About the Plastic Sector
The plastic industry in India has been a key player in the nation's economy since 1957, when polystyrene production began. Over the years, it has shown significant growth, with more than 2,000 exporters and a widespread presence across the country. Employing over 4 million people, the industry comprises 30,000 processing units, with 85-90% falling under small and medium enterprises.
India produces a wide range of plastic and linoleum products, including houseware, cordage, fishnets, floor coverings, medical items, packaging materials, plastic films, pipes, and raw materials. The country's major exports from the industry include plastic raw materials, films, sheets, woven sacks, fabrics, and tarpaulin.
Future Outlook of the Plastic Sector
The Government of India has ambitious plans for the plastic industry, aiming to elevate its current economic activity level of ₹3 lakh crore ($ 37.8 billion) to ₹10 lakh crore ($ 126 billion) within the next 4-5 years.
The Plastic Export Promotion Council (PLEXCONCIL), the governing body of the plastic industry, aims to boost the country's plastic exports to $25 billion by 2027. To enhance plastic manufacturing, the government is gradually establishing plastic parks. Under this initiative, the Indian government offers funding, covering 50% of project costs or up to ₹40 crore ($ 5 million) per project.
Things To Consider Before Investing in the Plastic Sector
Before investing in the plastic sector, several crucial factors should be carefully considered:
- Regulatory Environment: Stay updated on regulations related to the plastic industry. Compliance with environmental standards and regulations is crucial and can impact the long-term sustainability of the investment.
- Raw Material Availability: Ensure a stable and cost-effective supply of raw materials, as they significantly influence production costs in the plastic sector.
- Environmental Impact: Consider the environmental impact of plastic production. Sustainable and eco-friendly practices are becoming increasingly important, and investors should align with practices that minimise harm to the environment.
- Competitive Landscape: Analyse the competitive landscape of the plastic sector. Understanding key players, market share, and potential competition is crucial for strategic decision-making.
- Global Economic Factors: Evaluate global economic factors that might affect the plastic industry, such as currency fluctuations, trade policies, and geopolitical events.
- Infrastructure and Logistics: Ensure that the necessary infrastructure and logistics are in place for efficient transportation and distribution of plastic products.
- Innovation and Product Development: Consider the potential for innovation and product development within the plastic sector. Adapting to changing consumer preferences and market demands is crucial for sustained success.
- Long-Term Sustainability: Evaluate the long-term sustainability of the investment. A focus on environmentally friendly practices and adherence to global sustainability goals can contribute to the overall success of the investment in the plastic sector.
How To Invest in the Plastic Sector Stocks?
To invest in sector stocks via Angel One, follow these steps:
- Log in to your Angel One account.
- Click on the search icon and look for your desired Plastic sector stock.
- Now, place your buy order. Simply click on the ‘Buy’ button, enter your desired quantity, and select the order type.
- To complete your transaction, click on the ‘Buy’ button.
You can track the status of the purchase from the ‘Positions’ section in the ‘Orders’ module. Once the stock is delivered, you can track its gains and losses from your ‘Portfolio.’
