Table of contents

ChapterName

Particulars Page No.

1 AcknowledgementDeclarationCertificateExecutive Summary

IIIIIIIV

3 INTRODUCTION OF COMPANY Company Profile Product Profile

INDUSTRY OVERVIEW Indian Petrochemical Industries Indian Pharmaceutical Industry Pharmaceutical Packaging Industry

3-910-14

16-1718-2223-25

4 INTRODUCTION TO THE PROJECT 26-305 RESEARCH METHODOLOGY 31-366 DATA ANALYSIS AND INTERPRETATION 37-457 MAJOR LEARNING 468 LIMITATION AND CONSTRAINS FACED 4710 CONCLUSION 4811 SUGGESIONS AND RECOMMENDATION 49

12 REFERENCES ANNEXURE

Page | 1

COMPANY PROFILE

Haldia Petrochemicals Ltd (HPL) is a competitive modern naphtha based

Petrochemical Complex located 125 kms from Kolkata, at Haldia, West

Bengal,India.

It is a prestigious Joint Venture project having the Government of West

Bengal, The Chatterjee Group, the TATAs with the Indian Oil Corporation,

etc. as major stakeholders with an investment of Rs 5864 crores.

Page | 2

HPL is the second largest petrochemical industry in India with a total

capacity equivalent to 7, 00,000 TPA of ethylene. Process technologies for

various manufacturing plants have been selected from internationally

renowned vendors with an aim to produce world class products with

excellent safety and environment considerations.

Notable process technology suppliers and contractors for the project include–

Plant Technology Contractor

Naphtha Cracker Unit Lummus, USA Toyo Engineering, Japan

Butadiene Extraction Unit BASF, Germany Lurgi,  GermanyBenzene Extraction Unit Lurgi, Germany Lurgi,  GermanyPyrolysis Gasoline Hydrogenation Unit Axen, France Lurgi,  Germany

C4 Hydrogenation Unit Axen, France SAIPEM, IndiaHigh Density Polyethylene Mitsui, Japan Daelim, South KoreaLinear Low Density Polyethylene

Lyondell Basell, Netherlands Technimont, Italy

Polypropylene Lyondell Basell, Netherlands Daelim, South Korea

Haldia Petrochemicals Ltd. will not only benefit the plastics industry in the

Eastern Region, its presence is expected to bring in much needed new

investments in end-use sectors such as processed food, edible oil, cement,

fertilizer, detergents, lube oil, automotive parts, thermo ware, electronics,

mosquito nets etc.

Page | 3

Business Development Group of HPL

HPL has formed a Business Development Group (BD Group) to facilitate

investment in plastics processing capacity. The BD Group is constantly

monitoring the market, identifying products, which can be exploited

commercially, conducting surveys and preparing project profiles to provide

necessary inputs to potential investors.

Recently the Business Development Group of Haldia Petrochemicals Ltd. is

focusing more on creating market to catalyse the market demand of plastics

finished products in general and more so in the eastern region of the country.

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This process will help creating an interest among the prospective

entrepreneurs to invest in the high demand segments, thus boosting the

overall consumption of plastics in the region. The company is focusing more

on the agro based industries, as it has identified rural market and agro based

sector are relatively untapped segments, and a huge growth potential for

plastics consumption exists in these segments. Now company has focused on

the Lube industries, which have a great potential in the eastern region. With

faster industrial growth, and especially increase in agricultural sector, the

Lube market shows speedy growth in this sector.

Business development effort in the eastern region has also borne fruits.

Compared to the all India industrial growth figures of 6.3% last fiscal, the all

India polyolefin market growth was ~8.7%. The growth in consumption in

the eastern India was 11% and the consumption in West Bengal grew by a

stunning 20%.

Opportunities of Business Development Group

Rapidly expanding Eastern Region Market. (Examples of end-products

include plastic woven sacks, Leno bags, Ropes & Twines, Carry bags,

Moulded furniture, Crates & Bins, Roto moulded items, Tatami mats )

Opportunities to export to neighboring countries.(Examples of end -

products include Carry bags, Tarpaulins, Woven sacks, FIBC, etc )

Availability of good infrastructure and Single Window clearance by

WBIDC.

Page | 5

Major Milestone

Year Key Events2010 Sucessful completion of project Supermax2009 HPLCL buyout and management control2007 Turnover exceeded 2 Billion USD. Reported maximum

PAT since inception2005 Capacity enhanced by 25%2004 Reported PAT for the first time. Turnover exceeded 1

Billion USD2003 Corporate Debt Restructuring (CDR) Approved2001 Commercial production started.

