Plastics Machinery Manufacturers Association of India (PMMAI)

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Plastics Machinery Manufacturers Association of
India (PMMAI)
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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

• CARG
• No. of Machines 7
• Polymer Consumption 10
• Installed Capacity 11

Inst. Cap. / Consumption (KT)
No. of Machines
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 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
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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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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
And we speak in one voice.
.together we grow!
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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 Machinerys 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 (Contd)

• 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 its 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 (Contd)

• 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
• Turnover gt3 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)

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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 Crores 6
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 Industrys cause
  and contribute to progress and enhance market
  share of All Domestic machinery Manufactures

Together We Prosper!
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Thank You