STM ASSIGNMENT REPORT

COMPANY- PEARLPET

Submitted to:
Prof. Anshuman Tripathy

Submitted By:
ANURAG SAHA
(U113073)
SECTION B
PGDM I

QUESTION 1
Comparison of business model of pearlpet with Tupperware.
Although both the companies are in the same industry competing against each
other,more or less both the companies have similar business model. Pearlpet polymers
produces quality products which are priced reasonably and have a good acceptance in
the Indian market. Pearlpet is a relatively old company when compared to Tupperware.
Although Tupperware started its operation in 1948, but it debuted in India in 1996. The
products of Tupperware are of good quality with a higher pricing compared to pearlpet.
On the distribution front, Tupperware does not operate through retailers, rather
Tupperwares products are distributed worldwide primarily through the direct selling
channel under which products are sold to consumers outside traditional retail store
locations. Whereas PP uses the conventional distribution model of retailers.
One of the major difference is that PP also caters to the B2B market. A large portion of
the revenue comes from this segment. Whereas Tupperware in India only is present in
the B2C market. Tupperware also has its presence in the beauty segment.

Comparison between Pearlpet & Nayasa

Nayasa is also a company which is into the pet moulding business. Nayasa is a
relatively new company as compared to pearlpet. Where pearlpet focuses on quality of
its products, nayasas focus is pricing. There is a huge price difference between the
products of nayasa and pearlpet. Nayasas main target customers are hotels and
restaurants. It is less focused on household customers. Whereas the main customers of
pearlpet are households. The quality of products also greatly differ due to the quality of
raw materials used. Pearlpet has fixed raw material suppliers which ensures quality of
product is same throughout. On the other hand nayasa does not have a fixed supplier
and raw materials are procured based on the minimum price quote. The retailers of PP
are medium to large shops whereas nayasa products can be bought from small to
medium sized shops.

QUESTION 2
ACTIVITY SYSTEM MAP

TUPPERWARE

RAW MATERIAL & SUPPLIERS

Good quality raw material
Single supplier

HEADQUARTER
Orlando,FL
R&D
Inhouse
outsourced

OPERATIONS
International

PRODUCT RANGE
Wide
TECHNOLOGY
advanced &latest
OWNERSHIP
Public
11
MARKETS
B2C

PRODUCT QUALITY
HIGH

SALES CHANNEL
Party Plan
TRAINING
Inhouse & outhouse

CUSTOMER

NAYASA
RAW MATERIAL & SUPPLIERS
Low quality raw material
Multiple supplier

HEADQUARTER
Mumbai
R&D
Inhouse

OPERATIONS
Domestic

PRODUCT RANGE
Narrow
TECHNOLOGY
Outdated
OWNERSHIP
Private
1
MARKETS
BBBBBB
B2C
BBBBB

PRODUCT QUALITY
AVERAGE

SALES CHANNEL
Distributor
TRAINING
Inhouse

CUSTOMER

QUESTION 3

INDIA
PEARLPETMISSION
Our mission is to manufacture high quality plastic products at a competitive price while meeting
regulatory requirements and exceeding customer expectations.

VISION STATEMENT
The vision of Pearlpet is to increase the awareness of our company and our establishment in the
market as a turnkey, successful plastic manufacturing business that provides profitable growth and
value for our customers, colleagues, stakeholders, community, and the Manufacturing Industry.

Key attribute to success

Quality products at competitive prices.

EVALUATION OF VISION MISSION STATEMENT

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

Yes

Yes

Yes

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

No

No

No

yes

No

Self-concept

Concern for
public image

Employees

No

No

yes

Customer or product-oriented?
product-oriented

NAYASA
MISSION
Our mission is to provide high quality product to customers at lowest prices.

VISION STATEMENT
To develop an acceptance amongst customers and to be the leading producer of pet products in
India.

