich
the importance of plasticscollectionandrecyclingispropagated.Assupportforthe SwachhBharat initiative,on
the 4th
of October,2015, we conductedacleanlinessandawarenessdrive inMumbai inwhichmore than200,000
students from over 100 schools across the city
participated.A recordcollectionof 23,358.9 kg
of plastic bottle waste was made within six
hours thanks to the efforts of the students,
their parents and teachers. This initiative was
takenbythe plasticindustryinassociationwith
the country’s largest bottled water company
and India now has surpassed the Guinness
worldrecordfor maximumplasticbottle waste
collection of 13,408 kg set by a school in the
U.S. Afterthe record is approvedbyGuinness,
participationandappreciationcertificatesfrom
Limca Book of Records and Guinness will be
presented to the schools. This will also help
India earn global recognition as a nation that
caresfor the environment,inline withthe SwachhBharatAbhiyaanof PrimeMinisterNarendraModi.Inaddition
to breakingthe worldrecordon that day,audio-visual presentationswere conductedinthe participatingschools
teaching the students about plastics manufacturing and recycling processes and the importance of waste
collection.
LG: What is your view on the future of the plastics industry in the prevailing low-cost oil environment?
VM: The prevailing low prices of crude oil should benefit the plastics industry and the prices of polymer
commoditiesmayfall further,translatingintomore applicationsforplasticslike inthe agriculture,infrastructure
and housingsectors.Althoughthe inputcosthasgone down,there are factors such as price protectionthathave
prevented a proportionate fall in the prices of plastics commodities.
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6. INDUSTRY INSIGHTS
LG: Which are the governmental and non-governmental bodies that you are associated with in relation with
environmental protection and sustainability? How successful are the measures that have been
adopted/proposed so far?
VM: NGOs play an important role in communicating with and getting support from municipal corporations,
resident welfare associations and industry bodies. Since over a decade I have been addressing issues related to
environment,sustainabilityandrecyclinginIndia,across Asiaand at timesin Europe.Because of my passionfor
protecting the environment, I have been involved with various NGOs, policy makers, schools and government
officialsinadditiontoourownindustrymembersandthe hundredsof small recyclers.CleanMumbai Foundation,
Stree Mukti Sanghatana, Forum for Organized Resource Conservation & Enhancement (FORCE) and NAGAR are
some of the major NGOs that I have worked with. Together, we have conducted numerous cleanliness and
recycling projects, which have been highly successful and have been replicated in other places.
ENDS
Lekhraj Ghai can be reached at +91 9967828215 and lekhraj@polymerupdate.com
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October 23, 2015
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