Morgan Industries, with an investment of over Rs 20 crore
and a manufacturing capacity of 52 million square metres of BOPP(Bi-axillay
Oriented Poly Propylene)& PVC (Poly Vinyl Cloride)
adhesive tape, has India's largest adhesive plant in terms of capacity.
www.chennaibest.com speaks to B. Jagadeesh, Assistant
General Manager, Morgan Industries Limited about the adhesive tapes
industry in Chennai.
What are the main product types in the adhesive
tape industry?
Packaging tapes
Insulation tapes
Mounting tapes
Protection tapes
Medical tapes
Stationery tapes (cellotapes)
Under the broad classification, there are sub-categories which
are based on the application. Different material is used to suit
a specific purpose. Packaging tapes can be made of cloth, paper,
craft paper, PVC, reinforced plastics etc. Insulation tapes are
generally made out of PVC, Polyester, Teflons, Kapton etc. Mounting
tapes can be either cloth-based or foam-based. Protection tapes
are made out of synthetic paper, polyethylene or crepe paper. Stationery
tapes, out of cellophane or BOPP. Applications are both domestic
and industrial.
What
is the size of the market and which segment do most of the companies
fall in?
The all-India market can be put to around Rs 600 crore per annum
and the Chennai market to around Rs 100 crore. Most of the companies
fall in the medium scale category.
Growth rate?
The total growth rate can be placed at 10% per annum.
What are the allied Industries?
Plastic, textiles, chemicals, petrochemicals(resins), paper. You
can say that the packaging industry is a forward integration of
all these industries.
Who are the major manufacturers in the adhesive
tapes market based in Chennai?
The major players other than Morgan, are Magnapack and Polytapes.
Who are the players in the PVC Insulation tapes
market?
Morgan, Sanghi, Bhor, Paramount, Chetana Polypack, Fourpillar
Corporation and Asia Chemicals are the Indian Players.
Tesa is the major overseas player.
Is there any concept of branding? What are
the top-of-the-mind brands?
Yes. The major brands are Magic, Miracle, Steelgrip, Wonder,
Deer.
Which is the category Morgan is currently into?
Its
an ever evolving market. Depending on demand and supply, we have
to keep changing our product range constantly. For example, previously
we were into BOPP and PVC tapes, but we found that this market became
extremely competetive with lots of small manufacturers getting into
it. There are around 200 people manufacturing in this category alone.
With a result that it has now become the lower end of the segment.
Also, decreased margins and cheap imports have made this segment
unviable. So we have stopped manufacturing this product.
Its
an ever evolving market. Depending on demand and supply, we have
to keep changing our product range constantly. For example, previously
we were into BOPP and PVC tapes, but we found that this market became
extremely competetive with lots of small manufacturers getting into
it. There are around 200 people manufacturing in this category alone.
With a result that it has now become the lower end of the segment.
Also, decreased margins and cheap imports have made this segment
unviable. So we have stopped manufacturing this product.