Page | 6

2000 Project Commissioned. Trial production started1997 Project construction started1996 Land Acquisition completed1994 MOU signed between WBIDC, Chatterjee Fund

Management, Soros Fund Management & Tata group of companies for implementation of HPL Complex through a joint venture co.

1992 Environmental Clearance of the project received1985 Incorporated as a public limited company

Impact on the Eastern Region

The coming of Haldia Petrochemicals Limited has not only had tremendous

impact on the resurgence of West Bengal but on the entire eastern region.

This is the largest investment in West Bengal after Durgapur Steel Plant in

the 60s.

The plastics sector – often referred to as the “Sunrise Industry” – had not

grown sufficiently in the East, due to the non-availability of raw materials

in the region.

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The Eastern Region with the population of almost 300 million people

converts only about 225 KTA of polyolefins. The consumption of plastics in

West Bengal is 3.1 kg/capita as compared to an average 3.8 kg/capita of all

India levels. This is miniscule when compared to the world average of

23kg/capita.

Consumption trends for finished plastic goods in the ER is at par with the

other regions of the country and as a result, a lot of products – both consumer

and specialized industrial products are imported into the Eastern Region from

different parts of the country.

With the commercial operation of Haldia Petrochemicals Limited in full

swing and the consequent availability of high quality raw materials, there

exists a tremendous opportunity for manufacturing these products in the

Eastern Region.

Vision

To be a profitable, efficient and customer focused organization, recognized as

a leading supplier of quality products and services.

Delivering value to its shareholders.

Dedicated to achieve customer satisfaction.

Demanding, yet caring for its employees.

Demanding, yet fair and courteous to its vendors.To be responsible as corporate citizen

Page | 8

PRODUCT PROFILE

What are Plastics?

Definition: Synthesized organic substances of high Molecular Weight

(Polymers) which can be molded or shaped by flow – FIT FOR MOLDING –

and remain SOLID AT ORDINARY TEMPERATURE.

Classification:

1. Thermoplastic

Page | 9

2. Thermosets

Polymers:

The term polymer implies many "mers" or the building blocks.

A simple chemical unit repeats itself a very large number of times in the

structure of a polymer molecule. This unit may consist of a single atom, or a

group of atoms linked chemically.

Polymerization:

Polymers are macromolecules because smaller molecules are joined together

to form polymer chains. This process is called polymerization.

Those organic molecules that are suitable for polymerization are the

monomers we just discussed.

Thermoplastics:

A material that repeatedly softens by when heated and hardens when cooled.

Thermosets :

A material that gets hardened by chemical reaction once heated. It

cannot be softened further by cooling.

Examples of Plastics:

Thermoplastics:

Polyethylene – High Density Poly Ethylene (HDPE),

Linear Low Density Poly Ethylene (LLDPE),

Low Density Poly Ethylene (LDPE).

Page | 10

Polypropylene – PP

Polystyrene - PS

Poly Vinyl Chloride – PVC

Poly Acrylo Nitrile – PAN

Acrylonitrile Butadiene Styrene – ABS

Styrene Acrylonitrile – SAN

Poly Carbonate - PC

Polyethylene Terephthalate - PET

Thermosets:

Phenol Formaldehyde Resin - PFR

Melamine Formaldehyde Resin - MFR

Urea Formaldehyde Resin - UFR

TECHNIQUES FOR PLASTIC PROCESSING:

Page | 11

Compression Molding

Roto-molding ThermoformingExtrusionBlow Molding

Mono filaments

Film Extrusion

Sheet Extrusion

LaminationRaffin Tapes

Pipe Extrusion

Plastic Granules

There are various types of plastics, which can be used for preparing

packaging containers. They are mainly LLDPE, HDPE, PP, PVC and PET.

High Density Polyethylene: HDPE is the most widely used resin for plastic

containers. This material is economical, impact resistant, and provides a good

Page | 12

moisture barrier. HDPE is compatible with a wide range of products

including acids and caustics but is not compatible with solvents. HDPE is

naturally translucent and flexible. While HDPE provides good protection at

below freezing temperatures, it cannot be used with products filled at over

160 °F (71.1 °C) or products requiring a hermetic (vacuum) seal.

