PP RAFFIA FOR BULK PACKAGING (FIBC)

Transcription

1 PP RAFFIA FOR BULK PACKAGING (FIBC) Speaker Ujjal De (Director Sales & Marketing)

2 CONTENTS PP Raffia Introduction FIBC Overview Indian FIBC Industry FIBC Import EU FIBC Import USA Advantage India as a Global Manufacturing Hub Challenges & Opportunities Indian FIBC Exporter Lohia Corp - Brief

3 PP RAFFIA END USE APPLICATION DOMESTIC PP WOVEN BAG FOR PACKING Cement Food Grain Fertilizer Sugar Polymer Chemical Mineral & Others EXPORT TUBULAR FABRIC FIBC PP Woven Bag Tubular Fabric for Bags PP WOVEN FLAT/TUBULAR FABRIC Wrapping Fabric Geotextile Geomembrane (Pond Liner) FIBC FLAT & SPECIALTY FABRIC Geotextile Ground Cover Roof covering Lumber wrap Indian Industry serving global need of all segments of raffia

4 WHAT IS FIBC? Flexible Intermediate Bulk Container (Also known as Jumbo Bags) Three dimensional bags Made of Uncoated or Coated flexible PP woven fabric Weight carrying capacity ranging from 0.5 to 2 Ton

5 OVERVIEW INDIAN FIBC INDUSTRY India witnessed the introduction of FIBCs during early 1990s. India has grown to be a frontline manufacturer in the world since 1990s. Nearly 85% of total FIBC Production being exported to EU, USA, Australia, Canada, South America, South Africa etc. Huge growth potential in export as well as Domestic Market. Annual Growth of 10 to 15%.

6 INDIAN FIBC INDUSTRY INDIA TOP EXPORTER OF FIBC IN THE WORLD (Also top exporter of small bags & fabric) FIBC MANUFACTURERS 100 INDIAN FIBC ASSOCIATION (IFIBCA) 30+ MEMBERS AROUND 70 NON- MEMEBERS EXPORT TURNOVER IN Million USD EMPLOYEMENT DIRECT 60,000 INDIRECT 100,000+ YOY GROWTH 10 to 15% (Source : Indian FIBC Association)

7 FIBC IMPORT - EU

8 FIBC EU IMPORT SOURCE (2016) (Source EFIBCA) India led the pack of leading exporting countries to Europe. Indias share increased from 52.3% in 2015 to 55.8% in

9 FIBC IMPORT - USA

10 FIBC USA TOP 3 IMPORTER (NO. OF BAGS) (Nos. based on kg FIBC; Source FIBCA, USA) India surpassed China first time in 2016 for export to USA, despite starting from zero base in year More than 700% growth in Indian FIBC share in USA Import over last 10 years. 10

11 FIBC USA IMPORT SOURCE (Source FIBCA, USA) Impressive growth of Indian FIBC export to USA. Very High Indian Market Share i.e. 48% in

12 INDIA - TOP 10 EXPORT DESTINATIONS IN 2016 Total Export Total Trade Average : 188,738 MT : 428 Million USD : 2,268 USD/MT (Source FIBCA,USA) 55% of total Indian FIBC export to EU. 21% of total Indian FIBC export to USA Market. 12

13 ADVANTAGE INDIA AS A GLOBAL MANUFACTURING HUB Easy availability of PP in India. PP available against deemed export at international price. India remains surplus in PP Production. ( ) Availability of trained & skilled manpower at competitive rate. US Consulting firm Korn Ferry Study Thanks to strong Indian garment industry - Skilled Tailors availability ( ) Competitive cost of electricity. ( ) World Class Machinery at a competitive price (95% Indian FIBC manufacturers have LCL machines) Ease of doing Business in India. Indias rank improved from 130 to 100. Depreciation of INR against USD. ( ) ( ) ISBIR, largest producer of FIBC in Turkey, making JV with Mewar Group in True reflection of Advantage of India as a global manufacturing hub.

