Motilal tips this industry to create high value, lists 5 potential winners

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India is set to see a major overhaul in the trade structure in favor of the organized sector thanks to the government’s initiatives such as demonetization and GST, among others. The shift will be prompt for some sectors, gradual for others, and might remain challenging for a few.

India’s plastics industry is one of the biggest in the world. Industry volumes are estimated at 16MMTPA (in FY17), with market size at Rs 1.8 lakh crore. In volume terms, the industry has grown at a CAGR of 10 percent over FY10-17 and is expected to grow at a CAGR of 10.5 percent to 22MMTPA by FY20.

A similar shift is taking place in the plastic industry, Motilal Oswal said in a report. The industry is highly fragmented and numerous unorganized players account for 44 percent of the industry.

Channel checks conducted by the domestic brokerage firm suggests that changes in the administrative procedures under GST using technology platform and effective implementation of the e-way bill are likely to help hasten the shift towards formal trade.

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