Vision Is To Manufacture In India And Serve Global Market: Arvind M. Mehta, AIPMA

In an exclusive interview with Arvind M. Mehta, Chairman of the All India Plastic Manufacturers Association (AIPMA) Governing Council, we delve into the challenges and initiatives undertaken by the Indian plastic manufacturing industry. As the industry grappled with the influx of foreign imports and the need for import substitution, Arvind Mehta sheds light on the extensive research conducted by the association, the utilisation of advanced technology, and the pursuit of manufacturing excellence in India. 

What challenges did you face in addressing the influx of foreign imports into the Indian market?
Our research on import substitution began around one and a half years ago, driven by the constant reliance on China for plastic goods imports. The influx of foreign imports flooded the Indian market, posing challenges for domestic plastic manufacturers. It was a daunting task to even study the situation, as foreign competitors had already captured a significant market share. To address this issue, we engaged an agency to assist us in conducting the research, which took approximately seven months to reach conclusive findings.

During this process, we were shocked to discover that a substantial portion of our business, specifically within the MSME sector, was being outsourced to foreign entities. In response, the AICMA took up the challenge and questioned why we couldn't produce these goods in India. We possess the capacity, technology, funding, and machinery, so why not?

To tackle this issue, we organised conferences aimed at raising awareness among Indian manufacturers about the immense potential within the segment and providing them with the opportunity to manufacture in India and foster growth. Our hope is that these efforts will lead to improvements for our industry.

How are you aiming at utilising the latest technology in India to drive advancements in the manufacturing sector and achieve the goal of manufacturing in India for the global market?
In our country, we have access to the latest technology, and our association recognised the potential benefits of leveraging it. For instance, when we have a conceptual design in mind, we can bring it to life through advanced design capabilities. Additionally, the practice of reverse engineering has been instrumental in product design, allowing us to deconstruct existing products to understand their workings. This approach has played a significant role in China's remarkable growth. While progress may be gradual, we are actively working towards fostering similar advancements in India. Our ultimate goal is to make in India and make for the world.

Where do you envision the plastic manufacturing sector in India five years from now?
If our plan is executed effectively, the import of finished goods will significantly decrease, leading to a substantial increase in exports. We anticipate a doubling of our export volume. While technology will be integrated into machinery, the machines themselves will remain crucial for production and processes. Technology will serve as a catalyst for improvement and efficiency.

The implementation of our plan is expected to generate around 10 lakh jobs within two to three years. Manufacturing in India inherently creates more employment opportunities, contributing to healthy overall economic growth. However, the younger generation often prefers service-oriented industries and is less inclined to pursue manufacturing ventures. Factors such as education of kids, availability of funds, and the challenges involved in setting up factories, marketing, and distribution pose potential hurdles in this regard.
 
What assistance are you seeking from the Government?
We have urged the government to consider raising the import duty on finished goods from 10 per cent to 20 per cent. Additionally, we have expressed concerns about the challenges faced from environmentalists. While we are committed to being law-abiding citizens and complying with GST regulations, it is essential to strike a balance where we can contribute to environmental preservation without constantly being scrutinized. We are willing to undertake necessary measures for the environment, but it is important to avoid undue harassment and maintain a fair approach.