POLYMER INDUSTRY: DOWN IN A HOLE

Article Abstract:

The Indian polymer industry is hit by the cheap imports from the south-east Asian countries. Reliance and Nocil have complained about the dumping by these nations. The price of low-density polyethylene (LDPE) has declined from Rs60,000 a tonne in April 1997 to Rs53,500 per tonne in May 1998. The price of high-density polyethlene (HDPE) has declined from Rs53,000 a tonne to Rs39,000 per tonne. The imported LDPE costs Rs45,000 per tonne and the imported HDPE Rs36,000 per tonne. Thailand consumes 30-40 percent of its production and Taiwan 20 percent. China produces only 30 percent of its consumption. China imports polymers from the south-east Asian countries. There is a shortage of 271,000 tonnes of polyethylene (PE) in India. The shortage of HDPE is around 161,000 tonnes. The shortage of LDPE and linear low density polyethylene (LLDPE) totally is 110,000 tonnes. The shortage of polymer polypropylene (PP), used in plastics production, is 2,000 tonnes. The cost of production of polymers is high in India due to controlled feedstock and higher cost of capital. The present rate of import duties on polymer is 75.5 percent (customs duty 35 percent, countervailing duty 25 percent and additional customs duty 4 percent), which is likely to be cut. (rk)

Comment:

India: Indian polymer industry is hit by cheap imports from Southeast Asian countries

Polymers: Plastic, Rubber, Fiber, Resin, Synthetic Rubber, and Artificial and Synthetic Fibers and Filaments Manufacturing, Polymers, Article

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COMMERCIAL VEHICLES: TESTING TIMES

Article Abstract:

The commercial vehicle segment has been affected by the slowdown of the economy. The negative growth of the economy has reduced demand for freight and this in turn has affected the demand for commercial vehicles. Medium commercial vehicles (MCVs) and heavy commercial vehicles (HCVs) account for 55 percent of the total demand while light commercial vehicles (LCVs) account for 45 percent of demand. Sales of MCVs and HCVs declined by 31 percent during April-November 1998 while sales of LCVs declined by 24 percent. The performance of major commercial vehicle manufacturers like Tata Engineering and Locomotive Company (Telco) and Ashok Leyland has been affected by fall in demand. Telco has a 64 percent market share while Ashok Leyland has a 36 percent market share in the MCV and HCV segment. In the LCV segment, Telco has a 69 percent market share while Mahindra & Mahindra has a 9.5 percent share, Eicher 8.9 percent, Bajaj Tempo 5.9 percent and Swaraj Mazda 5.6 percent share. (rk)(vr)

Motor Vehicles & Parts, Transportation Equipment Manufacturing, Ashok Leyland Ltd., Tata Engineering and Locomotive Company Ltd.

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DECORATIVES RULE THE ROOST

Article Abstract:

The Rs26.4 billion organised paints industry in India has 2 segments - decorative paints, worth Rs20 billion, and industrial paints, worth Rs6.4 billion. The decorative paints segment has distempers, economy and super acrylic emulsions, cement paints, textured paints and acrylic paints. The housing sector accounts for 75 percent of the sales of decorative paints. The industrial paints segment has paints used in the automobile sector, coil paints, powder coatings, marine paints and general industrial paints. Automobile paints account for 40 percent of the total sales of industrial paints. In 1997-98, the industrial paints sector recorded a demand growth of 5-6 percent only due to the poor off-take from the construction, white goods and automobile sectors. (gsh)

Paints & Allied Products, Paint and Coating Manufacturing, Coatings, Paints

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