Professional Documents
Culture Documents
A Reliance Publication for the Polymer Industry Issue 1 April - June 2006
“Between my past, the present
and the future, there is one
common factor: Relationship
and Trust. This is the
foundation of our growth.”
Dhirubhai H. Ambani
Founder, Reliance Group
P O L Y M E R B I Z
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Editorial
3
M E S S A G E S 5
Which path does Reliance Industries plan to take to uphold its position as the industry leader in
polymers? RIL visionaries at the helm reach out to customers, focusing on the way forward.
C O V E R S T O R Y 8
The Indian Polymer Industry: On the Fast Track
With sophisticated and world-class high capacity machines,
enhanced design capabilities, technological know-how, improved productivity and asset utilisation,
global practices in production, quality and design, development of new products and applications,
India, by 2010, would be the third largest polymers consumer in the world. A report.
S P O T L I G H T 1 2
A focus on the plastics industry’s high performers, RIL’s customers who have dramatically
transformed our industry with their dynamic leadership – The Supreme Industries Limited, Cosmo
Films, and Jain Irrigation Systems Limited.
B U I L D I N G B O N D S 2 5
A report on the various Customer Relationship Management initiatives.
M A N A G E M E N T F O C U S 2 7
Six Sigma – Making it Work for You
It is today’s most talked-about system for improving the quality of organizational processes. Six Sigma
– the two power words that top companies are using to hone their performance. An insight into what
the programme is all about.
C O R P O R A T E N E W S 2 9
CFTRI Approval for Reliance’s PE and PP Grades for Food Contact Applications
F A I R S H A R E 3 0
Looking back on and forward to some of the prestigious
international and national trade fairs and exhibitions.
P O L Y M E R B I Z
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W
e are focused on delivering
services.
Mukesh D. Ambani
Chairman and Managing Director,
Reliance Industries Limited
P O L Y M E R B I Z
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Messages
Messages
O
ver the past five decades the Plastics Industry has grown and has touched every facet of our lives –
from packaging of items for daily necessity to products with enhanced functionalities in agriculture,
housing, healthcare, automotives, consumer durables and infrastructure. The industry has occupied
a unique position in meeting the growing material needs of consumers.
The Plastics Industry in India, broadly categorized into resin manufacturers,
converters and end-product fabricators, plays an indispensable role in our
economy. Indian plastics processors have proactively established a significant
presence in many SAARC, African and Middle East countries.
There is a huge latent demand for plastics in India. We need to undertake
aggressive market development activities, both in India and in overseas
markets, and work towards accelerating growth and enhancing global competi-
tiveness.
We have all the core competencies like knowledge, skill, and more impor-
tantly, the burning desire to stimulate growth. We have to continuously evolve
processes that create compelling value in the entire value-chain in the markets.
We need to work closely with our customers and develop products suited to the My vision for our
needs of consumers. The Indian processing industry has all the core competen- industry is to
cies to capture global markets. It is imperative for us to create brands in global make India the
markets, leveraging “Brand India”! global plastic-
My vision for our industry is to make India the global plastic-processing hub. processing hub.
And to achieve this, the Indian plastics processing industry needs to leverage its
core competencies to be a part of the global league.
As a committed player in the region, Reliance has been relentlessly working towards providing world-class
products and services to customers, end-users, consumers and society.
I wish to reiterate our commitment towards partnering with our customers and business associates for the
overall development of the Indian plastics processing industry.
Nikhil Meswani
Executive Director,
Reliance Industries Limited
P O L Y M E R B I Z
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Messages
T
he plastics processing industry in India has come a long way in five decades. Entrepreneurial spirit,
economic development and government initiatives have resulted in the emergence of a vibrant
industry spread across the country.
Some of the major challenges facing us are efficient management of
resources – water, forest produce, energy. Plastics
Our growth offer solutions to all these areas. Drip & sprinkler
irrigation, mulch films, plastic pipes, rainwater
aspirations are firmly
harvesting systems, etc. are valuable products for
rooted in the
effective water management. PVC profiles for
commitment to the
doors and windows and plastic furniture not only
growth of our offer better functionalities but also save energy
customers and and forest.
ultimate consumers. Our growth aspirations are firmly rooted in the commitment to the growth of
our customers and ultimate consumers. Focusing on the emerging business
and value addition opportunities in some of the important thrust markets for polymers, there is a need for
greater emphasis to look beyond traditional products – products which would enhance value and ensure
wider market access. Our proficient and effective in-house technical team, in co-ordination with customers,
tries to formulate products with tailored properties, which would result in cost effective solutions to meet the
needs of the converting industry.
