The aim of this article is to try to understand the challenges and opportunities that exist in the development of the plastics industry in the Indian state of Gujarat.

First, India ranks near the top when it comes to manpower, easy access to international markets, a stable economy, and goodwill from foreign investors. By 2025, India will be the fifth largest consumer market in the world and Indians will spend close to $1.8 trillion on consumer goods.

The packaging, health and agriculture sectors are experiencing a boom due to the growing economy of the country. Plastics and polymers are a common factor in these industries and this has resulted in a high demand for plastics processing machinery as well as related equipment. The situation has attracted foreign players who want to invest in this sector in India. The plastics processing sector will soon witness the signing of many joint ventures.

The Indian state of Gujarat has become the fastest growing economy in the country. Ahmedabad is the largest city in the state and was listed by Forbes in 2010 as the third fastest growing city in the world. Therefore, the state of Gujarat, which is already the largest polymer producer in the country, is strongly keen to play a major role in the aforementioned developments.

Of course, there will always be minor problems to solve; For example, European machinery dealers are aware of the opportunities in Gujarat and accept how business is done in India; technicalities, documentations, etc. To take care of these things, it is best to hire the services of an established used machinery broker who knows how the Indian and European markets work.

Indian plastics manufacturers based in Gujarat and elsewhere need to be more aware of the advantages of installing world-class European plastic machinery. Europe leads the world in the manufacture of high quality plastic molding equipment and even second hand machinery, although expensive, offers great performance and profitability over the years. The industry in Gujarat is beginning to understand that used machinery is not always the same as cheap machinery and that it makes business sense to distinguish between the two.

Once this happens, there will be a marked improvement in the order conversion rate and there will be a better balance between the demand for used plastic processing machinery and its supply. This will happen as processors begin to realize first hand the enormous cost savings and increase in production that comes with deploying highly automated European machinery.

Gujarat’s plastics industry sector is committed to growing with environmental responsibility. In fact, the state of Gujarat recycles a quarter of the country’s plastic waste; roughly around 5 lakh tons. The state has recorded very impressive growth each year in the production and use of plastic.

Manufacturers in the state realize that the need of the hour is to make plastic as green a product as possible. As the state is the national center of the chemical and petrochemical industry, it seriously considers its social and environmental responsibilities.

Buyers are also realizing how to get the best out of used plastics machinery by reconditioning the machines when the need arises. There is now a greater understanding of how to implement lower cost used machinery that is also energy efficient.

The used machinery market in Gujarat is ripe for the entry of a professional broker who can muster efficiencies of scale. Small dealers who deal in used machinery operate under certain limitations, such as the inability to obtain loans for buyers, reconditioning, help with paperwork, etc. A big player in the field can get you quality machines at affordable prices; a true value proposition as opposed to bargain prices that may look attractive but fail to deliver long-term value for money.

A broker with the size advantage can reach buyers in all sectors, such as beverage, agri-food and dairy. Buyers can also make use of custom equipment. Small and medium-sized businesses have a lot to gain by exploring purchasing through an established machinery brokerage company, including setting up a turnkey project.

Gujarat has great potential as a market and is attracting international players due to several factors in its favor; these include constant electrical power supply, road and rail connectivity, Special Economic Zones to facilitate industry, and a flourishing polymer production industry.

Foreign players planning to come to Gujarat will bring with them a wide range of options including European, American and Asian machinery. High productivity and low energy consumption are very attractive attributes for machine building in all sectors and quality used machines meet these criteria.

Entrepreneurs in India and the state of Gujarat benefit from a strong knowledge base that is developing due to the influx of new technologies. A rich pool of technocrats is available who can put new knowledge to use. Gujarat has everything going for it to become a great investment destination for the plastic machinery business.