Professional Documents
Culture Documents
Preface 3
Chapter I Introduction 4
Acknowledgement 62
The Plastic & Rubber Machinery Association within VDMA constitutes of around 210 renowned companies representing 85%
to 90% of the industry’s total output in Germany.
The association provides its member companies an opportunity to meet and exchange experience; carries out various
promotional measures to facilitate and support its members’ exports sales.
In one such initiative, the association want to carry out a Market Research study in India to assess the plastic waste
management practices followed in India including the plastic recycling. In this regard, they have engaged BDB India
Private Limited to carry out a Market research study to understand plastic waste management practices and current status
of plastic recycling in India.
BDB India Private Limited was set up two decades ago with the objective of providing world class management inputs to
engineering businesses in India. Today, BDB offer business consulting including market research services to most market
savvy organizations worldwide.
The study has been successfully completed and its output is being presented in the form of this Report.
The findings of the study are presented in this report, and its contents are strictly confidential and meant for the exclusive
use of VDMA and its member companies.
The statements and analyses in this report are based on the information and opinion obtained during field investigations
and from various published sources.
INTRODUCTION
To estimate the current market size for plastic recycling machinery in India and projecting the same for next three years;
To report on the government policies, regulations, Acts and likely future changes;
To identify the major suppliers of plastic recycling machineries (domestic + foreign) in India and report on the product
range offered, distribution channel, hurdles faced in the business;
To report on current mechanism and plastic waste management practices followed by key stakeholders like plastic
recycling units, scrap dealers in major pockets of India;
To report on in-house recycling practices of plastic processors, their openness for in-house recycling and reuse of the
waste generated during production process.
The study has covered the following type of stakeholders Locations focussed
Recycling units 50
Scrap dealers 7
Maharashtra
Government bodies (Municipal
6
authorities, Pollution Control Board) Andhra Pradesh
Industry associations 2
Karnataka
Tamil Nadu
TOTAL 93
Kick off meeting with VDMA to Fixing appointment with Quantitative and qualitative
understand key deliverables of stakeholders analysis
study
Data assimilation and cross
Desk research In depth discussion with various analysis
stakeholders like recycling units,
Field work planning scrap dealers, plastic Report preparation and
processors, plastic recycling presentation
machinery suppliers and key
government authorities
Periodic tele calls with VDMA team to update on the progress of market research study.
EXECUTIVE SUMMARY
Mumbai
Hyderabad
Gujarat in Western India is a major cluster of plastic recycling machinery
manufacturers / suppliers in India.
Chennai
Domestic manufacturers can be classified as below :
Small enterprises (having turnover up to 0.07 million Euros)
Medium enterprises (turnover ranging from 0.07 million Euros to 0.20 million Euros)
Large enterprises (turnover greater than 0.20 million Euros) Source – BDB interaction with major suppliers
62%
13.5 – 14.6
8.4 - 9 5.1 – 5.6
million Euros
38%
The Indian plastics recycling machinery market has witnessed a growth rate of 10-12% in last 3 years.
The domestic plastic recycling machinery manufacturing industry is dominated by small and medium enterprises.
Plastic recycling machinery is imported from countries like China, Taiwan, Austria, Germany etc.
Source – BDB interaction with major suppliers
Plastic recycling machinery market in India for FY 2016 (in Euro Mn.) 13.5 – 14.6
Type wise break up of total plastic recycling Region wise break up of total plastic recycling
machinery market machinery market
15% 4%
22%
6%
42%
46%
12%
28%
25%
Note - Others include Crushers, Mixers Source – BDB interaction with major suppliers
20%
PET recyclers prefer to purchase imported
34% recycling line as they perceive it to be of
superior technology in the market.
Key observations
• China is dominating the import in Indian market followed by European brands.
• Zhejiang Boretech, Mijung Co. Ltd., Erema, Neue Herbold, Kongskilde, Weima, S+S Separation & Sorting Technology are
the prominent imported brands for plastic recycling machinery In India.
Source – BDB interaction with major suppliers
Specific Engineering & Twin Screw Extruder Production Line, Twin Screw
Indian manufacturer Vadodara, Gujarat
Automats Compounding Line, Extruder Processing
Taiwanese manufacturer
Shini Plastic Drying & Dehumidifying, Feeding & Conveying Machines,
with sales & service in Pune, Maharashtra
Technologies Mixer, Granulators, Recycling & Automation System
India
Expectations from Central Government to Include the plastic recycling machinery in “Product Focus
Group (means a special focus to be given to certain product category in order to increase the export of
Key expectations that product)”
Stricter implementation of waste recycling regulations in the country leading to increased machinery
market.