I am sure that our joint efforts for sustainable development of the industry and growth of our country will
bear fruit and spur us on to greater success in the coming decades.
Kamal Nanavaty
President, Cracker & Polymers Sector
M
eeting the needs of the growing domestic market and accessing a fair share of the global market
are two important components of our vision for the Indian plastics industry. Only a modern,
efficient and contemporary industry can achieve this goal and help strengthen the Indian
economy.
Reliance, with its basket of polymers and advanced technical facilities, backed by intellectual capital, has
been channeling its marketing efforts focused on sectors such as
Agriculture, FMCG, Processed Foods, Automobiles & Appliances, Building & Meeting the needs of the
Construction, Infrastructure, Textiles and Healthcare. growing domestic market
We are committed to total customer satisfaction with an offering of and accessing a fair share
world-class products and value-added services. We have leveraged various
of the global market are
Customer Relationship Management initiatives to enhance networking and
to extend support for capability improvement,
two important
quality awareness, market development, components of our vision
knowledge dissemination, new investment for the Indian plastics
avenues and training. industry.
Our dedicated cross-functional teams for
sector development help the end customers with product and application
development inputs, trends transplantation and market extension jointly with
nodal agencies, machiner y manufacturers and leading processors by
developing sustainable cost-effective and environmental-friendly solutions.
Besides, at Reliance we constantly strive to strengthen the bond with existing as well as potential
entrepreneurs through a structured Entrepreneur Development Program (EDP).
We believe these would deliver value to our ultimate customer – the common Indian households.
Sujit Banerji
President, Polymers Business, Reliance Industries Limited
P O L Y M E R B I Z
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Cover Story
Global View
Within petrochemicals, commodity polymers form
the major component with a share of over 50% by
volume. Developed economies like North America,
Western Europe and Japan, account for over 60%
of the consumption of commodity polymers. In
India the per capita consumption of polymers is
one-fifth of the world average of 24 kgs. So while
the western markets are saturated with high per
capita consumption and low growth rates, there
has been an increase in capacities in other parts of
the world like Asia Pacific, South America and the
P O L Y M E R B I Z
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Cover Story
Present Scene
At present, the Indian petrochemical industry
ranks 13 th in the world and the Indian polymer
industry accounts for 2.5% of global production.
Although Indian demand is small compared to
global standards, this is among the fastest growing
markets in the world. Due to a larger presence of
traditional materials, there are greater
opportunities for substitution and consequently
accelerated growth prospect for the polymer
industry. India has shown a significantly higher
growth rate in polymer consumption in the last five
years – a rate, which is higher than in China and
other Asian countries.
Local players dominate the Indian industry.
Reliance Industries Limited (RIL) and IPCL (along
with GAIL and HPL) are among those that produce
polyethylene and polypropylene through their
integrated petrochemical complexes. RIL has a
large petrochemical complex at Hazira in Gujarat,
which also houses the largest naphtha cracker in
Asia. IPCL, now a Reliance Group company, has
three petrochemical sites. In PVC, the major
polymer players with integrated crackers cover over
60% of the countr y’s production. The PS industry
in India is dominated by Supreme Petrochem Ltd,
which commands around 63% of the capacity.
In spite of liberalization and current government
policy, foreign investment in Indian petrochemical
sector has been insignificant compared to China.
