With plastics fast replacing metals in most spheres of engineering, and the industry growing at 12-15% annually, the pie is big enough for entrepreneurs to take a pick
Plastics have kept Vijay Nagpal afloat. This first-generation entrepreneur manufactures raw material for engineering plastics at his unit in Bawana on the outskirts of Delhi.
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| Plastics are being preferred over metals because they are |
- Cost-effective - Rust-resistant - Have mechanical properties - Have high production volume - Lightweight - Good insulation properties - Decorative - Do not corrode |
After completing his degree in plastics engineering from the Central Institute of Plastics Engineering and Technology (CIPET) in 1991, he started Nagpal Enterprises. But the business failed and he had to close down in 2000. This did not deter Nagpal from returning back with a vengeance. He reopened his unit three years back, and is now doing brisk business. “Plastics is a lucrative business. It is fast replacing metals in every sphere of engineering. The demand is growing at a rapid pace,” he says. Nagpal reflects the optimism of a number of entrepreneurs who are entering the plastics business in a big way.
The market potential can be gauged by the fact that Satyam Computer Services, a global consulting and IT services provider, on April 2 announced that it has signed an MoU with CIPET, Hyderabad, for developing new engineering plastic materials through an industry-institute collaborative approach. This association is a part of Satyam’s plans of getting a global advantage in complete engineering solutions for its global customers. Other big players in the sector include Reliance Industries, Supreme Industries, LG Polymers, and Saudi Arabia Basic Industries (SABIC), which bought GE Plastics last year for $11 billion.
Plastics Omnipresent
Large-scale industrialization has brought about a sea-change in the use of complex materials such as wood, glass, metals and alloys. With new manufacturing technologies replacing older ones and cost-effectiveness becoming the mantra of modern-day competitiveness, plastics were quick to replace various metals such as aluminum. Plastics are almost 50% lighter than aluminum. The automotiveindustry is one of the biggest consumers of plastics. “A luxury car possesses around 500 different parts that are made out of plastics. It is also used for light fittings, upholstery and interior body design of a modern car,” says a report by the Multi Commodity Exchange (MCX). Some estimates point out that a small gear can be made out of a suitable plastic for about 1% of the cost of a machined metal and one and half to two-thirds of a cast metal one.
| What are Plastics? |
| According to the US Environmental Protection Agency, plastic is a material made from petroleum that can be molded, extruded, or made into various shapes. There are many different kinds of plastics made from different combinations of compounds. Alexander Parkes, a British inventor, created the earliest form of plastic in 1855. |
| On the basis of their physical characteristics, plastics are usually divided into thermosets, elastomers and thermoplastics. Elastomers have a high degree of elasticity and once shaped, heating cannot reshape them. They are used in automobile tyres and are also called engineering plastics. These are more expensive in per unit weight, are high heat resistant, have more mechanical strength, rigidity, and flame retardency. Thermoplastics become soft when heated and hardened when cooled. On the other hand, thermosets become permanently hard and rigid. The thermoplastics polyethylene (PE), polyvinyl chloride (PVC) and polystyrene (PS) are used, for example, in packaging applications and are also called commodity plastics. Thermosets are used to make light switches. |
Metals are being replaced by plastics because the latter is cost-effective, its volume-wise production is high, it has mechanical properties, and it is abrasive and lightweight. Besides the automotive industry, plastics are also being used in aviation. The use of plastics makes planes lighter, safer and more economical, according to Ensinger, a global engineering plastics manufacturer that specializes in plastics for airplanes. “This is by no means the case for just the interior, but also for sophisticated technical parts, structural elements and propulsion components,” it says. Before plastics are approved for applications in aviation and aerospace, they normally have to undergo testing, which is specific for the components. Thus, Ensinger processes high-performance plastics to satisfy special needs.
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On the sea front, fiberglass boats have gained popularity and are widely used by coastguards. These boats are strong, rust-resistant and do not corrode.
| DARE/green plastics |
| Whatever the usefulness, plastics earn the wrath of environmentalists because these compounds take over 500 years to decay. To tide over the situation and make them environment-friendly, a team of scientists at the Missouri University of Science and Technology is working on manufacturing biodegradable and bio-available plastics that would disappear within four months of getting discarded. Bio-available plastics contain substances that can be absorbed by living systems during their normal physiological functions. The team is said to be working on creating optimal blends that can be used to make agricultural films, bottles, biomedical and drug delivery devices. |
The Big Market
With India becoming an automotive hub, and the electrical and electronics market seeing boom time, the demand for engineering plastics is set to grow at a rapid pace. The Indian plastics industry is growing at the rate of 12-15% annually. The consumption of plastics is projected to touch 12 million tons in 2012, compared to just 5 million tons at present. This would translate into India becoming the third largest consumer of the commodity after USA and China. The rise in the prices of crude oil has hit the margins of plastics manufacturers. Recently, global crude prices touched an unprecedented $120 per barrel.
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There is also immense scope of export to developed countries such as USA. The demand for engineering plastics in the US will grow by 3.5% per year, according to the Freedonia Group, the US-based industrial market research firm. It says, a resurgent electrical and electronics market, increasing per vehicle usage and continued replacement of metal and other materials will drive gains in the US engineering plastics demand through 2010.
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written by PET preforms manufacturers in india, June 17, 2011
thank you for sharing this
PET preforms manufacturers in india
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