Plastic Industry

A plastic is a type of synthetic or man-made polymer; similar in many ways to natural resins found in trees and other plants. Plastics are used because they are: Attractive Hard Soft & Rubbery Easy to Clean Flexible Light weight Hygienic Easy to Shape & Color Economical

Indian Plastics Market

The Indian plastics market is comprised of around 25,000 companies and employs 3 million people. The domestic capacity for polymer production was 5.72m tonnes in 2009. India is the leading plastics processing hub and accounts for the largest number of plastics manufacturers, with over 5,000 plastics firms. The growth rate of the Indian plastics industry is one of the highest in the world, with plastics consumption growing at 16% per annum.

Plastic Consumption ( India)

Indias plastic exports have increased faster than the world average
Indias Export Destinations (Chapter 39) - 2005 (% Share of Indias exports) Indias Plastic Exports (Chapter 39) - 2005 (MMT) 1.08
2000
17%

Country
USA China

% Share
13.2% 12.67% 7.07% 3.96% 2.87% 2.38% 2.34% 2.25% 2.20% 2.08%

2005

UAE UK Turkey

0.50
13%

0.43 0.24

Italy Saudi Arabia Israel Hong Kong Pakistan

Source: UN Stats, CRISIL Analysis

Polymers
Source: DGFT, CRISIL Analysis

Processed Plastics

46

Current Example - Reliance Industries

Reliance Industries, Indias largest private sector

conglomerate company, stated in January that

Indias polyolefins market is expected to grow 12 percent to about 7.5 million metric tons in 2011 with

double-digit

growth

in

consumption

of

both

polypropylene and polyethylene. Polypropelene will account for the largest growth at 18% (with consumption growing from 2.2 million metric tonnes to 2.6 million metric tonnes).

Plastic Furniture

Plastic is shaped in furniture through molding machines. Molding machines melt and inject plastic in moulds and required plastic furniture is made. It also made with recyclable material because plastic is 100% recyclable material.

Plastic Furniture
Manufacturing Process: 1) Initially mixing of color with plastic Resin. 2) Input the material into the injection molding the machine. 3) Receive chairs and parts of table as output. 4) Assembling and packing.

Plastic Furniture Process

Various Plastic Furniture Industries

Boss Sonica

Supreme
Nilkamal

SWOT Analysis of BOSS

Weakness :

Strength:

Good Brand Image. Pioneer in Plastic chairs. Cover almost 60% of the total sale of plastic chairs in Pakistan.

Weak corporate culture (lack of communication among the departments).

Manufacture huge range of plastic products as never other company manufacture.

Quality Products based on the best available raw materials.

Employees are under stress by the management.

Non participative management.

A wide range of plastic chairs (main product) and other products.

Qualified and skilled labor in the region.

Lack of fully functional and authorized HR department

Adoption of new technology

SWOT Analysis of BOSS

Opportunities Large domestic markets (lack of customers for Chinese products). Company has good market image so they can add new product lines Increasing trend of plastic furniture Threats Low price competitors are the main threats for the company. (Toyo, Citizen and other local firms) Threats from Chinese market due to low price products of same range.

SWOT Analysis of Sonica

Strengths Good Relationship with customers New technology introduce A wide range of plastic furniture Skilled labor Provide cheaper products to its customers Increasing Preference of Plastic furniture Good communication among the departments Personal relationing with distributors Weakness Lack of Research & Development efforts.

Lack of vision / Planning Not getting benefits from support institutions

SWOT Analysis of Sonica

Opportunities
Increasing

Threats Increasing prices of raw material

Preference of Plastic furniture 65% middle income group of whole population

Competitive

rates

Supreme furniture

About Supreme
Supreme

Furniture Private Limited, are an ISO 9000 and 14000 certified organization These products are highly appreciated and accepted in both, national and international market, owing to their high quality, unique designs and latest patterns The offered products are durable in nature and easy to maintain

Products of Supreme

Wooden Decorative Furniture, Table Linen, Shaggy, Rugs, Ponchos, Kitchen Items, Hammock, Floor Cushion, Curtain,

Price - Supreme
Supreme always believe in quality products keeping an eye on the usage, taste and budget of the customers. The new collection is priced between Rs. 300/-to Rs 700 and available across India in a range of pleasing colours that blend well with any contemporary dcor

Supreme Furniture Launches New Range of Chairs

Bonus - This range is the best buy for every household owing to its economic value proposition. It has a floral design on the back and moulded in a way to provide maximum comfort. Glory - This range is ideal for any work place or for office set up. It has net design on the back which reminds of the famous in vogue old traditional net style. Fiesta - A customer's delight, this range is all time favourite because of its modern design and an ideal choice for everyone's pocket and taste. Orlando - This premium range has all European style which will definitely bound to woo your senses. Its curvaceous international looks make it trendy and innovative, offering a style statement to everyone.

SWOT Analysis of Supreme

Strengths Skilled Labor Force Wood seasoning facility centre is available Suppliers of raw material are available Local tools available 350 furniture manufacturing units 8,000 people (approx.) are directly and indirectly attached with this occupation Strong historical background of craftsmen
Weakness

High cost of production due to high rate of raw material Lack of educated, certified and professionally trained, work force Unavailability of ready to use raw material

No Designing and R&D facilities available Unawareness of Social compliance and Environmental issues Unawareness of any quality control and standards

Unavailability of ready-to use seasoned wood Fluctuating prices of the raw material.