The liberalization process however encouraged
large capacity addition and RIL was the first to
Middle East. Asia Pacific’s share of global ethylene move in, in 1991. Today Reliance is the seventh
(the important basic petrochemical for commodity largest polypropylene in the world and its naphtha
polymers) has increased from 19% in 1990 to cracker at Hazira is one of the largest multi feed
25% in 2001. cracker in the world. With its international supply
A major reason for this increase has been new chain and a strong Research and Technology
facilities built in China, ASEAN countries and platform, Reliance strategy is clear – to enter the
India. The transformation is indeed revealing. Back Global Top Five Club by implementing large plants
in 1990, China and ASEAN were minor net ahead of demand and exploit the benefit of scale.
importers of polyolefins and Japan and South
Korea were minor net exporters. By 1998, China Applications & Markets
had emerged as the largest global importer of all Plastic products are widely used in packaging,
commodity polymers such as PE, PP, PVC and PS construction, appliances, automobiles and other
and its trading pattern affected the prices of these sectors. These are ubiquitous today. Supporting the
polymers in the East Asian and global markets. quality of life in every sphere, be it at home, in
P O L Y M E R B I Z
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Cover Story
recreation or at work. Imagine cars without plastic play a pivotal role in effective Post Harvest
bumpers, dashboards, steering wheels and Management.
switches; healthcare without plastic hypodermic The low profile Indian Packaging industry has
syringes and artificial hip joints. Telephones, circuit been transformed into a high profile industry with
boards and cable insulation have made the introduction of polymers. Polymers have
telecommunication very much dependent on emerged as a preferred packaging medium for
polymers. Our entertainment and leisure relies on FMCG. It constitutes more than 35% of total
the unique combination of properties offered by polymers consumption and is expected to grow to
polymers in sports equipment and clothing, CDs, 45% by 2010. Efficient and colourful packages
video and audiotapes, television and cinema. made from polymers have made FMCG products
Infrastructure, Agriculture, Packaging, Consumer both attractive and affordable to masses.
Goods, Automobiles & Appliances and HealthCare Polymers are the key ingredients to Flexible
are the key growth markets for the Indian Plastics Packaging sector, meeting the dynamic, ever
industry. changing and demanding needs of a wide range of
Wide usages of polymers are seen in the industries and end users. It has emerged as the
building and construction industry. Polymers are most versatile, lightweight, cheap and attractive
used in pipes, profiles, electrical wiring, sewerage mode of packaging. It meets diverse needs of food
and water management, floors/wall coverings and companies to pack commodity, snacks, biscuits,
furniture. PP, PVC, PS, PU and other engineering ready-to-eat and semi cooked foods. It also helps
polymers play pivotal roles in appliances and to pack non-food products ranging from seeds,
consumer goods industry. pesticides, tyres, lube oil, distemper, detergents,
Government is seriously promoting Micro shampoo and many other products. It provides
Irrigation and Rainwater Harvesting. Micro protective packaging to rubber, steel and glass
irrigation is looked upon as an initial step towards industries in the form of release films. Bubble and
precision farming. This will definitely fetch the foam films are widely used as protective packaging
Indian Agriculture Industry a respectable position across products and shrink and stretch-wrap films
in the global arena. Micro irrigation, Mulch film, help pack products for markets and cargo for
Greenhouses, low tunnel are some of the exports. The Pharmaceutical industry would find it
important applications in the agriculture sector. very difficult to market their tablets/capsules
Plastics in bulk packaging, materials handling will without flexible packaging.
P O L Y M
M EE R
R B II Z
10
Cover Story
high performance products. While the domestic India offers one of the fastest growing
market is the primary focus, the industry has all infrastructure opportunities in the world. With a
the requisite characteristics to become an export strong focus on improvements in social and
hub for processed polymers goods due its low cost physical infrastructure, the sector will be attracting
structure and consistent quality. investments of more than US$ 200 billion over the
next 5-6 years. The Retail sector in India is
estimated at US$ 240 billion, with the organized
sector accounting for US$ 5 billion, and growing at
@ 40% annually. More than 600 Malls are under
planning and construction in more than 50 Indian
cities. Agriculture is yet another field where
polymers are becoming more and more popular in
order to address to the issues like land
productivity, water management and post harvest
management, imperative for the second green
revolution.
Demand for all polymers in India during 2005-
06 was close to 5 million tonnes. Chem Systems
Inc. – a global chemical consulting company –
predicts a slower build-up to these levels of
consumption. By the end of this decade the
country is likely to emerge as the third largest
market for polymers (12.5 MMT). This would still
leave it way behind the developed world in terms
With abundant raw material available, Indian of per capita usages of polymers. India would thus,
downstream processing (converting) industry is continue to provide opportunities for healthy
capable of becoming a global outsourcing base for growth in demand for polymers for the next decade
products but needs upgradation in terms of as well before it matures to the level of developed
capacities and technical capabilities. markets.
