Supreme

Industries:
Making it a
Plastics
World
Indias One-
stop-shop for
the Agricultural
Industry... Jain
Irrigation Systems
Limited
Cosmo Films:
The Industry
Leader in
BOPP
Films
RILs CRM
Initiatives
Spell Success
A Reliance Publication for the Polymer Industry Issue 1 April - June 2006
P O L Y M E R B I Z
Between my past, the present
and the future, there is one
common factor: Relationship
and Trust. This is the
foundation of our growth.
Dhirubhai H. Ambani
Founder, Reliance Group
2
P O L Y M E R B I Z
Editor
S.K. Ray
Editorial Committee
Kiran Apsingekar
Tushar Roy
Pranav Patil
Swati Gokhale
Editorial & Design Consultants
Corporate Communication Services
(India) Pvt. Ltd., Mumbai
Phone: 24974251/52/53
Printed & Published by
S.K. Ray on behalf of Reliance
Industries Limited
Reliance Centre,
19 Walchand Hirachand Marg,
Ballard Estate,
Mumbai 400 038
Website: www.ril.com
e-mail:
[email protected]
Dear Customer,
Growth is Life and at Reliance, Life revolves around growth. We all
know how plastics have revolutionized our lives. Products made from
plastics find their way into almost every facet of our economy
agriculture, building and construction, healthcare, packaging,
automobiles, telecommunications, house wares and household
appliances touching and impacting our lives in more ways than we can
imagine. Being the leading player in the industry in India, we enjoy a
very special relationship with you.
Taking this growth philosophy beyond numbers, Reliance has entered a
new realm of value-added services to develop entrepreneurs, its customers
in the industry. By offering consultancy in the areas of product concepts,
design and evaluation of the end product, Reliance gets deeply committed
to the growth of its
customers.
To further
supplement our
customer care
initiatives we now
bring you a brand new
offering - POLYMER
BIZ a product built
out of the great rapport
and relationship we
share with our
customers.
Through this forum,
we intend to highlight
the ever-changing business of plastics, reporting on trends, technologies
and market forces that are reshaping the industry. This communication
will keep you updated on market-related issues.
POLYMER BIZ is also a platform to share your successes and
showcase your special achievements with others in our industry. Please do
keep us posted on interesting developments that you would like to share
with others. This knowledge-sharing and exchange of information will
no doubt enrich all of us in the industry. The business of polymers is
promising. Help us create a vibrant, dynamic medium with your own
contributions.
I do hope you will find this communication effort, dedicated to you,
satisfying.
Editor
Editorial
3
For private circulation only.
All rights reserved. Reproduction in any
form without permission of the
publisher is not permitted. The
information and data presented herein
are true and accurate to the best of our
knowledge. No warranty or guarantee is
made regarding performance or
otherwise. The views expressed in the
magazine represent the opinions of
experts and are not necessarily the
official view of the magazine.
P O L Y M E R B I Z
M E S S A G E S 5
Which path does Reliance Industries plan to take to uphold its position as the industry leader in
polymers? RIL visionaries at the helm reach out to customers, focusing on the way forward.
C O V E R S T O R Y 8
The Indian Polymer Industry: On the Fast Track
With sophisticated and world-class high capacity machines,
enhanced design capabilities, technological know-how, improved productivity and asset utilisation,
global practices in production, quality and design, development of new products and applications,
India, by 2010, would be the third largest polymers consumer in the world. A report.
S P O T L I G H T 1 2
A focus on the plastics industrys high performers, RILs customers who have dramatically
transformed our industry with their dynamic leadership The Supreme Industries Limited, Cosmo
Films, and Jain Irrigation Systems Limited.
B U I L D I N G B O N D S 2 5
A report on the various Customer Relationship Management initiatives.
M A N A G E M E N T F O C U S 2 7
Six Sigma Making it Work for You
It is todays most talked-about system for improving the quality of organizational processes. Six Sigma
the two power words that top companies are using to hone their performance. An insight into what
the programme is all about.
C O R P O R A T E N E W S 2 9
CFTRI Approval for Reliances PE and PP Grades for Food Contact Applications
RIL Wins Accreditation from NABL
F A I R S H A R E 3 0
Looking back on and forward to some of the prestigious
international and national trade fairs and exhibitions.
4
P O L Y M E R B I Z
W
e are focused on delivering
superior value to customers in
all our businesses, ensuring
international quality for all our products and
services.
Our glorious achievements are results of the
extraordinary vision and inspiration of our
legendary founder, Dhirubhai Ambani. He taught
Reliance to think big, think fast and think world
class in every respect. He accepted only
excellence. He truly believed and practised the
philosophy Growth is Life.
We are committed to continuing future growth of
Reliance in line with his thinking, his principles
and his values.
Mukesh D. Ambani
Chairman and Managing Director,
Reliance Industries Limited
5
P O L Y M E R B I Z
Messages
O
ver the past five decades the Plastics Industry has grown and has touched every facet of our lives
from packaging of items for daily necessity to products with enhanced functionalities in agriculture,
housing, healthcare, automotives, consumer durables and infrastructure. The industry has occupied
a unique position in meeting the growing material needs of consumers.
The Plastics Industry in India, broadly categorized into resin manufacturers,
converters and end-product fabricators, plays an indispensable role in our
economy. Indian plastics processors have proactively established a significant
presence in many SAARC, African and Middle East countries.
There is a huge latent demand for plastics in India. We need to undertake
aggressive market development activities, both in India and in overseas
markets, and work towards accelerating growth and enhancing global competi-
tiveness.
We have all the core competencies like knowledge, skill, and more impor-
tantly, the burning desire to stimulate growth. We have to continuously evolve
processes that create compelling value in the entire value-chain in the markets.
We need to work closely with our customers and develop products suited to the
needs of consumers. The Indian processing industry has all the core competen-
cies to capture global markets. It is imperative for us to create brands in global
markets, leveraging Brand India!
My vision for our industry is to make India the global plastic-processing hub.
And to achieve this, the Indian plastics processing industry needs to leverage its
core competencies to be a part of the global league.
As a committed player in the region, Reliance has been relentlessly working towards providing world-class
products and services to customers, end-users, consumers and society.
I wish to reiterate our commitment towards partnering with our customers and business associates for the
overall development of the Indian plastics processing industry.
Nikhil Meswani
Executive Director,
Reliance Industries Limited
My vision for our
industry is to
make India the
global plastic-
processing hub.
6
Messages
P O L Y M E R B I Z
T
he plastics processing industry in India has come a long way in five decades. Entrepreneurial spirit,
economic development and government initiatives have resulted in the emergence of a vibrant
industry spread across the country.
Some of the major challenges facing us are efficient management of
resources water, forest produce, energy. Plastics
offer solutions to all these areas. Drip & sprinkler
irrigation, mulch films, plastic pipes, rainwater
harvesting systems, etc. are valuable products for
effective water management. PVC profiles for
doors and windows and plastic furniture not only
offer better functionalities but also save energy
and forest.
Our growth aspirations are firmly rooted in the commitment to the growth of
our customers and ultimate consumers. Focusing on the emerging business
and value addition opportunities in some of the important thrust markets for polymers, there is a need for
greater emphasis to look beyond traditional products products which would enhance value and ensure
wider market access. Our proficient and effective in-house technical team, in co-ordination with customers,
tries to formulate products with tailored properties, which would result in cost effective solutions to meet the
needs of the converting industry.
I am sure that our joint efforts for sustainable development of the industry and growth of our country will
bear fruit and spur us on to greater success in the coming decades.
Kamal Nanavaty
President, Cracker & Polymers Sector
Meeting the needs of the
growing domestic market
and accessing a fair share
of the global market are
two important
components of our vision
for the Indian plastics
industry.
Messages
Our growth
aspirations are firmly
rooted in the
commitment to the
growth of our
customers and
ultimate consumers.
M
eeting the needs of the growing domestic market and accessing a fair share of the global market
are two important components of our vision for the Indian plastics industry. Only a modern,
efficient and contemporary industry can achieve this goal and help strengthen the Indian
economy.
Reliance, with its basket of polymers and advanced technical facilities, backed by intellectual capital, has
been channeling its marketing efforts focused on sectors such as
Agriculture, FMCG, Processed Foods, Automobiles & Appliances, Building &
Construction, Infrastructure, Textiles and Healthcare.
We are committed to total customer satisfaction with an offering of
world-class products and value-added services. We have leveraged various
Customer Relationship Management initiatives to enhance networking and
to extend support for capability improvement,
quality awareness, market development,
knowledge dissemination, new investment
avenues and training.