Key attribute to success

Low pricing

EVALUATION OF VISION MISSION STATEMENT

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

Yes

Yes

no

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

No

No

No

no

No

Self-concept

Concern for
public image

Employees

No

No

no

Customer or product-oriented?
product-oriented

ASIA
POLYPLEX
VISION

continuously grow and create value in all businesses and establish global
leadership in plastic manufacturing.
MISSION

Creating value to stakeholders through delivering profitable value to

customers & maximising their satisfaction.
attribute to success

"Lean Innovation Model "which focuses mainly on creation of profitable

value to the customers.
It aims to provide more than simply a new product or a substrate.

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

Yes

Yes

YES

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

No

No

No

YES

No

Self-concept

Concern for
public image

Employees

No

No

no

Customer or product-oriented?
product-oriented

SUPPERWARE
VISION

To be a global company.
MISSION

To invest in cutting edge technology and improve quality of products.

attribute to success

low pricing

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

no

Yes

YES

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

No

No

No

no

No

Self-concept

Concern for
public image

Employees

No

No

no

Customer or product-oriented?

product-oriented

EUROPE
GRAHAM PACKAGING CO
Mission Statement

Be the leading global, custom blow-molded, plastic container supplier to

consumer package goods companies
VISION

the leading global source for innovation $ sustainable plastic packaging

solns.
ATTRIBUTE TO SUCCESS

Wide range of products

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

no

Yes

YES

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

yes

No

No

no

No

Self-concept

Concern for
public image

Employees

No

No

no

Customer or product-oriented?
product-oriented

Plastic Bottle Supplies ltd

Mission Statement

Exceed customer expectations with service, total quality, packaging

development and process technology.
VISION

To be the global leader in plastic bottle manufacturing.

ATTRIBUTE TO SUCCESS

Wide range of products, low cost.

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

yes

Yes

YES

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

yes

No

No

no

Self-concept

Concern for
public image

Employees

No

No

no

No

Customer or product-oriented?
customer-oriented

AFRICA
BOXMORE
Mission Statement

Grow the value of the businesses to our customers, employees, suppliers,

shareholders, community, and the environment
VISION

to be leading pet manufacturer in Africa.

ATTRIBUTE TO SUCCESS

Quality, design.

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

yes

Yes

YES

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

yes

No

No

no

No

Self-concept

Concern for
public image

Employees

No

yes

yes

Customer or product-oriented?
customer-oriented

SNV PLASTIC

Mission Statement

continue to provide an efficient, cost-effective and personal service for the

benefit of its customers.

VISION

to be your simple plastic bottle solution.

ATTRIBUTE TO SUCCESS

Low cost.

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

yes

Yes

no

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

no

No

No

no

No

Self-concept

Concern for
public image

Employees

No

no

no

Customer or product-oriented?
customer-oriented

SOUTH AMERICA
Kaufman Container
Mission Statement

We pledge to work with our customers to create a win-win partnership so

that everyone achieves long lasting success.
VISION

To achieve global leadership with the help of latest technology and provide
customers with best products.

ATTRIBUTE TO SUCCESS

High technology

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

yes

Yes

no

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

yes

No

No

no

No

Self-concept

Concern for
public image

Employees

No

no

no

Customer or product-oriented?
product-oriented

WB BOTTLE SUPPLY CO.

Mission Statement

Creating value to customers, employees and stakeholders through delivering

profitable value & increasing their return.

VISION

continuously grow and create value in all bottle manufacturing and establish
global leadership.

ATTRIBUTE TO SUCCESS

quality

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

yes

Yes

no

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

yes

No

No

no

No

Self-concept

Concern for
public image

Employees

No

no

yes

Customer or product-oriented?
product-oriented

NORTH AMERICA
PETAINER
Mission Statement

Grow the value of the businesses to our customers, employees, suppliers,

shareholders, community, and the environment

VISION

To be one of the largest global players in pet manufacturing.

ATTRIBUTE TO SUCCESS

Quality,range of products

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

yes

Yes

no

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

no

No

No

no

No

Self-concept

Concern for
public image

Employees

No

no

yes

Customer or product-oriented?
product-oriented

PLASTIC BOTTLE CCORP.

