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72nd AGM of AIPMA held on Thursday, 20th September, 2018 at AIPMA House-1
AIPMA 72nd Annual General Meeting was held on Thursday, 20th September, 2018 at AIPMA House-1 at 4.30 pm onwards. Full quorum of members were present at the AGM.
All the three Agenda pointsset out in the Notice dated 27.08.2018 were passed unanimously by the members present. Chairman 72nd AGM -Mr. Hiten Bheda and Mr. Anand Modi – Scrutinizer and Chairman-Election Committee 2018-2021 declared following members of Managing Committee as newly elected members of Managing Committee2018-2021, after approval of Audited Statement of Accounts & Balance Sheet for the year ended 31st March, 2018 and Appointment of Statutory Auditors of the Association.
It was a year of disruption for India's economy resulting from some bold measures taken by the Government for course correction and for removal of ailing factors that has been hampering healthy growth of the economy for over five decades now. While the demonetization move by Government of India witnessed a temporary setback for the industry and specially MSME's, it gave a push to the Indian economy towards becoming cashless. The government succeeded in encouraging people to use digital means for making transactions. Another short lived setback to the industry was caused by implementation of GST. Although, this was an "aberration" mainly caused by lack of preparedness and adequate digital infrastructure, it is heartening to see that the dust has settled and GST regime is driving India towards becoming an integrated economy by charging uniform tax rates and eliminating economic barriers, thereby making the country a common national market.
As the dust was settling down, the industry was faced with new challenge of abrupt banning of certain products considered to be environment unfriendly. A very surprising move by the Government of India to host World Environment Day on 5thJune,2018, with central theme of “Beat Plastic Pollution” on behalf of UNEP has sent a negative signal to the industry which in fact is growth enabler of almost all segments of the economy. The larger picture on the canvas is at best bleak as the lead taken by Maharashtra to ban plastic is spreading like a wild fire throughout India. As I write this, twenty two states have declared some sort of ban on plastic products. The new investments in the sector are put on hold and sense of insecurity prevails amongst entrepreneurs.
All this in short span of a year and a half has necessitated Associations actions to be focused on fire fighting and to ease pain points besides its long term initiative as per vision to create growth climate for the processing segment. An attempt is made to present detail report on range of activities with underlying challenges as perceived for the stakeholders to assess the changing scenario and plan appropriate response for their respective business model. The association's belief in the long term strength of the economy and in the potential of India story remains intact. I consider this to be a passing phase which will establish new eco system for the plastic processing sector.
I have set my agenda as a President of The All India Plastics Manufacturers' Association to serve the industry with clarity to empower processing industry with tools to leverage opportunities for growth. My areas of focus were advocacy for conducive policy, fostering of entrepreneurial talent with skilling initiative and internal strengthening of the association by a step further in implementation of Kayakalp.
The Government's policy towards the industry has been conducive and in particular for the manufacturing segment with a commitment to enhance share of manufacturing to greater than 20% of GDP. Many policy initiatives were tailored to address the issue of ease of doing business and “Make in India” not to mention several other initiatives to augment the trade and create employment.
Your association had an opportunity to interact with several key officials and Ministers in the new open regime to present our point of view to address various issues of the Plastic Processing Industry. AIPMA has been promoting the use of Plastics and have been equally categorical in making its problems known to the regulating and Government bodies. We had a very successful meeting with Shri Rajeev Kapoor, IAS, Secretary, Department of Chemicals and Petrochemicals, Ministry of Chemicals & Fertilizers, Govt. of India on October 05, 2017 with larger participation of Managing Committee Members. A variety of issues related to GST, Environment and FTA's were discussed. Subsequently a detailed presentation was made on behalf of AIPMA in All Association meeting representing Petrochemical Industry called by the Secretary, Department of Chemicals and Petrochemicals, Ministry of Chemicals & Fertilizers, Govt. of India in New Delhi.
a) Plastics to be made as focused sector in “Make in India” initiatives of Government of India,
b) Core status to be awarded to Plastic Processing Industry,
c) Rationalization of anti-dumping duties on raw materials and machinery,
d) Special status to plastic recycling, special incentives for collection of waste, recycling and use of recycled plastics,
e) Open import of industrial plastic scrap exclusively for non-food contact application should be allowed, to name some. There are many more but all could not be mentioned for space constraints.
