THE PACKAGING INDUSTRY IN INDIATHE PACKAGING INDUSTRY IN INDIA

BY: RAMESH KUMAR THAKURGeneral Manager, District Industries Centre

(Madhepura Saharsa)

Contents *Contents * Packaging Industry : Overview

Function of Packaging

Classification of Packaging

Packaging Industry : Global

Packaging Industry : India

Rigid Packaging # Metal Containers

# Glass Bottle# Rigid Plastics# Paper Cartons

Flexible Packaging

Caps & Closures

Labels

Secondary & Bulk Packaging

Packaging Machinery

Future Prospects of Packaging Industry 2

Packaging Industry: OverviewPackaging Industry: Overview

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Preservation: preservation of the quality and lengthening the shelf life of innumerable products - ranging from milk and biscuits, to drugs and medicines, processedand semi-processed foods, fruits and vegetables, edible oils, electronic goods etc.,

Branding: Distinct from mere packing”, Packaging plays it’s most visible and catalytic role in a modern economy with the widespread adoption of branding of products and development of consumer preferences.

Attractiveness: To the extent that any consumer product is packaged in a manner that meets the criteria of safety, convenience and attractiveness, it gains market share.

In the aggregate, packaging as a sectoral activity boosts consumption and economic growth.

Functions of PackagingFunctions of Packaging

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Classification of PackagingClassification of Packaging

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By Shape(Form & Size) By method(Way of packaging)

By materialBy Contents

Packaging Industry : GlobalPackaging Industry : Global

Size of Packaging Industry Worldwide (est.) : USD 600 Bn. (excluding machinery)

US packaging market accounts for about 24 %

Western European packaging industry is dominated by Germany, France, Italy & U.K

Paper & Board leads with 36% of the world market followed by Plastics

World packaging industry has been growing at a rate of 3 - 5 % per annum

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PRIMARY PACKAGINGPRIMARY PACKAGING

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Market Share of Packaging Media Market Share of Packaging Media (by value )(by value )

McG 8

Indian Packaging - Notable Indian Packaging - Notable DevelopmentsDevelopments

Metal cans and glass bottles have lost large markets to rigid & flexible plastics and printed monocartons

Flexible packaging has replaced all forms of rigid packaging; the flexible packaging segment has seen many new innovations – the concept of the single use unit pack is now globally acknowledged as a marketing first

Laminate tube has almost entirely replaced the aluminium collapsible tube for toothpaste packaging, now making inroads into the pharmaceutical sector

PET bottles & jars have made a spectacular entry into the Indian market, recording annual growth rates in excess of 20 % per annum; in its wake, the demand for a whole new range of plastic closures has also emerged replacing metal closures

PET bottles are used for mineral water, edible oil, carbonated soft drinks and a host of other products

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Metal Cans in IndiaMetal Cans in India Tinplate packaging, in India, includes Open Top Sanitary

(OTS) cans, 3 -piece General Line cans & seamless cans - all manufactured within the country; Aluminium 2-piece beverage cans as well as limited quantities of OTS cans are imported

The market for metal packaging in India has been nearly stagnant over the past decade owing to the high cost of raw materials and consequent shift to other packaging media

Tinplate is produced in India; largeimports take place as domestic production is inadequate

2-piece beverage cans have not yet made an impact

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Select Metal Can Manufacturers: IndiaSelect Metal Can Manufacturers: India

Tinplate (OTS/ GL) Cans

Comet, Silvassa Hindustan Tin Works,

Sahibabad India Tin Industries, Bangalore Kaira Can Company, Anand L & T, Hyderabad (contract

mfr.) Petrox, Mumbai Shetron Metal, Bangalore Standard Tin Works, Mumbai Western Cans, Mumbai Zenith Tin Works, Mumbai

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Aerosol Cans

Asian Cans Pvt. Ltd., Mumbai (Tinplate)

Metal Impacts Pvt. Ltd., Bangalore (Aluminium)

Glass Packaging: IndiaGlass Packaging: India India has a well developed glass bottle manufacturing industry

Trends in Indian Glass Packaging

◦ Industry growth rate has been around 4 to 5 % per annum

◦ Industry has been under cost pressure in recent years

◦ Profitability has been low historically

◦ Loss of markets to PET containers, cartons, and flexible packaging

◦ Industry has succeeded in making light weight glass bottles, glass bottles of fancy shapes, frosted finish, etc.

