Published On:December 28 2007
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Plastic producers urge Govt to set up raw material unit

Chennai: Plastics manufacturers in Tamil Nadu want the Government to help set up a raw material manufacturing unit in the proposed Ennore or Cuddalore special economic zone so as to ensure uninterrupted supply of raw material and reduce their dependence on raw material manufacturing units in North India, according to Mr G. Sankaran, President of the Chennai Plastics Manufacturers and Merchants Association (CHEPMMA).

Currently, raw material for plastic manufacturing units comes from North India, primarily Reliance Industries. In recent times, political conditions, interrupted supply of raw material and frequent price hikes have seen thousands of units in Tamil Nadu close shop.

This could be avoided if a manufacturing unit was set up in the State to cater to the demand from South India, Mr Sankaran said at a press conference on Wednesday. Units in Tamil Nadu cater only to 50 per cent of demand from the State, he said.

“We also need to improve the efficiency of existing units and upgrade technology,” he said.

Tax revenues

According to a CHEPMMA release, the State currently produces 4 lakh tonnes of plastics a year (worth about Rs 5,000 crore) using about 10,000 machines. This can be increased to 10.5 lakh tonnes (worth about Rs 12,000 crore) by adopting new technology, improving efficiency of existing processes and adding about 5,000 machines. Consequently, the State can double the tax revenues it generates from the plastics industry to about Rs 1,000 crore, the release said.

Global expo

In order to increase awareness about new technologies, the association is hosting a four-day international exhibition-cum-conference called ‘PlasTec 2008’ starting February 21 at the Chennai Trade Centre. Simultaneously, a two-day seminar in the context of plastics and the environment would be held at Hotel Le Royal Meridian. About 250 exhibitors across India are expected to set up stalls showcasing machinery, equipment, finished and semi-finished products, spread across 75,000 sq ft and about 50,000 trade visitors from the US, Germany, Sri Lanka, China, Japan and India are likely to participate in the event.

The event is supported by the State Government, the All-India Plastic Manufacturers Association, Central Institute of Plastic Engineering and Technology and Tamil Nadu and Pondicherry Plastic Manufacturers and Merchants Association, among others.


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