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Flexible packaging market in india 2017 - Research on India

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Flexible packaging market in india 2017 - Research on India

  1. 1. Flexible Packaging Market – India June 2017 Insert Cover Image using Slide Master View Do not change the aspect ratio or distort the image.
  2. 2. Flexible Packaging Market in India 2017 Executive Summary Market Overview Drivers and Challenges Competitive Landscape • Changing consumer lifestyles towards ready-to-eat products coupled with growth in various end-user segments in India such as FMCG, food and beverage and pharmaceutical are driving the growth of flexible packaging market in India • The overall packaging industry in India was valued at INR X bn in FY 2015, and is expected to reach INR Y bn by FY 2022, growing at a CAGR of Y% from FY 2015 • The packaging sector in India is an amalgamation of both organized and unorganized players ranging from very small players with limited presence to big players with large market shares • India is a growing market for plastics and currently consumes X mn MT of plastics annually, against the global consumption of Y mn MT per year • The Indian packaging industry has witnessed a gradual shift from rigid to flexible packaging as flexible packages being visually appealing, cheaper and durable • The flexible packaging market in India is expected to be worth INR X bn by FY 2022, growing at a CAGR of Y% from FY 2015 Drivers  Growth in FMCG Sector  Growth in Pharmaceutical Sector  Growth in Processed Food Sector  Retail Growth and Increased Consumerism  Changing Lifestyle and Consumption Patterns  Increasing Demand from Rural Sector and Logistics Advantage Challenges  Ban on Plastic Packaging Due to Environmental Concern  Lack of Packaging Machinery and Domestic Technology 2 Major Players Company A Company B Company C Company D
  3. 3. Socioeconomic Indicators Market Overview Market Influencers Competitive Landscape Recent Developments Appendix 3 Trade Analysis Government Initiatives
  4. 4. Flexible Packaging Market in India 2017 Socioeconomic Indicators Total Population 4 Population Density 1,500 1,000 500 0 X% 2020 k 2019 j 2018 i 2017 h 2016 g 2015 f 2014 e 2013 d 2012 c 2011 b 2010 a 0 100 200 300 400 500 2019 2020 k1 Y% 2015 f1 2014 e1 2013 d1 2012 c1 2011 b1 2010 a1 h1 2016 i1 2017 j1 2018 g1
  5. 5. Flexible Packaging Market in India 2017 Market Definition & Structure 5 Types of Packaging (By Material) Corrugated Boxes Metal Containers Plastic and PET Glass Jute • It is a classification of rigid packaging under paper packaging • xxx • Various food products such as processed vegetables, coffee etc. are packed in cans • xxx • Plastic is the most widely used material for packaging • xxx • Glass packaging is generally used for packing upscale natural sodas and juices • xxx • