With more than 2 million tons of plastic being produced in India every year and India's forest cover being 21% instead of an ideal 33%, is there a material that can substitute wood for its durability and that can substitute plastic for its flexibility?
An innovative entrepreneur setup temporary accommodation
for pilgrims at Vaishno Devi. He called them 'temp homes' and offered it for rent in the peak season in winter. At the end of the season, after earning his money, he folded everything and went back home. The houses were made of a special composite material called Wood Plastic Composite (WPC).
As the name suggests, WPC combines the properties of wood and plastic offering a highly durable and surprisingly malleable material. Builders, interior and exterior decorators and furniture manufacturers are embracing this magic material across India in a big way. Civic authorities are exploring ways of using WPC in parks and other public properties which should withstand the vagaries of both natural forces and human vandalism. Indian Railways too has shown interest in this composite.
In an age, when science has successfully attempted to increase life-expectancy of man, man's own desire to to create super materials which can withstand extreme heat or cold and yet can be elastic enough to mould it in various shapes has led to WPC.
True to its form, WPC is resistant to moisture, rotting, cracking and splitting. It is highly durable and requires low maintenance. It is processed like plastic but behaves like wood. It can be manufactured out of scrap resources, hence is quite environment friendly.
We interviewed Dr. S.N. Chakravarty, MD, and Mr. A Chakravarty, Jt MD, KPS Consultants & Impex, and other stakeholders of the industry, on what all constitutes this business opportunity and how it can be tapped by Indian SMEs and entrepreneurs.
Market lies in climate affected zones
Currently, in India, the market mainly exists for exterior furnishing. All the star hotels, restaurants, swimming pools and fitness clubs use it for exterior decking and wall cladding. The furniture industry is increasingly using WPC for chairs and shelf elements.
There is a huge scope for Wood Plastics in coastal areas, where exterior items degrade easily owing to extreme climate. WPC is touted as a good option as it is highly durable and requires least maintenance. Even places like Delhi having extreme climate can be a good market. "It is quite popular in the Middle-East and Australian markets," says Naveen TV, MD, Delta Build Pro, while telling us about the export possibilities.
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Dr S.N. Chakravarty MD, KPSÂ Consultants and Impex A WPC plant can be set up in 3-4 months with a capital of `5 crore, which will include plant, machinery, land, building, boilers, compressors etc. |
Why WPC, Why not Wood, Plastic or PVC?
From the consumer perspective, the quest for minimal maintenance requirements, excellent weather ability and high resistance to wear and tear in construction applications is the reason WPC is preferred over others. Cost-wise, if wood costs `1, WPC costs about `1.5 and Thermoplastics cost `2-2.20. When compared with U-PVC (Unplasticized- PVC), MDF (Medium Density Fiber Board), and FJP (Finger jointed Pine), WPC is aesthetically better, resistant to moisture and more durable. Also, PVC does not give the appeal of wood, and is not recyclable more than once.
From the manufacturer's perspective, "It's a 100 per cent clean business, with no by-products or pollution. In fact, it leads to recycling of plastic which could otherwise be very harmful to the environment,"says Naveen.
"The Mumbai floods in 2005 were caused due to the plastic bags choking the drains. This industry has the potential to avert such grave calamities ," says A Chakravarty.
See the scope & Start a WPC plant now
Presence of just 4-5 players pan-India shows the huge scope this industry has, according to both Naveen and SN Chakravarty. Some manufacture the raw material while others import from China and other countries and sell in India. Delta currently imports from Australia and Korea on order from a company called Komposite Woodit. It customizes the product according to customers' requirement. In India, there is no direct link between the manufacturers and the distributors, as their markets and procurement sources respectively, are different.
So, a budding entrepreneur can go for either "import and customize" or "manufacture finished product" route. Alternatively, s/he can settle down to manufacture raw material since there is no big player doing it in India so far.
In the case of Delta, they had studied the 20-year climate of several Indian cities with a market research extending to two years. Local climate is very important for customizing the WPC products. However, it would still be not wise to step into this industry without advice of consultants as it requires very specialized knowledge. "Its difficult to compete with Chinese companies as they have acquired big scale," says Rahul Jindal, Deckcrafts, which manufactures outdoor decking of WPC.
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Wood-Plastics Composite is made of |
| A combination of low cost cellulosic filler (60 to 70%) and recycled thermoplastics (30 to 40%). The cellulosic filler could be any form of wood by-products like chips, sawdust or cellulose from plants in form of rice husk etc.
