Packaging Industry in India
Euromonitor International's Packaging Industry in India report offers a comprehensive guide to the size and shape of the market at a national level. It provides historic market size data by industry, allowing you to identify the most popular pack types. It identifies the leading companies, and offers strategic analysis of key factors influencing the market- be they new product developments, recycling or legislation issues. Forecasts illustrate how the market is set to change.
Chapters: 5 | Tables: 41 | Publication date: Aug 2009
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Executive summary
Second-tier cities become centre of packaging activity
The rise in organised retailing in India’s second-tier cities made for a competitive packaging market in 2008. Companies like Hindustan Unilever Ltd, Procter & Gamble India Ltd, Nestlé India Ltd, ITC Ltd, Coca-Cola India Ltd, PepsiCo India Ltd and Dabur India Ltd became very aggressive during the review period, and packaging became a big tool for launching new, India-specific products in different shapes and sizes. The review period witnessed a flux of partnerships and joint ventures, with many foreign packaging players entering the scene to gain a slice of the large pie. Alcan Packaging- part of Rio Tinto Alcan, Klockner Pentaplast Group (KP) - a German-based packaging solutions provider, Polish firm Can Pak and Bosch Packaging either announced new investments or disclosed plans for the expansion of their existing investments during the review period.
Environmental concerns continue to hamper polymer-based packaging growth
Environmental concerns are fast catching the attention of all the stake holders in the Indian packaging industry. The expansion of packaging as a profitable industry in India, dragged along by that of the retail and FMCG sectors, has brought with it environmental concerns. Organizations such as the Indian Centre for Plastics in the Environment were actively seen promoting awareness in this regard in order to promote the packaging industry and make people aware of the real concerns about the environment. The centre is the accredited body of The Ministry of Environment and Forests (MOEF) and undertook continuous awareness programs by publishing information on waste management materials, statistics, as well as going in to school and colleges and teaching people about the correct usage of polymer. Corporations were also seen to be making efforts to adapt greener technologies.
Cost advantages make India a preferred packaging export hub
Due to lower manufacturing costs, India is fast becoming a preferred hub for packaging production. The Indian packaging industry has made a mark with its exports that comprise flattened cans, printed sheets and components, crown cork, lug caps, plastic film laminates, craft paper, paper board and packaging machinery, while the imports include tinplate, lacquers, coating and lining compounds. In India, the fastest growing packaging segments are laminates and flexible packaging, especially PET and woven sacks. On the global scene ruled by the World Trade Organisation, it is imperative for India to upgrade its packaging standards through innovative technologies in order to be on a par with the world’s best practice. Packaging labels must inform consumers about the ingredients of the product, the nutritional value, and the manufacturing and expiry dates of the products; something which is being made mandatory by the government. Almost all the major players were seen to expand their existing capabilities to tap into the fast growing export market for Indian packaging products.
Inflation and high oil prices eating in to the margins of packaging companies
Many flexible and paper-based packaging manufacturers experienced difficulties relating to the rise in the cost of paper as well as high oil prices during the first half of 2008. The rising costs of paper reduced the margins of industry players. The Indian government announced a cut in the excise duty imposed on the finished goods from 12% to 8% in 2008, yet this was not sufficient saving for the industry that was badly reeling from the high production costs. The government, in the budget, reduced the excise duty on paper mills from 12% to 8%, which the paper manufacturers did not pass on to the customers. High oil prices during the first half of the year affected the businesses of polymer-based packaging providers who also found it tough to survive in the market.
