Import Potential Analysis on

BOPP Film (BI AXIALLY ORIENTED POLY PROPYLENE)

INDEX
Introduction Production process Applications About the plastic film Industry. Major Indian players Country of Import Company profile SWOT analysis.

Packaging materials Glass Paper plastic Plastic Films PVC Polyester BOPP wood

 Polyproplene(PP):

-Stretchable. -Catches odor - Prone to scratches -Used for low quality products - Melts at high temperatures

 Poly Vinyl Chloride (PVC): -Stretchable.

-Cannot be used as food grade. - Less shiny.

Polyester:
- Not seal able. - Mainly used in yarn and decoration. - Good for Printing purpose.

 Biaxially Oriented Poly Propylene (BOPP): -Most shiny.

- Does not stretch. - Moisture barrier - Sealable. - Food grade. - Environment friendly.

BOPP Biaxially Oriented polypropylene

H.S CODE:

39219010

 The biaxially oriented polypropylene film was developed in eighties of last century. It is called the queen of packing. The films are available in wide varieties ranging from transparent, white, opaque, pearl, metallized, coated etc.

BOPP

 Basic Raw Material used :

Polypropylene

- Resistance to most of the chemical solvents. - Tasteless and odourless. - Safe for food products.

Raw material contd..

Polypropylene: Carbon + Hydrogen

Has neither chlorine nor heavy metals.

PRODUCTION PROCESS

Microns
For Print lamination 10 microns 12 microns 14 microns 15 microns

Microns
For Packaging Products 18 microns 20 microns 22 microns 25 60 microns

Major Line suppliers of BOPP film:

i. Bruckner, West Germany ii. Dornier, West Germany iii. Marshall Williams, USA iv. Mitsubishi Heavy Industries Ltd, Japan v. Cellier SA, France

 Versatility at its best Application options: Audio cassettes CDs Sleeve-wrap Tea Tray overwrap Video cassettes

Overwrap film:

Tobacco industry
Helps retain the flavour of choice tobacco Application options: Cigar overwrap

Cigar box overwrap

Cigarette pack overwrap

Cigarette multipack overwrap

Pouches overwrap

 The transparent way to reatin freshness Moisture barrier film

Application options: Tray packs Toast loaves Portioned bread Biscuits / Cookies Stackable crisps Chocolate items

Food Industry

 Optical brilliance for glossy and matt finish Application options:

Print Lamination
Book jackets Brochures/booklets Carrier bags Cartons/boxes/packets Catalogues Labels Leaflets/pamphlets Maps Menues

Notebooks

Important Producers of the world

1.China : 1400,000 2. Far East : 1200,000 Thailand and Indonesia

3. Western Europe : 891,000

4. Dubai

Sorce: www.Brueckener.com

Total consumption of plastic film

Source: Source: www.plasticindiaportal.com

(tonnes)
2000-01 2001-02

End - use Sector Biscuits Confectioner y Processed Food

1998-99

2928 1037 49982

3221 1244 64976

3543 1493 84469

Pan Masala
Tea/Coffee Spices

11405
3660 2624

13686
4026 3017

16423
4429 3470

End - use Sector

199899

200001

200102

Motor Oil

2196

2416 10057
3221 1408 805

2657 1156 5
3543 1619 886

Pharmace 8745 uticals

Soaps/Det 2928 ergents Shampoos 1224 Dry Cells 732

Fast growing sectors

90000 80000 70000 60000 50000 40000 30000 20000 10000 0 1998-99 2000-01 2001-02 Processed Food Pan Masala Pharmaceuticals Shampoos

Quiz Time!!

What is the basic raw material used in the production of BOPP film?

Bopp film production increase.

Source:plasticindiaportal.com

2000 1800 1600 1400 1200 1000 800 600 400 200 0 1997 2002 2006(Proj) China Far east S.Korea India

Major Indian players in the game

Cosmo Films Ltd. Flex Industries Ltd.

Max India Ltd.

Jindal Poly films Ltd.

Cosmo Films Ltd :

Profile: Head Office : New Delhi Manufacturing plant : Aurangabad Largest manufacturer of Bopp film in India Manufactures only Bopp and all types of Bopp films. Turnover: Rs 3153 million

Flex Industries Ltd.

Profile: Head office : New Delhi Manufacturing plant : Noida Products: Polyester and Bopp Turover: Rs. 5240 million

Max India Ltd

Profile : Head Office : New Delhi Manufacturing plant : Chandigarh Products: Manufactures only Bopp film, But not all types of microns.

Production of major Indian Companies

Company Cosmo Films 2001 27600

source:IPH

2002 35700 (TONES) 17000

Flex industries 15000

Jindal

--

11400
9000

Max industries 8000

Others
Total

3600
54200

3600
76700

Bopps share in Indias Plastic films imports

Source: IPB.