It is estimated that to match the consumption With import dependency down to 10% in
by 2010, Indian processing industry would require 2003-04 and the huge gas finds in India offering
30,000 additional machines and around 9.5 feedstock security, the long-term prospects look
billion US$ project investment, Enhanced design bright. Moreover, the export market is also on the
manufacturing clubbed with consolidation will upswing as India emerges as the global
transform India into a seaboard for commodity outsourcing base for polymer products. However
value added specialty and high performance there is a need for technology upgradation in
products. Many investors from the developed downstream converting industry. With
economies are currently exploring India as a sophisticated and world-class higher capacity
possible destination for setting up processing units. machines, enhanced design capabilities, moulds,
tools and dies and technological know-how,
Outlook for India improved productivity and efficient asset
A strong focus on social and physical infrastructure utilisation, global practices in production, quality
and a second green revolution retail boom are and design; development of new products and
going to be the drivers for the Indian Plastics applications, India, by 2010, should emerge as
industry for the years to come. the next converting hub for global polymer
industry.
P O L Y M E R B I Z
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Spotlight
P O L Y M E R B I Z
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Spotlight
13
Spotlight
How do you maintain this leadership position? Today we avoid employing more than 100
A good question. The truth is, we are very workers in any of our factories compared to the
dissatisfied with our position today. To us, our labour-intensive operations of our competitors in
current turnover of US$ 200 million is hardly an China and other Asian countries where several
impressive one. We would call that ‘small’ units employ more than 5,000 workers churning
considering the US$ 2-3 billion turnover of my out huge volumes and a large variety of products at
compatriots in the global markets. Even the high a single site.
standards of our production, product quality and But we firmly believe that this is going to
the service-oriented initiatives are not able to push change. Opportunities to grow in the business will
our growth potential to its fullest extent. The main surely come. These constraints will be removed
reasons are high incidence of indirect taxes i.e. sooner than later. So, we stay very committed to
Excise and Sales Taxes and the rigid labour policy. plastics.
Besides, though the plastics processing sector What are your views about China’s emergence
in India comprises an impressive number of units, in this industry?
it is still constrained by a small-scale ethos, China is a huge player in plastics (consumption in
which reserves investments and production of 2004 was 34 million tonnes). The industry in
several products for this sector only thus denying China has responded with tremendous resilience
economies of scale and encouraging large imports and innovative power to meet market challenges
of plastics goods. and stride ahead. Comparatively, India is way
behind. Today, the burning issue is the threat we
Among India’s best-known brands, Supreme crates are
face from China. How can we compete against this
suitable for versatile applications
giant? The Government has tied our legs and
expects us to run a marathon. Today, though we
have embraced globalization, yet the much-needed
internal liberalisation policy has not come. Now,
we are vulnerable and open for the outside world
to invade our markets. Our industry is not geared
up to step beyond the threshold of the domestic
market.
P O L Y M E R B I Z
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Spotlight
P O L Y M E R B I Z
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Spotlight
COSMO FILMS
Today BOPP films are used all over the world as Globally, the BOPP market has seen a positive
the favoured packaging material for a wide range growth, increasing at 6% annually. The growth in
of food products including snacks, biscuits and the Asian region has been the highest with a
confectionery as well as cigarettes, shaving blades, double digit increase. The Indian domestic BOPP
market has been growing @ 15 - 20% per annum.
Since the per capita BOPP consumption in India is
The Manufacturing Edge much lower as compared to western and other
Cosmo has world-class production lines from Asian countries, the potential for demand growth
Bruckner and DMT with three and five layer here is quite high. In view of this growth potential,
dies. The company’s state-of-the-art manufac- Indian BOPP manufacturers have expanded their
turing facilities offer three and five layer films as capacities.
per the product need and application. Its By building exports at reasonable margins, India
Cascade extrusion facility provides higher has substantially countered the threats of imports.
productivity utilizing the capacity effectively. The present level of BOPP imports in India is less
The orientation is effected with two stage than 10% of the total BOPP consumption. This is
stretching in longitudinal and transverse very encouraging.
directions. So the situation is well in control for India, and
Superior winders with the latest winding there is tremendous scope to sprint forward to
technology are used for production of heavy and reach the impressive potential level of China in the
very large size mill rolls. next 10 - 12 years. In fact, China’s present
capacity is 2 million tonnes.
