The plastics industry in India is expected to grow from the current value of $25bn (€19bn) to $30bn (€22.8bn) by 2015, according to a new report from Catalyst Corporate Finance.
India currently consumes 12.5 million tonnes of plastics material per annum and is expected to become the third largest consumer of polymers in the world after the US (39 million tpa) and China (37.5 million tpa) by the end of this year.
“Already one of the fastest growing markets with a growth rate of around 14%, the lower level of per capital consumption of 5kg per capita compared to the world average of 26kg per capita means the potential for growth is very high,” says the report.
Despite a slowdown over the last two years because of the recession, the rupee-dollar exchange rate has now stabilised and the consumer sectors are witnessing higher demand. The report notes several important M&A deals in recent months, including Gita Holdings acquiring the assets of Vinyl Italia.
“We expect M&A activity to increase significantly in 2012, with large Indian companies seeking foreign partners and certain large Indian packaging companies looking for cheap acquisitions in Europe, the Middle East and the US,” says the report.