Similarly to strengthen financials of the entrepreneurs / industry we had requested for
a) Creation of Technology Upgradation Fund (on lines of Textile Upgradation Fund),
b) Facilitation of timely credit to Small and Medium Enterprises, and
c) Support under Credit Linked Capital Subsidy Scheme (CLCSS) operated through Ministry of MSME to be extended to all investment in processing equipment's @25% with revised upper limit of investment.
Subsequent to introduction of GST, numerous representations were made to the key decision makers from Finance Ministry, Commerce Ministry, DCPC and GST Council officials. The main issues were pertaining to several items being put in the highest tax slab of 28% and related to procedures to be followed by manufacturing units. Several representations were made for facilitation of refunds that were not coming forth. Many of this issues were addressed by the Government over a period of time. As the GST regime is now well entrenched, the problems are few and far in between. We have however engaged services of reputed consultant to keep the association updated on changes, take up any specific issues faced by the industry and to give us input for suggestions to the Government. The industry demand was for 12% tariff for all plastic products across the board on the lines of one tariff for one product. By now most of the plastic products have been bought into 18% tariff and the association has been active to understand revenue from plastic related products to raise appropriate reduction for the product group. It seems that the Government's intention is to reduce the number of slabs and plastics will get benefit of more rational rate structure in future.
Shri Ananthkumar, Hon'ble Union Minister for Chemicals & Fertilizers and Parliamentary Affairs, Dr. Harsh Vardhan, Hon'ble Union Minister for Environment, Forest & Climate Change, Shri Mansukh Mandaviya, Hon'ble Minister of State for Road Transport& Highways, Shipping and Chemicals &Fertilizers, Shri Vijay Rupani, Hon'ble Chief Minister of Gujarat, Shri DevendraFadnavis, Hon'ble Chief Minister of Maharashtra, Shri Yogi Adityanath, Hon'ble Chief Minister of Uttar Pradesh, Shri RamdasKadam, Minister of Environment, Government of Maharashtra, Shri Subhash Desai, Minister of Industries, Government of Maharashtra besides key officials of various key departments and ministries, DIPP and NitiAyog. Key issues pertaining to the industry were taken up in these meetings. I am happy to say that association's viewpoints were heard and referred to authorities for consideration.
These interactions also gave the team insight into policymakers mind set on various issues which were conveyed to the members on various forums. I would like to share some concerns particularly on the environmental issues that came up time and again. The growing amount of visible pollution of littered plastic products is close to the policymaker's heart. Somewhere, the failure of industry to exercise discipline to follow prescribed legal norms on production and usage of certain products has led to extreme punitive actions against the industry.
Shri Raghavendra Rao, Secretary, Department of Chemicals and Petrochemicals and his predecessor
Shri Rajeev Kapoor in Mumbai for interaction on wide variety of issues and suggestions. Most recently, an All India Association Meet held in Mumbai which witnessed participation from over 50 associations was chaired by Ms. Aparna Sharma, Joint Secretary, Department of Chemicals and Petrochemicals specifically on the situation arising out of plastic bans and way forward.
The Association gave valuable suggestions on formation of new policy for Chemicals and Petrochemicals segment with respect to needs of the plastic processing segment, its aspirations and need for facilitation of growth.
I am also pleased to state that, AIPMA has facilitated fast creation and adoption of BIS standards for various plastic products by organizing small industry groups related to products under leadership of Prof. Dr. S. K. Nayak, Director General, CIPET & Shri Prannoy Sharma, Director, Department of Chemicals and Petrochemicals. A request for time bound testing of Compostable products at reasonable cost has been taken up with CIPET. Anew set of SOP's have been proposed for reducing the testing time and cost for the benefit of ban affected industries.