Low Density Polyethylene: LDPE is similar to HDPE in composition. It is

less rigid and generally less chemically resistant than HDPE, but is more

translucent. LDPE is used primarily for squeeze applications. LDPE is

significantly more expensive than HDPE.

Polyethylene Terephthalate: Polyethylene Terephthalate (PET, PETE or

polyester) is commonly used for carbonated beverage and water bottles. PET

provides very good alcohol and essential oil barrier properties, generally very

good chemical and a high degree of impact resistance and tensile strength.

The orienting process serves to improve gas and moisture barrier properties

and impact strength. This material does not provide resistance to high

temperature applications—max. temperature. 160 °F (71.1 °C).

Polyvinyl Chloride: PVC is naturally clear, has extremely good resistance to

oils, and has very low oxygen transmission. It provides an excellent barrier to

most gases and its drop impact resistance is also very good. This material is

chemically resistant, but it is vulnerable to solvents. PVC is an excellent

choice for salad oil, mineral oil, and vinegar. It is also commonly used for

Page | 13

shampoos and cosmetic products. PVC exhibits poor resistance to high

temperatures and will distort at 160 °F (71.1 °C), making it incompatible

with hot filled products

Polypropylene: Polypropylene or PP is used primarily for jars and closures

and provides a rigid package with excellent moisture barrier. One major

advantage of polypropylene is its stability at high temperatures, up to 200 °F.

Polypropylene is autoclavable and offers the potential for steam sterilization.

The compatibility of PP with high filling temperatures is responsible for its

use with hot fill products such as pancake syrup. PP has excellent moderate

resistance, but provides poor impact resistance in cold temperatures.

Page | 14

INDIAN PETROCHEMICAL INDUSTRIES

The petrochemical industry in India has been one of the fastest growing

industries in the country. This industry has immense importance in growth

and development of manufacturing industry.It provides the foundation for

manufacturing industries like construction, packaging, pharmaceuticals,

agriculture, textiles etc.

The Indian petrochemical industry is a highly concentrated one and is

oligopolistic in nature.Only four major companies viz. Reliance Industries

Ltd (RIL), Indian Petrochemicals Corporation Ltd. (IPCL), Gas Authority of

Page | 15

India Ltd. (GAIL) and Haldia Petrochemicals Ltd. (HPL) used to dominate

the industry at a large extent.

The Characteristics of Indian Petrochemical Industry:

Petrochemical Industry in India is a cyclical industry. India has one of the

lowest per capita consumptions of petrochemical products in the world. For

example, the per capita consumption of polymers is 4 kg in India, whereas

the per capita consumption is around 20 kg for the whole world.

The Growth:

The petrochemical industry in India came into existence during 1970s. The

1980s and 1990s saw some rapid growths for Indian petrochemical industry.

The biggest reason for this growth was the high demand for petrochemicals

in India, which grew at an annual rate of 13 to 14% since late 90s. The BMI

forecast of average annual growth in India over 2007-2011 is 14 to 16%.

The production of 5.06 MMT polymers during FY09 accounted for around

62% of the total production of key petrochemicals. It also achieved 88.5%

capacity utilization.

Key Segments:

Petrochemical industry is constituted of the following key segments:

Polymers:

The demand for polymers saw a growth of 13.4% during 2007,

comparing to a demand growth of 5.6% in 2006.

Polyester Intermediates: The combined production was 3,417 KT

during 2007.

Page | 16

Aromatics (Paraxylene): The demand for Paraxylene (PX) saw a

growth of 18% during 2007.

Benzene, Toluene, MX and OX: The demands for Toluene and OX

saw a contraction rate of 4% and 10% respectively during 2007.

Top Petrochemical Companies in India:

Reliance Industries Ltd.

Haldia Petrochemicals Ltd.

Indian Oil Corporation

Gas Authority of India Limited

National Organic Chemical Industry Ltd.

Bongaigaon Refinery and Petrochemicals Ltd.

INDIAN PHARMACEUTICAL INDUSTRY

The Indian pharmaceutical industry can be divided into the bulk drug and

formulations segments.

Bulk Drugs

These are the active pharmaceutical ingredients (APIs) with medicinal

properties, which are used to manufacture medicines.

Bulk drug production in the country recorded a CAGR of 20 per cent during

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the period FY1991-2001.During the period FY1991-2000, bulk drugs exports

from India increased at a CAGR of 25 per cent and imports into India was

Rs. 22.65 billion in FY2001.