Year

Total Plastic imports

Total BOPP Percentage Value (Rs) imports in crores

2002

43478

2950

6.78

21.24

2001

33430

2360

7.05

18.17

2000

79870

3270

4.1

23.21

COUNTRY OF IMPORT

Profile of South Korea:

National name: Taehan Min'guk President: Roh Moo Hyun (2003) Prime Minister: Goh Kun (2003) Area: 38,023 sq mi (98,480 sq km) Population (2003 est.): 48,289,037 Capital and largest cities: Seoul Other large cities: Pusan,Inchon and Taegu. Monetary unit: Won Language : Korean Exports : $ 171.1 billion Imports: $152.3 billion

Mr.Chang Hwong, Chairman of SYC

Samyoung Chemicals Ltd

Established in 1963 Started BOPP production in the year:1984 South Korean . YOUNG chemical developed BOPP FILM first in KOREA. Ranked as the top in market share, technology, capacity, service, and quality in KOREA

Samyoung Chemicals Ltd

Developed Ultra thin Condensor Film, First in Korea and fifth in world. company ranks as third in production of BOPP condenser film around the world

Turnover : 2880 crores

Logistics
Port of Loading:I nchon Port of Unloading: JNPT Mumbai

Shipping Line: Hanjin Shipping Line(Korean).

Warehouse : Outside The octroi limits. e.g: Vashi, Bhivandi, or Vasai.

Packaging
Jumbo rolls wrapped in Cardboard and Bubble film. each of around 200 kgs. 2 Standard core sizes : 3 inches and 6 inches.

% of Duty 25% 16% 0.13% 4% Rs.1.5 per kg

Type of Duty

Total (Rs)

Per Tonne(Rs)

Cost ( CIF) Custom Duty Excise Duty Cess SAD Clearing charges
Total cost Profit Selling Price

752000 188000 150400 1363 43670.52 15000

1150434 115043.4 1265477 1380520

75200 18800 15040 136.3 4367.052 1500

115043.352 11504.3352 126547.6872

10%

12 Containers

Annual Profits

A twister now !!!

What do you mean by Corona Treatment?

SWOT Analysis

Strengths:
Excellent Quality. Lower prices than the Indian manufacturers. No near substitutes. Recyclable. Supply to small manufacturers .

Weakness
1. Non biodegradable.

Opportunities
The issue of Antidumping duty towards countries like China, USA, Thailand etc. Supply to small manufacturers . Increasing demand.

Threat
From the local manufacturers. 1. Pressurize the government. 2. Their increasing production.

Government policies.
Other importers.

Trade fairs
August 03 04. ARABPLAST Dubai, United Arab Emirates Organizer: AL FAJER INFORMATION & SERVICES P.O. Box 11183, Dubai, Tel: +971 4 3377727, Fax: +971 4 3378788 E-mail: alfajer@emirates.net.ae Price/sqm (raw space): n.a. Previous edition: 2000 Exhibitors: 190, Visitors: 4,500

September 10 PLASTIC & RUBBER Surabaya, Indonesia Organiser: PT MULTISARANA NIAGA KREASINDO Metro Sunter Plaza Blok A1/14, Sunter Podomoro, Jakarta 14350, Tel: +62 21 6511677, Fax: +62 21 6520820 Price/sqm (raw space): n.a. Previous edition: 2000 Exhibitors: 53, Visitors: 28,457

Contd.
September 18 - 21 PLASTO ISPACK Tel Aviv, Israel Organiser: THE ISRAEL TRADE FAIRS AND CONVENTION CENTER The Exhibition Gardens, P.O.Box 21075, Tel: Aviv 61210, Tel: +972 3 6404480, Fax: +972 3 6404494 E-mail: fairs@actcom.co.il Website: www.israel-tradefairs.com Price/sqm (raw space): n.a. Previous edition: 2000 Exhibitors: 600 Visitors: 40,000

Contd

February 15 20 Plastindia 2003, 5th International Plastics Exibition & Conference Organiser: Plastindia International Fairs Venue: Exibition & Conference at Pragadi Maidan in New Delhi, India Tel: +91-22-6832911/6832912 Fax: +91-22-6832915 E-mail: plastindia@vsnl.com Website: http://www.plastindia.org Contact: Plastindia Foundation, 401,

Landmark B, Suren Road, Off Andheri Kurla Road, Andheri (East), Mumbai - 400093, India 2000

Bibliography:
www.tecno-prenuer.com www.brueckner.de www.flexpackaging.com

www.plasticindiaportal.com
www.cosmofilms.com

Industry interaction
Mr.Khlee Hee Lee. Director Samyoung Chemicals Ltd. Korea. Mr.Rajesh Gupta International Publishing House. Mumbai Mr. Victor Shen Zhejiang great south east packaging Co.Ltd. China.