Cosmo’s 5-line BOPP films Plant in Aurangabad. The lines Hi-speed slitting of heavy and large size mill rolls
offer tremendous flexibility as each line can be dedicated
to a specific type of film
Has volatality in crude oil and polymer prices
affected the BOPP film industry?
There are two ways of looking at
it. The high rise in crude oil prices
in the last one year impacted the
cost of polymer, which is the basic
raw material for BOPP films. This
in turn has led to higher cost of
our products. Also, packaging in
India is shifting from paper,
aluminum and glass to flexible
P O L Y M E R B I Z
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Spotlight
19
Spotlight
How encouraging is the Government support to a growth of 22% over the previous year
20
Spotlight
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Spotlight
Jain Group has been in the news recently for its EOU for dehydration of vegetables with a capacity
string of acquisitions of companies in India and of 2,000 tonnes per annum located at Dhobikuva
abroad. Can you provide us with some details village, Taluka Padra in the district of Vadodara in
about that? the State of Gujarat.
Domestic Acquisition
In May 2005, we acquired a 45% stake in Terra
Agro Technologies Limited (TATL), Coimbatore, for
Rs. 130 million. TATL was incorporated in Novem-
ber 1994 as a 100% export oriented unit (EOU) for
captive cultivation and processing of dehydrated
vegetables solely for export. We believe TATL’s
holdings of developed and irrigated land in southern
India will give us a strategic foothold to expand our
integrated product offerings in that region.
In January 2006, we acquired the undertaking
of LMP Gujarat Agro Exports Limited (LMP) for a
Greenhouses built by the Jain Group
purchase price of Rs. 53 million. LMP is a 100%
Overseas Acquisition
On January 24, 2006, we signed an MOU to
The Jain Group…
invest up to US$ 3 million in the debt and equity
Irrigation Systems and Pipes and Pipe Fittings
Components of US start-up company, Nu Cedar Mills Inc. (Nu
z PVC Pipes and Pipe
z Drip Irrigation Systems Cedar). Nu Cedar plans to focus on the manufac-
Fittings ture, distribution and installation of PVC sidings for
z Sprinkler Irrigation
z PE Pipes and Pipe home building products. We believe Nu Cedar’s
Systems
Fittings proposed operations are complimentary to our
z Valves
Plastic Sheets current PVC sheets business.
z Water Filters
z PVC Sheets We are currently taking steps to incorporate in
z Fertigation Equipment
z PC Sheets South Africa a second Generation wholly-owned
Value Addition for
subsidiary under the name of Jain Irrigation SA
Agriculture Solar Energy
(Pty) Limited (JSA). It is intended that JSA will be
z Green Houses z Solar Water Heating
based in Johannesburg, South Africa, and will be
z Plant Tissue Culture Systems
responsible for administering our exports to Africa.
z Nursery Plants and Turnkey Services In February 2006, we acquired through our UK-
Systems z Turnkey Project based subsidiary, Jain (Europe) Limited, an
z Bio Fertilizers Services approximately 7.5% stake in the capital of
Processed Food z Roof Cooling Systems Eurodrip S.A Irrigation System (Eurodrip), one of
z Fruit Processing z Agricultural and Europe’s largest micro irrigation companies. This
z Onion and Vegetable Engineering acquisition follows our execution of an MOU with
Dehydration Consultancy Eurodrip which contemplates our working together
in a synergistic and complementary manner, such
A view of the Jain Injection Mould Plant as by purchasing and distributing each others
products.
Jain Irrigation has acquired 100% shareholding
control of Chapin Watermatics, New York, USA,
through its second generation wholly-owned
subsidiary, Jain (Americas), at approx. US$ 6
million in cash and debt with deferred payment
terms. Chapin Watermatics Inc. USA is a pioneer
P O L Y M E R B I Z
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Spotlight
and leading manufacturer of drip tape and is The Jain Group is known as India’s only one-
known as a complete source for field crop, nursery stop high-tech integrated agricultural shop. What
and green house drip irrigation systems. exactly do you mean by this?
