Polymers: Sunrise or sunset? - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Polymers: Sunrise or sunset?

Dec 22, 2000

Petrochem was considered to be the sunrise industry of the 80's. Subsequently, several textile companies integrated backwards to exploit the opportunities of the new dawn. The sector has lived up its promise registering double digit growth rates over the last decade. The oncoming of the tech sector may have redefined sunrise growth rates, however, the polymer sector has exhibited a very respectable performance growing 14.4% in the last eight years (FY91-FY99). Amongst the fast growers in the polymer sector were HD/LLDPE, PP, PS and ABS whose consumption increased by 19.8%, 21.8%, 13.9 and 16.2% respectively.

Although the share of imports in polymer consumption has decreased over the past decade they still continue to enjoy a significant marketshare. Share of imports in polymer consumption has declined from 52.6% in FY91 to 22.8% in FY99. These rates indicate that polymer production in the country continues to lag demand. Further, it could also signify the extent to which domestic volumes can increase making good the production deficit.

Polymer demand in the country is expected to clock double digit growth rates in the coming years as consumption of plastics increases. Currently, the per capita consumption of polymers in India is 3.3 Kilograms (Kgs) as compared to the world average of 17Kgs. Further, the likely shift in the economy towards disposable products could boost the demand for polymers.

Equitymaster requests your view! Post a comment on "Polymers: Sunrise or sunset?". Click here!


More Views on News

Sorry! There are no related views on news for this company/sector.

Most Popular

Infosys vs TCS: Which is Better? (Views On News)

Nov 26, 2021

In the post pandemic era, the top two IT companies in India are fighting to capture the growing demand for IT.

This Multibagger Stock Zooms 20% After Dolly Khanna Buys Stake (Views On News)

Nov 24, 2021

Shares of this edible oil company zoomed over 50% in three days after ace investor bought around 1% stake.

6 Popular Stocks that Turned into Penny Stocks (Views On News)

Nov 27, 2021

A look at popular stocks that crashed big time and never recovered, i.e. which went from 'Multibaggers to Multibeggers'.

India's Top 5 Monopoly Stocks to Watch Out for (Views On News)

Nov 30, 2021

These 5 companies dominate their sectors with a huge piece of the pie.

5 Indian Companies Embracing Blockchain Technology (Views On News)

Nov 23, 2021

Blockchain adoption in India was slow in the past. Now, the technology is being well received.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Dec 3, 2021 (Close)