Plastic products find applications across the vehicle structure from interior to exterior, from under-the-hood products, powertrain to electrical applications. Plastics have high share of penetration in the interior and exterior parts and are slowly penetrating into other applications.
Polypropylene (32%), polyurethane (17%) and polyvinyl chloride (16%) are the top 3 polymers being used in the automotive sector. ABS and Polycarbonates are the other major plastics being used in automobiles.
highly fragmented Indian specialty chemicals industry currently has revenues of USD 30 Bn and is expected to grow ~14% per annum over the next decade. It is observed that companies who have invested in product development have grown rapidly and have also expanded globally. Hence, these companies become attractive for large global players and equity investors. Recent M&A transactions in the speciality chemicals space show that most speciality chemical companies were able to attract valuations in excess of 10X EBITDA multiples. The pace of deal making activity is expected to continue with attractive valuations as India is the preferred investment destination in Asia
With the government targeting implementation
of GST in the next financial year, the
Indian industry will be busy understanding
its impact and deciding on how to do
business in the changed environment. The USD 40 bn.
Pharmaceutical industry is no exception as it has to prepare
itself for GST readiness and reevaluate its complex
supply chain network which span across India.
Feedstock availability, difficult access to latest technology and unfavourable duty structures have led to muted investments resulting in a plethora of chemicals being imported in India across the value chain. The net imports have risen from USD 2.6 bn in FY08 to USD 13.8 bn in FY15. Imports of several chemicals and polymers today are equivalent to a global scale plant output. With chemical demand shifting towards Asia, and China reassessing its chemical industry play, it could offer opportunities for chemical companies to invest selectively in India. To top it, government’s enhanced focus on `Make in India` and several states making chemicals as one of the preferred industries will facilitate realizing such opportunities. To make the most of the USD 12 bn opportunity in petrochemical intermediates, we believe companies need to reassess their business model & manufacturing footprint.
Telecom towers have traditionally relied on Gensets and Batteries for their power backup. With these methods, the challenges of high operating costs due to maintenance, repairs and cost of fuel are well known. Fuel cells have lately emerged as a potential alternate for this application. It is a market to watch closely as further technology improvements in the coming years will happen. The time is right to further improve upon the backup power technology. The Government, TRAI and telecom operators will need to work together to make fuel cells usage mainstream. Given the competitiveness of solar power, a hybrid of fuel cell & solar could emerge as a perfect combination which is reliable, sustainable, and a green alternative in future
The opportunities for the Indian pharmaceutical industry are immense but increasing competition, increasing regulatory pressures and stringent price control means that companies need to constantly improve their costs and service levels. Supply chain efficiencies will play a crucial role going forward and will become the key differentiator for companies. Companies will therefore need to adopt an approach that encompasses strategic, tactical and operational interventions to remain competitive and create value for their customers
This document provides an overview of Gujarat's water resources and the challenges it faces. Gujarat is a water stressed state with per capita availability lower than the national average. Water demand is projected to increase substantially by 2050 due to growth. While the state receives adequate annual rainfall, availability is unevenly distributed spatially. The government has undertaken major projects like the Narmada project to increase supply, but long term water management strategies are still needed to address the growing demand-supply gap over the coming decades.
This report on “O&M Strategies for Superior Performance”, prepared by Tata Strategic Management Group, has a holistic view on the current state of Operations and Maintenance at the Indian power plants. The key focus of the report is on identifying key external and internal challenges in the Indian market and how power producers could ensure superior returns through effective O&M in this challenging environment.
This report on “Solar PV Sector in India: Challenges & Way ahead”, prepared by Tata Strategic Management Group, has a holistic view on the current state of solar sector in India. The key focus of the report is on identifying key challenges faced by different stakeholders in the Indian market and how a collaborative effort in the right direction could ensure the growth of the sector to realize its true potential
highly fragmented Indian specialty chemicals industry currently has revenues of USD 30 Bn and is expected to grow ~14% per annum over the next decade. It is observed that companies who have invested in product development have grown rapidly and have also expanded globally. Hence, these companies become attractive for large global players and equity investors. Recent M&A transactions in the speciality chemicals space show that most speciality chemical companies were able to attract valuations in excess of 10X EBITDA multiples. The pace of deal making activity is expected to continue with attractive valuations as India is the preferred investment destination in Asia
With the government targeting implementation
of GST in the next financial year, the
Indian industry will be busy understanding
its impact and deciding on how to do
business in the changed environment. The USD 40 bn.
Pharmaceutical industry is no exception as it has to prepare
itself for GST readiness and reevaluate its complex
supply chain network which span across India.
Feedstock availability, difficult access to latest technology and unfavourable duty structures have led to muted investments resulting in a plethora of chemicals being imported in India across the value chain. The net imports have risen from USD 2.6 bn in FY08 to USD 13.8 bn in FY15. Imports of several chemicals and polymers today are equivalent to a global scale plant output. With chemical demand shifting towards Asia, and China reassessing its chemical industry play, it could offer opportunities for chemical companies to invest selectively in India. To top it, government’s enhanced focus on `Make in India` and several states making chemicals as one of the preferred industries will facilitate realizing such opportunities. To make the most of the USD 12 bn opportunity in petrochemical intermediates, we believe companies need to reassess their business model & manufacturing footprint.
Telecom towers have traditionally relied on Gensets and Batteries for their power backup. With these methods, the challenges of high operating costs due to maintenance, repairs and cost of fuel are well known. Fuel cells have lately emerged as a potential alternate for this application. It is a market to watch closely as further technology improvements in the coming years will happen. The time is right to further improve upon the backup power technology. The Government, TRAI and telecom operators will need to work together to make fuel cells usage mainstream. Given the competitiveness of solar power, a hybrid of fuel cell & solar could emerge as a perfect combination which is reliable, sustainable, and a green alternative in future
The opportunities for the Indian pharmaceutical industry are immense but increasing competition, increasing regulatory pressures and stringent price control means that companies need to constantly improve their costs and service levels. Supply chain efficiencies will play a crucial role going forward and will become the key differentiator for companies. Companies will therefore need to adopt an approach that encompasses strategic, tactical and operational interventions to remain competitive and create value for their customers
This document provides an overview of Gujarat's water resources and the challenges it faces. Gujarat is a water stressed state with per capita availability lower than the national average. Water demand is projected to increase substantially by 2050 due to growth. While the state receives adequate annual rainfall, availability is unevenly distributed spatially. The government has undertaken major projects like the Narmada project to increase supply, but long term water management strategies are still needed to address the growing demand-supply gap over the coming decades.