In addition to ongoing legal cases pertaining to environment issues, we had to take legal route for addressing industries well being against Maharashtra Government's ban on plastic products. AIPMA also supported Maharashtra Plastics legal case on the same issue. In order to resolve the issue of bans coming across India, AIPMA has recently filed a petition in the Supreme Court to “Ban the Bans” and hopes that Court will give us some respite on the subject.
We had to take up the ongoing issue of lead in PVC pipes and could get some relief for the pipe processing industry. AIPMA stands committed to pursue them in the best interest of the industry.
The plastic processing segment provides large employment opportunity across value chain and has potential for earning precious foreign exchange by becoming sourcing hub for global consumers. AIPMA has been advocating for rationalization of tax structure for the betterment of the processing industry and had suggested to the Finance Ministry various proposals to be considered while framing the Budget 2018-19.
Bring in certainty for taxpayers with timely industry consultation process
GST tariff rates should be further rationalized to 12% for plastic products and raw materials
Benefits provided to industrial undertakings by Central and State Governments should be continued as per committed time frame
GST reporting should be further simplified so that they can focus on main activity and contribute to objective of business and thereby Make In India.
Payment and credit utilization procedures to be kept simple for compliance especially for MSME segment.
Reporting should be simple for enterprises.
A well focused pre budget memorandum was submitted to key ministries and decision making officials for favorable consideration.
Last twelve month can be considered as a period of disruption for the plastic processing industry because of environment related issues, response by the Government to address it and emerging solutions and compliance requirements. It will not be business as usual for the industry. The freedom enjoyed till date will be replaced by tight regulatory regime bringing responsibility to each stakeholder and establishing new normal for the segment.
The plastic industry is undoubtedly going through turbulent times. The aftermath of Plastic Ban in Maharashtra does not seem to be settling down. Large number of processors worry about their future as they cope with adhoc closure notices issued by incompetent implementing authorities while they wait for clarity from administration. The situation is not getting any better as more states have declared their intention to ban carry bags and disposables. If the rhetoric on the subject from authorities is any indication, I see emerging challenges across India for the segment. Maharashtra Ban is taken as a benchmark by other states and hence what happens in Maharashtra will have far reaching consequences.
As a head of the apex industry body, I have been closely witnessing the scenario from perspective of policymakers, media, fellow industry members and common man. The experience has been painful and unsettling at best. One wonders if we are inching towards the objective of containing plastic pollution or the Ban in reality is a solution in search of new problems for stake holders across the value chain.
Anti plastic sentiments has been further fueled by free flowing clippings and unsubstantiated media reports depicting plastic as sin products. Industry's counter efforts to create awareness that plastic actually serves but littering pollutes was too little and too late to make a difference. It fell short to save us from tsunami. Interest lobbies and NGO's used this opportunity with help of iconic personalities to serve their own purpose while industry became helpless spectator.
In spite of the fact that Plastic Packaging fulfills expectation of consumer convenience, health safety, food safety and over all environment impact, the expectation of environment cleanliness affected by littering of post consumption is winning the race. This however cannot happen without efforts and creation of infrastructure by civic authorities which unfortunately, has been ignored for decades now and continues to be so. The presence of the latter should be the first step towards any solution to the problem at hand. Instead, the decisions to solve the problem are focusing on other extreme of suppressing consumption by killing the product. This is contrary to aspirations of the society racing to climb the ladder of economic development. If it is not plastic, something else will be required for fulfilling the consumption and if allowed to do so without understanding Environment Impact Assessment, we will end up in a bigger mess. Why then single out PLASTIC? Shouldn't we, the industry be asking this question in one voice?
AIPMA has been proactive on the issue and has committed substantial resources for legal initiative, for creating social awareness and for providing platform to affected product segments. We have been engaging with the policymakers and are part of teams evolving solution. I am specifically thankful to my Environmental Team and Governing Council for carrying the responsibility of effectively addressing the issue and bringing much needed relief for the processing industry. The road ahead is long and full of challenges. I trust together we will be able to rise.