14 CHALLENGES & OPPORTUNITY - INDIAN FIBC EXPORTER Competition due to around 100 FIBC manufacturers in India and more planning to enter. No direct vessel sailing from Indian Ports other than Nhava Sheva, Mundra & Hazira. Currently, Indian companies unable to crack entry barriers of Japan: High quality demand Slow to change Culturally alike to East Asia. Need to have well planned Strategy for entering Japanese & Korean market by partnering with local companies in respective countries. Current tussle between China & Japan and China & USA, an opportunity for Indian Exporter. Introduction of new technology, automation and FIBC converting machines can reduce dependence on manpower and increase efficiency. 14

15 Brief - Lohia Corp

16 VISION OF LOHIA CORP To be the world no. 1 in woven plastics machinery and allied businesses through innovative solutions.

17 30+ YEARS OF ENGINEERING EXCELLENCE LARGEST PRODUCER OF PP/HDPE Woven Fabric/Sacks MACHINERY GLOBAL PRESENCE 80 + COUNTRIES MANUFACTURING FACILITIES 175,000 SQ MTRS (Kanpur, India) TURNOVER 160 Million USD (Yr Avg. 1 USD = 65Rs.)

18 MANUFACTURING & MARKETING RESOURCES INDIA 2 Factories in Kanpur 1 Factory in Bangalore SALES OFFICES New Delhi Kolkata Ahmedabad Bangalore 7 OVERSEAS Thailand Philippines USA Russia Brazil UAE Indonesia SALES AGENTS 24 nos. in all major markets

19 SPECIAL MACHINES FOR FIBC Smooth Bush Tapeline with Auto Gauging Die & Thickness Gauge Automatic Winder Nova Series Looms FIBC Conversion Machine

20 HOW LOHIA CAN PARTNER? Equipment Selection Designing Layout Plant Engineering Knowledge of Quality Certification Process Knowhow Technical Training

21 Our strength. concept to commissioning.. For woven plastics

22 Thank you for your kind attention Thanks

23 PP SUPPLY vs DEMAND ( ) S. NO. PP PLANT PP CAPACITY (KT/YEAR) 1 Reliance 2,700 2 IOCL HMEL MRPL HPL OPAL BCPL 60 Total Capacity 4,921 Consumption ( ) 4,650 S. NO. PP PLANT PP CAPACITY (KT/YEAR) BACK 1 IOCL, Paradeep START-UP 2 HMEL, Bhatinda 500 H Considering 8 to 10% growth in demand of PP, India expected to remain surplus in availability. Global PP market expected to remain tight 2022 onwards (Source Platts). Surplus 271

24 US CONSULTING FIRM KORN FERRY STUDY BACK As per study: Talent deficit of 85.2 million workers by 2030 across the 20 major developed and developing economies. Only India is projected to have a skilled-labour surplus of around million workers by 2030, owing mainly to its vast supply of working-age citizens and government programmes to boost workers skills. (Source : The Hindu Business Line dated 7 th May, 2018)

25 COST OF ELECTRICITY BACK (Industry Estimate) (Current Avg. 1 USD = 67Rs.) Avg. cost of electricity of India still lower than China. Electricity Cost in Odisha 9 US cents/kwh.

26 EASE OF DOING BUSINESS INDIA TREND BACK 26

27 INR vs USD - TREND BACK (Source : 27

28 JAPAN - TOP 10 IMPORTER IN 2016 BACK Total Import Total Trade Average : 122,307 MT : 337 Million USD : 2,755 USD/MT (Source FIBCA, USA) Japan imports 81% FIBC from China. It could be a huge opportunity for Indian Exporters. 28

29 SOUTH KOREA - TOP 10 IMPORTER IN 2016 BACK Total Import Total Trade Average : 76,526 MT : 169 Million USD : 2,208 USD/MT Vietnam & China comprises of 99.5% share of South Korea FIBC. (Source FIBCA,USA) 29