This report on “O&M Strategies for Superior Performance”, prepared by Tata Strategic Management Group, has a holistic view on the current state of Operations and Maintenance at the Indian power plants. The key focus of the report is on identifying key external and internal challenges in the Indian market and how power producers could ensure superior returns through effective O&M in this challenging environment.
This report on “Solar PV Sector in India: Challenges & Way ahead”, prepared by Tata Strategic Management Group, has a holistic view on the current state of solar sector in India. The key focus of the report is on identifying key challenges faced by different stakeholders in the Indian market and how a collaborative effort in the right direction could ensure the growth of the sector to realize its true potential
This report on “Energy Efficiency in India: PAT Scheme - Success and Failures”, prepared by Tata Strategic Management Group, has a holistic view on the current state of energy efficiency and energy management in India. The focus of this report is on identifying key challenges faced by designated consumers in implementation of PAT Cycle I and how a collaborative effort in the right direction could ensure fast adoption of EE and robust energy management in India. It would gear India towards reducing energy intensity of the future growth, one of the prime objectives under NAPCC
This report provides an overview of the Indian plastic industry, its past growth, challenges faced, emerging applications and its future growth prospects. The focus of the report is on agriculture (Plasticulture) and Packaging plastic applications. It also highlights the role northern states of India are expected to play as the demand for plastics is expected to double by 2020.
The report is presented by TATA Strategic Management Group with an objective to highlight key trends in the Indian bulk liquid storage industry and opportunities present in this sector
The Indian plastic industry is making significant contribution to the economic development and growth of various key sectors in the country which includes Automotive, Construction, Electronics, Healthcare, Textiles, and FMCG. The developments in the plastic machinery sector are coupled with developments in the petrochemical sector, both of which support the plastic processing sector. This has facilitated plastic processors to build capacities for the service of both the domestic market and the markets oversea.
The Government of India is taking every possible initiative to boost the infrastructure sector with investments of INR 25 lakh crore over the next 3 years in roads, railways and shipping infrastructure. Investments in water and sanitation management, irrigation, building & construction, power, transport and retail have been encouraged. Plastics play an important role in these sectors through various products like pipes, wires & cables, water proofing membranes, wood PVC composites and other sectors. Consequently, higher investments in these sectors will drive the demand for plastics.
Chemicals industry is a diversified industry and covers more than 80,000 commercial products. It provides key building blocks to a host of downstream industries such as automobiles, textiles, papers, paints, soaps, detergents, pharmaceuticals among many others. It is a capital intensive industry which employs approx. 2 Mn people in India. As a result, it plays a key role in the economic and social development of the country. It is a critical element of the manufacturing industry and is highly fragmented in the downstream sector. Globally, chemical industry was valued at $ 4.5 Tn in 2016 and is expected to grow at 5.5% per annum till 2020 driven by demand from end use industries. The industry is increasingly shifting eastwards in line with the shift of its key consumer industries (e.g. automotive, electronics, etc.), to leverage higher manufacturing competitiveness of emerging Asian economies and to serve the increasing local demand. China, as result of this shift, is the largest contributor with 34% share followed by European Union (17%) and North America (16%) to the global chemical industry.
Agriculture holds a prime importance in the socio-economic fabric of India. Agriculture and allied sectors have remained the backbone of the Indian economy and account for ~17% of the country's GDP. India, with a second largest agricultural land in the world (157 Mn hectares), is also ranked 2nd globally in terms of agricultural output (USD 382 Bn) behind China (USD 1,005 Bn). Agriculture in India employs more than 50% of India's working population. A split of major Agricultural produce in India (FY15) is provided in the graph below. Sugarcane and Fruits & vegetable contributed to 57% of the total volume of 1,080 Million tonnes
The Indian chemical industry is overall the 3rd largest in Asia after China and Japan in terms of volume contribution to the global market. The chemical industry in India has started to evolve rapidly since the last five years and has grown to an estimated USD 148 billion in FY16. Despite its large size and significant GDP contribution, the industry accounted for only around 3% of the global chemicals industry (~USD 4.3 Trillion). As per UN Comtrade Database for 2015, India ranks 17th in the world exports of chemicals (excluding pharmaceutical products) and ranks 6th in the world imports of chemicals (excluding pharmaceutical products).
Globally, the demand for industrial catalysts is driven by the surging demand for chemicals in various end applications in industries such as personal care products, lubricants, petroleum refinery, pharmaceuticals and foods & beverages. Growing awareness among manufacturers of chemicals and consumers, related to environment and increasing emissions impacting the eco system have led to highly intense competition in the global market for catalysts.
As per research reports, the global industrial catalyst market is estimated at roughly USD 17.5 bn (depicted in Figure 5) as of FY15 and is forecasted to grow at a CAGR of 4% - 5% during FY15 to FY20, on account of rising consumption of chemicals and their applicability. The APAC region remains the major market followed by North America and Europe. In the forecast period, the APAC region is expected to continue to witness strong growth driven by India and China
Indian Plastic industry is making significant contribution to the economic development and growth of various key sectors in the country such as: Automotive, Construction, Electronics, Healthcare, Textiles, FMCG , etc. It 2 has grown at 10% CAGR over the last five years to reach 13.4 MTPA in FY15. Current low penetration level and hence, low per capita consumption (~9.7 Kg) along with increased growth in end use industries could propel the growth of plastics further. Plastic industry is estimated to grow at ~10% in the near future reaching 21.6 MTPA by FY20.