AIPMA's earlier initiative on Plastic Parks is making progress. We have identified factors affecting success of such parks and have been in touch with authorities for facilitation.
Government of Uttar Pradesh was requested to announce a Plastic Park near Noida to specially cater to the Electronics Manufacturing units, Packaging companies, Automotive OEMs and Engineering Plastic Processors. AIPMA assured its necessary support and cooperation to Government of Uttar Pradesh in identification of Land, development and promotion of the proposed Plastic Park. AIPMA team met Honorable Chief Minister Shri Yogi Adityanathjiwho assured the delegation of appropriate action to augment investment of plastic industry in UP.
AIPMA was represented on various trade shows during the year which includes our own show Plastivision Arabia 2017, Plastindia 2018, Chinaplas 2018, NPE 2018, and IPLEX 2018.
Under my tenure, our International initiative Plastivision Arabia 2017 Exhibition was held from 11th – 14th December, 2017 at Sharjah Expo Centre, UAE under the able leadership of Shri Yogesh P. Shah. It received moderate response in terms of participation as well as business.
The size of the Exhibition was approximately 1000 sqmtrs with concurrent shows i.e. Arabiamold, Print Pack etc. and Indian Pavilion with 30 Exhibitors covering approximately 450 sqmtrs.
H.E. Sheikh Khalid Bin Abdullah Bin Sultan Al Qassimi, Chairman of Sharjah Sea Ports & Customs, jointly with Mr. Saif Al Midfa, CEO of Sharjah Expo Centre inaugurated the exhibition.
It was heartening that all the machines taken by Indian Exhibitors were sold. All the other exhibitors in Indian Pavilion also got satisfactory business leads.
Indian Pavilion was feathered by Medical Pavilion, Consultant Clinic which had good number of visitors and appreciated by the Chief Guest. The concurrent show 4th Arabia Mold and Print Pack Exhibition displayed Plastic mould making and Printing & Packaging Industry.
The 10th edition of plastics exhibition, PLASTINDIA 2018, began in Gujarat capital, Gandhinagar from 7th – 12th February, 2018. AIPMA had an active participation with 3 stalls. Our stall was inaugurated and graced by PujyaBhaishriRameshbhaiOza in the presence of leaders of Plastic Industry and members of Managing Committee. The newly published AIPMA Members Directory 2018 was unveiled in hands of Shri PujyaBhaishriRameshbhaiOza.
The other two stalls of AIPMA was dedicated to promotion of our Mega Events Plastivision India 2020, Plastivision Arabia 2019 and Plastiworld 2019. Excellent response was achieved for all the above events.
Moreover, other activities of AIPMA such as Job and Career Fair, Seminar & Conferences, Membership, AIPMA Delegations, etc. were aggressively promoted by respective Chairmen with the staff.
PLASTINDIA 2018 had organized its 8thPlasticon Awards Ceremony at Gandhinagar, recognizing Innovations and Performance of both, individuals, NGOs, Institutes and organizations. AIPMA received the Gold Award for its Outstanding Contribution for Image Building of Plastics. The award was presented by Mr. N. K. Balgi, Mr. M. P. Taparia and Mr. Pankaj Mehta. I along with our Past President Er. R. K. Aggarwal accepted the award acknowledging the hard work and efforts of AIPMA.
By far, these awards have proved to be the most prestigious and sought after awards for both, manufacturers and end users, professionals and students alike. And who better than industry expect and first generation entrepreneurs to give out these awards! Present for the occasions were Chairman and Co-founder of SamavardhanaMotherson Group Mr. VivekChaand Sehgal, MD and Chairman, Supreme Industries Ltd. Mr. M. P. Taparia, Industry veteran and others.