Formulations

Formulations are the end-products of the medicine manufacturing process,

and can take the form of tablets, capsules, injectables or syrups.The

production of formulations in India increased at a CAGR of 17 per cent

during the period FY1991-2001. The exports of formulations from India

increased at a CAGR of 29% during FY1991-2000.

Market Structure

Indian domestic pharmaceutical market by 2005 stands at $ 5.3 billion dollar,

export in value terms stands at $ 3.7 billion and import about $ 985 million.

Number of Units in Indian Pharmaceutical Industry(Source: OPPI)

Year ----------Number of Units

1989-90------16,000

2000-01------20,053

TOP 5 INDIAN PHARMACEUTICAL COMPANIES

CCOMPANIES REVENUE (2007)

Ranbaxy Rs 25,196.48 crore

Dr.. Reddy’s Laboratories Rs 4,162.25 crore

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Cipla Rs 3,763.72 crore

Sun Pharma Industries Rs 2,463.59 crore

Lupin Labs Rs 2,215.52 crore

Pharma Industry in West Bengal

The genesis of Indian pharmaceutical industry is always traced to the state of

West Bengal. The starting point was in 1901 when the noted teacher and

scientist Acharya Prafulla Chandra Ray laid the foundation stones of Bengal

Chemical & Pharmaceutical Works Ltd (BCPL).

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BCPL is still a success story with four factories – two in West Bengal ,one in

Mumbai ,one in Kanpur

The state capital, Kolkata was considered, at one point of time, for

production of cost effective and quality drugs. Pharmaceutical industries of

Kolkata shared more than 80 per cent of the national drug production in

1940, which has gradually been reduced to less than Six per cent in 2007.

Skilled manpower is the basic input and there is an acute shortage of

manpower at all levels in the industry. It is becoming increasingly difficult to

find the right people for the right position. Human resources in the pharma

industry are not well developed at all.

The State Directorate of Drugs Control has extended a helping hand to the

pharmaceutical producers in meeting global standards in stages. The West

Bengal government is planning to announce a comprehensive Drug Policy for

the state.

Top 10 W.B. Based Companies With Turnover (2009)

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NAME OF COMPANIES TURNOVER IN Rs. Crores

Albert David 132

East India Pharmaceuticals 80

Baidynath 76

Dey’s Medical 71

Palson drugs 28

Stadmed Private 17

EMCEE Pharmaceuticals 6

Burnet Pharmaceuticals 6

G D Pharmaceuticals 3

Union drugs 5

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North East West South0

5001000150020002500300035004000

STATE WISE NUMBER OF PHARMACEUTICAL COMPANIES

Bulk drug manufac-turing companies

Drug formulation companies

West Bengal

Bihar Orissa Jharkhand0

20

40

60

80

100

120

140

Bulk Drug Co.Formulation Co.

Source: National Pharmaceutical Pricing Authority, Government of India,

New Delhi (2009)

.

Page | 22

PHARMACEUTICAL PACKAGING INDUSTRY

The packaging industry is divided into two types –

Primary packaging

Secondary packaging

Primary packaging includes blisters, tablet strip, aluminum foil

printing, glass and pet and other plastic bottles, PVC film, bottle caps,

saline bags and flips of seal.

Bottle labels, plastic wrapper, cardboard boxes and wooden cartons are

part of the secondary packaging industry.

Global View of Packaging Industry:

One market research conducted by FIND/SVP Inc. revealed that during 1993

to 1997, pharmaceutical packaging market annually grew by 4.9% and

expected to increase in the coming years. The U.S remains the leader in

pharmaceutical packaging industry, followed by Japan and West Europe.

This survey also showed that within 2011 Pharmaceutical packaging industry

is expected to grow by 5.9% per annum and is predicted to reach $34billion

mark within 2011.

Besides U.S ,Western Europe and Japan, China is prospering toward

achieving as one of the leading pharmaceutical packaging industries in the

world.Some other very strong contending contries are India and Brezil.

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Global Pharmaceutical Products Distribution in 2008

Type (%)

Rigid 57.5

Bottle 32

Blister 19

Prefilled Syringe 6.5

Flexible 42.5

Pouch 11

Tube 10.5

Vial 17

Other 4

Total 100

[Source: Institute of Packaging Professionals (IOPP)]

Page | 24

Indian Pharmaceutical Packaging Industry and Market Share of

Different Packaging Materials:

The Indian pharmaceutical companies, specially the bulk drug manufacturing

companies, may have made rapid strides in developing new molecules and in

production techniques, but have a long way to go when it comes to

packaging. In fact, as of now, packaging still takes a back seat in the whole

process.

