PLASTIC

MARKET OVERVIEW

• The plastics processing industry has grown at a CAGR of 10% in volume terms from 8.3 MMTPA
in FY10 to 13.4 MMTPA in FY15 and is expected to grow at a CAGR of approximately 10.5%
from FY15 to FY20 to reach 22 MMTPA
• In value terms, the plastic processing industry has grown at a CAGR of 11% from INR 35,000 Cr.
in FY05 to INR 100,000 Cr. in FY15.

22
MMTPA

13.4

8.3

FY 10 FY 15 FY 20
INDIAN PLASTIC INDUSTRY
PER CAPITA PLASTIC PRODUCTS
CONSUMPTION
 PLASTIC WASTE

As per CPCB reports, plastic contributes to 8% of the total solid

waste.
Only 60% of the total plastic waste is being recycled.
Households generate maximum plastic waste, of which water and
soft drink bottles form a large number.

In India, around 43% of manufactured plastics are used for

packaging purpose and most are of single use.

Multi Layered Plastics are categorized under either recyclable,

energy recoverable or with some other alternate use, but their
recycling is an expensive process.
 PLASTIC IN WATER BODIES

• The seas near Mumbai, Kerala and the Andaman and Nicobar Islands are among the worst
polluted in the world.

• Plastic debris affects at least 267 species worldwide, including 86% of all sea turtle species,
44% of all seabird species, and 43% of all marine mammal species.

• Significant amount of toxic heavy metals like copper, zinc, lead and cadmium recovered from
plastic wastes from sea shores have an adverse effect on the coastal ecosystems.

• Lead and Cadmium pigments, commonly used in most of the plastics as additives are
hazardous in nature and are known to leach out.

• Several GHG gases are emitted from the landfills. Among them, carbon dioxide and methane
constitute 90 to 98%.
CURRENT PRODUCTION PROCESS FOR
PET BOTTLES

PET
preforms

Extrusion
/Heating
process

Blow
moulding

Final PET
bottle
CURRENT FLOW OF PET BOTTLES IN THE SYSTEM

Illegal disposals

Reuse/Recycle
Retailers Consumers Waste pickers
Beverage purposes
manufacturing
company Municipality
Distributors /private waste Dumpsites
collectors
REVERSE LOGISTICS ACTIVITIES THAT CAN BE DONE

Packaging Products
Reuse Return to supplier
Refurbish Resell
Reclaim materials Sell via outlet
Recycle Salvage
Recondition
Refurbish
Remanufacture
Reclaim Materials
Landfill
Recycle
 WHAT CAN BE DONE

• Removing recyclables and reusables from landfill-bound waste;

• Implementing an in-house energy conversion process, such as pyrolysis, gasification, or
incineration with energy recovery;
• Partnering with other suppliers who can effectively recycle or repurpose waste diverted
from landfills; and
• Educating employees on in-house waste diversion and zero net waste initiatives
OPEN LOOP V/S CLOSED LOOP RECYCLING

• Closed-loop recycling indicates a product can be recycled back into

itself, while open-loop recycling (downcycling) indicates that it can be
recycled into other types of products (e.g. soda bottle into fiber).
 HOW SUPPLY CHAIN CAN BE HELPFUL?

• An SBU of beverages company or an independent company can be formed.

• This company can collect the PET bottles via reverse supply chain from customers to
retailers, from retailers to distributors and finally to manufacturer.
• Customers should be paid for returning the bottles.
• These old bottles can be collected while distributing new bottles.
• The advantage of this system is that it is tapping into the current supply chain and no extra
setup is required.
 HOW SUPPLY CHAIN CAN BE HELPFUL?

• In India, the pan vendors have the widest reach.

• Their reach can be leveraged by collecting waste plastic from them.
• Rag pickers can collect plastic and sell it to pan vendors.
• Plastic companies can go into a partnership with companies like ITC to
get the waste plastic in order to recycle.
 HOW SUPPLY CHAIN CAN BE HELPFUL?

• Church gate railway station in Mumbai has a vending machine which accepts PET bottles
and gives out some cash.
• Such vending machines have been proposed to come up in more railway stations.
• With the help of IRCTC or any FMCG company like Parle which supplies to the shops
at railway stations PET bottles can be collected and recycled via well established supply
chain.
• This initiative may be well supported by government of India.
CHARACTERISTICS OF ROBUST SUPPLY CHAIN AND
HOW THEY APPLY TO THE PLASTIC INDUSTRY:

1.Sustainability
Sustainability is paramount for nearly all supply chains. In plastics, this means innovating
with recycled plastics, developing bioplastics capabilities, and striving towards zero net
waste production.

2.Transparency
Strong supply chains sync many moving parts. Transparency is crucial to keep suppliers,
manufacturers, and executives all on the same page.
3. Transportation
Every stage of the plastics supply chain depends on transportation that functions smoothly.
From the ship or train that delivers resins to your blow molder, to the truck that freights your
finished product to your customers, a great supply chain runs on well-managed logistics.

4. Systems Integration
Great plastics supply chains integrate procurement, quality control, production, inventory,
transportation, and warehousing to reduce redundancy and increase efficiency.

5. Well-aligned metrics
Great supply chains mind the KPIs that align with their business goals. Functional metrics —
from inventory turns to customer service — must be in dialogue with the larger picture and
anticipate future needs.