Our dedicated cross-functional teams for
sector development help the end customers with product and application
development inputs, trends transplantation and market extension jointly with
nodal agencies, machiner y manufacturers and leading processors by
developing sustainable cost-effective and environmental-friendly solutions.
Besides, at Reliance we constantly strive to strengthen the bond with existing as well as potential
entrepreneurs through a structured Entrepreneur Development Program (EDP).
We believe these would deliver value to our ultimate customer the common Indian households.
Sujit Banerji
President, Polymers Business, Reliance Industries Limited
7
P O L Y M E R B I Z
The Chemistry
Petrochemicals are derived from petroleum
products (mainly naphtha) or natural gas. Through
the process of catalytic cracking these feedstocks
give rise to six main petrochemical building blocks
for downstream production. These are olefins
(ethylene, propylene and butadiene) and aromatics
(benzene, toluene and xylenes).
Basic petrochemicals are further processed into
polymers, fibres, surfactants and chemicals for
various applications. The major demand for basic
petrochemicals is for commodity polymers
polyethylene (PE), polypropylene (PP), polyvinyl
chloride (PVC) and polystyrene (PS) which are
used in various products.
Global View
Within petrochemicals, commodity polymers form
the major component with a share of over 50% by
volume. Developed economies like North America,
Western Europe and Japan, account for over 60%
of the consumption of commodity polymers. In
India the per capita consumption of polymers is
one-fifth of the world average of 24 kgs. So while
the western markets are saturated with high per
capita consumption and low growth rates, there
has been an increase in capacities in other parts of
the world like Asia Pacific, South America and the
Cover Story
8
The Indian Polymer Industry: On
the Fast Track
Today, the size of the global chemical industry is approximately US$ 2 trillion.
Petrochemicals is the largest segment in the chemical industry accounting for about
40%. The Indian petrochemical industry, though only a few decades old, had been
deeply influenced by the developments in this industry worldwide. There had been more
frequent exchange of views, ideas and technology between the global fraternity and the
Indian industry. With the liberalization of the Indian economy and the lowering of tariff
levels, the pace of integration with the global industry has accelerated. A decade back,
India used to have major dependency on the import of polymers. Today we are a
significant exporter. Over past two decades, the plastics industry has transformed from a
being a slow and small enterprise to being one of the top ten vibrant industries in the
world. But, looking at the potential that the industry holds for future, the best is yet to
come.
P O L Y M E R B I Z
Middle East. Asia Pacifics share of global ethylene
(the important basic petrochemical for commodity
polymers) has increased from 19% in 1990 to
25% in 2001.
A major reason for this increase has been new
facilities built in China, ASEAN countries and
India. The transformation is indeed revealing. Back
in 1990, China and ASEAN were minor net
importers of polyolefins and Japan and South
Korea were minor net exporters. By 1998, China
had emerged as the largest global importer of all
commodity polymers such as PE, PP, PVC and PS
and its trading pattern affected the prices of these
polymers in the East Asian and global markets.
Present Scene
At present, the Indian petrochemical industry
ranks 13
th
in the world and the Indian polymer
industry accounts for 2.5% of global production.
Although Indian demand is small compared to
global standards, this is among the fastest growing
markets in the world. Due to a larger presence of
traditional materials, there are greater
opportunities for substitution and consequently
accelerated growth prospect for the polymer
industry. India has shown a significantly higher
growth rate in polymer consumption in the last five
years a rate, which is higher than in China and
other Asian countries.
Local players dominate the Indian industry.
Reliance Industries Limited (RIL) and IPCL (along
with GAIL and HPL) are among those that produce
polyethylene and polypropylene through their
integrated petrochemical complexes. RIL has a
large petrochemical complex at Hazira in Gujarat,
which also houses the largest naphtha cracker in
Asia. IPCL, now a Reliance Group company, has
three petrochemical sites. In PVC, the major
polymer players with integrated crackers cover over
60% of the countr ys production. The PS industry
in India is dominated by Supreme Petrochem Ltd,
which commands around 63% of the capacity.
In spite of liberalization and current government
policy, foreign investment in Indian petrochemical
sector has been insignificant compared to China.
The liberalization process however encouraged
large capacity addition and RIL was the first to
move in, in 1991. Today Reliance is the seventh
largest polypropylene in the world and its naphtha
cracker at Hazira is one of the largest multi feed
cracker in the world. With its international supply
chain and a strong Research and Technology
platform, Reliance strategy is clear to enter the
Global Top Five Club by implementing large plants
ahead of demand and exploit the benefit of scale.
Applications & Markets
Plastic products are widely used in packaging,
construction, appliances, automobiles and other
sectors. These are ubiquitous today. Supporting the
quality of life in every sphere, be it at home, in
Cover Story
9
P O L Y M E R B I Z
Cover Story
recreation or at work. Imagine cars without plastic
bumpers, dashboards, steering wheels and
switches; healthcare without plastic hypodermic
syringes and artificial hip joints. Telephones, circuit
boards and cable insulation have made
telecommunication very much dependent on
polymers. Our entertainment and leisure relies on
the unique combination of properties offered by
polymers in sports equipment and clothing, CDs,
video and audiotapes, television and cinema.
Infrastructure, Agriculture, Packaging, Consumer
Goods, Automobiles & Appliances and HealthCare
are the key growth markets for the Indian Plastics
industry.
Wide usages of polymers are seen in the
building and construction industry. Polymers are
used in pipes, profiles, electrical wiring, sewerage
and water management, floors/wall coverings and
furniture. PP, PVC, PS, PU and other engineering
polymers play pivotal roles in appliances and
consumer goods industry.
Government is seriously promoting Micro
Irrigation and Rainwater Harvesting. Micro
irrigation is looked upon as an initial step towards
precision farming. This will definitely fetch the
Indian Agriculture Industry a respectable position
in the global arena. Micro irrigation, Mulch film,
Greenhouses, low tunnel are some of the
important applications in the agriculture sector.
Plastics in bulk packaging, materials handling will
play a pivotal role in effective Post Harvest
Management.
The low profile Indian Packaging industry has
been transformed into a high profile industry with
the introduction of polymers. Polymers have
emerged as a preferred packaging medium for
FMCG. It constitutes more than 35% of total
polymers consumption and is expected to grow to
45% by 2010. Efficient and colourful packages
made from polymers have made FMCG products
both attractive and affordable to masses.
Polymers are the key ingredients to Flexible
Packaging sector, meeting the dynamic, ever
changing and demanding needs of a wide range of
industries and end users. It has emerged as the
most versatile, lightweight, cheap and attractive
mode of packaging. It meets diverse needs of food
companies to pack commodity, snacks, biscuits,
ready-to-eat and semi cooked foods. It also helps
to pack non-food products ranging from seeds,
pesticides, tyres, lube oil, distemper, detergents,
shampoo and many other products. It provides
protective packaging to rubber, steel and glass
industries in the form of release films. Bubble and
foam films are widely used as protective packaging
across products and shrink and stretch-wrap films
help pack products for markets and cargo for
exports. The Pharmaceutical industry would find it
very difficult to market their tablets/capsules
without flexible packaging.
Polymers Processing Industry
Indian polymers industry has moved from simple
processing to the manufacture of specialty and
P O L Y M E R B I Z
10
P O L Y M E R B I Z
Cover Story
high performance products. While the domestic
market is the primary focus, the industry has all
the requisite characteristics to become an export
hub for processed polymers goods due its low cost
structure and consistent quality.
11
India offers one of the fastest growing
infrastructure opportunities in the world. With a
strong focus on improvements in social and
physical infrastructure, the sector will be attracting
investments of more than US$ 200 billion over the
next 5-6 years. The Retail sector in India is
estimated at US$ 240 billion, with the organized
sector accounting for US$ 5 billion, and growing at
@ 40% annually. More than 600 Malls are under
planning and construction in more than 50 Indian
cities. Agriculture is yet another field where
polymers are becoming more and more popular in
order to address to the issues like land
productivity, water management and post harvest
management, imperative for the second green
revolution.
Demand for all polymers in India during 2005-
06 was close to 5 million tonnes. Chem Systems
Inc. a global chemical consulting company
predicts a slower build-up to these levels of
consumption. By the end of this decade the
country is likely to emerge as the third largest
market for polymers (12.5 MMT). This would still
leave it way behind the developed world in terms
of per capita usages of polymers. India would thus,
continue to provide opportunities for healthy
growth in demand for polymers for the next decade
as well before it matures to the level of developed
markets.
