Packaging Industry in India
Euromonitor International's Packaging Industry in India Euromonitor International's World Market for Glass Packaging report offers insight into key trends and developments in global and regional consumer glass packaging. It provides analysis of the major growth markets and end-use applications, together with analysis of the corporate strategies of the leading companies.
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Chapters: 5 | Tables: 25 | Publication date: Apr 2007
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- Get insight into trends in market performance
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Executive summary
Plastic waste becomes the centre of India’s recycling efforts
All recycling in India is undertaken by informal operators, including rag pickers, intermediaries, transporters and re-processors, with rag pickers forming the backbone of the waste collection system. Waste collecting is a well-established urban-survival tactic in metropolitan cities in India. When it comes to plastic recycling, especially PET bottles, however, things are more formal and structured.
In 1999, the Indian Centre for Plastic in the Environment (ICPE) was set up to address various social, environmental and technical issues, with a specific emphasis on waste, and to offer technical and practical solutions. Alongside ICPE, the Indian government, together with the Municipal Corporation, are putting considerable efforts into making citizens aware of the importance of the proper disposal and collection of dry waste, with particular attention paid to plastic waste.
In 2003, the Recycled Plastics Manufacture and Usage (Amendments) rules further added that no person should manufacture carry bags or containers irrespective of their size/weight unless they have registered with the State Pollution Control Board/Pollution Control Committee.
Development of local production signifies strong growth potential in metal
It is expected that the Indian beverage market will continue to experience good growth over the forecast period. This presents attractive growth opportunities for packaging formats used in this market, particularly metal beverage cans, demand for which is driven by a fast growing young population and substantial middle-class expansion.
In response to this trend, packaging giant Rexam has announced its joint venture with Hindustan Tin Works and set up a plant near Mumbai to supply metal beverage cans to the promising Indian beverage market. It is believed that local production will make metal beverage cans more affordable and tap a huge potential market in the country.
Plastic remains fragmented as small scale operators avail of government incentives
The Indian plastic processing industry is highly fragmented, with players being classified according to their scales of operation. The government reserves the production of many plastic products for small-scale operators. The Small Scale Sector Industries reservation policy not only prevents larger sized firms from entering, but also stops smaller firms from growing.
These smaller firms circumvent the law by setting up more firms under their own ownership rather than by expanding themselves. As a result, larger organised companies in the Indian plastic processing industry face significant competition from the unorganised small-scale sector, where players enjoy duty incentives and power cost savings.
Table of contents
EXECUTIVE SUMMARY
Plastic waste becomes the centre of India’s recycling efforts
Development of local production signifies strong growth potential in metal
Plastic remains fragmented as small scale operators avail of government incentives
MARKET BACKGROUND
PACKAGING LEGISLATION
Packaging for retail sales still governed by obsolete laws
Food labelling in India remains far behind international standards
Food regulations only deal with safety standards for ingredients
The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of production, Supply and Distribution) Act, 1992
The Edible Oils Packaging (Regulation) Order, 1998
Tobacco labelling legislation comes into force
New legislation aimed at reducing packaging costs is introduced
RECYCLING AND THE ENVIRONMENT
Informal operators support urban recycling activities
