Published on April 14, 2014
India has yet again failed to impress the overseas executives of key polyolefins producers. They cited a number of reasons for this grave disappointment. According to the key market players India’s economic growth has not managed to dazzle anyone, rather it has been much weaker than expected. Lack of infrastructural development and foreign investment has put a stop to India’s forward march.
People have high hopes from the upcoming general elections. They wish to see a change in the political system of our country. International firms view Narendra Modi as business friendly; however, they think that he may most likely fail to change a botched political system.
It is often strongly asserted that the middle class of India have seen a vast change in their way of living and that this section of society is enjoying the benefits of social security. However, by Western standards majority of Indians are far from being middle class.
Despite these drawbacks, India has tremendous growth potential. It is estimated that by 2025 India will become the world’s most populous country, which would automatically lead to a rise in demand for food and water.
In order to cater to this rising demand, India will have to up the yield of its land, which is only 50 per cent of the global average. Productivity can be increased by implementing the drip irrigation systems as it distributes water more efficiently and effectively. These systems require polyethylene (PE) pipes.
The need of the hour is to help Indian citizens fulfil their basic requirements. Currently, a mere 25 per cent of milk is packaged in India, while the rest is delivered to homes by means of truck which is then stored in jars or pots.
In developed countries milk was initially distributed the same way. But with time distribution via glass milk bottles took over, which was eventually followed by a transition to milk cartons sold in supermarkets.
A switch to glass bottles is highly unlikely in India. However, increasing number of people have turned to buying milk being sold in cartons/pouches in stores. These packets are made from outer layers of polyethylene terephthalate (PET) or biaxially-oriented polypropylene (PP) and internal layers of linear low-density PE/low-density PE.
Thus, the possibility of demand-growth is vast. But the question that remains is that whether the international polyolefins companies have the right approach to thrive in India.
