India PE Demand Fueled by Growth in Consumer Durables & Automotive Markets
India’s demand of PE in 2009 was exceptional, with average growth of PE being 11.7 % over the prior year. Recently completed research by Townsend Solutions indicates that contributing factors include very strong GDP growth of 7.5% and excellent growth in the consumer durables and automotive markets. The India packaging sector, accounting for over 70% of total India PE demand, saw growth of over 15% compared to 2008 while the overall manufacturing sector reached 10% growth in 2009.
“2009 PE growth was driven by a variety of factors,” stated David Anderson Director of Global PE Consulting for Townsend. “There have been a number of significant new investments in processing sectors including a number of new multi layer co-extrusion film plants. An inadequate supply of jute boosted the use of raffia & PE /PP film for lamination used in packaging. Financial support from the Government in many sectors including water for irrigation & water supply increased the use of pipe. In addition, the Indian Government is implementing a plan to provide broadband service in rural area which is providing the opportunity for HDPE to be used as a jacketing material for optical fiber cables.”