Focus on inclusion of plastics in GOI’s PLI scheme to boost polymer production, expand membership; seek new trade agreements & a level-playing field for exporters
Mumbai, NFAPost: The Plastics Export Promotion Council of India (PLEXCONCIL), the apex body for plastics exports sponsored by the Union Ministry of Commerce & Industry, announced the appointment of Arvind Goenka (M/s. RMG Polyvinyl India Ltd.) as Chairman and Hemant Minocha (M/s. Rajiv Plastics Pvt Ltd.) as Vice Chairman amongst other office bearers of its newly constituted Committee of Administration (COA) after its recently held AGM.
The Regional Chairmen are as follows: Regional Chairman WEST – Saurabh Kalani (M/s. Flexituff Ventures International Ltd.; Regional Chairman EAST – Prasan Lohia (M/s. Merino Industries Ltd.); Regional Chairman SOUTH – Y.V. Raman (M/s POCL Enterprises Ltd.); and Regional Chairman NORTH – Vikram Bhadauria (M/s. Alok Maslebatches Pvt Ltd.).
The Panel Chairmen are: Jagdish Gupta (M/s. Stylam Industries Ltd.) – Panel Chairman Floor Coverings, Leather Cloth & Laminates; Pradip Thakkar (M/s. Mechemco Industries) – Panel Chairman FRP Products; Dhruv Sayani (M/s. Crystal Plastics & Metallizing Pvt Ltd.) – Panel Chairman Consumer & Houseware; Benjamin Cherian (M/s. Raj Hair International P.Ltd.) – Panel Chairman Human Hair & Related Products; Vimalchand Rathod (M/s. Flair Pen and Plastic Industries Pvt Ltd.) – Panel Chairman Writing Instruments; Rajiv Chitalia (M/s. Electrofocus Electricals Pvt Ltd.) – Panel Chairman Miscellaneous Products; P. Mohan (M/s. Sakkthi Polymers) – Panel Chairman Pipes & Fittings; and Dr. S.S. Rajpathak (M/s. Garware Technical Fibres Ltd.) – Panel Chairman Cordage & Fishnets.
Expressing happiness over his appointment, PLEXCONCIL Chairman Arvind Goenka said plastics are perhaps one of the most versatile products and are being increasingly used in a wide range of applications.
“We request Government to frame an attractive PLI scheme for boosting polymer production and becoming AtmaNirbhar. A PLI scheme is very important to enable manufacturers invest in plant & machinery and increase their capacity. Backed by strong government support-planned investment of over $50 million, as many as 10 plastic parks with state-of-the-art infrastructure are being set up to boost domestic production, employment and achieve environmentally sustainable growth,” said Arvind Goenka.
He added that he has made it my mission to focus on the Council’s primary objective of expanding the association membership multi-fold in a 50,000 strong processing industry if India has to achieve $25 billion target.
“We have also identified 50 specific product groups that have immense export potential. The Council will provide credible information about export markets to its members regularly by way B2B exhibitions, seminars, participation in foreign exhibitions and also by way of setting up warehouses & permanent exhibitions in markets like USA & Europe,” said Arvind Goenka.
Talking about the key priorities, Arvind Goenka added PLEXCONCIL is of the view that the RoDTEP rates for plastics products should be fixed in line with MEIS rates.
“Indian processors are not at level playing field when comparing our cost of production to those enjoyed by our competitors in the ASEAN region. Logistics form a very integral part of export cost to plastics’ processors and this must be reduced in line with global average to boost our competitiveness. Logistic costs & Electricity costs are very high in India as compared to NEA countries,” said Arvind Goenka.
He also pointed out that either reasonable rates are offered to exporting units or a reasonable RoDTEP rates are fixed to partly compensate the extra costs.
“Free Trade Agreements need to be renegotiated to boost plastic exports. India’s plastics are mainly exported to Europe, North America and WANA region; and we urge the Government to forge a trade agreement with these regions/countries to increase opportunities and recognition for Indian manufactured products in these regions,” said Arvind Goenka.
Members of PLEXCONCIL have suggested that the Government should reduce the lead time for refunds (MEIS / GST) for exporters; reinstate GSP and sign an FTA with major export destinations particularly the United States; increase the rate of Drawback; simplify manufacturing and customs laws; improve the import clearance assessment systems; and work towards improving the Ease of Doing Business in India.