Farming in India is no longer confined to
sustenance farming. It is looked upon as a
Distinctions earned by the business. To be able to do this as a business, the
Jain Group: modern farmer must be able to economize on his
z Rs. 2,896 million exports in FY 2005-06, inputs, so that costs towards fertilizers, labour, etc.
some to the toughest markets in the world will reduce and he can produce the maximum.
z The largest producer of plastics in India Yields in Indian agriculture are ver y low, compared
z Pioneers of micro irrigation systems in India with other countries. Jain Irrigation provides the
z The only manufacturer producing the widest farmers with their entire needs, helps the farmers
range of plastic sheets (PC &PVC) under one reduce the amount of inputs, reduce costs and at
roof the same time increase the amount of output
z ISO-9001 from RWTUV, Germany for PVC (yield) – to get 30/40% and sometimes even
pipes and fittings, polytubes, emitting pipes, 100% more yield for various crops. There is no
plastic sheets, onion dehydration divisions other company so uniquely positioned. Jain
and fruit processing Irrigation provides not only the inputs but also
advice and services and helps the farmer
throughout the entire crop-cycle to grow more, e.g.
How has the Indian agricultural industry irrigation, fertigation equipment, plant-material,
evolved in the last 20 years? Can you give us a seed material, advice on how to grow his crop, buy
general idea about future growth? what he grows, etc.
Agriculture has been lagging behind in the last 20
years. Investment in agriculture has been
Tell us a little about your exports.
We have a large amount of exports. We export PVC
continuously going down. It has been a neglected
sheets, poly-carbonate sheets, micro irrigation
sector and the problems of natural resources like
systems, dehydrated onion and other processed
seasons, monsoons still hit hard. There have been
fruit products. In the financial year ended March
some success stories on horticulture side but by
2006, we exceeded Rs. 2,896 million in overall
and large it has been a dismal picture. However,
exports, of which sheets was Rs. 1,869 million,
the irrigation industry is looking forward to good
pipes & micro irrigation systems was Rs. 308
times because there is a lot of latent demand.
million and dehydrated onions and processed
Water management is an important issue and
foods was Rs. 719 million. We also export our
efficient irrigation systems are very essential for the
pipes but comparatively in smaller quantities. We
country. Government of India has agreed to put
supply our various products to about 70 countries
large amount of new resources in micro irrigation
all over the world. On a global scale, we must be
systems.
among the top three in the world in plastic
The Jain Plastics Sheet Plant
sheeting.
When we talk about plastics, what are the
growth areas in the Indian agriculture industry?
Do you think the Government can help the growth
of the plastic industry in anyway?
Irrigation is an area that will continue to grow –
water-management systems are where a lot of
plastics are used. In the future, mulching has great
growth prospects. Plastic usage in piping
application will continue to grow due to focus and
P O L Y M E R B I Z
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Spotlight
additional investment in the irrigation sector. been very favourable for the industry except in
I think the way the Government can help is to certain sectors.
put usage of these items in agriculture on a 0% However, during the last two years lot of new
VAT category and possibly reduce the excise duty capacity has been added due to auto business as
of these items from 16% to 8%. These taxes make well as more industrial demand. Government
it very expensive for the farmer, so a reduction will spending on infrastructure is also improving which
help to increase the growth. shall result in higher demand for
What are your views on the pipes, etc.
development of the Indian plastic Tell us more about your R&D
processing machinery sector? facilities.