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Global Market for PET Containers : Global Market for PET Containers : by User Segmentby User Segment

McG 13

Market for Printed Cartons : IndiaMarket for Printed Cartons : India

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Total Market : 420,000 Tonnes

Flexible Packaging Market: Global Flexible Packaging Market: Global The Global market for flexible packaging is estimated at

USD 65 Bn. The US flexible packaging market is valued at USD 20

Bn. The main end user being food industry at 50 % Western European flexible packaging industry

is valued at around USD 8 Bn.

McG 15

Manufacturers Of Lamitubes: IndiaManufacturers Of Lamitubes: India

Manufacturer Capacity (Mn. No.)

Essel Propack Ltd. 2,800

Sri Rama Multi Tech Ltd. 640

Courtaulds Packaging 120

Essel Propack is the largest lamitube manufacturer in the world

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Caps & Closures: IndiaCaps & Closures: India The Indian market for Caps & Closures is valued at Rs. 18.5 Billion

Industry is characterised by large number of small and medium sized manufacturers and a few large manufacturers like Manaksia Group, L & T, and Oriental Containers

Plastic closures has registered an impressive growth in recent years and is fast substituting metal closures in many applications

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Innovations in recent years :Innovations in recent years :

ROPPROPP :: Bulged / embossed caps, pressure holding capsBulged / embossed caps, pressure holding capsPlastic Plastic :: Guala caps, pressure holding caps, tamper-evident caps,Guala caps, pressure holding caps, tamper-evident caps,

pourer capspourer caps

Caps & Closures : India Caps & Closures : India Type of closures & applications…...

Type Major Applications

Crown Cork Carbonated Soft Drink (CSD), Fruit Juice,Beer, Ketchup

ROPP Cap Pharmaceutical, Liquor, Processed Foods,Hair Oil, Stationery

Lug Cap Jam, Pickle, Condiment, Cheese Spread, Other Foods

Plastic Closures CSD, Mineral Water, Lubricants & most products packed in PET, PP, HDPE

containers

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Market for Labels : IndiaMarket for Labels : India The Indian label market for packaging applications is valued

at around Rs. 5 billion in 2010-11 Including holograms and barcode labels, the market size

would be well in excess of Rs. 5.5 Billion Annual growth is around 15 % Printed label industry is highly fragmented with a vast

number of small printers, spread all over the country; however the label industry in India is nearly on par with its global counterparts

The leaders in the industry are today manufacturing labels that can be compared with the best in terms of graphic design and print quality.

The industry has the capability to print on a wide variety of substrates

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Market for Labels : India (contd.)Market for Labels : India (contd.) In recent years, there has been a shift from simple paper

labels to more sophisticated products such as self adhesive labels, shrink sleeves & heat transfer labels

Sophistication within the category of paper labels has also taken place in terms of high quality of printing, use of special varnishes, coating, laminating with films

High end printing machines and pre-press equipment are now visible - multi-station flexo and letterpress machines with stations for screen printing or hotfoil embossing and with in-line die cutting facilities, are now being imported

Barcoding and holograms have recently entered the market, adding to the excitement in the labeling sector

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Secondary and Bulk/ Tertiary Secondary and Bulk/ Tertiary Packaging Packaging

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PACKAGING MACHINERYPACKAGING MACHINERY

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The market can be broken down into eleven main sectors as shown below:

3. Packaging machinery for beverages;

4. Meat processing and packaging machinery;

5.Coffee, tea and tobacco processing and packaging

machinery;

6.Beverage processing and packaging machinery;

7.Bakery Packaging machinery;

8.Confectionery Packaging machinery;

9.Basic food and feed packaging equipment;

10.Packaging machinery for the pharmaceutical industry;

11.Other food and beverage packaging machinery.

12.Converting and printing machines;

13.And packaging materials machines

Why Packaging is growing industry Why Packaging is growing industry in India:in India:

Packaging industry serves the following purposes in India2.Protection and Preservation3.Containment4.Supplementary Product Protection5.Communication6.Convenience7.Environmental Aspects8.Reduction of Pilferage9.Marketing Trends:

Factors Affecting Growth of Factors Affecting Growth of Packaging Industry in IndiaPackaging Industry in India

1. Urbanization2. Increasing Health Consciousness3. Low Purchasing Power resulting in

Purchase of Small Packets4. Indian Economy Experiencing Good

Growth Prospects5. Changing Food Habits amongst Indians6. Personal health consciousness amongst

Indians:7. Rural Marketing Pushing Demand for

Sachets24

McG 25