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Adhesive (Fevicol Type), Glue, White Adhesive, Synthetic Resin Adhesive, Wood Working, Vinyl Acetate Based Adhesive, Wood Adhesives Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey

Thursday, February 23, 2017

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Adhesive (Fevicol Type), Glue, White Adhesive, Synthetic Resin Adhesive, Wood Working, Vinyl Acetate Based Adhesive, Wood Adhesives Manufacturing Plant, Detailed Project Report, Profile, Business Plan, Industry Trends, Market Research, Survey, Manufacturing Process, Machinery, Raw Materials, Feasibility Study, Investment Opportunities, Cost and Revenue, Plant Economics, Production Schedule, Working Capital Requirement, Plant Layout, Process Flow Sheet, Cost of Project, Projected Balance Sheets, Profitability Ratios, Break Even Analysis

Fevicol type adhesive come under the category of Synthetic resins and latex adhesives are made from Polyvinyl acetate is thermoplastic, odourless, tasteless, non toxic, essentially clear and colorless resin. It has a non Crystalline and relatively branched rather than linear structure. Most grades of resin have somewhat broad molecular weight distribution. They do not melt but soften over a temperature range. The resin is unaffected by sunlight, ultraviolet light and air, further more it will absorb a small amount of water. Polyvinyl acetate is neutral and non-corrosive. The Various grades have good heat stability below 100ºC, show slight discoloration at approximately 150º and decompose at 50ºC show slight discoloration at approximately 150ºC but brittle at 10ºC to 15ºC. The adhesive industry is currently the most important outlet for polyvinyl acetate. Polyvinyl acetate came into widespread use in 1940’s as a synthetic resin substitute for hide glue.

Adhesives are made in various types and may be synthetic or natural. The term synthetic adhesive means the adhesive which is prepared by using synthetic chemical such as synthetic resin.The manufacture of adhesive from synthetic resin is simple and can be started with very little investment. The most advantage to any type of adhesive as per market demand.

Polyvinyl acetate is now used in adhesives for various applications such as Book binding, Paper bag, Milk Can, Drinking straws, Envelopes, Gummed Tapes, and Foils etc. The vinyl acetate adhesive is also used for lamination, combination of two or more plies of material into a now composite. The introduction of adhesives based on vinyl acetate has introduction of adhesives based on vinyl  acetate is used for the manufacture of ploy vinyl acetate (PVA), Polyvinyl alcohol is being imported from countries like Germany, FRP, France, U.K, Netherlands, Japan, Hungary, Italy, U.S.A and Belgium. Synthetic adhesives Produced in India are mostly base on vinyl Acetate Monomers (V.A.M). VAM is used in from of its various derivatives like Polyvinyl Alcohol and Polyvinyl Acetate, Ethyl Vinyl Acetate etc.

There is a very good scope in this sector and new entrepreneurs should venture into this field.

Indian adhesive market size at Rs 60 bn currently implying per capita consumption of close to Rs 50. Adhesives consumption in India is much lower than the developed economies like USA, Japan and Europe (per capital consumption estimates at Rs 750 in USA, Japan and South Korea combined).

Currently, the major applications of adhesives in India are in furniture, packaging, automotive and construction. India differs with other regions in terms of usage of disposable products. Growth in usage of such items would provide thrust to adhesive demand going ahead.

Pidilite has been enjoying a leadership positioning with over 60% market share in Indian adhesives market and faces very little competition. Apart from PIL, other noticeable players in the industry are 3M India, Huntsman, National Starch, Bostik Findley and others. Huntsman with its product ‘Carpenter’ is considered as closest rival to the company is furniture segment. Woodwork and furniture sector has been the major growth driver for adhesives in India. Indian furniture Industry is estimated at around Rs 710 bn and is estimated to grow at 25-30% CAGR over the next few years. Indian furniture industry is highly fragmented with unorganized players enjoying over 80% market share. Some of the prominent players in organized sector are Godrej & Boyce, Haworth, Pantaloon, Shoppers Stop, Millenium Lifestyles, Durian, Tangent, Furniture Concepts and Zuari. Packaging is another industry that influences the demand of adhesives. Adhesives are primarily required in making containers and flexible packaging.

Global automobile production was estimated at approximately 89.7 million units in 2014 and is likely to cross 100 million units by 2018. Increasing plastic and polymer use in vehicles, in order to reduce weight for enhancing efficiency will most likely drive adhesives and sealants market size, with growth expectations of 4.9% and 5.9% from 2016 to 2023, respectively. Packaging applications accounted for over 20% of the glue demand, with consumption over 2 million tons in 2015. Packaging applications includes carton boxes, envelopes, carton closures, cups, flexible packaging, specialty packaging, bags and disposables, PU, water based and hot melts are widely used in packaging applications.

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