The ban on certain plastic products by the Maharashtra government has stoked concerns that other states may follow suit. Will such bans have a lasting impact on the Rs 1.8-lakh crore Indian plastics industry? Should investors avoid this segment? While anti-plastic measures may make life difficult for small-sized companies making carry bags, gloves, etc, large, listed players won’t be significantly impacted, say experts. In fact, investors can use the current negativity in the segment as a buying .
The secular growth in the sector, say experts, makes it a promising investment opportunity. Large plastic players in particular are benefitting from the structural changes in the industry and government actions such as demonetisation, GST, etc., have spurred the market shift from unorganised to organised players. As the unorganised segment still makes up around 45% of the plastics industry, there’s a huge growth opportunity for the organised players.
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