Plastics Machinery Manufacturers

Association of India (PMMAI)

Plastics Processing Industry : An Overview

• No of Processing units 10-11  ~ 22,000 (published)

• Processing Capacity  29.7 MMT

• Processing Capacity growth CARG  13 % last 5 years

• Polymer cons. in 12-13  11 MMT

• No of processing Machines  ~ 113,000

• No. of known plastics machinery manufacturing units : ~ 200

• Present Domestic Machinery Market  ~ Rs.3000 Cr pa.

• Employment in Machinery Sector  ~ 1.2 Mn (Direct + Indirect)

Emerging processing Industry

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Estimated Sector wise Processing Industry
(Excluding Mortality)

March, 2013

Installed Capacity being ~ double the amount processed!

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 Industry Growth : from 2000-01 to 2012-13

Inst. Cap. / CARG % No. of Machines

Consumption (KT)
• No. of Machines : ~ 7%
• Polymer Consumption : ~ 10%
• Installed Capacity : ~ 11%

Despite hiccups, growth foreseen

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Opportunities by 2020…….

30000

…..Project investment to the tune of 65,000 Rs. Cr.

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Plastics Machinery : Growing share of Imports

Total Machines Added (2002-03 to

3110 4705 6482 5872
2012-13) : 7.3% CARG

Growth in :: Domestic Machine Sale : 5.1% Imports : 27.2%

Need to enhance share of domestic machines

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Technology….
• Indian technology competes globally –
– Compounding Lines
– Tape Lines & looms
– Multilayer Film plants
– Pipe plants
– Injection Moulding Machines
– Rotomoulding Machines
– Thermoforming Machines
– Auxiliary equipments such as bag making machines, Material conveying
systems, Mold temperature controllers & chillers etc.

….We command respect world-wide!

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We lose due to higher Cost of Production
External Factors:
• Higher Input Cost –
– Technology parts from imports average 25% to 50% of material costs. Attract 7.5% customs duty
• Seek customs duty reductions
• Government policies to encourage domestic manufacturing
– Taxation at every transaction adds to the costs (our system adds 6% to cost)
• Seek reduction in tax incidence, support GST

Internal Factors:
– High inventories & High inventory carrying cost
– Capability of supply chain
– Low productivity
• Need Efficient supply chain, vendor development & common vendors base
• Improve operational efficiency through process and system improvements
• Technological upgradation of equipments
– Low productivity of labor due to low skill level
• Train manpower to impart requisite skills and periodically refresh the skills

Framing new strategies for cost reduction

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Longer Delivery Times

• Why is delivery time of Indian Machines longer than manufacturers

of Far East?
– Longer lead times for parts
• Need to develop efficient supply chain, common vendor base can help

– Availability of trained and skilled manpower

– Most have not adopted modern manufacturing processes & systems

such as forecasting, advance planning with use of ERP

Joint effort and Government support

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Quality of workmanship suffers

• We do not maintain consistency in production processes

– Operators are not trained for requisite skills & discipline in working

– No pre-requisite qualification and training for contract labor

• Inadequate planning leads to rushing the product in assembly closer

to delivery date
– Need to develop forecasting and planning processes

Joint effort and Government support

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Are Used Machines really cheaper?

• Market data since 2005 indicates that 1/3rd of machines imported in India
are Used Machines…..
– These machines suffer from
• Old Technology
• Quality capability
• High energy consumption
• Poor control and high polymer consumption
• Low productivity, high breakdown maintenance cost

Are these machines really cheap?

At first glance these look cheap but user need to be informed of
hidden costs in such a deal.

Mindset to be changed by coordinated efforts

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 Need of the hour…

Internal Actions:
– Showcase our best in class Indigenous technology
– Develop common vendor base for essential parts to achieve cost competitiveness
– Share best practices amongst all members

– Invest in best manufacturing facility, systems & practices

External Support:
– Communicate Industry strengths to Government Ministries and Institutes
– Represent our issues and requirements
– Promote training and skill development programs for industry manpower

Cooperate and Coordinate Joint Efforts

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 And we speak in one voice….

Purpose:

- Can be heard at national & international level

- Network of decision makers & Specialists

- Market, Statistics, economy linkages

- Technology, Exports, Business promotion

- Laws, Taxes, Government co-ordination

- e-business, Seminars & Industry portals

- Publications / Information sharing

….together we grow!

September 16, 2019

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Plastics Machinery Manufacturers
Association of India (PMMAI)

To create competitive advantage for our customers.

To provide comprehensive process solutions

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PMMAI - Main Objectives

• PMMAI is non-profit organization created to promote the advancement of

Plastics Machinery Manufacturing Industry of India

• PMMAI will do so with cooperation and coordination at national and

international level

• PMMAI will facilitate development of skilled manpower for the industry

• PMMAI will develop industry-academia linkage

To increase Indian Plastics Machinery’s global contribution

2% (2010-11)  6% (2016-17)  10% (2020-21)

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Vision

• Indian plastics machinery industry will be a global

player providing to customers leading technology
products at competitive price. We shall contribute
to the success of the processing industry and
earn their patronage as a preferred supplier of
machinery. We shall be dominant player in the
domestic market.