India’s chemical industry contributes approximately 7% to the country’s GDP and accounted for ~13-14% of the total Indian exports in 2015. The Indian chemical industry accounts for ~4% of the global chemical industry. Indian chemical industry is currently estimated at ~USD 151 billion (including pharmaceuticals) and has been growing at 9.8% CAGR over the past three years. The demand growth is expected to primarily be fuelled by domestic consumption because per capita consumption of most of the chemicals is much lower than global averages. Moreover, with a strong outlook for key end user industries, the demand for chemical products is expected to surge in the coming years.
The western coast of India has been the key hub for chemicals and petrochemicals industry with Gujarat and Maharashtra alone accounting for 62% of major chemical and petrochemicals production across India. Since production clusters are concentrated in one particular region, better infrastructure and logistics are required to supply chemical products across the country. The lengthening of supply lines makes the distribution of chemicals more transport intensive. The involvement of a large number of stakeholders (shipping lines, transport agencies, environmental agencies, etc.) in the transportation of chemical products increases the logistics and supply chain complexity of the chemicals industry.
This document provides a report on the potential of plasticulture in Indian agriculture. It discusses how plasticulture, which involves the use of plastics in agriculture, horticulture, water management and food storage, can play an important role in facilitating judicious water usage. Plasticulture techniques like micro-irrigation can help save water usage by 50-70% and increase crop productivity significantly. While plasticulture adoption has progressed in India over the last decade, penetration levels remain low indicating the need for faster adoption going forward. Key factors like awareness generation, subsidies, and efforts to reduce costs can help accelerate plasticulture's role in India's agricultural development and water security.
India is the fourth largest global producer of agrochemicals after the US, Japan and China. This segment generated a value of USD 4.4 billion in FY15 and is expected to grow at 7.5% per annum to reach USD 6.3 billion by FY20. Approximately 50% of the demand comes from domestic consumers and the rest from exports. During the same period, the domestic demand is expected to grow at 6.5% per annum and exports at 9% per annum.
Federation of Indian Chambers of Commerce and Industry (FICCI) and TATA Strategic Management Group (TSMG) together have taken an initiative to highlight the importance of chemical industry for the Indian economy and we are pleased to present the fourth edition of the handbook.
Indian chemical industry is estimated to be valued at $147 Bn in 2015 and contributes 3% to the global chemical industry. It ranks 14th in exports and 8th in imports of chemicals (excluding pharmaceutical products) globally. India's chemical's trade balance is negative with imports being significantly higher than the exports. Net imports have grown at 17% per annum during the 2011-15 period. Western India has been the dominant region contributing approx. 50% to the Gross Value Added (GVA) for the chemical sector.
The Indian chemical industry is overall the 3rd largest in Asia after China and Japan in terms of volume contribution to the global market. The chemical industry in India has started to evolve rapidly since the last five years and has grown to an estimated USD 147 billion in 2015. Despite its large size and significant GDP contribution, the industry accounted for only around 3% of the global chemicals industry (~USD 4.3 Trillion). India ranks 14th in the world exports of chemicals (excluding pharmaceutical products) and ranks 8th in the world imports of chemicals (excluding pharmaceutical products) with a valuation of $29.76 billion in 2014.
The document discusses the need for a Second Green Revolution in India to address challenges facing agriculture and ensure food security. It notes that while the First Green Revolution increased food grain production, it had limitations in scope and sustainability. Crop protection chemicals can play a major role in the Second Green Revolution by increasing yields and mitigating crop losses from pests. However, Indian agriculture continues to face issues like dependence on monsoons, shrinking arable land, and low productivity compared to other countries. A holistic approach is needed to make farming more sustainable and harness the potential of crop protection chemicals.
The document discusses the construction chemicals market in India. It notes that the Indian construction chemicals market was valued at INR 3,500 crores in 2014 and has grown at an average rate of 12% between 2009-2014. Concrete admixtures make up the largest segment of the market with a 42% share, followed by flooring and waterproofing chemicals with 14% each. The market is expected to continue growing at 14-16% annually over the next five years to reach INR 7,000 crores by 2019, driven by increased infrastructure investment and initiatives like Smart Cities.
Plastic industry is making significant contribution to the economic development and growth of various key sectors in the country such as: Automotive, Construction, Electronics, Healthcare, Textiles, FMCG, etc. It has expanded at 11% CAGR over the last five years to reach 12.2 MnTPA1 in FY14. However, India observes significant regional diversity in consumption of plastics with Western India accounting for 45%, Northern India for 24% and Southern India for 21%. Bulk of the consumption in Northern India is again from the end use industries such as Auto, packaging (including bulk packaging), plasticulture applications, electronic appliances etc. which are concentrated mostly in UP and Delhi-NCR (>50%).However, plastic processing in other parts like Rajasthan, Punjab, Haryana, Uttarakhand, J&K and Himachal Pradesh are expected to grow in the coming years, based on increased availability of feedstock and higher focus on manufacturing sectors
This report is developed by Tata Strategic Management Group with support of FICCI as the knowledge paper for the “Safer and Judicious use of Crop Protection Chemicals and applications of Green Chemistry” seminar.
The Indian crop protection industry as of FY ’14 stood at USD 4.25 billion and is expected to grow at a CAGR of 12% for the next five years. Going ahead, opportunities for the Indian crop protection industry will come from exports, higher production of generic products, product portfolio expansion, and growth in herbicides and fungicides.
The future of agrochemicals industry is bright. It is expected to grow at a CAGR of 12% between FY 14 and FY 19 to reach USD 7.5 Bn. In coming years, agrochemical industry should focus on developing new processes and products with sustainability as the core principle. This requires developing a collaborative platform in which the academia, government and regulatory bodies, farmers associations, manufacturers and farmers come together to promote safe and judicious usage of pesticides.
With the government’s ‘Make In India’ campaign it becomes imperative for the government to provide special support to this industry to enable it to achieve its true potential.