The Indian packaging industry is growing fast in mainly three categories:

Manufacturing of glass and plastic bottles

cardboard

Printing.

The market size of the pharmaceutical packaging industry stands at around

Tk 500 crore a year, which is 7 percent of the pharmaceuticals' total market

size, according to an estimate.

the market size for glass bottles hovers around Tk 80 crore.

However, demand for plastic (pet) bottle is gradually rising. Many

pharmaceutical companies have developed their own production unit for pet

bottles, such as Square Pharmaceuticals Ltd.Apart from the giants, small and

medium entrepreneurs are also producing bottles, saline bags and syringes.

Their production accounts for 20 percent of the country's local plastic goods

market that is worth Tk 4,000 crore a year.

Simultaneously, the carton and printing industry also grew shoulder-to-

shoulder with other packaging materials, with a market size of around Tk 200

crore a year.

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Page | 26

ABOUT THE PRODUCT

What is HDPE?

High-density polyethylene (HDPE) or polyethylene high-density (PEHD)

is a polyethylene thermoplastic made from petroleum. The global HDPE

market reached a volume of more than 30 million tons.

HDPE is resistant to many different solvents and has a wide variety of applications, including:

Telecom Ducts Containers

o Laundry detergent bottleso Milk jugso Fuel tanks for vehicleso Watering cans

Plastic lumber Folding tables Folding chairs Storage sheds Portable basketball system bases Plastic bags Chemical-resistant piping systems etc.

Competitive products of HDPE:

Glass Polyethylene Terephthalate (PET) Polyvinyl chloride (PVC) Polypropylene (PP)

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210 KT

450 KT

1000KT KT

560KT KT

HPL

GAIL

RIL IPCL

In India the manufacturer of HDPE are Haldia Petrochemicals Ltd (HPL),

Reliance India Ltd (RIL), Indian Petrochemicals Corporation Ltd

(IPCL), and Gas Authority of India Ltd (GAIL).

HDPE Polyolefins Producer & Consumption India: 2002-2003:

Page | 28

Data of Haldia Petrochemical Ltd. for HDPE

Haldia Petrochemicals Limited is the second largest manufacturer of

polyethylene in India with a total capacity of over 7, 00,000 tonnes per

annum. It caters to more than 70% of the demand in eastern India and 30%

on overall country basis.

The product portfolio under polyethylene segment consists of various grades

of High Density Polyethylene (HDPE).

HPL manufactures a wide range of HDPE grades having narrow, medium &

broad (bi-modal) molecular weight distribution using Mitsui Slurry CX

Process to suit a wide range of end uses.

This product from HPL is of benchmark quality, meeting the highest

international standards and is used extensively by packaging, consumer

durables, house ware, automobiles, furniture, container or luggage

manufacturers in India and abroad.

Page | 29

Market share of High Density Poly Ethylene in Eastern India (HPL data

source):

HPL enjoys around 23% market share of the country and an overwhelming

64% market share of the eastern region.

RIL10%

IPCL20%

HPL64%

NOCIL 2%

GAIL4%

[Source: From HPL Data, 2007]

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Objective of the Project

Primary Objective:

Haldia Petrochemicals Limited is one of the major players in the

petrochemical industry in West Bengal. It has realized the tremendous

potential of the plastic container, mainly containers made of HDPE, for

Pharmaceutical products packaging. In realization of this opportunity it plans

to invite corporate to set up plastic container manufacturing unit in Kolkata

and surroundings for which it will be the major supplier of Raw materials.

In its quest to fulfill this objective Haldia Petrochemicals wishes to estimate

the potential of this market in the Kolkata and surroundings.

In order to this it has taken up a project to establish the demand of Plastic

containers (specially HDPE) in Pharmaceutical sector of Kolkata and

surroundings.

Secondary Objective:

Mapping of Pharmaceutical Industries in Eastern India.

Understanding demand of other plastic packaging items in

pharmaceutical industries.

Compare the demand of all the different products.

Job Assigned:

In order to fulfill the above mentioned objectives, the job of market analysis

to estimate the demand of HDPE containers in pharmaceutical product

packaging and also the job to compare it with the demand of other materials

for pharmaceutical packaging containers in Kolkata and surroundings was

assigned to me.