Mission Statement

Exceed customer expectations with service, total quality, packaging

development and process technology, and a broader range of custom
packages beyond blow molding.

VISION

Quality products at best prices

ATTRIBUTE TO SUCCESS

pricing

Evaluation
Does it mention values
like?

Does it include?
Customers

Products/
Services

Markets

Citizenship

Teamwork

yes

Yes

no

No

no

Technology

Concern for
survival

Philosophy

Excellence

Integrity

no

No

No

no

No

Self-concept

Concern for
public image

Employees

No

no

yes

Customer or product-oriented?
product-oriented

QUESTION 4
PESTEL Analysis
The Pestel analysis, macro-environmental factors which widely have the
power to alter the demand of the product offered by any firm in an industry;
the way in which a product is distributed , prices are changed or the way in

which firms compete with each other in the industry. The below six macroenvironmental factors consider the impact on the pet bottle industry.
Political Factors
The International health bodies like World Health Organisation (WHO) and
many

other

national

health

organisations

had

put

pressure

on

Governments to regulate the use of BPA or to ban BPA products in regards to

health issues especially for the babies. The United States & Canada banned
the polycarbonate baby bottles in February 2008 following EU in November
2010. Todays consumer is educated and exposed to lot of information on
internet and aware of new development in the market. They understand BPA
and its implications. Therefore, suppliers and retails have responded very
well to this issue and today BPA.
Economic Factors
Economic recovery is very slow in mature markets like India, which has great
impact on lifestyle of the people. For example, Vat rose to 13.5% from 12.5%
in January, 2011, will not make much difference to the prices of small items
but overall impact can be seen on consumers purchasing power. Less money
will be left for discretionary purchases . Consumer will think twice before
buying even small thing which will be of short period use. Economic factors
related to supply and demand are also important. The firms that source their
goods from china will see higher production cost due to rising costs in labour,
raw material and less preferential tax treatment in china .

Social factors

Consumers purchasing power is a reflection of the lifestyle and consumers

taste which finally determines the magnitude of demand. In todays world,
urbanization largely affects the size of family.

People have become more

ambitious and they are moving towards cities. The affinity of customers
today towards foreign/ imported products is affecting the market of indian
pet manufacturing industry.
Technological Factors

As mentioned above, the internet has become an important vehicle for

information. Wide availability of information and opinions about shopping
from magazines, internets (social networking websites like Facebook, through
blogs: and smart phone applications made easy for consumer to select
product. Even brands now days use these blogs to get more information on
products for new developments. Even more, brands have turned their
attention in creating and developing online presence because of e-world. For
example: pet bottles/ plastic housewares are abundantly available online on
sites such as flipkart, ebay, snapdeal etc. This has largely increased
competition in this industry as foreign products are taking away large chunk
of the market from indian companies.
Legal Factors

The firms have to adjust their products and the way they operate in the
industry as per different regulatory and legislative framework that govern
each product in the country in which they are active. Increase in global
commerce which has impacted the international legal environment in terms
of standardization of many processes and other aspect of product.
International organisation like BPA, IBFAN are in the process of standardizing
the processes in the value chain of the bottle products. As explained earlier

regarding ban of BPA chemical by many countries by law in the

manufacturing of baby bottles, has made many multinational companies and
retailers to change baby bottles to BPA free bottles.

Environmental Factor

Awareness of the effects of toxics contents in the product have led to

increased the efforts to develop technological methods or solution to the
problems. The trend of organic products in the market especially for plastic
products has increased. The firms like Avent (Philips) have already developed
a range of the baby products which is BPA free (Avent.com). Due to pressure
groups and use of internet, consumers are getting educated about different
products and theirs advantages and disadvantages. For Example, now days
consumers are going back to traditional ways like use of bottles made of
glass which is more eco-friendly and safe. This has led to new range of glass
feeding bottles which are also available on retail shelves.