I don’t think India is producing We have huge R&D facilities on
material or equipment of the the agricultural side – a 1,000-
quality that can give you global plus acre R&D farm in Jalgaon,
scale, throughput that will allow Maharashtra. On the farm we
you to compete in all markets. have a training institute where
Domestic manufacturers also need we train farmers, trainers and
to improve on the raw materials government officials. Recently we
side and make available better have taken over a new company
grades to suit these applications. Mr. Bhavasrlal Jain – Founder near Coimbatore which also has
While lot has been done we need Chairman, Jain Irrigation Systems 1,200 acres of land. We plan to
Limited.
to fan and do far more. do R&D even at that location
Accolades which will help our customers/
In 1997, Irrigation Associa- farmers in Southern India.
tion, USA, conferred the
‘Crawford Reid Memorial What are the future challenges
Award’ on Mr. B.H. Jain in for Jain Irrigation Systems?
recognition of “his significant Drip-irrigation is growing quite a
achievements in promoting lot, it helps the farmer to save
proper irrigation techniques
water and improve productivity
The Jain Polytube and Inline Plant and in fostering major
and at the same time save labour
advancements in the industry
Can you give us an overview of outside the United States.” as well as fertilizer. It’s a
the polymer industry and its Mr. B.H. Jain is the first revolutionary technology and it is
future growth prospects? Indian and the second Asian something without which India
The growth of the polymer to have received this Award. cannot go forward. The potential
industry was stagnant over the last This Award recognized the and challenges are enormous
few years because polymer prices fact that Mr. B.H. Jain because in India we have small
envisioned and raised an
went up considerably. In the end, land-holdings of about one
altogether new micro
for products in India, cost is hectare. To be able to deliver the
irrigation industry in India in
always a big criterion. As a a scientific way. products and services in the
processor you can’t always pass hinterland costs a lot of money
on the price-increase to the and requires a lot of resources
customers. That has given a set- and patience. So while the
back to the industry and not many opportunities are many, there are
people have added capacity over also challenges, so unless you
the last few years in the industry. are very committed to the subject
This is not a good sign. So overall sector and are willing to put in a
The Crawford Reid Memorial large number of resources you
for the last 3-5 years,
Award
developments in India have not cannot succeed.
P O L Y M E R B I Z
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Building Bonds
RIL’s Customer
Relationship Management
Initiatives Spell Success
“Between my past, the present and the future, there is one common factor:
Relationship and Trust. This is the foundation of our growth.” – Dhirubhai Ambani,
Founder Chairman, Reliance Industries Limited
e believe that any business coordination among sales, marketing, service
25
Building Bonds
P O L Y M E R B I Z
26
Management
Focus
Six
Sigma Measure of Customer
Oriented Performance
It is today’s most talked about system of improving the quality of organizational
processes. Business analysts have termed it a factor to achieve positive results.
Six Sigma – the two power words that top companies are using to hone their
performance. What is Six Sigma all about, how can it streamline processes to-
wards zero waste and more profits… An overview from Madhavan Radhakrishnan
of Reliance.
ix Sigma is a business Six Sigma is based on a project
breakthrough management approach and general/statistical tools
S strategy adopted by
leading multinational
are heavily used in this exercise. Six
Sigma recognizes the direct
organisations across relationship between the number
the world. A quality measure and of defects in a Process, Product
improvement programme and Customer Loyalty. Six
developed by Motorola, Six Sigma helps identify defects in a
Sigma focuses on the control systematic manner and apply
of a process to the point of suitable solutions to reduce the
plus/minus Six Sigma (stan- defects.
dard deviations) from a
centerline, or 3.4 defects per million The Six Sigma Philosophy
items. The strategy was initially The Six Sigma philosophy is that
implemented by Dr. Mikel J. Harry (the good is not good enough. As the
Father of Six Sigma) at Motorola and later organization advances in Six Sigma
on by GE, Ford, ABB, Dupont, Sony, implementation, the customers will
General Motors and many other organizations perceive flawless performances in their
enabling them to save and earn billions of dollars. services. Six Sigma means maintaining the defect
Six Sigma includes identifying factors critical to level of 3.4 per million opportunities particularly
quality as determined by the customer: reducing in the core business processes.
process variation and increasing stability, improv- Many of the international organizations that
ing capabilities and designing systems to support implemented this breakthrough strategy were at
the Six Sigma goal. 4 Sigma level – i.e. defects of 6,210 per million
opportunities. Based on US data, the example at
4 Sigma level (99% good) are as follows:
Application
z 20,000 lost pieces of mail per hour
z Drive results
z 15 minutes of unsafe drinking water per day
z Maximize Six Sigma
z 200,000 wrong drug prescriptions per year
z See results
z No electricity almost seven hours per day
z Achieve and sustain
Six Sigma promises 99.99966% process
z Unifying strategy and education effectiveness and efficiency. The two terms are
z Transactional data audit focused on very critical and have direct impact on the bottom
improving performance. line of the organisation and customer loyalty:
Effectiveness quantifies how effective an
P O L Y M E R B I Z
27
Management
Focus
28
Corporate
News
PLASTINDIA 2006
A Resounding Success!