SWOT Analysis of Supreme

Opportunities Technical up gradation International exhibitions International warehouses Networking & linkages of cluster players/stakeholders Development of consortiums with specified objectives Threats Migration of trained work forces from the sector Raw material cost increase (shortage in the stock of Sheesham wood at any stage because no further plantation as required Instable political set up of the country.

Nilkamal Plastics is one of the oldest & longest manufactures of plastics products in India.

It is Asias largest plastic processor of moulded products. A professionally run company with promoters who have a

collective experience of over five decades

One of the first Indian companies to launch stores catering to home dcor retail @home.

Diversified product profile across various segments; Wide Customer Base. Focus on Product Design & Development. To offer consistent Products and Services with uncompromising quality supported by continuous improvements and innovations thereby exceeding Customer's expectation.

1934 : Shri. Vrajal Parekh start manufactring metal buttons in one machine factory 1950: They buys windsor machine to start plastic processing- calls company National Plastic 1956: First plastic cut glass modeled is made for tea consumption 1964: National plastic fully fledged into household items 1981: Nilkamal plastic is individual venture run by brothers Mr. Vaman & Mr. Sharad Parekh.

1984: Nilkamal start manufactring crates 1990: Nilkamal start manufactring moulded furniture 1991: Nilkamal put plant in Western Maharashtra at Sinnar also Nilkamal goes in public (BSE). 1994: They becomes the official supplier of crates to Coca-cola & Pepsi. 2000: they achieve ISO 9001:2000 certification by TUV: Germany for all its plant 2002: Nilkamal Put plant & joint venture subsidy in Bangladesh.

2005:Nilkamal Inaugurates @home: the complete home solutions stores with

2009:@home division grabs the award- retailer of

contemporary readymade knockdown wooden the year under the home products & office
furniture & home accents.

improvement category by Asia Retail congress.

2006:Nilkamal enter into joint venture with BITO Largertechnik Bittman Gmbh, Germany to manufacture storage system in metal in 2010: the molded plastic furniture business of Nilkamal awarded Top Exporter of Plastic

India.

Furniture for the year 2008-09 by the plastic export

2007: Nilkamal crates & Bin preivate limited & promotion council & it has been accorded the stackwell marketing services private limited status of Star Export House by the ministry of merges with Nilkamal result in enhanced financial strength, integrate operations & Commerce & Industry.

efficient management control & efficient use

of infrastructure.

2008: @home division grabs the award Best Retailing Division & Visual Merchandising.

Marketing Mix
Product - Nilkamal Products are brand with ISO 9001-14001. Material handling crates. Plastic molding furniture Home dcor Lifestyle retail @home Specialized items for Automobile, Pharmacy and hospitality sectors

Price
Nilkamal prefer two pricing strategies according to there location such as: Price Skimming Strategies- It is assumed that customer of nilkamal are more concerned about obtaining a quality rather than cost of the service. Target customer- Nilkamal target specific customer for which they made @home service according customers budget.

Sell 10 million molded chair per annum apart from other furniture items in India.

Place

@ home Stores across the India

@home Nilkamal Home Dcor Business : Changing Scenarios

SWOT Analysis of Nilkamal

Strength

Weaknes

Focused on customer segment Products are durability Well established marketing and distribution network

Nilkamal faces problem because of recession impact in world Distribution channel of Nilkamal is weak in comparison to its competitors. Nilkamal doesn't provide proper sales promotion schemes. Nilkamal crates have high prices as compared its competitors (Prince & Supreme). @home is made for the people of specific category only, which ultimate make very difficult for Nilkamal to attract common man because The furniture range start from Rs. 15000/- & maximum is above 1lakh.

Strong trust on innovation Committed to quality assurance Winner of several awards

SWOT Analysis of Nilkamal

OPPORTUNITY New opportunities are arising due industrialization and globalization Diversified Activities One-stop shop for overall home dcor. Experienced Promoters & Management Team Focus on Product Design & Development

THREATS Nilkamal faced competition from the many market player like VIP, durians, Supreme, Prince, Cello, Prima. This market player offering consumer products at budget level, which is big problem for Nilkamal Small Players available in the markets which attract potential buyer which makes more differences People in markets are very less aware of creativity & they first look at their budget before entering @home

Nilkamal

Supreme

Nilkamal is one of the largest manufacturing of plastic and furniture dcor. They manufacture and sell over 1.4 Million plastic moulded chairs in Indian markets only. All the Nilkamal plants, warehouses and offices are connected to the Head Office in real time by ERP, SAP-R3.

Supreme is one of India's largest manufacturing of crates. Supreme offer product like PVC fitting & pipes, moulded furniture, crates, packaging films, Industries moulded product etc. overseas from Australia to the Middle East Europe to Africa. Supreme new product application development PVC-SWR system

Comparission with Nilkamal and Supreme

Case study - Failure of IT in Nilkamal

IT dept. has spent fair amount of time in updating software & hardware It affect their investment in energy innovation Company faced problems like server maintained, software updates, server outages As the company get globalize in world they facing problems like operations, security arrangements, antivirus applications & firewalls.

Solution on IT
Nilkamal tie up with Google, Google apps enabled the company to ramp its staff with out actually making any serious changes in its infrastructure. Google apps has automatic centralized updates saving technical people from the labor & time, they would spending in checking & installing the updates Nilkamal collaborated by using different google docs entities, such as google forms & google spreadsheets, to get good effects.