PORTERS 5 FORCE ANALYSIS

BARGAINING POWER OF SUPPLIERS

Generally supplier power is investigated through concentration of supplier,
volume importance to supplier, differentiation of inputs and switching costs
of firms in the industry. A few factors which increases the supplier powers are
(a) presence of few suppliers (b) presence of large no. of purchasers (c) high
costs of switching suppliers. Supplier power is highly reinforced when a
supplier has control over prices.

There are a large no of small firms with a variety of product differentiation.

Due to the wide applicability nature of plastic in a variety of spheres, there is
a great variety in demand also. To cater to this diverse demands, there are
some firms focusing on producing a single product with features making it suitable
for only a specific usage. Also there are some firms producing a product with wide
application areas. The Indian plastic industry is essentially an oligopolistic market.
The polymer manufacturers and the equipment manufacturers are the suppliers for
the plastic processors. Since there are 15 key players(Gail, RIL,IPCL etc) in the
polymer manufacturing sector supplying essential raw materials to the large no of
plastic processors, bargaining power of these polymer manufacturers is high. But
there are huge no of equipment manufacturers which are also small firms and since
there are large no of plastic processors, competition is fierce as firms are small in
size they operate in small volume, hence no of orders are equally important for
maintaining the bottom lines. As regards to switching costs, the figures are high for
switching polymer manufacturers because of their small no but low in case of
switching equipment manufacturers due to the presence of small manufacturers in
large nos.

BARGAINING POWER OF BUYERS

Due to the wide applicability of plastic in every industry, it is evident that

buyers in this industry are huge and they range from small to big sized firms.
In this case, buyers power is largely determined by firm size and its scale of
operation. Because if a firm is producing a standardized product, in that case
its definitely operating ins volume so that per unit cost is low. This type of
firms will definitely have high bargaining power due to the presence of large
no of plastic processors. Also such a firm will not make tie up with only one
plastic processor, as in times of exigency if the plastic processor fails, then
the entire production of the firm will come to a complete halt and the firm
may have to incur huge losses and earn a bad reputation. In that sense, it
can be said that Agriculture, Infrastructure and Packaging have low to
medium bargaining power whereas automobiles and electronics have high
bargaining power.
INTERNAL RIVALRY

Since a large chunk of the plastic processors are lying in the small and
medium scale range of industries, hence internal rivalry is very high. Though
its also a fact that there are wide variety of plastic that are produced, each
one with a different feature and hence different application oriented, still the
variety is not sufficient to wipe out the competition and enable each
producer to cater to single variety having a single consumer.

Though the industry is not stagnant but due to the presence of large no of
small players it becomes mandatory for bigger ones to steal business from
their smaller counter parts in order that the bigger ones wants to expand
their output. Also due to the divergent nature in the scale of operation, firms
have different cost structures.

ENTRY

As the no of entrants grew in an industry the net market demand gets

distributed among them resulting in the eroding away of profits of the
existing players in the concerned market. Due to the fragmented nature of
the plastic industry, sometimes new entrant faces difficulty in case that it
does not achieve a substantial market share to reach the minimum efficient
scale, it usually stands at a cost disadvantage. Due to the unorganized
nature of the industry, many players will want to enter the industry to enjoy
the established market and reap advantages of economies of scope. Also the
SSI policy of the Govt have given a tremendous boost to this kind of
initiatives by small players by declaring its reservation policy and also
exempting it from several kinds of taxes. Thus on one side it is evident that
any player can make a smooth entry into the market as also highlighted by
the fact that higher product differentiation is possible in this plastic industry
due to the diverse and enormous usage potential this material possess. But
at the same time after entry getting business is really tough since there are
small firms but in huge nos. with limited capital. So if a big firm enters, it can
wipe out the market share and profit margins of a no of small players as its
having sufficient capital to spend heavily on promotional and advertising
activities along with huge investments in R & D to discover and launch new
products. Also consumers generally value reputed brands so its also
essential in this industry for a new entrant to invest heavily to establish a
strong brand reputation and awareness. Access to raw materials,
technological know-how, key-inputs are however difficult for a new entrant as
the industry is already having few big players and several small players
already engaged in competition. Thus each of them is having contracts with
a fixed set of suppliers as well as customer base ,thereby indicating the fact
that its very difficult for a new entrant in this scenario to steal business from
existing players. Thus only big firms can enter this kind of market having