PLASTINDIA 2006, the world’s second largest
Plastics Exhibition, came to a close after a re-
Mr. Nikhil sounding success. The six-day mega event, with Dignitaries at the Recycling Pavilion, one of the
Meswani the theme ‘Access Opportunities’, made its mark at initiatives supported by RIL
Pragati Maidan, New Delhi, from February, 9 - 14, The impressive Reliance Pavilion
2006. Spread over a
sprawling 76,000 sq. m.
area, PLASTINDIA
2006 had nearly
Mr. Kamal 1,250 exhibitors
Nanavaty showcasing their
products and
services.
Playing a vital role in
this prestigious
plastics exposition was Reliance Industries Limited. Of special mentions was RIL’s involve-
Mr. Sujit ment in the Recycling Pavilion, PROPLAST (both in Hall 18), Plasticulture Show
Banerji (Agripark), and Plastic Plazas.
Mr. Nikhil Meswani, Executive Director, RIL, was
the Guest of Honour at the inauguration. Mr. Kamal
Nanavaty spearheaded
PLASTINDIA 2006 as
Chairman, National
Customer Executive Council
interaction
at the (NEC). Mr. Sujit Banerji
Reliance acted as Chairman of
Pavilion.
ASCENT (Advertising,
The Plasticulture Show at Agripark (above)
Seminars Communica- and Plastic Plazas (below), the other
tions Extension and initiatives supported by RIL
Technology) Committee.
Participating in the exhibition on a 1,400 sq. m. area (Halls 8 & 9), Reliance made an impres-
Coming sive presence showcasing its entire value chain in the petrochemi-
cal business
Up!
sector in an
NPE, USA’s largest trade event dedicated to the plastics innovative
N industry, is being held at Chicago from June 19-23, way. The
2006
CHINAPLAS
A Boost to Plastics
Chinaplas 2006, the 20th International Exhibition on Plastics and Rubber Industries, held from
April 26 - 29, 2006, in China, was a huge success. Said the mega show’s organizers, “This year’s
event was a record breaker with the show attracting around 1,100 exhibitors. More than 80,000
visitors (8,000 from overseas – representing more than 73 countries) attended the exposition at the
Shanghai New International Expo Centre, Pudong, Shanghai, PR China.
The theme zones included chemicals and raw materials, machinery, auxiliary and testing equip-
ment, rubber equipment, Chinese export machinery and semi-finished products.
Plastics and Rubber in Autoparts Production, Plastic Packaging in Food & Beverage Industries –
New Materials and Technologies for the Changing Market, and the latest applications of Modified
Plastics and New Injection Technologies in Electronics and Electrical Appliances – were the themes
of the conferences that were conducted in the convention centre of the exhibition.
Reliance exhibited its products and services at Chinaplas in the Chemicals and Raw Materials
zone, with a stall spread over an area of 240 sq. m. The pavilion was acknowledged to be one of
the best with its elegant design and open spaces for visitor interaction, conferences and meetings. It
went on to attract around 2,000 visitors.
PPP 2006
Spelling Optimism
Plastic, Printing & Packaging Pakistan (PPP) 2006, the third
International Plastic, Printing & Packaging Exhibition was held
at Karachi Expo Centre, Pakistan, between May 9 and 12,
2006. The event was supported by the Ministry of Industries
& Production, the Govt.
of Pakistan, the Board of
Investment, Pakistan,
and the Pakistan Plastic
Manufacturers Associa-
tion.
The exhibition showcased the latest trend-setting equipment
with a focus on plastic, printing and packaging related ma-
chinery, equipment and technology.
Reliance participated in the exhibition with a stand area of 100 sq. m. (Hall 4, 130) in the Raw
Materials Hall.
P O L Y M E R B I Z
31