The report on “Liquid Bulk Handling and Storage: Paving the way for India’s Chemical and Energy Needs” is a part of joint endeavour between TATA Strategic Management group (TSMG) ‐ Supply Chain and Logistics Practice and Cerebral Business Research with the objective to highlight key issues faced by bulk liquid storage industry in India and opportunities present in the sector. Bulk liquids can be defined as liquid cargoes which are transported in non‐containerized & nondrum bulk parcels and vessels by sea. Bulk liquids act as a source of raw material or intermediates for a number of end use sectors like automotive, consumer durables, energy and textiles. Changing economic landscape, Government’s thrust on domestic manufacturing, growing population and rise in percapita income is expected to result in growth in end use sectors. This would lead to rise in demand of bulk liquids and create opportunities for storage & handling of larger volumes and wider product portfolio.
This report is being presented in “Indian Bulk Liquid Storage Conference 2015” on the 18th of February 2015. TSMG team is thankful to Cerebral Business Research for providing an opportunity to develop this report.
Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
Part 2 Deep Dive: Navigating the 2024 Slowdownjeffkluth1
Introduction
The global retail industry has weathered numerous storms, with the financial crisis of 2008 serving as a poignant reminder of the sector's resilience and adaptability. However, as we navigate the complex landscape of 2024, retailers face a unique set of challenges that demand innovative strategies and a fundamental shift in mindset. This white paper contrasts the impact of the 2008 recession on the retail sector with the current headwinds retailers are grappling with, while offering a comprehensive roadmap for success in this new paradigm.
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This report on “Energy Efficiency in India: PAT Scheme - Success and Failures”, prepared by Tata Strategic Management Group, has a holistic view on the current state of energy efficiency and energy management in India. The focus of this report is on identifying key challenges faced by designated consumers in implementation of PAT Cycle I and how a collaborative effort in the right direction could ensure fast adoption of EE and robust energy management in India. It would gear India towards reducing energy intensity of the future growth, one of the prime objectives under NAPCC
This report provides an overview of the Indian plastic industry, its past growth, challenges faced, emerging applications and its future growth prospects. The focus of the report is on agriculture (Plasticulture) and Packaging plastic applications. It also highlights the role northern states of India are expected to play as the demand for plastics is expected to double by 2020.
The report is presented by TATA Strategic Management Group with an objective to highlight key trends in the Indian bulk liquid storage industry and opportunities present in this sector
The Indian plastic industry is making significant contribution to the economic development and growth of various key sectors in the country which includes Automotive, Construction, Electronics, Healthcare, Textiles, and FMCG. The developments in the plastic machinery sector are coupled with developments in the petrochemical sector, both of which support the plastic processing sector. This has facilitated plastic processors to build capacities for the service of both the domestic market and the markets oversea.
The Government of India is taking every possible initiative to boost the infrastructure sector with investments of INR 25 lakh crore over the next 3 years in roads, railways and shipping infrastructure. Investments in water and sanitation management, irrigation, building & construction, power, transport and retail have been encouraged. Plastics play an important role in these sectors through various products like pipes, wires & cables, water proofing membranes, wood PVC composites and other sectors. Consequently, higher investments in these sectors will drive the demand for plastics.
Chemicals industry is a diversified industry and covers more than 80,000 commercial products. It provides key building blocks to a host of downstream industries such as automobiles, textiles, papers, paints, soaps, detergents, pharmaceuticals among many others. It is a capital intensive industry which employs approx. 2 Mn people in India. As a result, it plays a key role in the economic and social development of the country. It is a critical element of the manufacturing industry and is highly fragmented in the downstream sector. Globally, chemical industry was valued at $ 4.5 Tn in 2016 and is expected to grow at 5.5% per annum till 2020 driven by demand from end use industries. The industry is increasingly shifting eastwards in line with the shift of its key consumer industries (e.g. automotive, electronics, etc.), to leverage higher manufacturing competitiveness of emerging Asian economies and to serve the increasing local demand. China, as result of this shift, is the largest contributor with 34% share followed by European Union (17%) and North America (16%) to the global chemical industry.
Agriculture holds a prime importance in the socio-economic fabric of India. Agriculture and allied sectors have remained the backbone of the Indian economy and account for ~17% of the country's GDP. India, with a second largest agricultural land in the world (157 Mn hectares), is also ranked 2nd globally in terms of agricultural output (USD 382 Bn) behind China (USD 1,005 Bn). Agriculture in India employs more than 50% of India's working population. A split of major Agricultural produce in India (FY15) is provided in the graph below. Sugarcane and Fruits & vegetable contributed to 57% of the total volume of 1,080 Million tonnes
The Indian chemical industry is overall the 3rd largest in Asia after China and Japan in terms of volume contribution to the global market. The chemical industry in India has started to evolve rapidly since the last five years and has grown to an estimated USD 148 billion in FY16. Despite its large size and significant GDP contribution, the industry accounted for only around 3% of the global chemicals industry (~USD 4.3 Trillion). As per UN Comtrade Database for 2015, India ranks 17th in the world exports of chemicals (excluding pharmaceutical products) and ranks 6th in the world imports of chemicals (excluding pharmaceutical products).
Globally, the demand for industrial catalysts is driven by the surging demand for chemicals in various end applications in industries such as personal care products, lubricants, petroleum refinery, pharmaceuticals and foods & beverages. Growing awareness among manufacturers of chemicals and consumers, related to environment and increasing emissions impacting the eco system have led to highly intense competition in the global market for catalysts.
As per research reports, the global industrial catalyst market is estimated at roughly USD 17.5 bn (depicted in Figure 5) as of FY15 and is forecasted to grow at a CAGR of 4% - 5% during FY15 to FY20, on account of rising consumption of chemicals and their applicability. The APAC region remains the major market followed by North America and Europe. In the forecast period, the APAC region is expected to continue to witness strong growth driven by India and China
Indian Plastic industry is making significant contribution to the economic development and growth of various key sectors in the country such as: Automotive, Construction, Electronics, Healthcare, Textiles, FMCG , etc. It 2 has grown at 10% CAGR over the last five years to reach 13.4 MTPA in FY15. Current low penetration level and hence, low per capita consumption (~9.7 Kg) along with increased growth in end use industries could propel the growth of plastics further. Plastic industry is estimated to grow at ~10% in the near future reaching 21.6 MTPA by FY20.