The ChinaPlas2018 - International Exhibition on Plastics and Rubber Industries was held from 24th - 27th April 2018 at Shanghai. The event is Asia's leading Trade Fair of Plastics & Rubber. AIPMA had its Indian delegation. Shri Mayhur D. Shah, Chairman Overseas Delegation Committee along withShriHarshad Desai, Member Delegation Committee with Shri ChandrakantTurakhia Vice President – West, AIPMA was leading the delegation which was comprised of 90 Delegates. M/s. Adsale the organizer celebrated their 40th Anniversary of their company and felicitated AIPMA with special trophy in recognition of long business relationship with Adsale Exhibitions. AIPMA has been taking successful delegation of over 100 every year since 2001.
Recognized as the world's largest plastics trade show and conference, NPE The International Plastics Show 2018 was held in Orange County Convention Centre, Orlando, USA from 7th - 11th May 2018.
This exhibition brings together a wide array of people from across the plastics industry providing a collaborative, highly effective forum for the exploration and exchange of new ideas and to advance the interests of the plastics industry. It provides companies with a platform for addressing issues and identifying opportunities.
It featured eleven sectors and process-specific Technology Zones and International Pavilions highlighting what's trending in the industry right now. NPE anticipates even greater participation from all facets of the global plastics supply chain.
The show floor is a hot bed of interesting content, innovative technology and emerging trends. The best way to get up-to speed on the latest industry trends is to attend the nine technical conferences-including the all new Plastics Leadership Summit designed to provide you access to industry best practices, cutting edge innovations and industry thought leaders.
NPE 2018 uncovered all the aspects such as how the plastics industry is setting the example for recycling initiatives. The vertical markets using plastics to make products more affordable, safer, and reliable and the technology innovations coming to the market that will support the efficiency of the plastics supply chain. Research and report on what the plastics industry is doing to support natural disaster recovery efforts, on the steps the industry is taking to ensure that the next generation of leadership is trained and prepared for a future in the plastics industry.
IPLEX 2018, the 9th Edition of South India's Largest Plastic Exposition which is rotationally held once a year in major centers of South India was held on 3rd– 6th August 2018 at Hyderabad, Telangana.
As a President of AIPMA, I was accorded Guest of Honour at the inaugural function of IPLEX 2018.
Main objective of AIPMA Stall was to promote Job and Career Fair, Seminar & Conferences, Membership, AIPMA Delegations, etc.
Plastivision India 2020, Plastivision Arabia 2019 and Plastiworld 2019 team visited all the Exhibitors and excellent response was achieved with the help of Chairman, Sr. Managing Committee Members and Staff at the Exhibition.
Year 2017-2018 has seen remarkable change and proactive steps taken by AIPMA seminar division in catering industry needs and providing platform to collaborate and network. Last year AIPMA conducted several events and seminars on subject like GST, Energy Efficiency in Plastics sector, Software Technology, Finished goods and few others.
Eight GST seminars were conducted by AIPMA in various cities. These events witnessed overwhelming response with participation of more than 800 industry participants benefitting from this initiative. Our other technical seminars like Role of Energy Efficiency in plastics sector, Solid Works, Smart Plastics were also individually attended by more than 150 participations from the industry.
Every seminar was responded well by all industry members who have participated and engaged themselves.
This year AIPMA initiated its own brand under events division called “PLASTTALK” a platform to provide Innovative Plastic Platform. Its an interactive platform for the growth of plastics industry. It connects stakeholders with thought leaders. Exchange ideas. Start conversations with vision of Powering Progress Through Plastics.
AIPMA is very proud of it's initiative to provide jobs to deserving candidates and at the same time serving the industry. The activity led by Shri Kishore Sampat as Chairman is instrumental in bringing sun shine in life of many families. Last year Job fairs were conducted in five cities across India placing over 85 students with reputed companies.
I am delighted to inform that we have planned AIPMA Management Technology and Entrepreneurship Centre (AMTEC) at Mumbai and are in advance negotiation with NSIC for setting up a testing laboratory. Both of these are planned at AIPMA HOUSE II in MIDC in close proximity of our headquarter. The committee has prepared detail road map and is currently engaged in implementation of the project. The facility will have:
Testing Laboratory (Jointly with NSIC, Govt. of India)
Designing / CAD CAM Centre
Technical - e-learning Centre
Skill Development Centre
Programmes for upgradation of Family Owned Businesses
Operator level training.