sufficient capital at hand. As for the existing small firms therefore the threat
is high and might prove damaging to a large extent.
THREAT OF SUBSTITUTES

With the growing alertness against the use of plastic in daily life at an
alarming rate, there is a threat of close substitutes. The following gives a
brief outlook on such threats:
1. GLASS
This is a very close substitute coming up in the market. Although with the
growing awareness against the use of plastic, still it seems that human
beings will have a tough time to live without it but nowadays there are
materials that can make this possible. Quite often, plastics contain bisphenol
A (BPA) or phthalates which helps in making it shatterproof, durable &
flexible thereby enabling its usage in baby bottles, compact discs, storage
containers and toys. This substances can cause malfunctioning of the bodys
endocrine system leading to hormonal, developmental and reproductive
problems. Thus the usage of glass , which is devoid of such harmful
chemicals, is highly recommended.
2. PHB BIOCOMPOSITES
Recent researches have invented a substance which is completely
biodegradable and environment friendly and can replace plastic because of
similar properties and usage domain. Chemically, it is a modified form of
polyhydroxybutyrate (PHB).Natural fermentation process of bacterias
produce polyhydroxybutyrate ,an energy and carbon source and this new
substitute is a chemical modified form of PHB and hence the name.It is quite
similar to polypropylene. It can be used in packaging, agriculture and
biomedical products.
3. LIQUID WOOD
Prepared from pulp based lignin is another substitute called Liquid wood with
biodegradability and comparable properties is a promising new bioplastic, or
biopolymer. Lignin is mixed with water and exposed to high temperatures
and high pressure to create a moldable composite material that's strong and
nontoxic, making it a good plastic substitute. This has been used to
manufacture a variety of items including toys, golf tees and even hi-fi
speaker boxes in Germany.
4. ECM BIOFILM
An additive invented by ECM Biofilms. Inc when added as an ingredient in
polyolefin packaging and products makes those products biodegradable. The
resulting plastic produced with this additive in the process is insensitive to
heat or light degradation; this gives it a long shelf life. However, it

completely biodegrade into the soil between 9 months and 5 years. Hence,
single-use plastics such as disposable diapers, trash bags and food
containers (including fast-food containers) could be a little more
environmentally friendly due long shelf life and reusability.
5. POLYACTIDES (PLA)
Polylactides (PLA) are corn-based plastics having better properties than the
real plastic. For Example: (a) Decomposability: < 47 days(b) No smoke when
burned (c) Approx. 20 to 50 percent lesser usage of fossil fuels in their
production than petroleum-based plastic.10.Food storage containers as well
as general consumer goods storage can be made from this. If Walmart used
114 million PLA containers a year, company executives estimate they could
save 800,000 barrels of oil each year.11 .Cornstarch bags because of above
properties could be a complete substitute to petroleum-based plastic bags
.So its evident that in view of the growing anti plastic campaign
accompanied by innovative research pose a serious threat to plastic as far as
substitutes are concerned.