Table of contents
EXECUTIVE SUMMARY
SECOND-TIER CITIES BECOME CENTRE OF PACKAGING ACTIVITY
ENVIRONMENTAL CONCERNS CONTINUE TO HAMPER POLYMER-BASED PACKAGING GROWTH
COST ADVANTAGES MAKE INDIA A PREFERRED PACKAGING EXPORT HUB
INFLATION AND HIGH OIL PRICES EATING IN TO THE MARGINS OF PACKAGING COMPANIES
MARKET BACKGROUND
PACKAGING LEGISLATION
Still inadequate in a fast-changing market scenario
The Food Safety and Standards Act, 2006
Labelling requirements
RECYCLING AND THE ENVIRONMENT
As the market for packaging matures, environmental concerns rise
Plastic waste and recycling status
Recycled Plastics Manufacture and Usage Rules, 1999 (as amended 2003)
Corporations start to adopt environmentally-friendly technologies
Despite all the efforts, recycling remains fragmented in India
CORPORATE ACTIVITY IN PACKAGING
AVESTHAGEN TERMINATES JVS WITH FRENCH FIRM LIMAGRAIN
POLISH FIRM CAN PAK ANNOUNCES ITS PLANS TO SET UP FACTORY IN WALUJ
HINDUSTAN TIN JOINS HANDS WITH REXAM
ESSEL PROPACK LAUNCHES 'ETAIN' IN INDIA
ITC LTD ANNOUNCES NEW FACILITY FOR SPECTRA BRAND PREMIUM PAPER CUPS
MANJUSHREE STRENGTHENS ITS PRE-FORM PET PACKAGING EXPERTISE
KLOCKNER PENTAPLAST PLANS A UNIT IN AURANGABAD
SRF LTD TO AUGMENT ITS AXIALLY ORIENTED POLYESTER (BOPET) FILM MANUFACTURING PLANT CAPACITY
BOSCH PACKAGING MAKES GOA ITS NEW HOME AND ANNOUNCES THE OPENING OF A PLANT
CORRUGATED BOX MANUFACTURING INDUSTRY FEELS INFLATION HEAT
BILCARE, MEADWESTVACO ACQUIRES US PHARMA PACKAGING FIRM
FICCI SEEKS TAX SOPS FOR PACKAGING INDUSTRY
ALCAN PACKAGING INAUGURATES FLEXIBLE PACKAGING PLANT IN INDIA
PACKAGING INSTITUTE ANNOUNCE ITS PLANS TO OPEN TWO MORE CENTRES
MAJOR MARKET PLAYERS
THE TINPLATE THE COMPANY OF INDIA LTD
Company overview
Product offering
Company strategy and future direction
Recent developments
Summary 1 The Tinplate (India Ltd) Operational Indicators 2007
Summary 2 Major End-Use Markets for The Tinplate (India Ltd) by Pack Type 2008
HINDUSTAN TIN WORKS INDIA
Company overview
Product offering
Company strategy and future direction
Summary 3 Hindustan Tin Works Ltd Operational Indicators 2007
Summary 4 Major End-Use Markets for Hindustan Tin Works Ltd by Pack Type 2008
REXAM HTW BEVERAGE CAN (INDIA) LTD
Company overview
Product offering
Company strategy and future direction
Summary 5 Major End-Use Applications for Rexam HTW India Pvt Ltd by Pack Type 2008
TETRA PAK INDIA PRIVATE LTD
Company overview
Product offering
Company Strategy and Future direction
Summary 6 Major End-Use Applications for Tetra Pak India Pvt Ltd by Pack Type 2008
ESS DEE ALUMINIUM LTD
Company overview
Product offering
Company Strategy & Future direction
Summary 7 Ess Dee Aluminium Ltd. Operational Indicators 2007
Summary 8 Ess Dee Aluminium Ltd. Operational Indicators 2007
UFLEX INDUSTRIES LTD
Company overview
Product offering
Company Strategy & Future direction
Summary 9 Uflex Industries Ltd Operational Indicators 2007
Summary 10 Uflex Industries Ltd Operational Indicators 2007
INDIAN ALUMINIUM CO LTD (INDAL) - HINDALCO
Company overview
Product offering
Company Strategy & Future direction
Summary 11 Indian Aluminium Co Ltd Operational Indicators 2007
Summary 12 Major End-Use Applications for Indian Aluminium Co Ltd by Pack Type 2007
ESSEL PROPACK LTD
Company overview
Product offering
Company Strategy & Future direction
Exploring New Business Models
Summary 13 Essel Propack Ltd Operational Indicators 2007
Summary 14 Major End-Use Applications for Essel Propack Ltd by Pack Type 2007
ITC PAPERBOARDS AND SPECIALTY PAPERS DIVISION
Company overview
Product offering
Company Strategy & Future direction
Summary 15 Major End-Use Applications for ITC Packaging by Pack Type 2007
PARKSONS PACKAGING LTD
Company overview
Product offering
Company Strategy & Future direction
Summary 16 Major End-Use Applications for Parksons Packaging LTD by Pack Type 2007
JINDAL POLY FILMS LTD
Company overview
Product offering
Company Strategy & Future direction
Summary 17 Jindal Poly Films Ltd Operational Indicators 2007