India’s chemical industry contributes approximately 7% to the country’s GDP and accounted for ~13-14% of the total Indian exports in 2015. The Indian chemical industry accounts for ~4% of the global chemical industry. Indian chemical industry is currently estimated at ~USD 151 billion (including pharmaceuticals) and has been growing at 9.8% CAGR over the past three years. The demand growth is expected to primarily be fuelled by domestic consumption because per capita consumption of most of the chemicals is much lower than global averages. Moreover, with a strong outlook for key end user industries, the demand for chemical products is expected to surge in the coming years.
The western coast of India has been the key hub for chemicals and petrochemicals industry with Gujarat and Maharashtra alone accounting for 62% of major chemical and petrochemicals production across India. Since production clusters are concentrated in one particular region, better infrastructure and logistics are required to supply chemical products across the country. The lengthening of supply lines makes the distribution of chemicals more transport intensive. The involvement of a large number of stakeholders (shipping lines, transport agencies, environmental agencies, etc.) in the transportation of chemical products increases the logistics and supply chain complexity of the chemicals industry.
This document provides a report on the potential of plasticulture in Indian agriculture. It discusses how plasticulture, which involves the use of plastics in agriculture, horticulture, water management and food storage, can play an important role in facilitating judicious water usage. Plasticulture techniques like micro-irrigation can help save water usage by 50-70% and increase crop productivity significantly. While plasticulture adoption has progressed in India over the last decade, penetration levels remain low indicating the need for faster adoption going forward. Key factors like awareness generation, subsidies, and efforts to reduce costs can help accelerate plasticulture's role in India's agricultural development and water security.
India is the fourth largest global producer of agrochemicals after the US, Japan and China. This segment generated a value of USD 4.4 billion in FY15 and is expected to grow at 7.5% per annum to reach USD 6.3 billion by FY20. Approximately 50% of the demand comes from domestic consumers and the rest from exports. During the same period, the domestic demand is expected to grow at 6.5% per annum and exports at 9% per annum.
Federation of Indian Chambers of Commerce and Industry (FICCI) and TATA Strategic Management Group (TSMG) together have taken an initiative to highlight the importance of chemical industry for the Indian economy and we are pleased to present the fourth edition of the handbook.
Indian chemical industry is estimated to be valued at $147 Bn in 2015 and contributes 3% to the global chemical industry. It ranks 14th in exports and 8th in imports of chemicals (excluding pharmaceutical products) globally. India's chemical's trade balance is negative with imports being significantly higher than the exports. Net imports have grown at 17% per annum during the 2011-15 period. Western India has been the dominant region contributing approx. 50% to the Gross Value Added (GVA) for the chemical sector.
The Indian chemical industry is overall the 3rd largest in Asia after China and Japan in terms of volume contribution to the global market. The chemical industry in India has started to evolve rapidly since the last five years and has grown to an estimated USD 147 billion in 2015. Despite its large size and significant GDP contribution, the industry accounted for only around 3% of the global chemicals industry (~USD 4.3 Trillion). India ranks 14th in the world exports of chemicals (excluding pharmaceutical products) and ranks 8th in the world imports of chemicals (excluding pharmaceutical products) with a valuation of $29.76 billion in 2014.
The document discusses the need for a Second Green Revolution in India to address challenges facing agriculture and ensure food security. It notes that while the First Green Revolution increased food grain production, it had limitations in scope and sustainability. Crop protection chemicals can play a major role in the Second Green Revolution by increasing yields and mitigating crop losses from pests. However, Indian agriculture continues to face issues like dependence on monsoons, shrinking arable land, and low productivity compared to other countries. A holistic approach is needed to make farming more sustainable and harness the potential of crop protection chemicals.
The document discusses the construction chemicals market in India. It notes that the Indian construction chemicals market was valued at INR 3,500 crores in 2014 and has grown at an average rate of 12% between 2009-2014. Concrete admixtures make up the largest segment of the market with a 42% share, followed by flooring and waterproofing chemicals with 14% each. The market is expected to continue growing at 14-16% annually over the next five years to reach INR 7,000 crores by 2019, driven by increased infrastructure investment and initiatives like Smart Cities.
Plastic industry is making significant contribution to the economic development and growth of various key sectors in the country such as: Automotive, Construction, Electronics, Healthcare, Textiles, FMCG, etc. It has expanded at 11% CAGR over the last five years to reach 12.2 MnTPA1 in FY14. However, India observes significant regional diversity in consumption of plastics with Western India accounting for 45%, Northern India for 24% and Southern India for 21%. Bulk of the consumption in Northern India is again from the end use industries such as Auto, packaging (including bulk packaging), plasticulture applications, electronic appliances etc. which are concentrated mostly in UP and Delhi-NCR (>50%).However, plastic processing in other parts like Rajasthan, Punjab, Haryana, Uttarakhand, J&K and Himachal Pradesh are expected to grow in the coming years, based on increased availability of feedstock and higher focus on manufacturing sectors
This report is developed by Tata Strategic Management Group with support of FICCI as the knowledge paper for the “Safer and Judicious use of Crop Protection Chemicals and applications of Green Chemistry” seminar.
The Indian crop protection industry as of FY ’14 stood at USD 4.25 billion and is expected to grow at a CAGR of 12% for the next five years. Going ahead, opportunities for the Indian crop protection industry will come from exports, higher production of generic products, product portfolio expansion, and growth in herbicides and fungicides.