STRAREGY OF COMPETITOR(TUPPERWARE)
Strategy of Tupperware is almost similar to Pearlpet except for a few.
Generally Tupperware procures its raw materials from a single supplier but
on the other hand, it also maintains very good relationship with other
suppliers as well. They do so to have a back up supplier in case the current
supplier fails to deliver raw materials, the production should not stop and
would continue with raw material from back-up supplier.
There is also a difference in the pricing strategy of the 2 companies.
Tupperware prices its products on a higher side. It does so because it wants
to establish an international image for the brand.
On the distribution front, Tupperware does not operate through retailers,
rather Tupperwares products are distributed worldwide primarily through the
direct selling channel under which products are sold to consumers outside
traditional retail store locations. The system facilitates the timely distribution
of products to consumers, without having to work through intermediaries,
and establishes uniform practices regarding the use of Tupperware
trademarks and administrative arrangements, such as order entry, delivery
and payment, along with the recruiting and training of dealers. In addition to
the introduction of new products and development of new geographic
markets, a key element of Tupperwares strategy is expanding its business by

increasing the size of its sales force. Under the system, distributors and
directors recruit, train, and motivate a large number of dealers. Managers
are developed from among the dealer group and promoted by distributors
and directors to assist in recruiting, training and motivating dealers, while
continuing to sell products. Sales of Tupperware products are supported by
Tupperware through a program of sales promotions, sales and training aids
and motivational conferences for the sales force. In addition, to support its
sales force, Tupperware utilizes catalogs, television and magazine
advertising, which help to increase its sales levels with hard-to-reach
customers and generate sales force leads for parties and new dealers.

QUESTION 5

(i)
Since independence, plastic industry in India have been playing a predominant role in shaping our
lives. As it an indispensable item in our day to day activity, so its importance cannot be undermined.
Since last decade with the advent of new and improved technologies, the industry has gained greater
importance with the production of better and improved quality of polymers (plastics) which has
supported the radical change in human life and its day to day activities.
Broadly plastics can be classified into two types namely (a) Thermosetting (can be softened or
molded into a particular shape by applying heat and pressure only once) and (b)Thermoplastic.(can
be softened repeatedly by application of heat and pressure).

OVERVIEW OF THE INDIAN PLASTIC INDUSTRY

The Plastics Industry in India has made significant development since its
inception in1957 by producing Polystyrene .The chronology* polymer
manufacture in India is as under: 1957~~Polystyrene

1959~~Low Density Poly ethylene (LDPE)

1961~~Poly Vinyl Chloride(PVC)

1968~~High Density Poly Ethylene(HDPE)

1978~~Polypropylene

Though exact figures are not available after 1978 but latter and subsequent
years followed tremendous growth in plastic both in variety and features.
Indian entrepreneurs have been long motivated by the potential market to
acquire technical expertise & knowledge, achieve high quality standards and
build capacities in various sectors of the growing plastic industry. Significant
developments in the petrochemical industry and plastic machinery industry
have led the plastic processing industries to develop capabilities to cater
both domestic as well as overseas market. With liberalization in 1992, Indian
Government has supported this industry through conducive measures spread
over a couple of years. All these economic measures have been taken
irrespective of political and power changes. With Indian GDP supposed to
grow at a rate greater than 7% in the next 10 years, growth in plastics can
be around 14 %, based on historical performance.1 Also nowadays, steps are
taken by the Indian Government that shows its positive & supportive attitude
to new investments in India. For e.g.-the Petrochemical Department of the
Government of India is in the process of setting up a development council to
promote the development of downstream sectors in India. The Indian plastics
industry, with more than 4 million tons consumption in 2003 is well spread all
over India. While it is estimated to be fragmented across more than 20,000
processors, the large processors are less than 100. These 100 have about
35% share of the plastics processing industry. Plastic has a derived demand.
Our per capita consumption of plastic (5 kg,2007 ) is lowest in the world.
Greater utilization of plastics can drive growth of the food processing
industry, improve agricultural productivity and reduce poor harvest losses. In
India domestic polymer demand is 12.75 MMT. In a typical developed
country, infrastructure sector contributes 25 % in polymer demand whereas
in India ,the consumption in this sector is 20 %.The agricultural sector
accounts for 7 % in polymer demand in a typical developed country, but in
India agricultural consumption accounts for 1% of total consumption. As the
Planning Commission has targeted GDP to grow at 9 percent, other things
remaining constant, domestic polymer demand is expected to reach 9.5 MMT
by 2012. The department of petrochemicals of the Government of India has
projected a level of 12.75 MMT by 2012.This extra demand will be driven by
Packaging, Plasticulture and Plastics in Infrastructure .Currently, the per
capital consumption figures in the year 2007 was 5 Kg for India,17 Kg form
Asia,18 Kg for China and 25 kg globally. Indias projected per capital plastic
consumption is expected to be 7.4 kg in 2010,for Asia 21.6 kg and for world
it is 28.9 Kg and China it will be 24.2 kg. Per capita consumption of plastic

