Plastindia opens, but verdict not in yet on new location

GANDHINAGAR, INDIA — The controversy surrounding the Plastindia trade show's last-minute move halfway across India — which led to lawsuits from domestic companies and major questions from international partners — may finally get a chance to be put to rest as the show opened its doors Feb. 5.

The initial reviews from the show grounds in Gujarat state could probably be summed up as “not bad” and “let's wait and see.”

The move from New Delhi to an untested, unknown trade fair complex in the west of India was not the logistical disaster some feared. The event opened without apparent major problems.

But it's also not the immediate success its promoters promised — even the organizer Plastindia Foundation declined to say, after all the push to move, if future shows will stay in Gujarat or move back to New Delhi.

The big question voiced by those on all sides: could the new location attract the right kind of visitors, those who spend money on capital equipment and other big-ticket purchases?

“The key issue will be the quality of visitors,” said Kavita Shah, chair of Plastindia Foundation's media and public relations committee.

In an interview at the show, both she and L.K. Singh, co-chair of Plastindia Foudation's executive council, confirmed that the Mumbai-based foundation has yet to decide the location of the next edition of the show, in 2018.

A few big exhibitors pulled out in recent weeks because they said they had too many questions about the event, after PIF decided in September to move the show.

Machinery manufacturer M Plast (India) Ltd. decided in January to cancel its large, 200-square-meter booth because organizers didn't seem very, well, organized.

“In December, they were not ready to even give the stall numbers and the locations of the booth,” said Director Rajendra Shukla. “We thought if they are not ready with these things, how will this exhibition be successful?”

Influencing his decision, he said his company was finding very inflated prices for hotel rooms and difficulties making travel arrangements to the smaller airport in Gujarat, complaints echoed by others,

As well, Austrian machinery maker Starlinger told its customers in a January letter it was canceling its booth even though India is one of the largest markets for its equipment for woven plastic packaging.

“The decision by the organizers of the exhibition to move PlastIndia from New Delhi to Gandhinagar, Gujarat State… has prompted us to abstain from participating in 2015,” the company wrote. “Due the relatively short notice given for such a change we fear that we cannot ensure our usual exhibition standards for our customers, prospects, partners and employees.”

Plastindia Foundation officials say they made the late move because they wanted to get away from poor conditions at New Delhi's outdated Pragati Maidan fairgrounds, and because government officials were telling them the Delhi complex could close for renovation.

But a lawsuit filed by some Indian companies seeking to stop the move alleged another reason: the government of India's new Prime Minister Narendra Modi, who ran Gujarat's government before winning national office eight months ago, pressured Plastindia in order to give an economic boost to his hometown.

Foreign participation down

Whatever the truth, the move did seem to dampen foreign participation, which attracts 100,000 people and has become one of the largest plastics fairs in the world.

Shah said exhibit space rented by foreign companies fell about 10 percent compared with the 2012 show, even though overall, the event was sold out for domestic companies and organizers were booking space up until opening day.

“Yes, there were a lot of companies that were skeptical of the new venue,” she said, but defended the decision to move to in part because over 50 percent of India's plastics industry is from Gujarat or nearby.

That will lead to a lot of visitors driving in for the day, making it hard to predict turnout, she said: “I think the quality of visitors will be there.”

Thorsten Kühmann, managing director of the plastics machinery committee within German trade group VDMA, echoed statements about visitor numbers being critical.

He said the exhibition grounds physically seemed good, but it was too soon to judge success or failure, he said in a Feb. 5 interview at Plastindia.

“Now we have to see,- will the numbers and quality of visitors be there,” Kühmann said.

The organizer of the large German pavilion, Messe Düsseldorf, agreed and before addressing current conditions, an official repeated previous statements that “we were not really happy for this move” because it was too short notice.

But Joerg Duebelt, head of the international exhibition department, said the companies they represent in organizing pavilions made it clear that they wanted to continue their 20-plus year relationship as official partners with Plastindia. 

“A big majority were very clear, they have to go to India,” he said. “Plastindia is the leading show for the Indian subcontinent.”

Both Kühmann and Duebelt said their groups were not telling Plastindia where to have the show, but only raising concerns about the decision-making process.

“Last minute decisions are challenging for all the people,” Kühmann said.

Plastindia's Singh said he believed that people were happy with the new venue and he said logistics ran well. He said companies that did not exhibit would see it as a mistake.

“The feeling with us is those who decided not to come will regret it,” he said.