With import dependency down to 10% in
2003-04 and the huge gas finds in India offering
feedstock security, the long-term prospects look
bright. Moreover, the export market is also on the
upswing as India emerges as the global
outsourcing base for polymer products. However
there is a need for technology upgradation in
downstream converting industry. With
sophisticated and world-class higher capacity
machines, enhanced design capabilities, moulds,
tools and dies and technological know-how,
improved productivity and efficient asset
utilisation, global practices in production, quality
and design; development of new products and
applications, India, by 2010, should emerge as
the next converting hub for global polymer
industry.
With abundant raw material available, Indian
downstream processing (converting) industry is
capable of becoming a global outsourcing base for
products but needs upgradation in terms of
capacities and technical capabilities.
It is estimated that to match the consumption
by 2010, Indian processing industry would require
30,000 additional machines and around 9.5
billion US$ project investment, Enhanced design
manufacturing clubbed with consolidation will
transform India into a seaboard for commodity
value added specialty and high performance
products. Many investors from the developed
economies are currently exploring India as a
possible destination for setting up processing units.
Outlook for India
A strong focus on social and physical infrastructure
and a second green revolution retail boom are
going to be the drivers for the Indian Plastics
industry for the years to come.
T HE S UP RE ME I NDUS T RI E S L I MI T E D
Making it a Plastics World
Among Indias dynamic, fast-growing
conglomerates, The Supreme Industries
Limited is acknowledged as leader in the
countrys plastics industry. The
companys turnover is an
impressive Rs. 9 billion
(US$ 205 million) which
is projected to touch
Rs. 25 billion by 2010.
The companys 19
manufacturing units
together process
around 100,000 MT of
polymers every year
(among the largest
volumes in India)
translating the output into a
comprehensive product portfolio.
Helping to drive this gigantic
growth is Mr. M.P. Taparia,
Managing Director,The Supreme Industries
Limited. At the helm for 40 years, he has
seen it all in the industry and would like to
do even more. How does he view the past,
present and future? Mr. Taparia in a face-to-
face encounter with POLYMER BIZ.
Unit at Malanpur,
Madhya Pradesh,
manufacturing
protective packaging
products
P O L Y M E R B I Z
Spotlight
12
Mr. M.P. Taparia:
Leading from the top
How would you describe the structure of the
plastics industry today and the kind of
development taking place in the industry?
The consumption of plastics in India in the
year 2004-05 was around 4.1
million tonnes indicating a
growth of around 1% as
compared to the previous
year. The consumption in
India, is quite low,
compared to China where
34 million tonnes of
plastics were consumed in
the year 2004.
Normally, the growth in
polymer consumption would be
around one-and-a-half to two
times of the GDP growth. This has
been the trend since decades. Last year
was the first time that this growth has
stalled, with growth of just 1%. In the
four decades of my experience, we can say, the
last year was the worst one for the Indian plastics
industry. We need to wait and watch to determine
how soon we will get back on track.
A Comprehensive Product
Portfolio
Industrial products: Industrial components,
material handling crates, moulds
Consumer products: Furniture, food
serviceware, mats, embossed sheets
Packaging products: Flexible packaging films,
protective packaging products, rigid PVC films,
cross-laminated films, wide-width films
Plastics piping system: PVC pipes, injection
moulded and handmade fittings, polypropylene
random co-polymer pipes and fittings
Adopting advanced manufacturing standards at the PVC
Pipe Plant in Jalgaon
PE crosslinked, PE non crosslinked foam and air bubble
film which provide solutions for packaging, cushioning,
thermal insulation and for the construction industry
13
P O L Y M E R B I Z
Spotlight
The countrys production capacity of plastics
raw material has gone up substantially, whereas
the consumption of material could not keep pace
with the growth in production. The country
therefore exported around 1 million tonnes of
plastics raw materials in the year. The value added
products export could barely touch 6,50,000
tonnes. It presents a sorry state of affairs. The
country has become a net exporter of plastics raw
material. China has imported plastics raw
materials to the extent of 14 million tonnes to
make finished products for the world market. Due
to an inflexible labour policy, entry barriers in
several plastics products due to reservation policy
and poor infrastructure, the country is deprived of
immense job-oriented business opportunities.
Instead of exporting plastics products, the country
is exporting plastics raw material.
Raw material production is capital intensive.
Plastics conversion is labour intensive. The current
policies are promoting capital intensive activities
instead of labour intensive activities. Obviously, the
country needs more labour intensive
manufacturing to address the huge unemployment
problem.
In this scenario Supreme has both survived and
excelled. What do you attribute this success to?
Three reasons high respect for our employees, an
obsession for quality and delightful service to
customers.
The company treats its people as its most
valuable assets and gives them the space to grow
with proper training initiatives.
About product quality, Supreme puts in its best
effort to achieve its goals of impeccable quality and
excellence. It is from such efforts that our
credentials for leadership have sprung.
The focus of our business is the customer, be it
in supplying quality products or offering after-sales-
service. The Supreme team is always motivated to
walk that extra mile to satisfy the customer. Our
back-up systems for raw material procurement,
power availability, production and labour
management make us a reliable supplier.
P O L Y M E R B I Z
Spotlight
Supreme Quality Consciousness
The first Indian plastics company to get ISO-9002 certification for
one of its units, Supreme Industries is working towards the goal of
total accreditation to get its entire 19-plant network and
operations certified within the next three years. Three plants of
Supreme Industries have already been certified, including an ISO-
9001 certified Tool Room, the most advanced of its kind in India.
and R&D Commitment
Having harnessed frontline technologies, Supreme Industries has
committed substantial resources to new product applications
development. Sewerage and plumbing systems, cross-laminated
film tarpaulins, greenhouse covers and industrial sacks, reinforced
EPE foams for roof waterproofing and insulation, lacquer finish
moulded furniture are some examples of how new applications
have been successfully developed over the years.
Among Indias best-known brands, Supreme crates are
suitable for versatile applications
14
How do you maintain this leadership position?
A good question. The truth is, we are very
dissatisfied with our position today. To us, our
current turnover of US$ 200 million is hardly an
impressive one. We would call that small
considering the US$ 2-3 billion turnover of my
compatriots in the global markets. Even the high
standards of our production, product quality and
the service-oriented initiatives are not able to push
our growth potential to its fullest extent. The main
reasons are high incidence of indirect taxes i.e.
Excise and Sales Taxes and the rigid labour policy.
Besides, though the plastics processing sector
in India comprises an impressive number of units,
it is still constrained by a small-scale ethos,
which reserves investments and production of
several products for this sector only thus denying
economies of scale and encouraging large imports
of plastics goods.
Today we avoid employing more than 100
workers in any of our factories compared to the
labour-intensive operations of our competitors in
China and other Asian countries where several
units employ more than 5,000 workers churning
out huge volumes and a large variety of products at
a single site.
But we firmly believe that this is going to
change. Opportunities to grow in the business will
surely come. These constraints will be removed
sooner than later. So, we stay very committed to
plastics.
What are your views about Chinas emergence
in this industry?
China is a huge player in plastics (consumption in
2004 was 34 million tonnes). The industry in
China has responded with tremendous resilience
and innovative power to meet market challenges
and stride ahead. Comparatively, India is way
behind. Today, the burning issue is the threat we
face from China. How can we compete against this
giant? The Government has tied our legs and
expects us to run a marathon. Today, though we
have embraced globalization, yet the much-needed
internal liberalisation policy has not come. Now,
we are vulnerable and open for the outside world
to invade our markets. Our industry is not geared
up to step beyond the threshold of the domestic
market.
P O L Y M E R B I Z
Spotlight
Proud of its plastics piping systems, Supremes exports in
this segment reach over 20 countries worldwide including
UK, Australia and the Middle East
Supreme has the credentials to
handle the most demanding
injection moulding assignments for
original equipment manufacturers
(OEMs)
In your impressive product range, which product
group according to you has the potential for an
exciting growth and why?
We can confidently say that every product of
Supreme in all its three groups (see box on pg 13)
has tremendous potential in the present market
scenario. Our product portfolio is quite
comprehensive. At this point of time, all we can
say is that we prefer no new add-ons to the
production line until such time when indirect tax
and labour policies become conducive to growth in
plastics processing and the small scale reservation
policy is done away with.
Could you elaborate on the major growth areas
and new investment opportunities in the Indian
plastics industry? How would new products
enhance growth?
Packaging in the food processing industry is a big
growth area with a high potential in our country.
