Vijai Kapur

It’s the gospel truth that Chinese products have been productively presiding over a large portion of the Indian wide-format digital printing segment. But there is sufficient prima facie evidence of dumping PVC flex materials from the country that subsequently injures domestic manufacturers. Pioneers Polyleathers has taken a measure to control the alleged dumping but it has to be figured out whether the Indian manufacturers alone could be able to maintain the current market demand of around 350 containers per month and the quality that Chinese importers deliver.

“Anti-dumping duty is just a measure to control under-invoicing and selling of Chinese PVC flexes at absurdly low prices in the Indian market. We’re not stopping imports from Chinese companies,” clarifies Vijai adding that he doesn’t see any reason why Chinese importers should be worried about anti-dumping because it will bring a win-win situation for both sides and customers are given a chance to choose either from Pioneer or Chinese brands. Three more companies are in the line to follow the footsteps of Pioneer Polyleathers.

Effective from July 30, 2010 to January 29, 2011, Chinese manufacturer-cum-exporter Zhejiang Hailide New Material Co Ltd has to shell out an anti-dumping duty of US$0.152 a kg, while Shanghai Nar Industries Co Ltd should pay US$0.346 a kg. Other manufacturers paying interim dumping levy of the subject goods include Shanghai Inflex Signage Co Ltd at US$0.346 a kg; Jiangyin Nanwei Plastic Co Ltd; Jiangyin Nanwei International Trade Co Ltd at US$0.370 a kg; Zhejiang Botai Plastic Co Ltd at US$0.365 a kg; Zhejiang Ganglong New Material Co Ltd at US$0.374 a kg; Heytex Technical Textiles (Zhangjiagang) Co Ltd at US$0.143 a kg; Zhejiang Tianchang Plastic Fabric Ltd at US$0.450 a kg; Cixi Linyun Plastics Wart Co Ltd at US$0.340 a kg; and Zhejiang Yuli Plastic Co Ltd at US$0.545 a kg. Producers and exporters from China, other than the companies listed here, routing the subject goods to India, should pay an interim anti-dumping duty of US$0.545 a kg.

Adverse effect?

“When the overall quality of PVC flex in India had been reaching to an extremely sub-standard level over the last few years, we made some investment to revive the subjugated domestic market,” says Vijai when asked why Pioneer Polyleathers initiated the anti-dumping move. Now the worry is about whether the increase in flex price would retard the market growth. “Not at all! If you observe carefully what it takes into the production of a signage is the costs on its design, printing, installation and site while expenditure on media is comparatively minimal. So, a slight increase in media price will have no reason to adversely affect the industry,” affirms Vijai.

More or less, anti-dumping is now seemed to find its role to improve the Indian signage industry. “Of course, this initiative will inspire companies to come out for new manufacturing plants. If we stop or retread in this move, nobody will follow up and customers will miss the benefit of local availability,” comments Vijai. He further mentions that local availability is rather important because PSPs at least can keep in touch closely with manufacturers to discuss their problems/requirements.

Quality control

Now that anti-dumping duty is stabilising prices of PVC flex medias, there will likely be no under-invoicing and goods without duty will probably be vanished from the Indian signage market. “I have a firm believe that legitimacy in the industry will increase,” remarks Vijai assuring that the quality of flex will automatically improve if choices/competitions increased in the market.

Talking about quality assurance, Vijai mentions that Pioneers Polyleathers orders raw materials from Twinplast, Reliance and sometimes other sources as per the requirements. “We have a quality control team to test our products at par with international standards and there’s no point to lose quality because we adopt PVC grades, such as K-67, which are the same all over the world,” remarks Vijai guaranteeing future perfect of Pioneer PVC flex medias.

Others’ comments “Even if the existing domestic suppliers run in full capacity they can meet only 30 percent of the total demands in the country and rest 70 percent will be fulfilled from China because other countries don’t have the available volumes. It is for sure, PVC flex continues to be importing whether anti-dumping is here or not.” —A K Ajmera Aditya “Qualities of more than 50 percent of Chinese medias in the Indian market are found better than our domestic counterparts. However, there is nothing wrong with the anti-dumping since the government has to support the domestic manufacturers.” —Anand Bhandari Shubh Plastics “If Chinese importers stop deliveries due to anti-dumping, our domestic production is not yet enough to meet the whole demands. And the fact is that not every Chinese factory is dumping goods in the Indian market as there are many genuine companies delivering products at low profit margins.” —Siddharth Doshi Gita & Company “The ongoing anti-dumping might affect the availability of low-priced Chinese products in the Indian market. But this move will bring a useful transition phase for both customers and suppliers to go for quality premium products.” —Ramakant Mandhana Laxmi Sales Corp