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Pack prof mayjun_2011 lo res new revised
Pack prof mayjun_2011 lo res new revised
Pack prof mayjun_2011 lo res new revised
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  • 1. Vol. 34 No. 3 May/June 2011 ISSN 1477-8467 THE MAGAZINE OF THE PACKAGING SOCIETY A Division of the Institute of Materials, Minerals and MiningPackage to IndiaA growing opportunityBuilding trust Global standards Lifting barriersEnvironmental Quality control Melamine-basedlabels revised and safety coatings
  • 2. AdvantageIndiaThe Indian consumer goods packaging Another big opportunity that has arisen from the convenience trend is theindustry is moving forward at a rapid pace increasing use of ready meals. Large companies with technological strength inas the economy strengthens buying power. retort pouches, MTR foods Ltd and Uflex Ltd for example, have already created aConvenience packs and organised retail strong position. A unique technological development fordesign will set firms apart. Asma Siddiqi, ready meals in India is the developmentResearch Analyst at Euromonitor of shelf-ready meals packs. This is a milestone of sorts, considering coldInternational, highlights recent trends. chain facilities in retail stores are still minimal. With this trend, India’s packaging processes are expected to move up the technology ladder, such as methods for he Indian packaging industry has concerns about the environmental impactT hot filling, aseptic packaging and form-fill- changed radically over the past of packaging have risen but there is a need seal in flexible packaging. two to three decades. From an era for both development and clarification.when products were mostly sold loose At 393 billion containers, India’s Organised retail designand opening pack closures was often a packaging market is huge, estimated With the shift from old-fashioned small-struggle, the industry has transformed, to represent almost 10% of the global scale retailing to organised large stores,shifting rapidly from loose to packaged market, in terms of unit volumes. It is also product manufacturers have had togoods and seeing great improvements in one of the fastest-growing markets in the modernise packs. Milk, for example,pack quality. The rise in consumer incomes world, clocking an amazing 11% year-on- shifted from being sold loose to flexiblehas been a key enabler, which has year unit volume growth between 2005- plastic pillow packs and now into premiumempowered them to afford more expen- 2010. Flexible packaging has the lion’s liquid cartons.sive, but higher quality packaged goods. share, followed by other popular packs – Brands and packers are paying greater However, Indian packaging remains in paper, rigid plastic, glass. Metal and attention to pack design in order to helpthe middle on the packaging development liquid cartons, though relatively smaller products break through shelf clutter. Highcurve. It lags behind developed packaging currently, have seen dynamic growth over technology companies like IDE-division ofmarkets of the West on per capita the past three to four years. Tata Elxsi are seeing huge demand forpackaging consumption and is still a uniquely designed packs and graphics.highly fragmented industry. Furthermore, Packing for convenience Given specialised stacking requirements Longer working hours and the increasing for organised retailing shelves, packers are share of working women have driven now providing many more features like consumers to seek convenient/easy-to- taping and banding for attractive display, use packages, including spouted beverage as well as efficient shelving. pouches, easy open end cans, and easy dispensing laundry care closures. The Capitalising on flexibility time-strapped are increasingly consuming A big chunk of Indian consumers with low foods and beverages on the go and are purchasing power continue to fuel the seeking lightweight, non-fragile, re-sealable demand for low unit prices, hence the packs. This has fuelled demand for small prevalence of small sized packs in the packs of liquid cartons, PET bottles, metal form of 1-10 gramme sachets. Flexible beverage cans, as well as thin-walled packaging has most successfully plastic containers. capitalised on this trend, given its low-cost.8 THE PACKAGING PROFESSIONAL MAY/JUNE 2011
  • 3. SPECIAL INDIAN PACKAGING SECTION Total packaging unit volume of containers 8 4,000 2010 (billion) 7 CAGR % 2005-10 6 (unit volume containers)Number of units – billion 3,000 5 4 2,000 3 2 1,000 1 0 0 -1 or ld ina US A Ind ia pa n ssi a an y az il sia ico UK W Ch Ja Ru m Br ne ex Ger do M InPackaging unit volumes in selected markets: 2005-2010It remains a key pack for several high rising consumer affordability and riding on only conducted by individual companies.consumption products like shampoos, the back of high growth in products such The government needs to play a largerchewing tobacco, toothpaste and fairness as soft drinks and alcoholic drinks. and more central role. Major playerscreams. Large players, such as Uflex Ltd Flexible packaging will remain king, like Tetra Pak India Pvt Ltd, and ITCand DS Group, lead over small/mid considering its application for a wide Packaging & Printing Ltd, have this focusplayers because of bigger scale and variety of consumer goods due to cost already and are better prepared thanlower costs. Energised by the sachet competitiveness. But its biggest challenge smaller companies. Bio-polymers andsuccess story, new categories like biscuits is the adverse impact on the environment reduced packaging material will hopefullyand crisps have