About Free Trade agreements, Arvind Goenka was of the view that India is losing on exports of Value added plastic goods for export to USA, UK, WANA regions due to no Free Trade Agreements and also not benefitting under the ASEAN & SAARC FTA’s as they were not negotiated favouring plastic finished goods exports.
“Rather they favour imports of plastic finished at NIL or highly preferential rates. Share of imports from India is less than 2% in case of UK & USA and less than 1% in case of EU-27 & ASEAN. Share in Africa’s imports is 4% and that with SAARC is only 15% for plastic goods. It would be his endeavor to bring this to the knowledge of the policy makers and request that existing FTA agreements be negotiated favoring plastic exports from India and new agreements be forged with importing blocs to increase presence of India’s plastics goods in the world market,” said Arvind Goenka.
|Comparison of Import of Value Added plastics from India & World|
|Imports from WORLD||Imports from INDIA||India’s share|
|US$ Million||US$ Million|
|Imports by USA||110000||1500||1.36%|
|Imports by UK||24000||410||1.71%|
|Hat Imports by EU-27||219000||1700||0.78%|
|Imports by ASEAN||44000||358||0.81%|
|Imports by WANA||24000||1000||4.17%|
|Imports by SAARC||3250||508||15.63%|
Arvind Goenka is the Managing Director of RMG Polyvinyl India Limited, which is India’s leading producer of PVC Floorings, PVC leather and PVC Geomembranes. This business was acquired by his family in the year 2004 and soon became the top exporter of PVC Floorings.
The Company’s products are sold under the brand Wonderfloor which became a household name with its vast marketing & distribution countrywide network. Today the company is producing in excess of 40,000 MT of PVC Products and enjoys goodwill both in the domestic & export markets.
Arvind Goenka hails from the business family of Goenkas of Rajasthan and his ancestors settled in the state of Bihar in the town Munger sometime in early 1900 where his grandfather Late Dewan Bahadur Kedar Nath Goenka was accorded with the Knight’s title by the British for his philanthropic services to the community.
Their businesses now provide the desired finances for such philanthropic activities under the “Corporate Social Responsibility” programme and activities like running a charitable hospital, free education of Sanskrit language, free education to girl students are some activities being continued even today for the upliftment of the society.
Arvind Goenka is also the secretary of their family Charity trust. Right after taking admission in University of Delhi, along with studies in the free time, Arvind Goenka would assist his father Amarnath Goenka in the family business and acquired management skills & training from him.
He acquired technical training at their factory in India & later on at their collaborators’ factory in Germany. Arvind Goenka is assisted by his brother Amitaabh Goenka in business and they manage the business by delegating authority & responsibility to senior managers who are specialists in their fields.
The Plastics Export Promotion Council (popularly known as PLEXCONCIL) sponsored by the Ministry of Commerce & Industry, Department of Commerce, represents the exporting community in the Indian Plastics industry. The export promotion strategies evolved since 1955, the year when PLEXCONCIL was born, have fetched rich dividends, which is exhibited in the form of high export growth rates.
These achievements represent the dedicated efforts of PLEXCONCIL members who are always in the process of creating a niche for themselves in the world markets by virtue of their determination to achieve technological excellence, a sense of commitment to satisfy their customers’ requirements and their inherent entrepreneurial qualities.
The PLEXCONCIL on its part is committed to support the efforts of its members to achieve export excellence and service the overseas buyers to find appropriate trade partners in the Indian plastic industry. In its pursuit to achieve export excellence, various export promotional activities are undertaken by PLEXCONCIL. These include participation in international trade fairs; sponsoring delegations to target markets; inviting business delegations from the overseas to India; organising buyer-seller meets both in India and the overseas etc. and servicing the needs of its members.
The Council also routinely undertakes research and surveys, organizes the Annual Awards to recognize top performing exporters, monitors the development of new technology and shares the same with members, facilitates joint ventures and collaboration with foreign companies and trade associations as well as represents the issues and concerns to the relevant Government bodies. Products from the Indian plastic industry are exported to over 150 countries round the globe with the major trading partners being the European Union, United States, China, UAE, Saudi Arabia, Turkey, Nigeria, Indonesia, Egypt, etc.