The future of agrochemicals industry is bright. It is expected to grow at a CAGR of 12% between FY 14 and FY 19 to reach USD 7.5 Bn. In coming years, agrochemical industry should focus on developing new processes and products with sustainability as the core principle. This requires developing a collaborative platform in which the academia, government and regulatory bodies, farmers associations, manufacturers and farmers come together to promote safe and judicious usage of pesticides.
With the government’s ‘Make In India’ campaign it becomes imperative for the government to provide special support to this industry to enable it to achieve its true potential.
The report on “Liquid Bulk Handling and Storage: Paving the way for India’s Chemical and Energy Needs” is a part of joint endeavour between TATA Strategic Management group (TSMG) ‐ Supply Chain and Logistics Practice and Cerebral Business Research with the objective to highlight key issues faced by bulk liquid storage industry in India and opportunities present in the sector. Bulk liquids can be defined as liquid cargoes which are transported in non‐containerized & nondrum bulk parcels and vessels by sea. Bulk liquids act as a source of raw material or intermediates for a number of end use sectors like automotive, consumer durables, energy and textiles. Changing economic landscape, Government’s thrust on domestic manufacturing, growing population and rise in percapita income is expected to result in growth in end use sectors. This would lead to rise in demand of bulk liquids and create opportunities for storage & handling of larger volumes and wider product portfolio.
This report is being presented in “Indian Bulk Liquid Storage Conference 2015” on the 18th of February 2015. TSMG team is thankful to Cerebral Business Research for providing an opportunity to develop this report.
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Navigating the world of forex trading can be challenging, especially for beginners. To help you make an informed decision, we have comprehensively compared the best forex brokers in India for 2024. This article, reviewed by Top Forex Brokers Review, will cover featured award winners, the best forex brokers, featured offers, the best copy trading platforms, the best forex brokers for beginners, the best MetaTrader brokers, and recently updated reviews. We will focus on FP Markets, Black Bull, EightCap, IC Markets, and Octa.
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2. 1 | Plastics in Automotive
Plastics in
Automotive:
The ‘Material’ Impact
- By TATA Strategic Management Group
Disclaimer:
All rights reserved Includes copyrighted material.
The same may not be reproduced, distributed, modified or in any manner communicated to
any third party except with the written approval of Tata Strategic Management Group.
This white paper is for information purpose only. While due care has been taken during the
compilation of this report to ensure that the information is accurate to the best of Tata
Strategic Management Group’s knowledge and belief, the content is not to be construed in
any manner whatsoever as a substitute for professional advice. Tata Strategic Management
Group accepts no responsibility for any loss arising from any action taken or not taken by
anyone basis this white paper.
This whitepaper, by Tata Strategic, looks at the usage of plastics in the
automotive industry. It covers the application areas of plastics and key
drivers influencing its adoption. It also highlights the challenges, disruptions
which could impact plastic and polymers manufacturers in future and
suggests a way forward to create a sustainable competitive advantage.
3. 2 | Plastics in Automotive
Introduction
Polymers/Plastics, being versatile raw materials, find applications across host of end use
industries including Automotive, Electronics, Consumer Durables, and Packaging to name a
few. India is the 3rd
largest consumer of polymers globally. The current per capita
consumption of plastic products in India is low at approximately 10 to 11 kgs as compared to
the developed countries’ per capita consumption of 50+ kgs and China’s per capital
consumption of 45 kgs. Thus, there exists significant headroom for strong growth of
polymers/plastics in India in coming decades.
Automotive segment is one of the leading end use segments for plastics. As in case of
overall plastic consumption, the consumption of plastics per vehicle in India lags developed
countries, considerably. In India, an average car uses 75 kgs of polymers as against a global
average of 150 kgs in 2015.
Figure 1: Usage of polymers in automotive segment
Source: Various Industry Reports, TSMG Analysis
Usage of polymers in a vehicle globally has grown from 120 kg in 2013 to 150 kg in 2015. In
India, there is an overall market demand of ~250 KT per annum for plastics in passenger
vehicle segment alone. This has been primarily led by replacement of metals by polymers.
4. 3 | Plastics in Automotive
Figure 2: Evolution of polymer/plastic usage vis-à-vis metals
Notes: *Includes Steel, High strength steel, Iron, Aluminium and other metals
Source: Various Industry Reports, TSMG Analysis
Key drivers for Auto OEMs adopting plastics have been its lower weight, cost economies
and versatility offered in the design.
Plastic Applications in Automotive
Plastic products find applications across the vehicle structure from interior to exterior, from
under-the-hood products, powertrain to electrical applications. Plastics have high share of
penetration in the interior and exterior parts and are slowly penetrating into other
applications.
Polypropylene (32%), polyurethane (17%) and polyvinyl chloride (16%) are the top 3
polymers being used in the automotive sector. ABS and Polycarbonates are the other major
plastics being used in automobiles.
Interiors
Plastics are currently extensively used in the interior of the vehicles from dashboard,
instrumentation panel, seating among others. Its flexibility allows manufacturers to create
innovative single piece design which are light weight. It also helps in noise reduction and
covering vibration. These advantages not only drive costs down but also help saves time
during assembly. As a result more than 50% of car interiors are now made of plastics.
5. 4 | Plastics in Automotive
Figure3:PlasticsApplicationinAutomotive
Source:VariousIndustryReports
Note:PP-Polypropylene;PUR-Polyurethane;PVC-Poly-Vinyl-Chloride;ABS-AcrylonitrileButadieneStyrene;PA-PolyamideNylon6/6,Nylon6;PE-Polyethylene;POM-
Polyxomyethylene;PC-Polycarbonate;PMMA-Acrylic;PET-polybutyleneterephthalate;PET-PolyethyleneTeraphthalate
6. 5 | Plastics in Automotive
The real challenge however is to ensure premium-ness of the vehicle’s interior décor through
innovative polymer usage. There have been significant advancements on this front. Today
through blended polymers and design & processing techniques, the plastic interiors look and
feels (touch) like premium materials. Today, Polypropylene, Polyurethane and ABS are the
major polymers used in automotive interiors. Manufacturers need to evolve from being just a
plastic materials supplier to a partner that provide a package including product and
associated services such as design.
