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

1. THE PACKAGING INDUSTRY IN INDIA
BY: RAMESH KUMAR THAKUR
General Manager, District Industries Centre
(Madhepura Saharsa)

2. 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

3. Packaging Industry: Overview
Preservation: preservation of the quality and
lengthening the shelf life of innumerable products -
ranging from milk and biscuits, to drugs and medicines,
processed
and 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. 3

4. Functions of Packaging
4

5. Classification of Packaging
By Shape(Form & Size) By method(Way of packaging)
By Contents By material
5

6. Packaging 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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7. PRIMARY PACKAGING
7

8. Market Share of Packaging Media (by value )
McG 8

9. Indian Packaging - Notable
Developments
 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
9

10. Metal 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; large
imports take place as domestic
production is inadequate
 2-piece beverage cans have not
yet made an impact
10

11. Select Metal Can Manufacturers: India
Tinplate (OTS/ GL) Cans Aerosol Cans
 Comet, Silvassa  Asian Cans Pvt. Ltd., Mumbai
 Hindustan Tin Works, (Tinplate)
Sahibabad
 Metal Impacts Pvt. Ltd.,
 India Tin Industries, Bangalore
Bangalore (Aluminium)
 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
11

12. Glass 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.
12

13. Global Market for PET Containers :
by User Segment
McG 13

14. Market for Printed Cartons : India
Total Market : 420,000 Tonnes
14

15. 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

16. Manufacturers 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
16

17. Caps & 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
Innovations in recent years :
ROPP : Bulged / embossed caps, pressure holding caps
Plastic : Guala caps, pressure holding caps, tamper-evident caps,
pourer caps
17

18. 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
18

19. Market 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
19

20. 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
20

21. Secondary and Bulk/ Tertiary
Packaging
21

22. PACKAGING MACHINERY
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 22

23. Why Packaging is growing industry
in India:
Packaging industry serves the following
purposes in India
2.Protection and Preservation
3.Containment
4.Supplementary Product Protection
5.Communication
6.Convenience
7.Environmental Aspects
8.Reduction of Pilferage
9.Marketing Trends:

24. Factors Affecting Growth of
Packaging Industry in India
1. Urbanization
2. Increasing Health Consciousness
3. Low Purchasing Power resulting in
Purchase of Small Packets
4. Indian Economy Experiencing Good
Growth Prospects
5. Changing Food Habits amongst Indians
6. Personal health consciousness amongst
Indians:
7. Rural Marketing Pushing Demand for
Sachets
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