Plastics are material of preference for packaging
food products. Thanks to its numerous properties
i.e. hygiene, low cost, attractive printing, design
flexibility, longer shelf life among
others it is the material of
preference. View it from any angle,
it will emerge a winner. In fact,
we strongly recommend plastic
packaging for many food
products in India. For
example, in our country huge
volumes (almost 90%) of edible oil is sold loose.
The packaging will add value to the product,
retaining its properties like aroma, controlling
adulteration and checking weight accuracy. This is
just one example as to how plastics packaging of
food products is consumer-friendly.
The Government is rightly promoting the food
processing industry in view of its positive impact
on the economy. For most food processed items,
plastics will play a significant role in packaging
them, thus giving a boost to their consumption as
well as cost control.
Apart from use in packaging, the other big
growth area for plastics is the piping system.
Plastics pipes are cost effective, more durable and
easier to install compared to pipes of other
materials.
Last year, China consumed around 2.5 million
tonnes of plastics in agriculture, horticulture, and
floriculture. This high consumption gives a big
boost to yield per acre in China. While India is
predominantly an agricultural country, its
consumption is hardly 10,000 tonnes. If the
policies are redesigned to enable penetration of
plastics in agriculture, then it can boost the crop
yield in our own country.
Do you think the Government can help the
growth of the plastics industry in any way?
Today, environmental issues have gained
unnecessary dimensions sending out wrong
messages to ban plastics goods in the country.
There is a lot of misinformation about the industry
Thermoformed disposable food serviceware products from
Supreme made from virgin foodgrade polystyrene.
The Group Unit
at Amdoshi,
Nagothane,
manufacturing
polystyrene
that needs to be cleared. We seek Government
help to highlight the positive aspects of plastics.
Industry representatives are knocking on the
Governments doors seeking supportive solutions.
The industry is still waiting for several policy
initiatives from the Government which can enable
plastics to play its proper role in our economy.
How do you think development of the Indian
plastic processing machinery sector would
support the overall growth of the plastics
industry?
This sector has shown the ability to compete
internationally against all odds by absorption of
technology and lean manufacturing practices. For
some machinery, mould and die makers, a major
volume of their business comes from exports. They
now actively participate in the Trade Fairs in the
world market. The scope to boost production of
machines,
moulds, auxiliary equipment
and dies is immense as the Indian manufacturers
zero in on being cost effective with a focus on
improved quality and technology.
Coming to the international scenario, what is
Indias position in the global market in the
plastics sector?
The CPMA data predicts that by 2010 India will
be No. 3 in plastics consumption in the world by
volume. We do not see the possibility of attaining
this position with our current growth trend. Last
year we consumed around 4 million tonnes. To
reach the 12 million tonne consumption level in
2010, i.e. in just five years we need to have a
superior growth-oriented policy with an excellent
infrastructure in place. We do not see that.
What about the global markets for pipes, films,
moulded and packaging products which make up
your range of products.
Today most of our products, which include pipes,
films, moulded and packaging products reach the
shores of USA, Australia, Europe, Africa, Middle
East and South East Asia, indicating the growing
demand for them. The scope is big for exports. In
fact, our companys current focus is primarily on
exports and we continue to create additional
facilities for boosting exports. Our 2004 exports
figure touched US$ 18 million. This year we aim
to cross the US$ 24-million mark despite the
present restrictive atmosphere. If better conditions
are created internally we can plan larger
investments for the export market.
What does the future hold for the plastics
industry in India and internationally? Will the
scenario continue to be a challenging one and
why?
We would like to describe plastics as the wonder
material of the 21
st
century. With its emergence as
a strategic commodity and with its applications in
virtually every aspect of the industrial and
household environment, the future for the plastics
industry is very bright. The rapid technological
development in materials, machinery, processes
and products has offered new challenges and
opportunities for its growth.
Supreme is a growth-driven, forward-looking
company which will always be a part of this
excitement. The company will continue to make a
greater impact in the Indian economy with newer
applications and products made from plastics.
P O L Y M E R B I Z
Spotlight
16
C OS MO F I L MS
The Industry Leader
in BOPP Films
Mr. Sushil K.
Mittal: Hands-
on-charge of
Cosmos
business
strategy
Top-of-
the-line Range
Cosmos range of Cosmophane BOPP
films is very large and includes
varieties like co-extruded plain films,
heat sealable films and thermal
lamination films. The companys
co-extruded films include transparent,
matte, opaque, pearlised and
metallized appearances. The range of
thickness of the films varies
from 9-60 .
Cosmo Films has been pioneers of BOPP Films
in India. How has the flexible packaging industry
evolved (products and applications) in India and
what has been the growth pattern in the last five
years?
The BOPP films packaging industry is about three
decades old. Being non-toxic and totally recy-
clable, BOPP was universally accepted as a
desirable alternative to commodity plastics films
that were earlier
used for packag-
ing fast-moving
consumable
goods. BOPP
also came to
be preferred
for its superior
moisture
retention,
strength and
flexibility, as well as
better optical properties
that provide higher
visual aesthetics.
Spotlight
BOPP, the wonder polypropylene material,
came into use for packaging a wide range
of food items and other consumer products
in the latter part of the 20
th
century. Aware
of the products superior qualities and its
future potential in the flexible packaging
industry, Mr. Ashok Jaipuria of the Kanpur-
based Jaipuria family established Cosmo
Films, Indias first BOPP films manufactur-
ing unit, in 1981.
Starting production with a capacity of 800
tonnes per year (tpy) in 1981, the com-
pany has grown in leaps and
bounds. By 2005, Cosmo
had increased its BOPP
film capacity to 60,000
tpy, and 11,000 MT of
Extrusion Coating and
metalized film. The com-
pany is the largest exporter
of BOPP film from India.
A focus on the success
story by Mr. Sushil K. Mittal,
Executive Director & CEO, Cosmo Films,
who holds hands-on charge of the
companys overall global and domestic
business strategy.
P O L Y M E R B I Z
The Manufacturing Edge
Cosmo has world-class production lines from
Bruckner and DMT with three and five layer
dies. The companys state-of-the-art manufac-
turing facilities offer three and five layer films as
per the product need and application. Its
Cascade extrusion facility provides higher
productivity utilizing the capacity effectively.
The orientation is effected with two stage
stretching in longitudinal and transverse
directions.
Superior winders with the latest winding
technology are used for production of heavy and
very large size mill rolls.
Spotlight
Hi-speed slitting of heavy and large size mill rolls
18
Cosmos 5-line BOPP films Plant in Aurangabad. The lines
offer tremendous flexibility as each line can be dedicated
to a specific type of film
Today BOPP films are used all over the world as
the favoured packaging material for a wide range
of food products including snacks, biscuits and
confectionery as well as cigarettes, shaving blades,
textiles and other FMCG products. Its applications
have now become even more diverse and extend to
every consumer sector thanks to great product
innovations like slip stable film, heat sealable film,
printable synthetic paper and high barrier silk
matte film. Some countries like Australia and Sri
Lanka also use BOPP as the basic material for
their currency notes. This wonder polypropylene
material touches human life in a huge variety of
ways. From dawn to dusk, there are several
applications of BOPP films in consumer and
industrial products.
Globally, the BOPP market has seen a positive
growth, increasing at 6% annually. The growth in
the Asian region has been the highest with a
double digit increase. The Indian domestic BOPP
market has been growing @ 15 - 20% per annum.
Since the per capita BOPP consumption in India is
much lower as compared to western and other
Asian countries, the potential for demand growth
here is quite high. In view of this growth potential,
Indian BOPP manufacturers have expanded their
capacities.
By building exports at reasonable margins, India
has substantially countered the threats of imports.
The present level of BOPP imports in India is less
than 10% of the total BOPP consumption. This is
very encouraging.
So the situation is well in control for India, and
there is tremendous scope to sprint forward to
reach the impressive potential level of China in the
next 10 - 12 years. In fact, Chinas present
capacity is 2 million tonnes.
Has volatality in crude oil and polymer prices
affected the BOPP film industry?
There are two ways of looking at
it. The high rise in crude oil prices
in the last one year impacted the
cost of polymer, which is the basic
raw material for BOPP films. This
in turn has led to higher cost of
our products. Also, packaging in
India is shifting from paper,
aluminum and glass to flexible
P O L Y M E R B I Z
Spotlight
Thickness measurements are done selectively with -ray
and X-ray gauges
Quality assurance at every stage of production
19
packaging which is more expensive. Costs play a
critical role in expanding the market size, but
customers are willing to move to another packag-
ing media if cost increase is not abnormal.
