India's Jyoti planning for expansion to US by 2027 | Plastics News

Oct 25, 2024

Orlando, Fla. — Indian processor Jyoti Plastic Works is building an extrusion plant in its home country and plans to open a warehouse in the United States as it eyes further investments in manufacturing plants in the Middle East and the U.S.

The Mumbai-based company showcased its patented thicker wall molding technology as well as a process for two-shot molding to produce complicated parts from two materials at NPE2024.

"Our expertise is metal-to-plastic conversion, and we anticipate large opportunities in this area to grow in the U.S. market," said Director Raju Desai.

The firm is expanding. It said it's investing in a profile extrusion plant in India to serve a U.S.-based customer and is looking at opening a warehouse in the United States.

The new plant in India is in Vapi, Gujarat state, about 110 miles north of Mumbai.

"We have invested about $1.3 million in 2023-24 to set up greenfield profile extrusion lines for a USA-based customer," he said, adding that the plant has capacity for 15 extruders and a compounding capacity of 500 tons per month. "We also invested in a state-of-the-art plastic machining facility for our European customers."

As well, the firm has more ambitious plans to expand with molding and processing facilities in the United Arab Emirates and later in the U.S. "We are actively pursuing building a manufacturing facility in the UAE, which will include compounding, extrusion and injection molding," Desai said.

The UAE plant, an investment of $4 million in its first phase, would be in the large Khalifa Industrial Zone Abu Dhabi. "We are considering KIZAD-Abu Dhabi as a prospective location for the forthcoming expansion," he said.

The company also wants to open a warehouse in the United States by the end of 2024. "We are discussing location based on proximity of port and railroad connectivity to the Midwest," he said.

Desai said it's also looking at establishing an injection molding plant in the U.S., although that's a few years down the road.

"The manufacturing facility in the U.S. is likely to come up by 2026-27 in the state of Texas," he said.

The company, which has been exhibiting at NPE for more than 10 years, said sales grew from $12 million in 2022 to $21.5 million last year. The company said the Indian injection molding market grew 6 percent in 2023 and is projected to grow 5.4 percent a year for the next decade.

Desai said it sees a presence in the U.S. market as important for building up its work with Fortune 500 brands. It works in automotive, fluid engineering, industrial, medical, defense and other markets.

He believes Indian plastics manufacturers are closing the gap with manufacturers in the U.S. and Europe. The pace of change in India can lead to quicker adaptation to market demands and customization in manufacturing, he said.

"Indian manufacturers have demonstrated their ability to provide cost-effective solutions without compromising on quality, making them competitive in the global market," he said.

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