Upcoming investment in plastic industry with establishment of plastic parks, across India. Central
Government has approved the proposals of setting up of Plastic Parks in states like Assam, Odisha and
Opportunity perceived Madhya Pradesh where the Central Government will provide funding up to 50% of the project cost. The
objective of the plastic parks to increase competitiveness and investments in the segment.
by suppliers Various government programmes with stress on plastic recycling and reuse.
Inclination of medium recycling units towards having automated recycling plant thereby yielding
maximum output.
Source – BDB analysis
India has one of the lowest per capita consumption, estimated at 9.7 kilograms during 2013.
62 million tonnes of waste is generated annually in India out of which 5.6 million tonnes is plastic waste.
Of the total plastic waste generated in India, approximately 60% to 65% of plastic waste is processed whereas the rest remains
unprocessed and may find its way to landfills, open burning etc.
The plastic recycling industry depends upon how much of the waste
can be fetched by informal sector. This in turn depends on how much
price is attracted by particular type of waste.
Rag pickers collect the waste (like plastic, glass, Plastic Recycling Unit
Scrap dealer purchases the scrap
Municipal waste paper etc.) from source, transfer station and/or Scrap Dealer from rag pickers, does the sorting and
landfills and selling it to nearby scrap dealer..
selling it to recycling unit
Plastic waste is sorted based on the colour and type of plastics. The sorting is
primarily a “manual activity” wherein the waste sorting efficiency and
quality depends upon the experience of workers. Manual sorting of waste
The scarp dealers can handle plastic waste ranging from few tons to as high
as 50 tons per month. The sorted plastic waste is sent to nearby recycling
units through own transportation.
Number of unorganised recycling units - 4,000 – 4,200. Proprietor driven units, not
registered with government.
Delhi-NCR
Major types of plastics recycled - PET, HDPE, PVC, LDPE/LLDPE, PP, PS & others like
ABS, PMMA etc. Kanpur
Recycling units
classification Dhoraji
Indore Kolkatta
Vapi, Daman,
Silvassa Malegaon
Mumbai Hyderabad
Small Medium Large
Having plant
Having typical plant Plant capacity -
capacity Bangalore
capacity 1,000 MTPA to 3,000 Chennai
Above 3,000 MTPA
Below 1,000 MTPA MTPA
Prefer automatic
Proprietor driven Tend to have semi Coimbatore
lines. Very large units Cochin
recycling unit with 8 - automatic machinery
into PET recycling.
10 employees with 20 – 30
Employee strength
employee strength
range up to 180 - 200 Source – FICCI report, Secondary research
CHALLENGES
Ban imposed on import of PET bottles, plastic scrap
E.g. Dahej Plastic Park likely to be operational by and electronic waste by central government form
late 2016. year 2015.
Plastic consumption likely to increase to 20 million Price fluctuations (up to 25%) is one of the major
tonnes a year by 2020. challenge faced by small recyclers.
Huge growth opportunities in India for plastics due to Poor waste collection & segregation practices.
lower per capita consumption which is likely to
reach 20 kg by year 2020. Inability of small recycling units to upgrade
technology because of lack of investment.
Rising income levels and changing lifestyles driving
demand for plastics.
3,350 – 4,000
Grinding Machine Panchal Plastic
(Capacity - 150 kilogram / hour)
H K Industries
8,000 – 9,350
Extruder Wali Engineering Works
(Capacity - 150 kilogram / hour)
Zhejiang Boretech
4,000 – 4,700
Agglomerator
(Capacity - 150 kilogram / hour) Raj Engineering
Dollplast
17,350 – 20,000
Washing Line
(Capacity - 150 kilogram / hour)
Note – The prices are indicative and may vary depending machinery specifications, type of material processed, supplier etc.
Importance rating 1 2 3 4 5 6 7 8 9 10
Not important Somewhat important Very important Extremely important Source – BDB analysis
Financial assistance in terms of subsidy (average up to Suppliers provide installation & commissioning of
25%) from central OR state government for machinery at the site. Training is provided to the
procurement of plastic recycling machinery. employees about machine operation and its
functioning.
Electricity subsidy (offered in some states) for plastic
recycling units. Large units have own in-house team to undertake
maintenance activities.
Concession on sales tax of 1% to 2% (in various states)
of finished goods recycled from plastic waste. After sales support for imported machinery is provided
through channel partners and/or own sales offices
Urban Local Bodies encouraging small recyclers by whereas small & medium local manufacturers
offering them land / shed for recycling plastic waste generally do not provide after sales support to
at free of cost. customers.