Summary 18 Major End-Use Applications for Jindal Poly Films Ltd by Pack Type 2007
HINDUSTAN NATIONAL GLASS & INDUSTRIES LTD
Company overview
Product offering
Company Strategy & Future direction
Summary 19 Hindustan National Glass & Industries Ltd: Operational Indicators 2007
Summary 20 Major End-Use Applications for Hindustan National Glass & Industries Ltd by Pack Type 2007
AMD INDUSTRIES LTD
Company overview
Product offering
Company Strategy & Future direction
Summary 21 AMD Industries Ltd: Operational Indicators 2007
Summary 22 Major End-Use Applications for AMD Industries Ltd by Pack Type 2007
PIRAMAL GLASS LTD
Company overview
Product offering
Company Strategy & Future direction
Future Outlook
Summary 23 Piramal Glass Ltd: Operational Indicators 2007
Summary 24 Major End-Use Applications for Piramal Glass Ltd by Pack Type 2007
ALPLA INDIA PVT LTD
Company overview
Yodeva Plastics
Product offering
Company Strategy & Future direction
Summary 25 Major End-Use Applications for Alpla Yodeva Plastics Pvt Ltd by Pack Type 2007
BERI-ESSEL CLOSURES PVT LTD
Company overview
Product offering
Company Strategy & Future Direction
SHETRON LTD
Company overview
Product offering
Company Strategy & Future Direction
Summary 26 Shetron Ltd 2007
Summary 27 Major End-Use Applications for Shetron Ltd 2007
KHS MACHINERY PVT LTD
Company overview
Product offering
Company Strategy & Future direction
Summary 28 Major End-Use Applications for KHS Industries 2007
PEARL POLYMERS LTD
Company overview
Product offering
Company Strategy & Future direction
Summary 29 Pearl Polymers Ltd 2007
Summary 30 Major End-Use Applications for Pearl Polymers Ltd by Pack Type 2007
PPI BLOWPACK PVT LTD
Company overview
Product offering
Company Strategy & Future Direction
MAJOR PLAYERS BY PACK TYPE
RIGID PLASTIC
Usage of plastic jars continues to replace other forms of packaging
Rigid plastic industry in India remains fragmented with few big players dominating the market
Packaging multinationals enter Indian rigid plastic market through joint ventures and partnerships
Cost effectiveness makes India an ideal country to set up export oriented units
Summary 31 Share of Major Rigid Plastic Companies 2007
Summary 32 Major Rigid Plastic Packaging Companies by Pack Type 2008
METAL
Ess Dee’s proposed acquisition of IFL will consolidate Ess Dee’s position in the domestic aluminium foils market
Entry of multinationals such as Rexam and Polish firm Can Pak makes the market more competitive
Metal companies decide to cash in on retail sector growth
Summary 33 Share of Major Metal Packaging Companies 2007
Summary 34 Major Metal Packaging Companies by Pack Type 2008
FLEXIBLE PACKAGING
Packaging costs coupled with oil spiral, hits FMCG margins
Bulk packaging gains ground to offset increased prices
Growing health awareness and convenience helps flexible packaging to grow
ESS Dee Aluminium emerges as one for the major flexible packaging providers
Summary 35 Share of Major Flexible Packaging Companies 2007
Summary 36 Major Flexible Packaging Companies by Pack Type 2008
GLASS
Hindustan Sanitarywares announces plans to further expand its glass container business
Glass packaging continues to lose share in the soft drinks category
Energy efficient manufacturing is required for long term sustenance
Summary 37 Share of Major Glass Packaging Companies 2007
LIQUID CARTONS
Tetra Pak India continues to dominate liquid cartons in India
Tetra Pak targets dairy processors
Summary 38 Share of Major Liquid Carton Companies 2007
PAPER-BASED CONTAINERS
Paper-based containers remains fragmented
Paper industry invests in “going green” as the environmental concerns grows
JK Paper to focus on packaging board
Rising input costs cripple the packaging industry
Summary 39 Share of Paper-Based Container Companies 2007
Summary 40 Major Paper-based Container Companies by Pack Type 2008
CLOSURES
Shetron –Metropak tie up gives boost to closure industry
Innovations in closure industry are driven by convenience and the ability to protect
Summary 41 Ranking of Major Closure Companies 2007