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Key Responsibilities:

Understanding the purpose behind the job assigned and how it serves

the overall business purpose of company.

Exhibit seriousness attached to the assignment given and meeting in

times all the deadlines given and targets given

Understanding how other functional departments work.

Seeking as many meaningful answers as possible.

Attempting to build a cordial & beneficial relationship between the

institute as its ambassador and the company.

Stages of Project:

Mapping the Pharmaceutical companies of Eastern India state wise.

Collect preliminary data & contact details of pharmaceutical

manufacturing plants ofKolkata and surroundings.

Collect secondary data using Internet and existing database.

Interact with Purchase Manager/Production Head/Personnel manager

of various Pharmaceutical manufacturing plants and gauge the

requirement of various packaging materials.

Calculating the collected data and quantify the demand of different

types of plastic polymers.

Comparing and analyzing the calculated data.

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SCOPE OF THE STUDY

Geographical scope:

The survey was carried out in Kolkata and some other districts near

Kolkata.

Other Aspects:

The scope of the project is restricted only to the Pharmaceutical

manufacturing plants, who are the end users of various plastic

polymers.

SAMPLING PLAN:

This has been rationally done in such a way so that all the major

Pharmaceutical manufacturing houses of various parts of Kolkata and

surroundings can be covered to frame out the actual demand side.

SAMPLE SIZE:

Total size – 25 pharmaceutical manufacturing plants, situated in

around Kolkata. Out of which 17 major companies of Kolkata are

visited and 8 companies around Kolkata are contacted through phone.

DATA COLLECTION:

Data collection is one of the most important part of any project work.

Success or failure of any research depends on the validity and

accuracy of the data collected.

Primary Source of data: Self –structured questionnaire has been

used for the collection of the data. The questionnaire consists 13

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questions. Among which 9 questions (Q.1-8 and 13)are close ended

and 4 questions(Q.9-12) are open ended.

Secondary source of data :

Data provided by the company (Haldia petrochemical ltd.)

Data provided by District Drug Controller

Rest of the data was collected by the researcher

MARKET ANALYSIS:

In this part, effort has been made to represent the data of the survey in the

most comprehensible fashion. All the analysis based on primary data. It has

been focused to calculate the present market scenario of different types of

plastic containers for Pharmaceutical packaging in West Bengal (mainly

HDPE containers).

The market analysis is done in such a manner –

MTA calculation of PET containers

MTA calculation of HDPE containers

MTA calculation of HDPE caps

MTA calculation of Polypropylene (PP) caps

MTA calculation of Polypropylene (PP) containers

TABULATION, COMPILATION AND ANALYSIS:

Finally the details gathered were tabulated, compiled and analyzes for

preparation of the report. The calculation used to find out the final

metric tonne per annum (MTA) amount is as follows –

A= weight of one item in grams

B= approximate requirement of that item per month

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MTA = A∗B∗121000000

STATISTICAL TOOLS USED:

The data collected was classified and analyzed using the following

tool-

Percentage method

GRAPHICAL REPRESENTATION:

Pie chart

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Data analysis and interpretation is done by the data collected according to the

prepare questionnaire from the respondents of 25 surveyed pharmaceutical

companies .

Q.1

From the data provided by the company MTA of required HDPE

polymer for container is calculated -

The required HDPE polymer for containers for 25 surveyed pharmaceutical

manufacturing plants is 339 MTA.

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Q.2

From the data provided by the company MTA of required HDPE

polymer for cap is calculated -

The required HDPE polymer for caps for 25 surveyed pharmaceutical

manufacturing plants is 104 MTA.

Percentage share of HDPE polymer requirement for containers and

caps:

77%

23%

HDPE ContainerHDPE cap

From Q.1 and Q.2we can find that the total requirement of HDPE polymer in surveyed companies is 443 MTA.In this 77% polymer is required for HDPE containers and rest for HDPE caps and leads.

Q.3

Major users of HDPE containers:

Manufacturer of Active Pharmaceutical Ingredients (API)

Phenyl and cleaning materials.

Some companies who use HDPE for non-drug products:

Bengal Chemical –Pheneol (Phenyl), Lysol , Bleaching powder

W.B.P.P.D.C.L - Phenyl.

