PET Overview Vimal Kedia Manjushree Technopack Limited Bangalore INDIA August 05, 2014 at the The Leela, Mumbai
South Asia s largest PET packaging co. converting 80,000 MTPA of resin into PET Preforms and Bottles
No. of production plants Total built up area No. of employees Containers produced per annum Preforms produced per annum PET Resin Conversion capacity : 3 in Bangalore : 75,000 sq. mtr. : 300 people : 350 million : 2.2 billion preforms : 225MT/day; 80,000 MTPA
Manjushree accounts for the conversion of almost 12 % of India s PET Preforms and Bottles
PET TRIVIA # 1 Roohafza moves from Glass Bottle to PET bottle after 108 years!
PET Journey over 5 decades
Global Statistics Bottle Grade (PET) Share in Polyesters 2012 62 MMT 2016* 80 MMT 5% 24% 40% 2008 51 MMT 25% 6% 41% 31% PET 25% 6% 41% 29% PET 27% PET Filament PET PSF Film PET is the fastest growing polymer in the world.
Global Statistics Demand Supply : 2012 2016 MMTA North America Capacity Demand Surplus South America Capacity Demand Deficit 2012 2013 2016 4.4 4.6 5.5 3.9 4.0 4.6.5 0.6 0.9 2012 2013 2016.9.9 1.2 1.4 1.6 1.9 (.5) (.7) (.7) Europe Capacity Demand Deficit Over the last 10 years, annual PET resin demand has grown from 9.4 MMT in 2003 to 18.6 MMT in 2013 & the world demand growth expected @ 6 % CAGR in next 3 years 2012 2013 2016 3.6 3.9 4.9 4.0 4.1 5.0 (.4) (0.2) (.1) Middle East & Africa Capacity Demand Surplus 2012 2013 2016 2.0 3.2 3.4 2.0 2.2 2.7 1.1.7 World Capacity Demand Surplus Op Rate Asia Capacity Demand Surplus 2012 2013 2016 11.8 13.5 14.0 6.3 6.9 9.7 5.5 6.6 4.3 2012 2013 2016* 22.8 24.6 31.0 17.8 18.6 23.9 5 6 7.1 78% 75% 77%
Indian per capita PET consumption
PET in India A Quick Flashback! Mid 80's End 80's Early 90's Mid 1990 Century Enka & Akzo Nobel Pearlpet comes into market Ester Industries Futura Polymers Elque Polyester SENPET KTA 1997 Reliance Industries 2003 Dhunseri Petrochem & Tea 2008 JBF Industries
PET Demand In India DEMAND (KTA) 1006 875 760 280 340 425 500 575 660 2008 09 2009 10 2010 11 2011 12 2012 13 2013 14 2014 15 2015 16 2016 17
Consumption Pattern In KTA 07-08 09-10 12-13 13-14 15-16 Non Alcoholic Beverages 76 140 295 350 450 Alcoholic Beverages 32 50 80 90 125 Non Beverages 102 150 200 220 300 Total Demand 210 340 575 660 875 Non Alcoholic Beverage : CSD, Water, Fruit drinks, Milk. : Water the growth driver Alcoholic Beverage : Low priced, mass consumption liquor : PET replacing glass Non Beverage : Health and Personal Care, Agro based, Cooking Oil, Confectionaries Beverages and bottled water continues to grow @ 15% & 20% respectively Both Coke & Pepsi have announced large investments (US$ 5 billion) by 2020. Coke in India has witnessed the highest growth in last few years and has climbed to 6 th largest growth centres globally in 2014 from 19 th place in 2006, in Coke markets worldwide.
