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Plastic Ban

Plastic Ban & Mineral Water Industry in India

Background

First, on the independence day, 15th August 2019 followed by second speech by P.M. Narendra Modiji declared intentions of getting out the Single-Use Plastic from India by 2022 in a phased manner. It included the PET bottles too, which are used by almost 100% of the Mineral Water producer industry. The reaction came as a shock to many whose stakes are involved in this huge business, whereas, general public voted in favour of it.

The Truth

We really ( and no-one can) can’t deny certain facts about plastics (which consists PET as well) that …

  • Plastics (some of them can’t. PET luckily can be) can be recycled just 3-4 times, once its over then what ?
  • Littering of Plastics makes land infertile, chokes drains,ingestion by cattle, fishes and the whole aquatic chain. This goes into our food too.
  • Dumping leads to infertility of Soil, contaminated groundwater due to leachate. This too goes inside us.
  • So whatever is there on earth, is still unresolved, but it’s our responsibility to save the system.
  • It’s not the question of 1 life, but several next generations, to them, what shall we pass on….

The Challenge

Here, everyone concerned is going through a challenge. Everyone in this eco-system. The producer, suppliers,distributors, the law-makers, one & all will face certain challenges. We shall later discuss these in relation to the subject, before that, let’s see what the Govt of India has done about it

Thinking is easy, Acting is Difficult. And, to put One’s thoughts into action; is the most difficult thing in the world”

(From Brainyquote)

Govt has come out with latest Plastic Waste Management Rules 2016

They came out with fresh rules which actually superseded the earlier 2011 rules & has created new set of rules for overall Plastic Waste Management (PWM) as it’s called popularly. We shall highlight certain points here, which apply to Mineral Water Industry :-

  1. Every producer and brand owner will have a special policy document & procedure laid down for EPR ( Extended Producer’s Responsibility), meaning it is his/her responsibility to manage the product till the end of its life for sound environment.
  2. Plastic Waste (the littered bottles) shall be channelized through registerd waste recyclers, and recycling should confirm to IS 14534 :1998.
  3. The authority for this will be your SPCB, State Pollution Control Board, through which you should apply for registration immediately. They may ask you to renew the consent subject to the EPR registration.
  4. Every year, they give you a target for recycling. Like 20 %, 100 % etc. This is related to their overall targets achieved for recycling.
  5. It simply means that if you consumed 100 tonnes per quarter, you should submit a report through an authorised recycler that the given % was recycled.

There are still a lot of grey areas

As the whole thing is still under formation stage, there are many grey areas. However, in upcoming 3-4 years, it will be quite clear & perfectly in implementation stage. You may consider this as a Bonus till then.

The Effects

However, the effects have started already. As the PWM rules implementation targets are given to all the local bodies, they have established mechanisms to do that and public awareness is growing visibly.

Consequence : PET Bottle demands have dropped

As we were speaking to a producer a month back, he told that the demand for bottles has drastically reduced from corporates. Though the demand for 20 Ltr jars has increased a bit.This is mainly due to the public awareness.

The sufferers

There will be many stake holders involved whose cash flow & overall business will face some medium to serious threat due to this reduced demand. However, the majority ones are the Plant Owners. Besides the reduced sale, they also face additional new expenditure on account of the EPR thing, which will directly show as an input to their variable purchase cost (purchasing the used bottles). In addition, there also will be the liaison expenditure & the consultation fees to be payable to the consultants who deal in this EPR thing.They need to make some alternate arrangement during this period allotted to them. Huge investments might be locked in, which will be in threat now as Bottled Water is a huge industry in India. Besides these, there are also others affected :

  • The Blowing Machinery Manufacturers
  • PET Bottle makers/Suppliers
  • PET Preform makers/suppliers
  • Label Suppliers
  • Labeling Machinery Suppliers
  • Specialty Human resource such as blowing machine technicians

The Opportunity

An entrepreneurs is the one who seeks an opportunity arisen on account of this new development. Let us sum up where are these opportunities :-

  • Alternate Packaging Materials (e.g. Glass)
  • Water ATMs
  • Waste Collection Apps & systems
  • Waste Recycling Plants like waste to energy
  • Environmental consultants to form EPR’s for producers

Some Consolation ..

However, though the situation sounds alarming, there are some good points

  1. Out of the total plastic waste generated, PET contributes to just 8%
  2. Though Plastic is recycled for 3-4 times; if it is used for Road Construction, it stays there for many many years without much damage to the eco system
  3. If used as a fuel, again its life cycle is increased.
  4. Compared to the world, India produces very less (one of the least) Plastic Waste per capita. USA tops the list.

What do you think ?

We shall always welcome comments & suggestions from you on this issue !