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Percentage share of HDPE polymer requirement for packaging of Non-drug and Drug:

71%

29%

Non-DrugDrug

Q.4

From the data provided by the company MTA of required PET polymer

for container is calculated -

The required PET polymer for containers for 25 surveyed pharmaceutical

manufacturing plants is 1482 MTA.

Q.5

Product packed in PET containers:

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Most of the pharmaceutical products are packed in PET containers.

Generally the formulation drugs are packed in PET containers.

Q.6

From the data provided by the company MTA of required PP polymer

for container is calculated -

The required PP polymer for containers for 25 surveyed pharmaceutical

manufacturing plants is 108 MTA.

Q.7

From the data provided by the company MTA of required PP

polymer for cap is calculated -

The required PP polymer for cap for 25 surveyed pharmaceutical

manufacturing plants is 151 MTA.

Percentage share of polymer requirement for Polypropylene (PP)

container and cap:

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42%

58%

PP ContainerPP Cap

From Q.6 and Q.7 we can find that the total requirement of HDPE polymer in surveyed companies is 259 MTA.In this 58% polymer is required for PP cap and rest for PP containers.

Q.8

Major use of PP:

PP is basically used for herbal products and body oils.

From the data we found in Q.1, Q.2, Q.4, Q.6, Q.7, the total consumption of various plastic polymers can be found is 2184MTA.The percentage share of all plastic polymers is:

Page | 41

68%

16%

5%

5% 7%

PETHDPE containersHDPE capsPP containers PP caps

68% of the polymer requirement of the surveyed companies is PET polymers.

15% of the polymer requirement is HDPE polymer and this HDPE polymer requirement is only for containers.

5% of the polymer requirement is HDPE polymer for caps only. 7% of the polymer requirement is PP polymer for PP caps and rest id for PP

containers.

Q.9

REASONS OF USING GLASS BOTTLES:

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Transparent – Glass bottles are transparent in nature, so the product

inside can be seen from outside.

Chemically inert –It is totally safe to store any kind of chemical

product in glass bottles. Because it does not react with any chemical.

Complete gas barrier property –Provide gas barrier to the chemical

stored. So, that the product can be kept in good quality for a long time.

High shelf -life – Product stored in glass bottles has high shelf-life.

Local availability – Availability of glass containers are more than any

plastic containers.

REASONS OF NOT USING GLASS BOTTLES:

Breakage cost is higher for glass bottles.

Carriage cost is higher for glass bottles.

Q.10

REASONS OF USING HDPE BOTTLES:

HDPE containers are strong enough to carry these huge amounts.

HDPE containers are non- reactive to phenyl and disinfectants.

No breakage threat.

REASONS OF NOT USING HDPE BOTTLES:

HDPE containers are not transparent in color.

The cost of HDPE polymer is higher than other plastic polymers.

Q.11

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REASON OF USING PET BOTTLES:

Transparent –Its transparency is quite similar of glass bottles and it is

more transparent than PP when HDPE is completely translucent in

nature.

No breakage threat

Light in weight

Better barrier property – The gas barrier property of PET is not as good

as glass but it is better than any other plastic container.

REASON OF NOT USING PET BOTTLES:

There is no proper cause of not using PET bottles.

Some companies are using glass bottles from a long period and not

willing to change it.

Q.12

REASON OF USING PP CONTAINERS:

The main reason of using PP container is its cost. It is cheaper than any

other material used for containers.

REASON OF NOT USING PP CONTAINERS:

It is readily reactive to various chemicals.

The self-life of products is very low in PP containers.

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Q.13) UPCOMING PROJECTS

Bengal Chemical and Pharmaceutical Ltd. is coming up with a new

project for one of its factories in West Bengal .

This new project is consist of some non-drug products such as

Pheneol 20 litre and 450 litre , Klin Toilet etc.

The expected demand of HDPE container is ---

Type of

Packaging

Individual

weight (gm)

Requirement

(month)MTA

20 lit 1000 10,000 120

450 ml 35 10,00,000 420

500 ml 45 2,00,000 108

So,the expected total requirement of HDPE in BCPL’s upcoming

project is around 648 MTA .

Standard Pharmaceutical is planning new project in

Birshibpur ,Howrah, which will require HDPE containers for

packaging.

Fresenius Kabi Onchology,a Delhi based pharmaceutical company, is

working on a new project in Kalyani,West Bengal,of active pharma

ingredients (API) ,which may require HDPE containers for packaging.

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MAJOR LEARNINGS

Working culture of Haldia petrochemical Ltd.