All the raw material is first processed into pellets which are further processed into WPC products of various forms, mixtures and sizes. Special coupling agents and additives are used in the manufacturing process to bind the raw material. The ideal size of wood to be used as raw material should be 40-80 mesh. These agents and additives are added in varying quantities, so that the WPC compound / product being made can be customised according to the weather which it will face and the durability desired in there. The climate in India varies after every few hundred kilometers, and so it has different effects on these products. |
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| Naveen TV MD, Delta Build Pro It's a 100% clean business, with no by-products or pollution. In fact, it leads to recycling of plastic which could otherwise be very harmful to the environment. |
Investment, Raw Material / machinery and the Source
The margin in WPC business is typically between 10 and 20 per cent and the raw material is easy to find and cheap. According to Naveen, a `50 lakh machinery with 2 production lines can produce about 100,000 sq. ft. of WPC per month.
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Raw Material & Uses (current and future) |
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| What goes in WPC? | What comes out as WPC? |
| Wood Flour, Wood Chips, Saw Dust, Rice Husk, Cotton Plant Stalk Powder, Bagasse, Bamboo, Scrap/ Recycled Thermoplastics-Hdpe, Pp, Pvc | Outdoor Floor Decking, Railings (In Staircase), Fences, Park Benches, Roofing/ Sheds, Portable Cabins, Pallets, Window & Door Frames, Indoor Panels, Furniture, Flooring, Staircase, Highway Construction, Railway Sleepers, Play Areas, Portable Toilets, Temp Housing, Prefab Housing, Playground Equipment, Site & Leisure Furniture, Insulation And Finish Systems, Gardens, Chicken Coops, Automotive Industry, Building & Construction |
SN Chakravarty says, "A whole plant can be set up in 3-4 months in total from concept to planning stage to commencement of production, with a capital of `5 crore, which will include plant (Rs.2-3 crore), machinery, land (approx 3000-5000 sq ft), building, boilers, compressors etc. and it will yield a production of 5 tonnes per day. The raw material, at this capacity will cost about `2-3 lakh per day. The warehouse space requirement should be considered separately."
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Vital Stats |
| WPC manufacturers in India                                   4-5 max |
| How eco-friendly is WPC plant                              100% |
| Complete Cost of a WPC plant                              Rs 5 crore |
| Time required to establish WPC plant                      3-4 months |
| Plastic generated in India pa                                  > 2 million tons |
| Ideal life span of a WPC product                             25 years |
| No. of times WPC product can be recycled              5 times |
Even though a warranty of 5 years can be given in after-sales-service, the consumer will recover the cost in 3 years itself. "The average sale price is `80-100 per kg, though it varies for different customers", says A Chakravarty.
The raw materials include wood flour/ saw dust/ agricultural waste like rice husk, cotton plant stalk powder, bagasse, bamboo etc. and scrap/ recycled thermoplastics like HDPE, PP, PVC, etc. However rice husk is not recommended to be used in exterior items as it causes drying of the product and degrades faster. On the other hand, if used in excess of 20 per cent in total composition of the product, it is eligible for a waiver on excise duty as it's an agricultural product.
In India, manufacturers face irregular supply of raw materials from unorganised market unlike Australia, where the market is organized and there are different companies manufacturing raw material and finished product. The government can help in this by establishing dedicated scrap collection centers in various cities for wood and plastic scrap, especially near plastic production and recycling belts. Unless one can ensure constant supply of raw material to the plant, it would be naive to start the plant.
The machinery has to be imported from USA, Germany, China or S.Korea because WPC requires special extruders because wood, unlike plastic, scratches and degrades metal machinery overtime wile being processed.
Explore the huge future
The industry is still very much unexplored in India. The big plastic players are looking to tap this business opportunity. Besides, few firms like Delta are trying to organise this industry by developing industry focused website. So, one can imagine the infinite possibilities. Some enterprising people have also explored uses of WPC in solving India's sanitation and housing problems. Yet the market is in its infancy and offers good opportunities to entrepreneurs.
Nimesh Sharma
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written by anand kale, June 14, 2011
im very much interested to start a project of WPC .kindly mail me the project report.
awaiting for your reply...
thanking you,
anand kale.
written by chetan sharma, June 12, 2011
written by Arun K Singh, April 13, 2011
Regards
Arun k Singh
written by mihir shah, March 28, 2011
thanks for interesting information.
kindly give us details of existing manufacturers in india.
if possible please give info about proffesional help for setting up the project.
thanks.
written by mihir shah, March 28, 2011
we are keenly interested in this project.reason it looks interesting to usbecause we are already in plastic recycling production business.we shall be highly obliged if we can get detailed information on the project or any professional consultant details.
please also give us details of existing producers in India.So that we can contact them for business opportunities.
thanks for information and idea.
written by vijay . m. dhanwatay, March 22, 2011
written by Rajan Patel, March 17, 2011
Thanks
Rajan patel
New delhi
INDIA
+919810499341
written by Siddharth parakh, March 04, 2011
how many minimum moulds required to start the plant.
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We have set up one plant of Wood Plastics Composite at Pune for automobile application & supplied the material Tata, Maruti & others .
Thanks,
Sudhir Johri
08888810744