BOPP exports have expanded despite stiff
competition even though there has been a squeeze
in margins. Though financial performance has
been under pressure, the products diverse
application capabilities will push the flexible
packaging sector on the growth scale.
Cosmo Films cumulative capacity growth of
71,000 tpy makes one of the worlds largest
BOPP producer, and the biggest in India. What
have been the challenges and growth opportuni-
ties for you?
The challenges are how you survive in this industry
where profit margins are being squeezed. You have
to continuously keep cutting costs in all areas,
improve efficiency, and reduce wastage to be
competitive enough in this cut-throat market, and
yet continue to grow.
Since we are also largely focused on interna-
tional markets (45% of our revenue was from
exports in the year 2005-06) we have been trying
to build economies of scale for exports. This is
tough especially because of the infrastructure
constraints in our country.
Also, there is the challenge of competing with
well-established and big international players. In
the late 1990s it was not easy for a relatively
unknown Indian player like us to break into the
BOPP trade on foreign shores. Our ability to adapt
to market conditions, fulfill customer needs and
offer value-added, niche quality products of
international repute, not only increased our
visibility in the marketplace but also earned us the
market leadership position.
Today, offering future generation products in
packaging films to a highly demanding market,
both domestic and global, is a challenge which we
are taking on with excitement.
What are your product applications?
Cosmos BOPP films can be used directly as a
transparent covering for cigarette packets. Compa-
nies such as Pepsi and Coca-Cola use BOPP film
as the basic material for printing their labels.
White-goods manufacturers of washing machines,
televisions and refrigerators use BOPP film as
pressure sensitive tape and the publishing industr y
uses Cosmos products to laminate printed
products.
We see India as a big exporter and importer of
BOPP films. What are the opportunities for
exports and how will imports affect the market?
India is not a significant importer but a huge
exporter of BOPP films. The BOPP world market
today is almost 4 million tonnes and it is still
growing, while the Indian domestic market is only
90,000 tonnes. So our consumption is miniscule
compared to the world market (Indias population
is one-sixth in comparison to world figures). Hence
the drive to export becomes a perennial strategic
need for Indian players. But only for those players
who can create volumes, and have the quality, cost
and deliver y advantage. For them, the world is
their market.
In the last five years approximately 70-75% of
BOPP exports from India was from Cosmo. That is
the kind of exports we are involved in, as com-
P O L Y M E R B I Z
Achievement Talk (2005-06)
Net sales increased to Rs. 42,198 lakhs
(previous year: Rs. 39,073 lakhs)
Export turnover reached Rs. 17,063 lakhs,
a growth of 22% over the previous year
Established extrusion coated film in
international markets
Doubled capacity of extrusion coated film
Spotlight
World-class production lines with three and five layer dies
20
pared to the rest of the players in the country. The
company has created impressive markets in
Europe, USA, West Asia and Africa. Today we are
exporting to each and every continent of the
world.
Could you enlighten us on Cosmo Films new
Thermolamination Plant at Waluj.
Thermolamination film was an initial requirement
for our USA market. We believe this futuristic
product is one the worlds best BOPP products
developed by us so far. Used as lamination on
cardboard boxes and cartons for packaging high-
end goods of reputed brands of garments,
cosmetics, liquor manufacturers, the product is a
winner for its specialized qualities and features.
We are already exporting in world markets.
Starting with one extrusion coating line in March
2004, we have added two more production lines
in the last one year, and are proposing to add two
more production lines in the financial year
2006-07.
How encouraging is the Government support to
the flexible packaging industry?
A liberalised economic environment has helped
the industry to explore business opportunities
globally, cut cost and achieve world-class quality
standards.
Proper infrastructure, uninterrupted power
supply and favourable port conditions are the
most essential needs for the industrys growth.
Had this been forthcoming in good measures
(even 25% of what our Asian neighbours received)
the Indian industrys success would have been
multifold. The word of caution here is the need to
sprint forward to align ourselves with world
performance in the next two years, failing which
we could become insignificant players in the world
market.
What are Cosmos growth and expansion plans
in the coming years?
The present scenario signals a bright future for the
BOPP films industry. We feel the potential to grow
in this field is enormous.
During the next 15 months we shall be adding
the production line of BOPP film with a capacity of
30000 MT. Besides, one metalizer and two
extrusion coating lines with capacity of 4000 MT
and 8000 MT respectively are planned in the
financial year 2006-07.
Cosmo Films mission is to be a focused player
in BOPP films. Our extremely competent and
youthful workforce, our strong capabilities in R&D
and product innovation, our state-of-the-art
manufacturing facilities with world-class produc-
tion lines, the strategic emphasis on exports, will
be further enhanced to give a greater push to our
growth drive and retain the shine in our BOPP film
business.
P O L Y M E R B I Z
Spotlight
Each product of the Jain Irrigation Group is
an outcome of the effort to conserve
natures precious resources through
substitution or value-addition. This is the
legacy of a deliberate and conscious
endeavour that
stems from a
deep-rooted
concern for
nature.
The products
of Jain
Irrigation
Systems
include micro
irrigation
systems and
components, PVC and PE piping systems,
moulded and extruded plastic products,
plastic sheets, dehydrated onions and
vegetables, processed fruits, tissue culture
plants, green houses, liquid/water soluble
fertilizers, bio-pesticides, bio-fertilizers and
solar water heating and lighting systems
making it the only one-stop-shop
encompassing manufacturing and
marketing of hi-tech agricultural inputs and
services as well as processing of agri-
produce.
POLYMER BIZ met with Mr. Anil B. Jain,
Managing Director, Jain
Irrigation Systems
Limited, to get a few
insights into his company
and returned with a
fascinating overview of
the company, its
products, its philosophy
and more
J A I N I R R I G AT I ON S Y S T E MS L I MI T E D
Indias only One-stop-shop for
the Agricultural Industry
Working for agriculture
The Jain Group
Micro irrigation components
Jain PE pipes
21
Could you give us an overview of the Jain
Group, its products and their application?
The Jain Group is basically an agriculture-based
company. But at the same time being a very large
plastics processor company, we use lots of plastics
in agriculture so we are a prominent plasti-culture
company. We are based in Jalgaon and have been
in the business for more than 40 years now. We
are the pioneers of drip and micro irrigation and
among the top in PVC pipes and largest
polyethylene pipes which are used for cable
ducting, water and gas distribution.
The Jain Group is the largest company of its
kind in the organised sector. Apart from the piping
and drip irrigation business, the Group is in plastic
sheets which are made for domestic and
international markets; these are made from PVC as
well as polycarbonate, etc. The Jains are also in
the food processing business, thus uniquely
covering the entire value-chain of agriculture we
sell the inputs to farmers, buy-back what they
produce, add value and sell the end product
dehydrated onions and food pulp to MNCs in
India and the overseas market.
P O L Y M E R B I Z
Spotlight
Greenhouses built by the Jain Group
A view of the Jain Injection Mould Plant
22
Irrigation Systems and
Components
Drip Irrigation Systems
Sprinkler Irrigation
Systems
Valves
Water Filters
Fertigation Equipment
Value Addition for
Agriculture
Green Houses
Plant Tissue Culture
Nursery Plants and
Systems
Bio Fertilizers
Processed Food
Fruit Processing
Onion and Vegetable
Dehydration
Pipes and Pipe Fittings
PVC Pipes and Pipe
Fittings
PE Pipes and Pipe
Fittings
Plastic Sheets
PVC Sheets
PC Sheets
Solar Energy
Solar Water Heating
Systems
Turnkey Services
Turnkey Project
Services
Roof Cooling Systems
Agricultural and
Engineering
Consultancy
The Jain Group
Jain Group has been in the news recently for its
string of acquisitions of companies in India and
abroad. Can you provide us with some details
about that?
Domestic Acquisition
In May 2005, we acquired a 45% stake in Terra
Agro Technologies Limited (TATL), Coimbatore, for
Rs. 130 million. TATL was incorporated in Novem-
ber 1994 as a 100% export oriented unit (EOU) for
captive cultivation and processing of dehydrated
vegetables solely for export. We believe TATLs
holdings of developed and irrigated land in southern
India will give us a strategic foothold to expand our
integrated product offerings in that region.
In January 2006, we acquired the undertaking
of LMP Gujarat Agro Exports Limited (LMP) for a
purchase price of Rs. 53 million. LMP is a 100%
EOU for dehydration of vegetables with a capacity
of 2,000 tonnes per annum located at Dhobikuva
village, Taluka Padra in the district of Vadodara in
the State of Gujarat.