Processing Machinery
Plastic processing clusters
in India
Injection Blow Rotational Major suppliers - ~ 15
Extrusion Medium & small suppliers - ~ 120 - 150
Moulding Moulding Moulding
Others
Source – BDB analysis
The rules and regulations about plastic waste management in India is governed under “Plastic Waste Management Rules,
2016”. The rules aim to :
Introduction of collect back system of waste generated from various products by the producers / brand owners of those
products in order to improve the collection of plastic waste, its reuse/ recycle;
Expand the jurisdiction of applicability from the municipal area to rural areas, because plastic has reached rural areas
also;
Increase in the thickness of carry bags (minimum 50 micron) and plastic sheets (minimum 50 micron);
To promote use of plastic waste for road construction as per Indian Road Congress guidelines or energy recovery, or
waste to oil etc.
State Pollution Control Board & Pollution Control Committee of Union Territory – Enforcement of rules related to
authorization, manufacture, recycling and disposal.
Municipal Corporation – Enforcement of rules related to the use, collection, segregation, transportation and disposal of
plastic waste. Source – Ministry of Environment, Forest & Climate Change
Plastic waste, which can be recycled, shall be channelized to registered plastic waste recycler and recycling of plastic
shall conform to the “Indian Standard: IS 14534:1998 titled as Guidelines for Recycling of Plastics”, as amended from
time to time.
The local authorities shall ensure that the residues generated from recycling processes are disposed off in compliance
with Municipal Solid Waste (Management & Handling) Rules, 2000 made under the Environment Protection Act 1986, as
amended from time to time.
The local authorities shall encourage the use of plastic waste by adopting technology such as in road construction, co-
incineration etc.
Any individual proposing to recycle plastic waste shall apply to State Pollution Control Board (SPCB) & Pollution Control
Committee (PCC) of Union Territory for grant of registration or renewal of registration of plastic recycling units.
Local Body & Gram Panchayat Waste Generator Producers, Importers & Brand Owners
Responsible for development Minimize generation of plastic Responsible for waste collection
and setting up of infrastructure waste and segregate plastic system either individually or
for segregation, collection, waste at source. collectively, through their own
storage, transportation, distribution channel or through the
processing and disposal of the All institutional generators of local body concerned.
plastic waste either on its own or plastic waste, shall handover
by engaging agencies or wastes to authorized waste Manufacture and use of non-
producers. processing or disposal facilities recyclable multi-layered plastic if
or deposition centres either on any should be phased out in Two
Ensuring channelization of its own or through the years time.
recyclable plastic waste to authorized waste collection
recyclers. agency. Every producer shall maintain a
record of details of the person
Ensuring processing and disposal All waste generators shall pay engaged in supply of plastic used
on non-recyclable fraction of such user fee or charge as may as raw material to manufacture
plastic waste in accordance be specified in the bye-laws of carry bags or plastic sheet or like or
with the guidelines issued by the the local bodies for plastic cover made of plastic sheet or
Central Pollution Control Board. waste management. multi-layered packaging.
Source – Ministry of Environment, Forest & Climate Change
• The key mission objectives are elimination of open defecation, eradication of manual scavenging,
modern & scientific municipal waste management, capacity augmentation of Urban Local Bodies
etc.
• Government allocated 1,500 million Euros for Clean India Mission for fiscal year 2016 – 2017.
• The core infrastructure elements of Smart Cities Mission includes Sanitation, including solid waste
management.
• The Smart City Mission will be operated as a Centrally Sponsored Scheme (CSS) ) and the Central
Government proposes to give financial support to the Mission to the extent of 6,400 million Euros over
five years i.e. on an average 13.3 million Euros per city per year.