Efforts to recycle PET bottles are stepped up over the review period
Government authorities aim to make plastic recycling easy for urban residents
Industry and state bodies attempt to solve the problem of thin plastics
Glass producers seek to outlaw reusable glass bottles
Smaller unorganised players account for the bulk of aluminium recycling
The Recycled Plastics Manufacture and Usage (Amendment) Rules, 2003
Use of substandard tinplate remains widespread despite regulatory efforts
CORPORATE ACTIVITY IN PACKAGING
Rexam enters India to manufacture metal beverage cans
Rexam strengthens its position by entering pharmaceutical packaging in India
Essel Propack acquires pharmaceutical packaging player PIPL in 2006
ITC invests in ECF paper plant in 2005
MAJOR MARKET PLAYERS (LOCAL COMPANY PROFILES)
INDIAN ALUMINIUM CO LTD (INDAL)
Company structure
Competitive environment
Summary 1 Indian Aluminium Co Ltd (Indal): Operational Indicators 2005
Summary 2 Major End-Use Applications for Indian Aluminium Co Ltd by Pack Type 2005
TETRA PAK INDIA PVT LTD
Company structure
Competitive environment
Business Strategy
Summary 3 Major End-Use Applications for Tetra Pak India Pvt Ltd by Pack Type 2005
THE TINPLATE COMPANY OF INDIA LTD (TCIL)
Company structure
Competitive environment
Summary 4 The Tinplate Company of India Limited (TCIL): Operational Indicators 2005
Summary 5 Major End-Use Applications for The Tinplate Company of India Limited by Pack Type 2005
FLEX INDUSTRIES LTD
Company structure
Summary 6 Flex Industries Ltd: Operational Indicators 2005
Summary 7 Major End-Use Applications for Flex Industries Ltd by Pack Type 2005
ESSEL PROPACK LTD
Summary 8 Essel Propack Ltd: Operational Indicators 2005
Summary 9 Major End-Use Applications for Essel Propack Ltd by Pack Type 2005
PEARL POLYMERS LTD
Company structure
Competitive environment
Summary 10 Pearl Polymers Ltd: Operational Indicators 2006
Summary 11 Major End-Use Applications for Pearl Polymers Ltd by Pack Type 2005
HINDUSTAN NATIONAL GLASS & INDUSTRIES LTD
Company structure
Competitive environment
Summary 12 Hindustan National Glass & Industries Ltd: Operational Indicators 2006
Summary 13 Major End-Use Applications for Hindustan National Glass & Industries Ltd by Pack Type 2005
ITC LTD
Company structure
Summary 14 Major End-Use Applications for ITC Ltd by Pack Type 2005
AMD METPLAST PVT LTD
Company structure
Summary 15 AMD Metplast Pvt Ltd: Operational Indicators 2006
Summary 16 Major End-Use Applications for AMD Metplast Pvt Ltd by Pack Type 2005
BERI-ESSEL CLOSURES PVT LTD
Summary 17 Major End-Use Applications for Beri-Essel Closures Pvt Ltd by Pack Type 2005
SHETRON LTD
Summary 18 Major End-Use Applications for Shetron Ltd by Pack Type 2005
MAJOR MARKET PLAYERS BY PACK TYPE
RIGID PLASTIC
Incentives for small players ensure rigid plastic remains extremely fragmented
Essel Propack and Pearl Polymers are among the strongest domestic players
Rexam Plc acquires domestic pharmaceutical packaging specialist Truepack Ltd
Summary 19 Major Rigid Plastic Packaging Manufacturers by Pack Type 2005
METAL
Entry of Rexam should boost domestic demand for metal beverage cans
Leading metal players TCIL and Shetron invest in improving their operations
Government seeks to reduce the inflow of substandard metal packaging materials
Metal packagers will have to invest in the development of lighter, cheaper formats
Summary 20 Major Metal Packaging Manufacturers by Pack Type 2005
FLEXIBLE PACKAGING
Indal remains a leading player in aluminium foil production
Alcan’s Inc entry should bring about significant changes in flexible packaging
Essel Propack moves into flexible packaging with the acquisition of PIPL
Summary 21 Ranking of Major Flexible Packaging Manufacturers 2005
GLASS
Hindustan remains one of the leading glass packaging players in India
Special Economic Zone is proposed for glass and ceramics producers
Saint-Gobain outlines expansion plans for the forecast period
Summary 22 Ranking of Major Glass Packaging Manufacturers 2005
LIQUID CARTONS
Summary 23 Share of Major Liquid Carton Manufacturers 2005
PAPER-BASED PACKAGING
Market share dominated by ITC Ltd
Summary 24 Major Paper-Based Packaging Manufacturers by Pack Type 2005
CLOSURES
Summary 25 Ranking of Major Closures Manufacturers 2005