products is much higher in the developed countries as compared to the

developing countries.
The past growth rate of the plastics industry in the last few decades have
been around 12-14 percent, a rate twice the GDP growth. Improving living
standards of people was the dominant factor in achieving this rates. The
Indian plastics industry is very positive regarding its future potential hoping
that the plastics industry will grow between 10% to 12%, if not higher, in this
decade.. Consumption level, which is expected to reach 8 million tons by
2013.The PlastIndia Foundation expects business transactions worth $ 160
million. Industry experts vision for 2015 : (a) Consumption of Polymers @
15% CARG- 18.9 MT (b) Turnover-Rs 1,33,245 crores (c) Additional
Employment Generation- 7 million (d) Requirement of AdditionalPlastics
Processing Machines-68113 (e) Additional Capital Investment In Machines
(2004-2015)-Rs 45,000 crores. Indias ambitious growth of 6.1 % in
agriculture till 2015.Rapid adoption of plastic applications alone can provide
50% of the intended targets in agriculture.Use of Plastic in Post Harvest
Management can boost agriculture GDP by Rs 6000 crores.Plastic is clearly
superior for piping systems.Chemical degradation is not observed in PVC
Pipes.These pipes offer a projected life span of over 100 years.Also these are
lighter and cheaper to install. Thus as we can see there is huge scope for
plastic industry in India to grow. This above discussed figures gives the
impetus to explore further this industry in India assessing its strengths &
weaknesses, major players and their competitiveness, major buyers and
suppliers and their interaction, key impediments for its growth etc.

(ii) Size of industry

The size of the global plastic industry is around 235 million tonnes per year.
PET

6.50%

Total
plastic
size(MT)

PRODUCTION(
MT)

country
CHINA
JAPAN
L. AMERICA
NAFTA
M.E. AFRICA
CIS

235

23%
5%
5%
20%
7%
3%

54.05
11.75
11.75
47
16.45
7.05

PET
production
3.51325
0.76375
0.76375
3.055
1.06925
0.45825

EUROPE
REST OF
ASIA

21%

49.35

3.20775

16%

37.6

2.444

In INDIA
2005

2015

4.7 Million Tonnes

18.9 Million
Tonnes

2.5 Million

9.5 Millions

Plastic Industry's
Turnover

Rs. 35,000 Crores

Rs. 1,33,245
Crores

Export of Plastic
Products @ 30% CARG

US$ 1900 Millions

US $ 10215
Millions

Contribution of Polymers
and Plastic Products to
the Exchequer

Rs. 6200 Crores

Rs. 15990
Crores

@ 15% CARG,
Consumption of Plastic
Polymers
Employment In Plastic
Industry (Direct+ Indirect)

(iii) Key success factors

The key success factors for any organization in this industry would be

Quality
Latest technology
Company must be willing to manufacture special grades in small
amounts

Maintain a good relationship with the supplier as raw material is the

major source of cost.
Good distribution channel
E-commerce/ online selling
Good relationship with customer

Pearlpet is doing pretty good on all the success factors except for
manufacturing special grades in small amounts. The quality of product is
good with some room for improvement. It uses latest technology, has
implemented ERP. Has good relationship with suppliers.Has a robust
distribution channel and sells products through e-commerce sites too.
Maintains good relationship with customers. Has a dedicated helpline
number with assurity of response within 24 hours.