Plastchem Industries

In Conversation

Polymerupdate : Can you tell us something about the early days of your start up ?

Mr. Pavan Saraf : I entered this business with the trading of plastic raw material (imports) in 1989. I used to import HDPE, LLDPE and PP from Mobil and Sabic. The import volume when I started was nearly 500 tons per month. Later on I started importing from Korea, Japan, Yugoslavia and Thailand.

Polymerupdate : What would you say was the turning point in your career ?

Mr. Pavan Saraf : The turning point in my career came when I took the agency of Haldia Petrochemicals Ltd (HPL) in 1999. I was appointed as an agent for the Western Indian region which covers part of Maharashtra, Daman and part of Gujarat. I have been the highest selling agent for Haldia since the last several years.

Polymerupdate : Could you tell us something more about HPL since you have been associated with the company all these years ?

Mr. Pavan Saraf : My association with HPL has been very fruitful in all these years. The superiority in quality of material from HPL can be gauged from the fact that when the first truckload of material rolled out form the HPL plant on 10th June, 2000 the customers lifted the material without demanding a trial. Today, after 7 years in the petrochemicals business, HPL has achieved a respectable position in the domestic PP and PE markets. I feel that a customer focused approach and continuous improvement in products quality has helped HPL become a dominant market player today in India.

Polymerupdate : What is the volume of polymers handled by your company ?

Mr. Pavan Saraf : When I took the agency of Haldia, during feed marketing time the quantity handled by our company was 10,000 tons which had increased to 25,000 tons per year in 2001. Currently, we are handling nearly 55,000 tons of materials per annum.

Polymerupdate : How do you foresee the polymer market in India ?

Mr. Pavan Saraf : I foresee a tremendous growth in the polymer market in India in the range of 10 to 15 percent over the next couple of years. Unless new capacities commence operations, there will be a shortage of materials till 2009. The end product market is good for manufacturers who have large volume operations. However, for the small scale players, things will become difficult over a period of time as the investment required to enter the business is huge.

Polymerupdate : How do you see the demand for different types of polymers in the future ?

Mr. Pavan Saraf : HPL is the market leader in grades like F5400 HMHDPE Film and B6401 Blow Moulding. I would like to mention here that in the near future, there will be a tremendous scope for the growth in raffia sector which is a key material used for packaging in fertilizers and cement industry. With the huge spurt in growth in the number of malls, I foresee a tremendous demand for packaging films. BOPP also has a tremendous scope and has almost replaced PP film. However, since manufacture of BOPP is capital intensive and requires huge investment, its production is not viable for small scale manufacturers. A good growth in pipe is also seen considering the various infrastructure developments in India.

Polymerupdate : What do you think are the challenges which will be faced by the new entrants in the polymer business in the current scenario ?

Mr. Pavan Saraf : Trading in the current market scenario is difficult for new entrants as customers want to conduct business with known names in the industry. There is also a squeeze in margins which has reduced profits.

Daman Office:
3, Diamond Indl. Estate,
Bldg No. 2, Somnath Road,
Dabhel, Daman - 396210

plastchem@mtnl.net.in