AIPMA has been supportive to all regional associations and believes in reaching out to them to understand issues faced by them so as to effectively fine tune advocacy policy. In the current year, AIPMA conducted Regional Association Meet in Ahmedabad with initiative of V.P. West and in Hyderabad during IPLEX 2018 fair with support of V.P. South.
In addition, an All India Association Meet was organized recently chaired by Joint Secretary Ms. Aparna Sharma. The objective was to appraise them on concept of EPR and ban on single used plastic products as pledged by the Govt. of India.
As part of its endeavour to involve young entrepreneurs, emerging leaders and young professionals of the plastics industry into the mainstream activities of the industry and the Association, AIPMA has launched a young plastics industry entrepreneur's club named as “UTKARSH” – Emerging Leaders Expanding Horizons. The UTKARSH program mentors next generation leaders with inputs from experts, both within and outside the industry. The team has been active and is providing support to various activities of the association. We are already seeing leaders emerging through the programme and intend to induct them for higher responsibilities.
While we set out to achieve many things, the circumstances forced us to devote our time and energy on issues at hand. The agenda is far from finished and I anticipate it will be a while before we see new models of business evolving based on concepts like EPR, Circular Economy and upcycling of products.
This, I believe will provide ample room for the association to act in supportive role while the industry transits to new normal. I would like to thank all for reposing trust in me to lead the association and put on record that credit for current years work goes to my team comprising of Shri Sanju Desai - Sr. VP, Shri JagatKillawala - VP Finance, Shri ChandrakantTurakhia - VP West, Shri Anil Reddy - VP South,Shri L K Singh - VP North and Shri Ashok Agarwal - VP East. My special thanks to GC Chairman, ShriArvind Mehta and Senior GC Members Shri Raju Desai, Shri Harish Dharamsi, Shri Ajay Desai, Shri Kailash Murarka, Dr. AsutoshGor, Shri Rituraj Gupta, Shri JayeshRambhia and Shri HarenSanghavi. My special thanks to various committee and Event Chairpersons and professionals contributors Shri Harpal Singh, Shri Harshad Desai, Shri Akhilesh Bhargava, Shri Kishore Sampat, Shri Deepak Ballani, Dr. D. D. Kale who have contributed their best to give form to what is visible work.
I am indebted to the secretariat led by Ms. Umaa Gupta for support enabling me to discharge my duties.”
After felicitation and standing ovation accorded to the retiring team, Mr. Bhogilal Gandhi gave inspiring speech boosting the morale of all the members present.He appreciated achievements of Mr.HitenBheda and his entire team. Round of applause and standing ovation was accorded to the retiring Office Bearers and also members of Managing Committee, as mentioned above.
Mr. Arvind Mehta summarized on the milestones of AIPMA during last 3 years, in special 2018 were successful Job Fairs, All Associations Meet, Meeting with Secretary DCPC, representations made to all Government departments, aggressive participation of Environment related issues and image building of Plastics. He further appreciated pace of future projects in pipeline i.e. Skill Development Centre and Testing Centre to be set up in AIPMA House II in Mumbai and AIPMA House III in Gurugram. He congratulated the strong team of AIPMA for relentlessly putting in their best efforts to ensure success of all the events. He further added hard work being put in by Chairmen and Co-Chairmen of Plastivision India 2020, Plastiworld 2019 and Plastivision Arabia 2019 which are in pipeline. He finally endorsed implementation of Kayakalp. He congratulated and welcomed5 young entrepreneurs as our Managing Committee members. Thanks to our initiative of Utkarsh. He said constitutingUtkarshTeam, which yielded results and we must continue with the same. He appreciated Office Bearers forstringent implementation of SOPs in Accounts and HR in AIPMA. Finally, he once again congratulated each and every one for lending their hands in path of upward journey of AIPMA.