| Indian Processing equipment
sector is intimately related to the polymer industry.
Polymer industry in India has has been growing
at 8-10% since 2000. This is a far cry from the
double digit growth rates of 14-15% recorded in
the nineties, mainly because volumes have reached
a level of more than 5 million tons in the year
ending March 2006.
Indian processing equipment business is estimated
at about Rs. 1000 crore (Rs.10 billion or about
US$225 billion) in 2005-2006. Generally the processing
sector operates at about 50-60% of the installed
capacity. The present installed capacity of about
11-12 million tons cannot be considered as sufficient.
In fact, the equipment sector has to continue
growing at a slightly higher rate compared to
the growth of polymer in order to keep a balance
in a positive state. That will give a healthy
growth to the processing equipment sector. We
believe that Indian processing sector is showing
about 10-12% growth recently for a few years when
the polymer is growing at about 10%.
The Indian equipment suppliers generally range
in size from medium to small. Though this segment
has many suppliers, about 10 can be considered
as medium sized. Domestic equipment suppliers
enjoy the lion share of 75% by value. The Indian
equipment suppliers also export their machineries
to many countries, with the prime region for export
being Africa and Middle Eastern countries. Indian
die and mould manufacturers, not only meet most
of the local requirements, but export even to
the economically developed regions. Unlike the
primary equipment suppliers the die/mould manufacturers
are all mostly in the small sized sector.
It is estimated that imports constitute about
25% (by value) of the total equipment required
in the country. While the Indian equipment suppliers
have more than adequate capability to meet the
Indian requirements, imports particularly from
China and Taiwan have increased in the recent
few years due to price economy. It is believed
that about 1300 injection moulding machines have
been imported from China in 2005-2006. Imports
from Europe, particularly from Germany are steadily
decreasing because of higher cost. Some imports
from Italy, particularly in the areas of cast
film line continue. Equipment for special end-product
such as BOPP film, heat shrinkable film and rigid
PVC foams are imported and will continue to be
imported in future. There are no plans for availability
of local equipment at least in the two areas of
BOPP and rigid PVC foam. Even equipment (double
bubble) for PP heat shrinkable film is not likely
to be manufactured in the near future. One of
the prime reasons for lack of these plants is
that all these end-products require special technologies
that are not available with the Indian suppliers.
Besides, PVC foam market is rather small and the
end product is mainly for exports. The processors
can avail the facility of easy and economical
imports. BOPP film lines are generally imported
from Europe, the leaders in the World. PP foam
market is in nascent stage. For compounding and
finished products Chinese equipment are preferred
due to cost compared the leading supplier from
Italy and Europe. PVC calendaring equipment is
imported in India. Most of the calendaring equipment
in India is second hand because of very high cost.
The recent imports are also second hand. PVC calendared
products constitute more than 120 KT of the total
consumption in India in 2005-2006.
India has progressed well in the areas of PVC
pipe and PP/HDPE raffia. In fact, India is possibly
producing international quality machines for raffia
sector. The present PVC pipe equipment is almost
at par with international standards, at least
in the area of quality. It has to match the throughput
level of the global standard. Both these end-use
sectors account for about 1.5 million tons of
polymer consumption. (more than 25% of the total
consumption in 2005-2006). PE film sector accounting
for more than 725 KT (about 15 % of the total
consumption in 2005-2006) is mostly produced from
local Indian equipment. Only 5 and 7 multi layer
film equipment are imported into the country.
Tubular quenched PP film (about 215 KT) is entirely
produced on Indian equipment. BOPP film (more
than 100 KT of total consumption in 2005-2006
financial year) entirely depends on imported equipment.
Extrusion sector in India consumes about 60% of
the total polymers. However, injection moulding
equipment are required in larger numbers due to
their relatively lower output and requirement
of different sizes for different types of moulded
products. Injection moulded products accounting
for almost 650 KT in 2005-2006 (about 15% of the
for almost 700 KT in 2005-2006 (about 15% of the
total consumption) is partially produced from
domestically manufactured equipment. Specific
technical products demanding stricter dimensional
control are often produced on imported equipment.
Some large automotive products such as bumper
fascia, PP furniture (chairs) are predominantly
produced on imported machines although some local
machines are also used. The latest trend is to
import machines even in smaller sizes from China
because of economy.
Blow moulding container sector essentially made
from HDPE (175 KT of the total made consumption
in 2005-2006 financial year) and PET (more than
100 KT) are mostly produced on domestic equipment.
Only large drums used for industrial packaging
are from imported equipment. Interestingly,
compounding equipment in the
areas of PVC, silane based XLPE, and the ETP as
well as other thermoplastic compounding with reinforcements
such as glass fiber are predominantly based on
the imported equipment. Typically they are intensive
mixers, kokneaders, continuous mixer and twin-screw
equipment. While there are no plans to manufacture
kokneaders, internal mixers of smaller capacities
are available from Indian suppliers. Twin screw
compounding equipment : co-rotating for thermoplastic
compound and counter rotating for PVC compound
are available from several Indian producers.
The above snapshot of Indian polymer end-use sector
essentially covers 4 million tons out of the total
5.5 million tons consumption in India during 2005-2006
financial year.
International equipment suppliers have entered
India either by joint venture or through 100%
ownership. Some technology tie ups are also found.
Some of the prominent suppliers present in India
include:
• ASB Nissei
• Battenfeld
• Brampton
• Cincinnati Milacron
• Frankische Rohrwerke
• Krah
• Reifenhauser
• Sidel
• Windmoller & Holscher
It is believed that Indian processing equipment
suppliers will continue to meet the increasing
volume demand of the Indian polymer industry in
future. The imports will only fill the quality
and technology gaps present with the Indian equipment
suppliers. Low cost equipment mainly from Asian
region will also play an important role in the
future.
Indian equipment suppliers have risen to the technological
challenges when required. For instance, 3 layer
PE film equipment used is from Indian suppliers.
5 layer PE film plant is also available from a
few suppliers. CPVC pipe although not required
in larger quantity, can be manufactured on Indian
equipment. Only the larger volumes as well as
technology barrier in some areas (rigid PVC foam,
core foam PVC pipe, 7-& 9 layers PE film,
BOPP film etc) would restrict the Indian manufacturers
to enter these new areas.
Indian processing equipment are generally of lower
throughput and need to be developed in the area
of economically viable size in order to meet the
increasing pressures due to globalization. While
sophistication has been developed by the Indian
suppliers, they need to enhance it further. The
use of robot in injection moulding sector is not
yet developed. It would be required when the Indian
labour cost increases to match with international
levels.
Some of the other technology developments that
require increased attention of the Indian Machinery
producers are:
• Higher end barrier blown film technology
for 7, 9 or even higher layers
• Electrical Injection Molding machines
• u-PVC Window Systems
• Profiled and Solid Wall PE/PP Pipe
manufacturing
• Gas assisted injection moulding
• Adoption of Mucel technology
• Electric injection moulding machines
• Cast film technology for PE and PP
and Foam Sheet Lines
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