Exteriors
Auto exteriors historically have been dominated by metals. However, penetration of plastics
is increasing gradually. Plastic made exterior, unlike metals, are less susceptible to physical
damages like dents, stone chips and corrosion. For large exterior parts such as bumper and
fascia’s, the recyclability is easier leading to lower environmental impact. As a result, usage
of plastics in exterior is increasing.
Auto exterior is witnessing innovation in terms of hybrid material (metal + plastics) being
used. With evolution of in-mold techniques (Paint and Mold the part in a single step) the
assembly and production costs are reduced further. Polyamides and ABS are the major
polymers used in automotive exteriors.
Under the hood
Use of plastic was limited in under-the-hood applications earlier, considering the extreme
environment there. With advancement in technology, plastics are also increasingly finding
their usage in under-the-hood parts as well. Automakers and suppliers are increasingly
using plastics, such as nylon, poly-phenylene sulfide and poly-propylene, to reduce vehicle
weight and improve fuel efficiency for under the hood parts.
Powertrain
Powertrain contributes significant weight to an automotive. As a result, automakers are
exploring plastic usage in power train as well. Plastic helps automakers to reduce weight of
transmission and integrate parts. Nylon, elastomers and polyamides are increasing used for
manufacturing seal rings, transmission oil pans, air intake manifolds, air ducts, suction pipes,
engine front covers, exhaust gas recirculation cooler units among several others.
Electrical Systems
Plastics have excellent electrical properties and find application across various electric parts
in automotive parts such as Battery, safety (fuse) and control systems and Multimedia and
infotainment. Typically, polyamides are used in automotive electric systems. Nylon, polyester
and acetyl resins find application in switches. Polybutylene terephthalate (PBT) and PET are
used for electrical fuel injector connectors’ applications.
7. 6 | Plastics in Automotive
Key Drivers
Light-weighting
Indian government has put in place stringent norms for improving fuel efficiency in April
2014. The new standards are called Corporate Average Fuel Consumption (CAFC)
standard. The Indian government has set a target of 14-percent increase in fuel mileage by
2016/17. Regulation gets even more stringent with a 38% increase in fuel efficiency by
2021/22. Indian OEMs are considering light weighting as one of levers to improve fuel
efficiency. Also, the fuel emission norms will get more stringent as India will jump directly
from BS IV to BS VI (equivalent of Euro VI) which will come in place in April 2020.
Plastic play a key role in improving fuel efficiency and lower emission by reducing the weight
of vehicle. 1 Kg of plastic can typically replace 2-3 Kg of traditional materials in a vehicle.
And typically, 100Kg reduction in weight can save 0.3-0.4 Litre of fuel on a distance of 100
Km, as per the Europe commission report on light-weighting.
Even globally, 65% of automakers, as per the Wards Auto 2016 Survey, are considering
light-weighting as an option to meet the CAFE (global equivalent of CAFC) 2025 targets.
Automakers are however only moderately confident about existing materials to meet the
requirements. Engineered plastics are among the top choices along with Aluminium and
mixed materials.
Increased Safety
Indian government has mandated automakers to undergo frontal and side crash test for their
new vehicles from 2017. Plastics, because of their impact absorption capability are being
increasing used in parts as shock absorbers for bumpers, air bags and side impact
protection. Several automakers are using impact resistant plastics in side doors to provide
safety in side-on crashes. Plastics are also used for fuel tanks as they are seamless and
less prone to failures during accidents.
Innovative Design
Overall automotive design (interior & exterior) is one of key determinant of vehicle purchase
among other consideration such as price, brand, and fuel economy. It is also one of the
ways to differentiate in the market. As a result, automakers continue to innovate on design.
Plastics’ versatility allow innovative shapes, design, styling and forms vis-à-vis metals. For
example, design of single unit front fascia, at low cost, is difficult using metal as input. While
lending versatility, plastics don’t compromise on safety, comfort or stability of a car. It offers
better protection against corrosion than metals and improves lifespan of vehicle. It also
allows engineers to combine several parts into one (creating modules) which are cost
effective and easy to assemble.
Lower Assembly Costs
Plastics help in modularization of automotive parts. For, example, Dashboard, Bumper,
Fender among others can be moulded as one part instead of several parts, as for metals.
This helps in reducing the assembly time and costs as compared to multi metal parts
production and their assembly.
8. 7 | Plastics in Automotive
Key Challenges
Managing environmental impact
More than 75% of the automotive parts are recyclable. Most of the large plastics parts such
as bumper, fenders can be easily recycled. However, there are large numbers of small
plastic parts with encased electronics which are difficult to recycle. End-of- life vehicle (ELV)
regulations are being proposed in India where each plastic part will be codified. With
stringent tracking and regulation, automotive industry needs to find innovative/alternative
way (setting up reverse logistic) of recycling these parts to ensure lower impact on
environment. For example, Renault (in Europe) tied up with a plastics compounder to recycle
plastics parts like car bumpers.
Figure 4: Challenges faced by Plastics in Automotive
Source: Various Industry Reports, TSMG Analysis
Other light-weighting options
Aluminium, multi materials, carbon fibres are other materials considered for light weighting of
vehicles. Aluminium is one of the key light-weighting options with applications in car body
and Chassis & powertrain. As of 2015, 8-10% of vehicle weight is contributed by Aluminium
for an average car. Advances in Steel may also stem the rate of substitution. There are
developments in steel product in terms of grades (High strength steel, dual grades) and
processes (Laser welding, press hardening) which can drive down the weight at lower costs.
Carbon fibre, even though costly (5x times steel), can change the market completely with its
significant light weighting potential and high strength-to-weight ratio. Carbon fibre has
already made headway into aviation sector and racing cars. Some of the premium
passenger vehicles are also incorporating carbon fibre in the vehicle architecture.
