Challenging year ahead for India's film extruders

By Satnam Singh | PLASTICS NEWS CORRESPONDENT

MUMBAI, INDIA (April 27, 12:55 p.m. ET) — Some Indian plastics processors expect to suffer as a result of a recently adopted ban on the sale of gutka — a popular product that contains chewing tobacco — in plastic pouches.

“The move would have far reaching repercussions for the plastics packaging industry in India as, by conservative estimates, about 35-40 percent of the plastic packaging industry serves the gutka industry,” said Sunil Jain, president of film machinery supplier Rajoo Engineers Ltd.

Over the years, many processors have added equipment solely to serve the gutka industry, he said.

“It is interesting to see how the big stake holders would react this year as they built huge capacities to cater the gutka industry.” Jain said. “The move would stall new investment in the blown film sector in the country.”

Rajoo is focusing on export markets, including a recently announced deal to sell a film line to a customer in Pakistan, as well as to customers in Latin America.

“We have supplied three recycle PET sheet lines to the countries of Mexico, Colombia and Ecuador last year,” he said.

With India emerging as global automobile hub, the plastics industry is looking at opportunities in that market.

“We have to find area of synergies as we are currently more focused on food and packaging,” Jain said.

Source: Plastics News

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