Indian PET Resin supply scenario Manufacturer Present Capacity(KTA) Expansion /New capacity(kta) Total (KTA) Reliance 700 350 (2014) 1040 JBF 150 + 70 Completed in Q1 220 Dhunseri 200 + 210 410 Micro PET 210 (2014) Total consumption estimates for 2013 2014 : 600,000 MT Excess Total of (KTA) supply over demand 1330 550 : 960,000 MT 210 1,880
Key Drivers for PET growth in India India : 126 Cr. as on Mar 2014 and growing annually at about 1.58%. China : 139Cr. As on Mar 2014 and growing annually at about 2.3%. The growing Population is expected to drive the demand for PET in a sustainable way.
Key Drivers for PET growth in India Urbanization Last Decade (2001 2011), the urban population grew by 2.8% annually, adding 9.1 Cr. people to Indian cities Urban population is expected to grow upto 59 Crores by 2030 accounting for nearly 40% of India s population as compared to the current 31%. By 2030, India is expected to have 68 cities and 6 mega cities.
Key Drivers for PET growth in India HIGH DISPOSABLE INCOME Per capita income FY Per month Per Annum 2012 13 Rs. 5,279 Rs. 68,747 2013 14 Rs. 6,423 Rs. 74,920 Rise of 10.4%
Key Drivers for PET growth in India AGE DEPENDENCY RATIO (Youth % of working age population) India s growing youth population with high disposable income is a sign of growth for the PET resin industry In about 7 years, the median individual in India will be 29 years of age. Around 450 million people in India are in between ages 15 34, which is a high proportion of working age individuals in comparison with dependents. Estimated by 2020, India is set to become the world s youngest country with 64% of its population in the working age group.
Growing Packaging Sector The total turnover of the packaging industry in India is USD 24.6 Billion and is expected to grow at a CAGR of 12.3% from 2013 to 2016. Higher than the global avg. by a factor of 2x on account of increased incomes, brand value, consumption and performance based around decisions of affordability, convenience and hygiene. India present account for 2 3% of the global packaging market, even as the country accounts for about 15 16% of global population. This divergence is expected to correct with speed due to strong growth in end user industries and preference for PET as a packaging material, which helped increase off take and grew 30% CAGR during FY 2007 2012 within INDIA.
PET TRIVIA # 2 Amul s 200ml SKU moves from the 200g Glass bottle to a ultralight 15gm PET Bottle! Capacity of 1.2 million bottles/day!
India Current Scenario Agro Chemicals, 2% Others, 6% Water, 21% Cooking Oil, 5% Personal Care, 8% Health Care, 10% CSD, 17% Jar/Confectionary/ Retail, 12% Alcoholic Beverages, 14% Flavoured Beverages, 6%
India Current Scenario PET: Fastest growing Rigid Packaging Material Indian Market growing @ 15% CAGR Organized retail expected to Take off Per capita consumption of Beverages in India is only 6 ltrs against the global figure of 30 ltrs. Similarly for Water, it is 5 ltrs in India against 24 ltrs globally Beverages, Personal Care, Healthcare,... South, 23% East, 7% West, 33% North, 37% Regional Market Spread PET - Expanding in new Application areas
India Current Scenario contd Import Duty on PET: 5.5 % Anti-Dumping Duty on PTA in INDIA 2012-13 the total import in India is approx. 45 KMT The first ever Bio-MEG plant is located in Central India. Customers (KTA) Very Large >10 Large 5-10 Medium 2-5 Small <2 Percentage 30 15 25 30
India Emerging Trends Fresh & Flavoured milk Alcoholic Beverages Juices & Drinks Wine & Beer Lube oil
India Emerging Trends Recycled PET Indian Polyester Market~3.6MMT PET bottle consumption~0.7mmt Collection rate~70% in spite of poor bin culture Recycling Industry growing at 25% India has the second highest collection rate. 2012 PET Chips Consumption KT/Yr Global 18000 India 3300 China 660 Collection Rate % 46 90 70 PET bottle Collection kt/yr 8280 2970 462
Vimal Kedia Managing Director Manjushree Technopack Ltd vimal.kedia@manjushreeindia.com www.manjushreeindia.com