Operative function of Petrochemical industries in India.

Structure of pharmaceutical manufacturing plants of West Bengal.

Packaging trend of various products of pharmaceutical companies

in West Bengal.

Trend of Containers used in pharmaceutical packaging.

Trend of Capping used in pharmaceutical packaging.

Scope of HDPE containers in the Pharmaceutical packaging of

West Bengal.

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LIMITATION AND CONSTRAINTS FACED

Primary research can only be conducted in Kolkata and surroundings.

Due to lack of contact details and incorrect address /contact number, a

number of companies outside Kolkata cannot be reached.

Response Error:

o A number of pharmaceutical manufacturing houses were

unwilling to disclose their information about productions and

packaging.

o Pharmaceutical companies are involved in manufacturing a huge

range of products. Discussing all the details of each type of

packaging through phone was not possible every time. For that

cause telephonic survey was not successful for companies

beyond Kolkata and surroundings.

o Purchase managers or Personnel managers of some leading

companies could not make out time to provide adequate

information because of their busy schedule.

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CONCLUSION

The usage of HDPE polymers in pharmaceutical sectors are very less

now a day. A few companies are using it for some specific products.

The usage of HDPE for formulations is not so significant.HDPE is

mainly used in case of disinfectants and cleaners.

Area of growth of HDPE container use is significant, as some

companies (Bengal Chemicals, Standard Pharmaceutical,Freshenius

kabi oncology) are coming up with new projects using HDPE

containers for packaging .

Though there is a significant use of glass bottles in the

market(Nearby 50% ) , PET bottle is fast replacing it .Most of the

pharma companies are starting to adopt PET containers instead of

glass. Among different grades of plastic containers the usage of PET

bottles are maximum.

In comparison to other plastic container usage PP container usage is

very less.Major uses of PP is done in case of capping containers. PP

polymer is also used as the measuring cap for various medicines.

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SUGGESION & RECOMMENDATION

Haldia Petrochemical (HPL) should approach various entrepreneur

who are interested to establish plant for plastic containers, as there is a

huge requirement of containers but supply is low.

HPL should organize an awareness campaign about the benefits of

HDPE and other plastic containers over glass (if possible), as there are

some misperception about the usage and effects of these containers.

Page | 49

REFERENCES

Documents:

Diagnostic Study Report on Pharmaceutical Cluster by Sri Bijaya Kumar Panda, CDA, Sri Digambar Satapathy, CDA

Directory Of Pharmaceutical Manufacturing Units In India

Sites:

www.business.mapsofindia.com/petrochemical

www.haldiapetrochemicals.com

www.pharmabiz.com

www.thedailystar.net

QUESTIONNAIRE

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COMPANY NAME:

ADDRESS: CONTACT NUMBER: CONTACT PERSON: DESIGNATION:

1)If HDPE containers are used by the company, then what are the sizes,individual weight and monthly requirement?

SIZE INDIVIDUAL WEIGHT

MONTHLY REQUIREMENT

MTA

2) If HDPE caps are used by the company, then what are the sizes,individual weight and monthly requirement?

SIZE INDIVIDUAL WEIGHT

MONTHLY REQUIREMENT

MTA

3) What kind of product is packed in HDPE containers?

4)If PET containers are used by the company,then what are the sizes,individual weight and monthly requirement?

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SIZE INDIVIDUAL WEIGHT

MONTHLY REQUIREMENT

MTA

5)What kind of product is packed in those PET containers?

6)If PP containers are used by the company, then what are the sizes,individual weight and monthly requirement?

SIZE INDIVIDUAL WEIGHT

MONTHLY REQUIREMENT

MTA

7)If PP caps are used by the company, then what are the sizes, individual weight and monthly requirement?

SIZE INDIVIDUAL WEIGHT

MONTHLY REQUIREMENT

MTA

8) What kind of product is packed in those PP containers?

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9) What are the reasons behind using or not using glass containers?

REASOS FOR USING REASONS FOR NOT USING

10)What are the reasons behind using or not using HDPE containers?

REASOS FOR USING REASONS FOR NOT USING

11) What are the reasons behind using or not using PET containers?

REASOS FOR USING REASONS FOR NOT USING

12)What are the reasons behind using or not using PP containers?

REASOS FOR USING REASONS FOR NOT USING

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13) Upcoming project of the company that using plastic containers?

(if any)

Thank you for your help

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