A study of the Indian Plastic Association has revealed that the per capita plastic consumption in the country is expected to increase to 5 kg by 2002 from the existing 2.5 kg. Abroad, the per capita consumption is as high as 15 kg.

In addition to this, Engel officials also have taken into account that with the completion of the Haldia Petrochem project, eastern India will have a new raw materials market. The input markets are now primarily in the southern and western India close to the polymer manufacturing units.

Engel has already evolved its revival strategy which hinges on aggressive marketing policy and technology upgradation.

Set up in 1962 in technical collaboration with Engel Ludwig KG of Austria, the financial position of the company deteriorated during the period between 1968 and1970. In September 1972, a lockout was declared and finally the Union Government took over the management in 1975. Later in 1987, the company was nationalised and the Bengal Government took over the management. Its accumulated loss at present is around Rs 20 crore.

According to its managing director MK Chanda, who took over on October 23, last year, the company has planned to upgrade its new generation machines for higher productivity with less power consumption. In fact, according to officials, the new generation machines will cut power consumption by at least 40 per cent.

Chanda said that since over 80 per cent of the plastic processing machine manufacturers are in the unorganised sector, Engel is likely to have an edge with a brand equity and goodwill. Moreover, its competitors like Windsor, Larsen & Toubro, HMT, SLM Maneklal are in the western and southern part of India.

Apart from this, the company will be targeting the spares market and on volumes. This will form a good percentage of the business,feels Chanda.

Its new generation machines will have digital control valves to regulate the pressure and flow of inputs. The new machines will also have programme logic controls installed to improve its productivity and to bring down maintenance costs.

In terms of design, the new machines will enjoy a mechanical advantage besides weighing less and having more flexibility.

Chanda feels that unlike its competitors, running an already depreciated plant with a low salary structure and an 150-odd workforce will help in restricting the overheads substantially.

Engel management which is planning to participate in Plast-Vision 2000 to be held at New Delhi in February 2000, feels that this will be an ideal launching platform for its new generation machines which are likely to be exhibited.