Overseas Acquisition
On January 24, 2006, we signed an MOU to
invest up to US$ 3 million in the debt and equity
of US start-up company, Nu Cedar Mills Inc. (Nu
Cedar). Nu Cedar plans to focus on the manufac-
ture, distribution and installation of PVC sidings for
home building products. We believe Nu Cedars
proposed operations are complimentary to our
current PVC sheets business.
We are currently taking steps to incorporate in
South Africa a second Generation wholly-owned
subsidiary under the name of Jain Irrigation SA
(Pty) Limited (JSA). It is intended that JSA will be
based in Johannesburg, South Africa, and will be
responsible for administering our exports to Africa.
In February 2006, we acquired through our UK-
based subsidiary, Jain (Europe) Limited, an
approximately 7.5% stake in the capital of
Eurodrip S.A Irrigation System (Eurodrip), one of
Europes largest micro irrigation companies. This
acquisition follows our execution of an MOU with
Eurodrip which contemplates our working together
in a synergistic and complementary manner, such
as by purchasing and distributing each others
products.
Jain Irrigation has acquired 100% shareholding
control of Chapin Watermatics, New York, USA,
through its second generation wholly-owned
subsidiary, Jain (Americas), at approx. US$ 6
million in cash and debt with deferred payment
terms. Chapin Watermatics Inc. USA is a pioneer
P O L Y M E R B I Z
Spotlight
Distinctions earned by the
Jain Group:
Rs. 2,896 million exports in FY 2005-06,
some to the toughest markets in the world
The largest producer of plastics in India
Pioneers of micro irrigation systems in India
The only manufacturer producing the widest
range of plastic sheets (PC &PVC) under one
roof
ISO-9001 from RWTUV, Germany for PVC
pipes and fittings, polytubes, emitting pipes,
plastic sheets, onion dehydration divisions
and fruit processing
The Training & Extension
Centre
23
The Jain Plastics Sheet Plant
and leading manufacturer of drip tape and is
known as a complete source for field crop, nursery
and green house drip irrigation systems.
The Jain Group is known as Indias only one-
stop high-tech integrated agricultural shop. What
exactly do you mean by this?
Farming in India is no longer confined to
sustenance farming. It is looked upon as a
business. To be able to do this as a business, the
modern farmer must be able to economize on his
inputs, so that costs towards fertilizers, labour, etc.
will reduce and he can produce the maximum.
Yields in Indian agriculture are ver y low, compared
with other countries. Jain Irrigation provides the
farmers with their entire needs, helps the farmers
reduce the amount of inputs, reduce costs and at
the same time increase the amount of output
(yield) to get 30/40% and sometimes even
100% more yield for various crops. There is no
other company so uniquely positioned. Jain
Irrigation provides not only the inputs but also
advice and services and helps the farmer
throughout the entire crop-cycle to grow more, e.g.
irrigation, fertigation equipment, plant-material,
seed material, advice on how to grow his crop, buy
what he grows, etc.
Tell us a little about your exports.
We have a large amount of exports. We export PVC
sheets, poly-carbonate sheets, micro irrigation
systems, dehydrated onion and other processed
fruit products. In the financial year ended March
2006, we exceeded Rs. 2,896 million in overall
exports, of which sheets was Rs. 1,869 million,
pipes & micro irrigation systems was Rs. 308
million and dehydrated onions and processed
foods was Rs. 719 million. We also export our
pipes but comparatively in smaller quantities. We
supply our various products to about 70 countries
all over the world. On a global scale, we must be
among the top three in the world in plastic
sheeting.
When we talk about plastics, what are the
growth areas in the Indian agriculture industry?
Do you think the Government can help the growth
of the plastic industry in anyway?
Irrigation is an area that will continue to grow
water-management systems are where a lot of
plastics are used. In the future, mulching has great
growth prospects. Plastic usage in piping
application will continue to grow due to focus and
How has the Indian agricultural industry
evolved in the last 20 years? Can you give us a
general idea about future growth?
Agriculture has been lagging behind in the last 20
years. Investment in agriculture has been
continuously going down. It has been a neglected
sector and the problems of natural resources like
seasons, monsoons still hit hard. There have been
some success stories on horticulture side but by
and large it has been a dismal picture. However,
the irrigation industry is looking forward to good
times because there is a lot of latent demand.
Water management is an important issue and
efficient irrigation systems are very essential for the
country. Government of India has agreed to put
large amount of new resources in micro irrigation
systems.
P O L Y M E R B I Z
Spotlight
24
The PVC Pipe Plant
additional investment in the irrigation sector.
I think the way the Government can help is to
put usage of these items in agriculture on a 0%
VAT category and possibly reduce the excise duty
of these items from 16% to 8%. These taxes make
it very expensive for the farmer, so a reduction will
help to increase the growth.
What are your views on the
development of the Indian plastic
processing machinery sector?
I dont think India is producing
material or equipment of the
quality that can give you global
scale, throughput that will allow
you to compete in all markets.
Domestic manufacturers also need
to improve on the raw materials
side and make available better
grades to suit these applications.
While lot has been done we need
to fan and do far more.
Accolades
In 1997, Irrigation Associa-
tion, USA, conferred the
Crawford Reid Memorial
Award on Mr. B.H. Jain in
recognition of his significant
achievements in promoting
proper irrigation techniques
and in fostering major
advancements in the industry
outside the United States.
Mr. B.H. Jain is the first
Indian and the second Asian
to have received this Award.
This Award recognized the
fact that Mr. B.H. Jain
envisioned and raised an
altogether new micro
irrigation industry in India in
a scientific way.
Mr. Bhavasrlal Jain Founder
Chairman, Jain Irrigation Systems
Limited.
The Crawford Reid Memorial
Award
been very favourable for the industry except in
certain sectors.
However, during the last two years lot of new
capacity has been added due to auto business as
well as more industrial demand. Government
spending on infrastructure is also improving which
shall result in higher demand for
pipes, etc.
Tell us more about your R&D
facilities.
We have huge R&D facilities on
the agricultural side a 1,000-
plus acre R&D farm in Jalgaon,
Maharashtra. On the farm we
have a training institute where
we train farmers, trainers and
government officials. Recently we
have taken over a new company
near Coimbatore which also has
1,200 acres of land. We plan to
do R&D even at that location
which will help our customers/
farmers in Southern India.
What are the future challenges
for Jain Irrigation Systems?
Drip-irrigation is growing quite a
lot, it helps the farmer to save
water and improve productivity
and at the same time save labour
as well as fertilizer. Its a
revolutionary technology and it is
something without which India
cannot go forward. The potential
and challenges are enormous
because in India we have small
land-holdings of about one
hectare. To be able to deliver the
products and services in the
hinterland costs a lot of money
and requires a lot of resources
and patience. So while the
opportunities are many, there are
also challenges, so unless you
are very committed to the subject
sector and are willing to put in a
large number of resources you
cannot succeed.
The Jain Polytube and Inline Plant
Can you give us an overview of
the polymer industry and its
future growth prospects?
The growth of the polymer
industry was stagnant over the last
few years because polymer prices
went up considerably. In the end,
for products in India, cost is
always a big criterion. As a
processor you cant always pass
on the price-increase to the
customers. That has given a set-
back to the industry and not many
people have added capacity over
the last few years in the industry.
This is not a good sign. So overall
for the last 3-5 years,
developments in India have not
P O L Y M E R B I Z
Building Bonds
RILs Customer
Relationship Management
Initiatives Spell Success
e believe that any business
conducted can be ethical only
when it rests on the nine core
values of Honesty, Integrity,
Respect, Fairness, Purposefulness, Trust,
Responsibility, Citizenship and Caring. Thus, a
firm belief that every Reliance team member
holds is that the other persons
interests count as much as his own.
Today, the Indian polymer industry
is witnessing a paradigm shift in the
transformation of the value chain
from being product centric to being
service centric. Polymer processors,
manufacturers and end users are
constantly working towards the
sustainable development of the industry.
Reliances growth aspirations are firmly rooted
in the commitment to the growth of its custom-
ers and ultimate end markets. A reason why
Customer Relationship Management (CRM)
plays a significant role in the company.
CRM is a
programme that
integrates people,
processes and
technology to
enhance relation-
ships with custom-
ers, partners,
distributors and
suppliers. It offers a
common platform to
customers to
exchange ideas and new developments to infuse
growth. The initiatives help to provide seamless
coordination among sales, marketing, service
and field support.
