Plastics Machinery Manufacturers Association of India (PMMAI)

1. Plastics Machinery Manufacturers Association of India (PMMAI)

2. 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

3. Estimated Sector wise Processing Industry (Excluding Mortality) March, 2013 Installed Capacity being ~ double the amount processed! 3

4. Industry Growth : from 2000-01 to 2012-13 Inst. Cap. / Consumption (KT) • CARG % • No. of Machines : ~ 7% • Polymer Consumption : ~ 10% • Installed Capacity : ~ 11% No. of Machines Despite hiccups, growth foreseen 4

5. Opportunities by 2020……. 30000 …..Project investment to the tune of 65,000 Rs. Cr. 5

6. Plastics Machinery : Growing share of Imports Total Machines Added (2002-03 to 2012-13) : 7.3% CARG 3110 4705 6482 5872 Growth in :: Domestic Machine Sale : 5.1% Imports : 27.2% Need to enhance share of domestic machines 6

7. 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! 7

8. 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 8

9. 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 9

10. Quality of workmanship suffers Joint effort and Government support 10 • 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

11. 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 11

12. 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 12

13. 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! 13

14. Plastics Machinery Manufacturers Association of India (PMMAI) To create competitive advantage for our customers. To provide comprehensive process solutions 14

15. 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) 15

16. Vision 16 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.

17. 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. 17

18. Mission 18 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.

19. 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 19

20. Strategy 20 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

21. 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. 21

22. 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 22

23. 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. 23

24. Activities Undertaken (Cont’d) • Representation to reverse customs duty reductions under PTA/FTA – Infresh FTAs plastics machinery is not included in reduced customs duty category. • Restrictused 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 hasrequested subsidized interest for technology upgradation similar to Textile machinery TUF scheme. DHI to provide draft scheme 24

25. 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 : • Turnover >3 Cr • Will have voting rights • Admission Fee : Rs.25,000/- (one time) • - Associate Members : • All others • Will not have voting rights • Admission Fee : Rs.10,000/- (one time) 25

26. Membership • 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 26 • Voting Rights :

27. 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! 27

28. Thank You