Porter Model and Indian Plastic Industry

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ZENITH
International Journal of Multidisciplinary Research Vol.1 Issue 7, November 2011, ISSN 2231 5780

PORTER’S FIVE FORCES ANALYSIS OF THE INDIAN PLASTIC INDUSTRY SANTANU MANDAL*
*Doctoral Research Scholar, IBS, Hyderabad.

ABSTRACT The Indian Plastic Industry has undergone dramatic changes since its inception be in the form of government initiatives or be it the no of players entering or their fluctuations in their operating scale. In the coming days, plastic will definitely have a bigger role to play particularly because of its wide utilization areas and diverse applicability. Although some controversies have crept in due to inadequate knowledge of the production techniques and their extent of adverse effects; still the industry believes that modern R & D efforts and government initiatives encouraging plastic usage will definitely help in overcoming these discrepancies. Till now, from a strategic view point industry analysis has not been performed on the Indian Plastic Industry while similar work has been widely done in other country context. This paper attempts to fill this gap.It holds certain insights for academicians which suggests to delve deeper for a firm level analysis as the sector is maximally ruled by SME’s and getting data is a significant problem. For the general reader it can imbibe a holistic idea of the Indian Plastic Industry along with its current strengths and limitations KEYWORDS: Indian Plastic Industry, Value Net Analysis, Herfindahl Index, Concentration Ratio. ______________________________________________________________________________ 1. INTRODUCTION Since independence, plastic industry in India have been playing a predominant role in shaping our lives. As it an indispensable item in our day to day activity, so its importance cannot be undermined. Since last decade with the advent of new and improved technologies, the industry has gained greater importance with the production of better and improved quality of polymers (plastics) which has supported the radical change in human life and its day to day activities. The name “plastic” has been coined from “plastikos”- a Greek word meaning capable of being shaped or molded. The material is formed by repeating units of monomers forming long chains consisting of large molecules and characterized by light weight, high corrosion resistance and low melting points. Presently, there exist about 50 different types of plastics. Broadly plastics can be classified into two types namely (a) Thermosetting (can be softened or molded into a particular shape by applying heat and pressure only once) and (b)Thermoplastic.(can be softened repeatedly by application of heat and pressure). Apart from these, plastics have been also divided into seven different types by the plastic industry. These seven types of plastics are :294

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ZENITH
International Journal of Multidisciplinary Research Vol.1 Issue 7, November 2011, ISSN 2231 5780

POLYETHYLENE TEREPHTHALATE (PETE) :- PETE is one the most recycled plastic. It finds usage in various bottles like that of soda and cooking oil, etc. HIGH DENSITY POLYETHYLENE (HDPE) :- HDPE is generally used in detergent bottles and in milk jugs. POLYVINYL CHLORIDE (PVC) :- PVC is commonly used in plastic pipes, furniture, water bottles, liquid detergent jars etc. LOW DENSITY POLYETHYLENE (LDPE) :- LDPE finds its usage in dry cleaning bags, food storage containers etc. POLYPROPYLENE (PP) :- PP is commonly used in bottle caps and drinking straws. POLYSTYRENE (PS) :- PS is used in cups, plastic tableware etc. OTHER :- This category of plastics include those plastics which are different from the six aforesaid types of plastic. These plastics are usually used in food containers and in Tupperware. Thus it is evident from the above classification and wide usage domain the vast role played by plastic in shaping the day to day human life. So here an honest effort has been made to gain some insights of this...
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