Every year, the Reliance Polymer group
launches various CRM initiatives. The
programme spreads over
52 weeks to extend
support to customers,
processors,
OEMs,
machinery
manufactur-
ers, end-users,
government officials, academia,
nodal agencies, industrial institu-
tions and NGOs for improving
productivity, quality upgradation,
cost efficiency and business promotion. With a
focus on the ever-changing business of polymers
and to sustain the development of the polymer
industry, the CRM events are translated into
highly charged, interesting customer meets,
quality training sessions, downstream invest-
ment programmes, road shows and workshops
in coordination with industry associations and
nodal agencies.
The communication efforts are organized to
cover a maximum number of locations around
the country and reach out to a large number of
customers every month (on many occasions it
touched a high of around 900 customers).
Raffia, Rigid Packaging, Flexible Packaging,
Infrastructure, Plasticulture, Automobiles and
Appliances were just some of the many sectors
covered by the programme.
Of special significance were the seminars
focusing on Packaging for Horticultural Produce
W
25
Between my past, the present and the future, there is one common factor:
Relationship and Trust. This is the foundation of our growth. Dhirubhai Ambani,
Founder Chairman, Reliance Industries Limited
For Reliance, CRM is a
programme that integrates
people, process and
technology to enhance
relationships with customers,
partners, distributors and
suppliers
Reliance not only
takes care of its big
customers, it makes
sure that even its
smallest customer is
kept happy at all
times.
P O L Y M E R B I Z
(see box below). A new initiative, Reliance
organized seminars with apple growers and
Government officials at Shimla on October 5,
2004 and at Kulu-Manali on October 8, 2004,
and a seminar on packaging apples in plastic
cartons, at Shimla, on October
11, 2004.
Rain Water Harvesting
(Gandhinagar), PWS Promotion
(Kolkata and Balaghat), HM Film
(Baroda), Edible Oil Packaging
(Kanpur and Kolkata), and
Application of PP and HDPE
Raffia in Fertilizer, Cement and Refractory Bricks
Packaging (Bhubaneshwar) were some of the
topics that the other CRM seminars dealt with.
The Plastic Moulded Furniture Industry
Captains Meet, held at Hotel JW Marriot,
Mumbai, on February 26, was a huge success.
It saw the top 10 national brand leaders coming
together to discuss issues plaguing the polymers
and plastics industry and evolving solutions to
revive the growth in the plastics moulded
Innovative Packaging for Horticulture Produce
A well-organized and informative seminar on Innovative Packaging for Horticulture Produce for traders of
Azadpur Mandi, Delhi, was conducted with the objective of creating awareness and preparing the
traders to accept Celloguard plastic cartons as a new means of packaging against the traditional
CFB cartons for apples. The seminar was held at Hotel City Park, Delhi, on July 23, 2005.
The programme was highly interactive and focused on highlighting the advantage, quality,
reusability and resale value of plastic cartons to the traders. The presentation, concentrating on
four main USPs of plastic cartons hygiene and cleanliness in the Mandi; saving of fruit loss;
value addition; and recylability and reusablility; brought out the uniqueness of this new trend of packaging horticulture
produce and had the traders support to adopt the novel technique.
We are very pleased
to have attended this
event we are happy
and proud that a
company like Reliance
is paying attention to
the needs of us small
traders.
Reliance not only
takes care of its big
customers, it makes
sure that even its
smallest customer is
kept happy at all
times.
Building Bonds
26
furniture sector.
The presence of prominent speakers at every
seminar and distribution of relevant literature
led to the events being a great learning and
knowledge-sharing experience. Participants
expressed their satisfaction and extolled
Reliances efforts of reaching out to its custom-
ers and for presenting excellent growth opportu-
nities for the development of the polymer and
plastics industries.
Every CRM initiative organized in the year
was in keeping with Dhirubhai Ambanis vision.
He said, Our dreams have to be bigger. Our
ambitions higher. Our commitment deeper. And
our efforts greater. This is my dream for
Reliance and for India. And Reliance hopes
to keep taking this dream further and higher
each year and strengthen its bonds and commit-
ments with its customers even more.
At the Plastic Moulded Furniture Industry Captains Meet,
organized by RIL, top national brand leaders came together
to discuss and provide growth solutions for this sector
The NOVA Chemicals
Corporation Meet
Organized for Reliances major PE customers, the NOVA
Chemicals Corporation Meet, at Taj Mahal Hotel, Mumbai, on
March 14, 2005,
was an important
CRM initiative. Mr.
Jeffery M. Lipton,
president and CEO,
NOVA Chemicals
Corporation
(Reliances PE
Technology
licensor),
addressed the
meet. He made an
interesting presentation on the current global scenario and the
technology advancements in PE and also interacted with
participants (processors, manufacturers, end-users,
customers, government officials, academia, etc.) on a one-to-
one basis.
Partnering Reliance: Mr. Jeffery M. Lipton,
president and CEO, NOVA Chemicals
Corporation, addresses the meet.
P O L Y M E R B I Z
Management
Focus
ix Sigma is a business
breakthrough management
strategy adopted by
leading multinational
organisations across
the world. A quality measure and
improvement programme
developed by Motorola, Six
Sigma focuses on the control
of a process to the point of
plus/minus Six Sigma (stan-
dard deviations) from a
centerline, or 3.4 defects per million
items. The strategy was initially
implemented by Dr. Mikel J. Harry (the
Father of Six Sigma) at Motorola and later
on by GE, Ford, ABB, Dupont, Sony,
General Motors and many other organizations
enabling them to save and earn billions of dollars.
Six Sigma includes identifying factors critical to
quality as determined by the customer: reducing
process variation and increasing stability, improv-
ing capabilities and designing systems to support
the Six Sigma goal.
It is todays most talked about system of improving the quality of organizational
processes. Business analysts have termed it a factor to achieve positive results.
Six Sigma the two power words that top companies are using to hone their
performance. What is Six Sigma all about, how can it streamline processes to-
wards zero waste and more profits An overview from Madhavan Radhakrishnan
of Reliance.
Measure of Customer
Oriented Performance
Six
Sigma
Six Sigma is based on a project
approach and general/statistical tools
are heavily used in this exercise. Six
Sigma recognizes the direct
relationship between the number
of defects in a Process, Product
and Customer Loyalty. Six
Sigma helps identify defects in a
systematic manner and apply
suitable solutions to reduce the
defects.
The Six Sigma Philosophy
The Six Sigma philosophy is that
good is not good enough. As the
organization advances in Six Sigma
implementation, the customers will
perceive flawless performances in their
services. Six Sigma means maintaining the defect
level of 3.4 per million opportunities particularly
in the core business processes.
Many of the international organizations that
implemented this breakthrough strategy were at
4 Sigma level i.e. defects of 6,210 per million
opportunities. Based on US data, the example at
4 Sigma level (99% good) are as follows:
20,000 lost pieces of mail per hour
15 minutes of unsafe drinking water per day
200,000 wrong drug prescriptions per year
No electricity almost seven hours per day
Six Sigma promises 99.99966% process
effectiveness and efficiency. The two terms are
very critical and have direct impact on the bottom
line of the organisation and customer loyalty:
Effectiveness quantifies how effective an
Application
Drive results
Maximize Six Sigma
See results
Achieve and sustain
Unifying strategy and education
Transactional data audit focused on
improving performance.
S
27
P O L Y M E R B I Z
How does Six Sigma Work?
The Team: Six Sigma is project focused and so there is a
team working on each selected project. Teamwork is
extremely important for project success. The key members
and their roles in brief are as follows:
The Business Champion: Usually the Head of a
Business or Department, the Business champion, identifies
the key Six Sigma projects, identifies and develops the
Master Black Belts (MBB) and Black Belts (BB), and
sustains the benefits of the projects continuously.
Process Owner: The process owner is the one who owns
the process. After completion of the projects by the BBs and
the team, the process owner takes the ownership of the
project. Creating an environment for success of the project
and its sustainability in the long run is the responsibility of
the process owner.
The Master Black Belts: Their role is to train and
mentor the BBs, assess the progress and performance of the
projects, verify and validate the financial gains shown by
BBs and help the BBs to take the Six Sigma initiatives across
the organization.
The Black Belts: They have to lead the Six Sigma project
and achieve the set goals, advocate the Six Sigma approach
across the organization, document the project progress and
coach others on use of the tools.
Green Belts: The Green Belts work part time for the
projects. GBs learn and apply Six Sigma tools and also
provide functional expertise for the project.
organization is in meeting customer expectations.
