Thursday, September 19, 2013

Waste put to good use

Promote plastic waste for use in road construction

The statement "We are sitting on a plastic time bomb" made by the Supreme Court on April 03, 2013, highlights the grave concern that is posed by plastic waste in India. For instance, the country produces as much as 56 lakh tonnes of plastic waste per annum, as per the Central Pollution Control Board (CPCB). The four metro cities, i.e. Delhi, Chennai, Kolkata and Mumbai, generate plastic waste of 689.5, 429.4 425.7 and 408.3 tonnes per day respectively. Moreover, 40% of the total waste is neither collected nor recycled; so they become a continuous source of pollution. In this scenario, the problem is likely to worsen with time as not only is there an adequate waste management system in place but worse, even the existing system does not function efficiently. But not all hope is lost. A new initiative -- of constructing roads using discarded plastic items -- offers a ray of hope in finding a solution to the problem of disposing off hazardous plastic waste.

R. Vasudevan, the Dean and Head of Chemistry Department of Thiagarajar College of Engineering (TCE), also known as Madurai's ‘Plastic Road Man', had laid the first plastic tar road within the TCE campus in 2002. Since then, thanks to the extensive research carried out by him, Bangalore University, the Council of Scientific and Industrial Research (CSIR) and the Central Road Research Institute (CRRI), New Delhi, have helped the nation to construct several trial roads using plastic waste. The Bangalore Mahanagar Palike (BMP) decided to use plastic waste over asphalt to over 40% of the roads under a World Bank scheme in 2005. Similarly, Pune constructed its first plastic bitumen road in 2011. In addition to that, Tamil Nadu Chief Minister Jayalalitha recently announced in the assembly that the state is coming up with a plan to relay 1,100 km roads in the rural and urban areas by mixing plastic waste with bitumen. Even Meghalaya might get the first plastic road in the Northeast in the near future.

What's the reason for these states taking a shine to plastic roads? Several reports and experiments have proved that plastic roads are “25% better than unmodified roads and are almost 200% resistant to water absorption. Even the maintenance cost of these roads is very low, while the durability is high. The roads reportedly need no repairing for at least five years.” Moreover, plastic roads would be an added advantage for a country like India, which has a hot and an extremely humid climate, and where torrential rains are responsible for damaging most roads.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
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Monday, September 09, 2013

As sales bounce back, AC playersvie to beat the sweat

In order to grab a slice of this growing market and tap new customer segments, players are rolling out products that are energy efficient, have better technology and deliver an acceptable price-performance ratio for the target customers. By Sanjay Kumar

Air conditioners (ACs) are fast becoming must-haves as consumers become increasingly accustomed to air-conditioned environments at the workplace, homes, malls, cinema halls and in their cars. With the consumer durables industry in India growing at 15% annually, and the fact that the air conditioning segment remains among the least penetrated consumer durables segments, at less than 3%, more and more players are entering the AC market with hopes of tapping the growth opportunities. The AC market in India currently has over 20 players who are fighting for a slice of the market amidst high hopes that it will grow substantially in the future.

The fact that 97% of Indian households are still untouched by room air conditioners – while the adoption of comparable products have surged ahead – indicates that industry players are far from realising the full market potential. This has led to players intensifying their efforts to grow the market and reach out to new consumer segments. But despite fierce competition and a sizeable market turnover in the room AC industry, which last year generated sales of 4.2 million units worth Rs.72 billion, there are several issues crimping the growth and potential of the industry. According to industry experts, lack of infrastructure in the form of inadequate power supply is the most important factor inhibiting the growth of the AC industry in India. “Globally, 40 to 50% of the electricity is used by buildings, and out of that 30 to 40% is accounted for by air conditioning,” says Gaurang Pandya, MD, Carrier India. High up-front costs of an AC are also a major barrier to adoption for many Indian households. This is particularly important in India where the traditional air cooler offers a cheaper substitute for households at a time when energy prices are rising. To increase penetration and accelerate market growth, AC manufacturers are now taking a leaf out of the automobile industry's book and offering easy financing and purchasing options with the view to bring ACs within the reach of a much larger percentage of the population. Trade sources say that finance-driven sales in ACs have risen by 7-8% over last year. "Last year, finance-driven sales were 22-23% of total AC sales. This year, it stands at nearly 30%," says Manish Sharma, MD, Panasonic India.

Many players are also banking on innovation and technology to lower their cost of production, which can then be passed on to the customer through a lower ticket price. In fact, several companies have introduced air-conditioners endowed with inverter technology that has a shorter motor run-time and therefore consumes less electricity. Although energy-efficient products are relatively more expensive than the standard variants, a large number of consumers are choosing them to reduce long-term costs. Sanjay Mahajan, Vice President – Sales and Marketing, Carrier Midea India, says "energy-savers, though 15-25% more expensive than the regular models, are now viewed as ‘value for money’ by Indian consumers."

AC manufacturers are also adopting the strategy of offering a portfolio of lower priced products by resorting to economies of scale and focusing on obtaining cheaper components and materials. Currently, Haier and Onida are among the cheapest brands in the Indian market but other players – mainly Japanese and Korean – are also introducing products at cheaper price points. A case in point is the Japanese AC manufacturer Daikin, which in spite of its premium tag, is trying in earnest to tap all segments of the market. "We want to tap all segments, not just the top segment of the market. We have already launched products targeting each segment. And now it is time for us to penetrate the rural and semi-urban cities of India," says Kanwal Jeet Jawa, MD, Daikin India. As part of its strategy to increase its share in the Indian market from 12% to 20% by 2015, Daikin plans to have dealers in all Indian cities with at least 100,000 population. Not only Daikin, which claims the No.1 position in the global air-conditioning market, other Japanese AC makers such as Panasonic and Hitachi have also made a strong inroad into the bulging AC market in India over the past couple of years.


According to industry sources, both Panasonic and Hitachi have maintained a steady growth in the AC market and cumulatively account for more than 15% of the market currently.

The past fiscal year, which saw the overall AC market in India post a negative growth of 26% year-on-year, was particularly bad for the Korean majors Samsung and LG. The market share of LG dropped to 17.3% in February 2013 from 26.3% in March 2011. Samsung's market share, too, dipped to 11.3% by February 2013, from 19.5% in March 2011. On the other hand, the share of home-grown Voltas increased to 18.3% in February this year from 17.5% in March 2011. The company has attributed its latest growth to aggressive marketing of its new all-weather air conditioners introduced early last year. But its success has deeper roots than that. Over the past five years, Voltas has built its brand, introduced new products and expanded its retail presence to a total of 6,000 outlets. Fast-growing smaller towns and cities now contribute about half of Voltas’ sales and the company sees them as its main source of future growth.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
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Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
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