manufacturers follow a very tight colour match and performance specification. Thus an Asian processor needs to manufacture the products to the standards and quality that these markets accept. The combination of rapid growth in plastics processing coupled with a need to produce to ever higher standards has led to a buoyant demand for masterbatch.

Masterbatch manufacturers have started investing more on masterbatch production. New players are also entering into masterbatch business. The expansion in domestic capacity is fuelled by both national entrepreneurs and international players locating in Asia. They serve the customer base which is moving from developed markets in North America and Europe to the Asian area.

Asia witnesses tremendous potential in masterbatch business. There are two major reasons:

1. Increasing per capita plastic consumption in Asia.
2. Deep penetration of masterbatch versus competing     colouring methods.

Out of total colouring market for plastics, masterbatch is estimated to have a 43% share. Colouring is done mainly through compounds and dry pigments. The demand for masterbatch is expected to show a robust growth of 11% by 2008. Estimated demand of masterbatches in Asia is likely to reach 7, 80,000 tonnes by 2008.

Many plastics processors in Asia are supplying products to Western or Japanese Original Equipment Manufacturers (OEMs). These