For example, if a customer expects that his order
should be fulfilled within three days of order
placement and an organisation is able to meet the
expectations all the time then it is 100% effective
in meeting the customers expectations.
Efficiency refers to how effective an
organisation is in using organisational resources
like men, materials, money and others. If material
is called back 20% of the time for poor quality and
immediately replenished with fresh material, then
the customers expectations are fully met, but
according to Six Sigma the organisation is very
inefficient.
Measurement
In Six Sigma everything is measured and quanti-
fied. As Lord Kelvin put it: I often say that when
you can measure what you are speaking about and
express it in numbers, you know something about
it, but when you cannot measure it, when you
cannot express in numbers, your knowledge is of a
meagre and unsatisfactory kind.
What decides the success of Six
Sigma implementation in an
organisation?
1. Committed top management
2. It should be aligned with the key strategy of the
company
3. Incentives to the team
4. Information technology strength
5. A full-time committed core team for Six Sigma
6. The project results should be measurable and
quantifiable and should contribute to the bottom
line substantially
Implementation and Methodology
There are three generations in Six Sigma imple-
mentation:
Generation One: Defect reduction
Generation Two: Cost reduction
Generation Three: Value creation
The methodology adopted in project implemen-
tation and key elements involved are as follows:
Define: Prepare the Project Charter. Select the
team members.
Measure: Fine tune the Project Charter. Draw the
process current flow. Process Mapping. Measure
the current defect level.
Analyze: Analyze the root causes for major defects.
Identify critical key inputs. Estimate and imple-
ment variable limits.
Control: Prepare and implement control plan.
Measure the control plan results. Document and
prepare the storyboard
Reliance and Six Sigma
Reliance today is implementing Six Sigma in a
major way. The top management is highly commit-
ted to its implementation and many projects are
currently on across the organisation. We are sure
that this endeavour will immensely help Reliance
in process improvement and ultimately benefit
customers.
28
Management
Focus
P O L Y M E R B I Z
Corporate
News
RIL Wins Accreditation from
NABL
eliance Haziras Quality Assurance/
Quality Control Laboratories have
been awarded an accreditation
from the National Board of
Accreditation of Laboratories
(NABL) vide registration nos. T-0797 for Chemical
testing and T-0798 for Mechanical testing (Poly-
mers and Fibers). QA/QC Hazira is already an ISO
9001:2000 certified entity and is a service
provider to the Hazira plants and the marketing
department.
CFTRI Approval for Reliances
PE and PP Grades
for Food Contact Applications
ational and international agencies
evaluate plastics for their safe use
for food contact applications,
following their own stringent test
protocols. Mostly this is done by
measuring and determining the overall migration/
extraction of additives in the food.
In this regard, polyethylene and polypropylene
manufactured and supplied by Reliances Polymer
Business, Mumbai, were evaluated at Central Food
Technological Research Institute (CFTRI), Mysore,
for their safe use in food contact applications.
This process was carried out by determining
overall migration and extraction by employing
different food stimulants under various use
conditions of time and temperature as per code of
Federal Regulations, Food and Drugs revised as on
April 2004 (US-FDA): 177.1520 and 176.170
and Bureau of Indian Standards, (BIS) standards
IS: 9845-1998.
Thirteen polyethylene grades (film, injection
moulding and blow moulding grades) and 15
polypropylene grades (film and injection moulding
grades) were evaluated for their safe use for food
contact applications It was concluded that the
extractive/migration values from all grades of
polyethylene and polypropylene tested were within
the specified safety limits as per US-FDA and BIS
standards for food contact applications.
This accreditation is the result of the combined
effort of all the QA/QC Labs which strived to
achieve accreditation in all the tests which are
reported to the customer. The accreditation
process involved preparing manuals, adopting the
standard international test methods, calculating
uncertainties of measurements on the test param-
eters and so on.
The QA/QC Labs at Reliance underwent this
process to increase the confidence of customers in
our testing services. The customers are now
obliged to use the NABL logo on all the Certificates
of Analysis issued by them.
Reliances endeavour would be to now include
more test methods in the scope and the accredita-
tion to PET/PET plus and products from Relpipe
plant during first surveillance audit next year.
R
N
A Resoundi ng Success!
PLASTINDIA 2006, the worlds second largest
Plastics Exhibition, came to a close after a re-
sounding success. The six-day mega event, with
the theme Access Opportunities, made its mark at
Pragati Maidan, New Delhi, from February, 9 - 14,
2006. Spread over a
sprawling 76,000 sq. m.
area, PLASTINDIA
2006 had nearly
1,250 exhibitors
showcasing their
products and
services.
Playing a vital role in
this prestigious
plastics exposition was Reliance Industries Limited. Of special mentions was RILs involve-
ment in the Recycling Pavilion, PROPLAST (both in Hall 18), Plasticulture Show
(Agripark), and Plastic Plazas.
Mr. Nikhil Meswani, Executive Director, RIL, was
the Guest of Honour at the inauguration. Mr. Kamal
Nanavaty spearheaded
PLASTINDIA 2006 as
Chairman, National
Executive Council
(NEC). Mr. Sujit Banerji
acted as Chairman of
ASCENT (Advertising,
Seminars Communica-
tions Extension and
Technology) Committee.
Participating in the exhibition on a 1,400 sq. m. area (Halls 8 & 9), Reliance made an impres-
sive presence showcasing its entire value chain in the petrochemi-
P O L Y M E R B I Z
Fair Share
30
NPE, USAs largest trade event dedicated to the plastics
industry, is being held at Chicago from June 19-23,
2006. The exhibition is sponsored by the Society of
Plastics Industry Inc, USA, and is held in conjunction
with the US Department of Commerce. Spread over
93,000 sq. m., around 2,000 exhibitors are expected
to participate in the event. NPE draws a concentrated
audience of global plastics processors, manufacturers
and buyers representing all the major plastics end-
users.
Reliance will be participating for the first time in the
exhibition with a space area of 100 sq. m. at major
McCormick North Hall C1, Booth 7812.
PLASTINDIA 2006
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Coming
Up!
cal business
sector in an
innovative
way. The
encouraging
response,
evident from
the over-
whelming
enquiries about our entire product range,
established our position as one of the leading
players in the global petrochemical industry.
Mr. Nikhil
Meswani
Mr. Kamal
Nanavaty
Mr. Sujit
Banerji
Dignitaries at the Recycling Pavilion, one of the
initiatives supported by RIL
The impressive Reliance Pavilion
The Plasticulture Show at Agripark (above)
and Plastic Plazas (below), the other
initiatives supported by RIL
Customer
interaction
at the
Reliance
Pavilion.
A Boost t o Pl ast i cs
Chinaplas 2006, the 20th International Exhibition on Plastics and Rubber Industries, held from
April 26 - 29, 2006, in China, was a huge success. Said the mega shows organizers, This year s
event was a record breaker with the show attracting around 1,100 exhibitors. More than 80,000
visitors (8,000 from overseas representing more than 73 countries) attended the exposition at the
Shanghai New International Expo Centre, Pudong, Shanghai, PR China.
The theme zones included chemicals and raw materials, machinery, auxiliary and testing equip-
ment, rubber equipment, Chinese export machinery and semi-finished products.
Plastics and Rubber in Autoparts Production, Plastic Packaging in Food & Beverage Industries
New Materials and Technologies for the Changing Market, and the latest applications of Modified
Plastics and New Injection Technologies in Electronics and Electrical Appliances were the themes
of the conferences that were conducted in the convention centre of the exhibition.
Reliance exhibited its products and services at Chinaplas in the Chemicals and Raw Materials
zone, with a stall spread over an area of 240 sq. m. The pavilion was acknowledged to be one of
the best with its elegant design and open spaces for visitor interaction, conferences and meetings. It
went on to attract around 2,000 visitors.
PPP 2006
Spel l i ng Opt i mi sm
Plastic, Printing & Packaging Pakistan (PPP) 2006, the third
International Plastic, Printing & Packaging Exhibition was held
at Karachi Expo Centre, Pakistan, between May 9 and 12,
2006. The event was supported by the Ministry of Industries
& Production, the Govt.
of Pakistan, the Board of
Investment, Pakistan,
and the Pakistan Plastic
Manufacturers Associa-
tion.
The exhibition showcased the latest trend-setting equipment
with a focus on plastic, printing and packaging related ma-
chinery, equipment and technology.
Reliance participated in the exhibition with a stand area of 100 sq. m. (Hall 4, 130) in the Raw
Materials Hall.
P O L Y M E R B I Z
Fair Share
31
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