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Vision - Alternate

• By using inclusive and cooperative approach to

raise the level of Indian Plastics Machinery to the
world-scale in terms of Quality, Technology , Cost
Competitiveness and Process Standards, and
thereby create value for plastic industry and
nation.

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Mission

• We shall raise the level of Indian Plastics

Machinery to the world class in terms of Quality,
Technology , Cost Competitiveness and Process
Standards through Inclusive and cooperative
approach and create value for the plastics
industry.

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Mission - Alternate

• Technology upgradation by sharing information amongst

members and enhancing Government support.
• Enhance production efficiencies thru’ cluster formation and
vendor development
• Industry growth through domestic as well as export market
development.
• Represent to Government and other bodies to highlight issues
relating to policy affecting Plastic Machinery Manufacturers.
• To have (over 50%) plastic Indian machine manufacturers as its
members and represent all stakeholders
• Promote interest of all stakeholders

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Strategy

• Technology upgradation by sharing information amongst members

• Technology upgradation through Government programs
• Enhance production efficiencies thru’ cluster formation and vendor
development
• Industry growth through domestic as well as export market
development.
• Promote interest of all stakeholders
• Represent to Government and other bodies to highlight issues
relating to policy affecting Plastics Machinery Manufacturers.
• To have (over 50%) plastics Indian machine manufacturers as its
members and represent all stakeholders

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Action Plan

• Strengthen PMMAI membership

• PMMAI will help strengthen the network of industries providing auxiliary

equipment as well as input raw materials for prime equipment.

• Affiliation with other national and regional associations.

• Inclusion in PlastIndia foundation as constituent member

• PMMAI will facilitate in identifying gaps in skills, standards and capabilities and
will help to fill these through knowledge sharing seminars, workshops and training
programs.

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Action Plan (Cont’d)

• Hold joint Seminars for the benefit of member companies to share information
on best practices adopted for improving quality, productivity etc.
• Trade Show delegation & study tours
• Organize Road shows - B2B Meetings at select high growth areas
• PMMAI will promote it’s independent identity, keeping in minds its position vis-à-
vis Government ministries
• Regular representation to parent Ministry and interaction with Government
Ministries and agencies

Industry Members are welcome to provide their suggestions

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Activities Undertaken

• Represented to Government for increasing duty drawback for Plastics machinery – duty
drawback increased to 2% from 1%

• Represented to Government for additional countries as focus market for Plastics

machinery – Addition of USA and Europe for 1 year

• Include Plastics processing machinery in Focus product scheme

• Separate HS codes for Plastics Machinery which is presently clubbed under “others
category” – shall be used for export incentive schemes

• Separate HS code for technical items used in construction of machinery, - HS code

have been generated by DHI and proposal sent to Department of Commerce.

• Recommendations for reduced duty are under consideration with Revenue

Secretary.

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Activities Undertaken (Cont’d)

• Representation to reverse customs duty reductions under PTA/FTA – In fresh FTAs

plastics machinery is not included in reduced customs duty category.

• Restrict used machinery imports – Presently under review with Tariff Commission.

• PMMAI has joined Capital Goods Sector Skill Council (CGSC) and
participating in preparation of National occupational standards (NOS)
content. Core Skills for PMMAI

• Set up TUF Scheme –PMMAI has requested subsidized interest for

technology upgradation similar to Textile machinery TUF scheme. DHI
to provide draft scheme

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Membership

• PMMAI is a company limited by shares not for profit under section 25

of the companies act, 1956
• Governing body constitutes of 10 elected members, Governing body is
the Board of Directors
• Who can become members:
– Manufacturers having manufacturing facility in India
• Primary processing machinery
• Post forming processing machinery
• Auxiliary equipments
• Categories of Members :
– Ordinary Members : - Associate Members :
• Turnover >3 Cr • All others
• Will have voting rights • Will not have voting rights
• Admission Fee : Rs.25,000/- (one time) • Admission Fee : Rs.10,000/- (one
time)

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 Membership
• Voting Rights :
Annual Turnover in Rs. Crores No of
Shares
More than 3 Crores and upto Rs.25 Crores 1
More than 25 Crores and upto Rs.50 Crores 2
More than 50 Crores and upto Rs.100 Crores 2
More than 100 Crores and upto Rs.250 Crores 3
More than 250 Crores and upto Rs.500 Crores 4
More than 500 Crores and upto Rs. 1,000 Crores 5
More than 1000 Crores and upto Rs. 10,000 6
Crores
More than 10,000 Crores 7
Annual Subscription:
Ordinary Member based on gross annual turnover in Plastics and
ancillary Machines and printing machines
Further details will be available from Secretary General

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Invitation

• Plastics Machinery Manufacturers Association of India (PMMAI)

invites all of you to be part of this association - to support Industry’s
cause and contribute to progress and enhance market share of All
Domestic machinery Manufactures

Together We Prosper!

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Thank You