Archana Extrusion
South Africa, Tanzania,
Machinery -- 90% 10%
(30 – 250) (50 – 250) (40 – 250) Uganda
(Ahmedabad, Gujarat)
Leevams Incorporated
-- -- 90% 10% Indian Subcontinent
(Vadodara, Gujarat) (100 – 1,500) (100 – 2,000)
Indian Subcontinent,
Sant Engineering Industries
65% 35% Africa, East Asia &
(New Delhi) (75 – 400) (75 – 400) (50 – 400) (40 – 250)
Middle East
Indian Subcontinent,
H .K. Industries
-- 80% 20% Africa, South East Asia,
(New Delhi) (50 – 500) (20 – 300) (50 – 250)
Middle East
Arora Fibres (Silvassa, Gujarat) Ganesh Polytex (Kanpur, UP) J M Plastics (Mumbai, Maharashtra)
R R Petroplast (Pune, Maharashtra) Rainbow Polymers (Bangalore, Karnataka) Jasmine Plastic (Mumbai, Maharashtra)
Shakti Plastic Industry (Mumbai, Maharashtra) Sri Mata Rani Polymers (Bangalore, Karnataka) Raj Plastic (Halol, Gujarat)
Aishwarya Plast Export (Vadodara, Gujarat) Anj Industries (Bangalore, Karnataka) Balaji Plastics (Chennai, Tamil Nadu)
Riddhi Plastic Industry (Rajkot, Gujarat) Rajesh Polytech (Bangalore, Karnataka) Samridhi Industries (Hazaribagh, Jharkhand)
Pacific Harish Industries (Nashik, Maharashtra) Durga Plastics (Hyderabad, Telangana) Jai Shree Balaji Plastic (Delhi)
Tejas Plastic (Sangli, Maharashtra) Royal Plastic Industries (Hyderabad, Telangana) Nidhi Enterprises (Delhi)
Prabhakar Plastic Industry (Pune, Maharashtra) Sri Sai Shanmukha Industries (Hyderabad, Telangana) Choudhary Plastics (Coimbatore, Tamil Nadu)
Umiya Products (Ahmedabad, Gujarat) Viji Polymers (Coimbatore, Tamil Nadu) Sunrise Plastics (Mumbai, Maharashtra)
Gayatri Plastics & Steel (Ahmedabad, Gujarat) Nimsha Polymer (Coimbatore, Tamil Nadu) Anuradha Plastics (Dhoraji, Gujarat)
Ramdev Polymers (Vadodara, Gujarat) Bharathi Plastics (Chennai, Tamil Nadu) Suman Polymers (Dhoraji, Gujarat)
Shree Sai Plastic Industries (Pune, Maharashtra) R M Plastics (Mumbai, Maharashtra) Shyam Polymers (Vadodara, Gujarat)
Vishwas Plastic Industry (Ahmedabad, Gujarat) R S Plastics (Delhi) Fouji Jain Plastic (Delhi)
Tridev Polymer (Delhi) Kunal Plastics (Delhi) Vikas Polymers (Delhi)
Jayachandran Plastics (Chennai, Tamil Nadu) Mahalakshmi Spintex (Solan, Himachal Pradesh) Mahaveer Plastic & Precision Polymer (Bangalore, Karnataka)
Rushabh Plastic (Gandhidham, Gujarat) Shreenath Polyplast (Gondal, Gujarat) Jairam Plastic Industries (Rajkot, Gujarat)
Revansiddhi Plastic
Industries - - - (ABS) Granules
Industries
Mahaveer Plastic &
Industries - - - Granules
Precision Polymer
Gayatri Plastics & Steel M S-A S-A S-A S-A 0.3 New Pragati (domestic)
Sri Sai Shanmukha Industries M S-A S-A S-A S-A 0.1 Laxmi Engineering
Sundaram Auto Components (Solan , Himachal Pradesh) Prima Plastics (Mumbai, Maharashtra)
Annual turnover
Company name Type of company Plastic component manufactured Customer segments focussed
(in Euro million)
Supreme Public limited 560 - 586 PVC pipes & fittings Agriculture & real estate
Tulsi Extrusion Public limited 11.5 – 12 PVC pipes & fittings Agriculture
National Plastic Private 3.3 – 3.6 Chair, mats, bucket etc. Household
Pune Polymer Private 0.7 – 0.8 Mud flap, handle bar cover etc. Automotive
Abhijeet Plastic Private 0.29 – 0.33 Engine cover, floor console etc. Automotive
Niru Plastic Private 0.13 – 0.16 Cable, Capacitor switch etc. Electrical
Annual turnover
Company name Type of company Plastic component manufactured Customer segments focussed
(in Euro million)
Ashish Pipes Private 8.9 – 9.1 PVC pipes & fittings Agriculture & real estate
Injectoplast Private 10.7 – 12.0 CVJ boots, bellows & dust seals Automotive
Prima Plastic Public limited 13.3 – 14.7 Chair, table, stools & trolleys Commercial
Sangeeta Poly Pack Private 10.7 – 12.0 PP films & sheets Printing & packaging
Shaily Engineering
4,200 Virgin plastic - - (ABS)
Plastic
Note – The details indicated above are with respect to specific plant covered under study Source – BDB analysis
Sundaram Auto
600 Virgin plastic - - (ABS)
Components
Note – The details indicated above are with respect to specific plant covered under study
Shaily Engineering
180 – 200 No - No Yes
Plastic
Sundaram Auto
8 - 10 No -- No No
Components
We are extremely grateful to all at VDMA (Plastics and Rubber Machinery Association) who helped us conclude this
assignment successfully.
Particular gratitude is due to Ms Ina Vettkoetter whose active and fulsome participation throughout the execution of this
assignment has been invaluable.
Without the faith reposed in our organization by Mr Thorsten Kuehmann, we would not have had the opportunity in
participating in this study.