moved to mini packs too. created by its disposal. Rigid plastic too also be a commercial reality over the next will continue to hold a preferred place, few years too and not mere ideas inside aSpiralling material costs due to its advantages of low cost and packer’s lab.Although the market has been expanding, good barrier protection. Although glass sits Increasing investments will make therising packaging prices in 2010, especially pretty in many large volume products like scale of India’s packaging market muchfor kraft paper, aluminium foil and plastics alcoholic beverages and carbonates, it is more globally competitive in the coming(accentuated by the surging crude oil losing to plastics and flexibles, and this years. Low cost manufacturing advantageprices), are thinning margins of consumer may intensify in the future unless glass and special technological capabilities,goods companies. While leaders like gets innovative, more cost competitive including laminates/flexible packaging,Hindustan Unilever Ltd and Dabur India Ltd and lightweight. flattened cans, closures and paperboard,are trying to hedge packaging material will prove to be unique competitivecosts, large packers with high bargaining Tighter legislation advantages. The trend has already begunpower may not be able to accommodate Legislation has progressively tightened with increasing investments seen fromthis for long, thus pushing them to hike in India, and in recent times has been local companies such as Jindal Poly Filmsconsumer prices. very bold. This has been most notable Ltd and Uflex Ltd. in the form of the early 2011 ban onLiquid potential flexible packaging for chewing tobacco toLiquid cartons will also see strong growth help reduce its adverse environmental FURTHER INFORMATIONconsidering the huge marketing effort impact. But the bigger challenge is to havebeing made by Tetra Pak for this pack stronger law enforcement. Euromonitor Internationaltype and because its ambient shelf life is Recycling initiatives have risen in Tel: +44 (0) 20 7251 8024.especially suitable for Indian retailing. Metal tandem with rising packaging waste. Website: are likely to be next, benefiting from But efforts remain scattered and oftenTHE PACKAGING PROFESSIONAL MAY/JUNE 2011 9
  • 4. SubcontinentalThe Indian packaging industry comprises a unique blend oftraditional, political and geographical influences. Eoin Redahanexamines its roots and green shoots. hey squeeze through innumerableT bureaucratic hoops. They are made to wear English-sounding badgesand don garish garb for festivals. The roads Cosmetics packaging design. Image courtesy of Desmania, New Delhi, Indiaare bad, the journeys are protractedand the sun’s heavy breath is relentless.Dust nestles in every nook, and then themonsoon rains persist. The path fromprocessing to point of sale for Indianpackaging items may not be smooth,but the industry has never been sorewarding. The idiosyncrasies of religion,tradition, colonialism, geography, climateand politics have combined to sculpt adistinct market. For Peter Lennie, Head of BellPackaging India, in Mumbai, ‘India is anamazing country to operate in’. He pointsout that there is a greater respect forpackaging on the subcontinent. ‘Unlike inEurope, where packaging is perceived bythe public and politicians as being evil and fitted to the premises to prevent any robustness, using PVC and polypropylenea disposable item, in India it is appreciated outside contamination. Once we have in gauges of 100-500 microns in severaland reused. Typical examples are manufactured the packaging, it is shapes, including tubes and cuboids.plastic bags, which are made in a much immediately sealed into transit cartons.’ The sun also has a bearing on aspectsthicker micron than we see in European With the monsoons pouring forth for of packaging, including colour choice andsupermarkets. As a result, they are much three months of the year, he adds that print quality. However, Hiren Panchal ofstronger and therefore reused’. board-based products are particularly at Litmus Packaging Design, based in risk and must be protected using extra Ahmedabad, India, says that the sun hasDust never sleeps liners and polythene outers and inners less of an influence on aspects includingThere are, however, many challenges within the transit cartons. print than some would think. ‘Honestly,inherent in the Indian packaging sector. Heat, too, is an issue. According to we never take care of this issue, as hereLennie explains that the climate and Lennie, manufacturing operations must in India consumption is immense. So,dust are constant encumbrances, ‘In be kept at a constant humidity and the product is not going to be in directour factory, we have had to introduce climate controls are kept in place. Road exposure of the sun for much time’.stipulations to ensure the packaging area conditions and long travel distancesis dust free. ‘Our Indian personnel wear have necessitated more durable retail Manufacturing changespecial clothing, secondary doorways have packaging. Bell Packaging India has Despite the challenging climate, thebeen introduced and additional seals produced packaging for increased sector is thriving. ‘The country’s GDP is growing at 9-10% per annum. The packaging industry is growing even ‘ The country’s GDP is growing at 9-10% quicker. From the hand assembly techniques that were used 10 years ago, per annum. The packaging industry is companies are now importing the very ’ best in box production, and the quality growing even quicker. of finished products is improving all the time’, Lennie claims.10 THE PACKAGING PROFESSIONAL MAY/JUNE 2011