Price volatility
With increasing complexity of applications, plastics need to ensure price advantages of
plastic products over other light-weighting materials. Since the plastic prices are linked to oil
prices, there are concerns over its volatility. Commodity polymers used in automotive
industry are derived from crude oil and thus are more prone to price volatility. However, the
advanced engineering plastics prices are more driven by end use demand and less
susceptible to price volatility of crude.
9. 8 | Plastics in Automotive
Possible Mega Shifts
3D Printing
India is still an emerging market for 3D printing but manufacturers across verticals are
seeing the benefits of 3D printing and are exploring the disruptive technology. Currently the
technology is being majorly used for prototyping. It can help in conceptualizing the design
quickly and shorten the time to market which is crucial for the automotive industry.
Commercial application on a large scale currently is not economical since large format 3D
printers are expensive. 3D printing market in India is estimated at ~USD 1Bn in 2015 with
automotive sector contributing approximately 20% of same. With improvement/innovation in
3D printing technology, commercial applications may become a reality sooner than we think
and completely alter the automotive manufacturing value chain.
Figure 5: Possible mega shifts in Automotive
Source: Various Industry Reports, TSMG Analysis
Electric/Hybrid Vehicles
Electric/Hybrid vehicles are expected to grow rapidly in the next 25 years and their sales are
expected to hit ~40 million by 2040 globally, representing 35% of new light duty vehicle
sales. Batteries of these vehicles are heavy and affect the vehicle performance. As a result,
there is light-weighting requirement in EVs. EV manufactures are increasingly using plastics
to replace metals. Reva e20, Mahindra Reva’s electric vehicle, uses 80 kg of plastics for
instrument panel, fenders, front & rear bumper and the plastic body. Rapid growth in EV
along with light-weighting is expected to drive demand for plastics in the next 20 years.
Autonomous/Driverless vehicles
Automotive market is also witnessing the emergence of Autonomous/self-driving cars.
Google, Ford, Tesla among many others are investing in this concept and are running
prototypes. Most of these autonomous cars are electric/hybrid vehicle with significant share
of plastics usage. For example, Google’s driverless car body was entirely plastic.
Commercial launch of autonomous vehicles, with plastic at heart, can disrupt the automotive
industry in the next 2-3 decades. It can potentially transform the auto sector from being a
product driven industry to a service driven industry.
10. 9 | Plastics in Automotive
Uberization
‘Uberization’, providing cheap and convenient transport service along with pooling of
customers, can drive people to forgo personal vehicle ownership. This trend along with self-
driving vehicles can drastically drive down the sales of new automobiles by 80-90%, as per
an OECD study. With people no longer viewing the vehicle as an asset, but as a transport
service, the demand for aesthetics and performance of vehicle will no longer be as stringent
as for an owned vehicle. For example, people may accept less premium looking vehicle
interior for a cab than for their owned vehicle. This will dramatically change the demand
dynamics for automotive and role of plastics.
Way Forward
Substitution of metal components in cars by plastics will continue to drive demand for
plastics in the coming years. In the short term, this will be primarily driven by requirement of
reducing vehicle weight to meet CAFC norms. In the long term, to keep costs in check,
OEMs will further move towards composites which provide right price, performance and
safety mix. To serve their customers, the plastics manufacturers will need to understand the
direction in which the OEMs are moving and will need innovate and adapt for Indian
requirements.
Plastic, as a material, has traditionally faced competition from aluminium, steel, magnesium
alloys among others. In future, the competition is likely to be increased further from new-age
materials comprising of composites, carbon fibre reinforced materials and nano-materials.
To add to it, 3D printing could bring in new entrants into the industry which otherwise would
not have been easily possible. All of the above could completely alter the value chain of
plastics in automotive industry in the future. Automotive plastic manufacturers need to adapt
rapidly and build required capabilities to overcome such threats. Existing business models
need to be re-assessed and changes need to be implemented timely to ensure that the
business continues to remain relevant and successful.
Automotive industry is about to witness a major shift/disruption in the way it operates.
‘Uberization’ is becoming mainstream with each passing day. While there may be certain
speed-bumps along the way and it could come under the ambit of regulations but sooner
than later, the business model will mature. The impact of this could be tremendous on type
of plastics being used. It may completely wipe out or multiply demand several folds for select
plastics / composite combinations. Therefore, plastic manufacturers need to ensure that
there is adequate diversification in their business and their overall business strategy reflects
the initiatives which leverage the possible disruptions to create a sustainable competitive
advantage.
Understanding the consumer, their preferences and the factors which influence their
preferences could be the key differentiator for plastics manufacturers going forward. This
could imply plastics manufacturers moving from product only to a platform based model
where they work jointly with automakers and consumers right from the
conceptualization/design phase of the product itself. The plastics manufacturers will need to
critically assess the consumers’ preferences and future relevance of polymers by application
and market. By working closely with customers, market for select polymers / plastics could
be created in future.
11. 10 | Plastics in Automotive
About Tata Strategic
Our Offerings
Founded in 1991 as a division of Tata Industries
Ltd, Tata Strategic Management Group is the
largest Indian own management consulting firm.
It has a 50 member strong consulting team
supported by a panel of domain experts. Tata
Strategic has undertaken 1000+ engagements,
with over 300 clients, across countries and
sectors.
It has a growing client base outside India with
increasing presence outside the Tata Group. A
majority of revenues now come from outside the
group and more than 20% revenues from
clients outside India.
Tata Strategic offers a comprehensive range of
solutions covering Direction Setting, Driving
Strategic Initiatives and Implementation Support
12. 11 | Plastics in Automotive
Tata Strategic Contacts
Co-Authors of the white paper
Hemant Vinod- Project Leader
Naina Malani- Analyst
Manish Panchal
Sr. Practice Head – Chemicals, Energy & Logistics
E-mail: manish.panchal@tsmg.com
Phone: +91 22 6637 6713
Charu Kapoor
Principal – Chemicals
E-mail: charu.kapoor@tsmg.com
Phone: +91 22 6637 6756
13. 12 | Plastics in Automotive
WWM Contacts
(To be added by WWM)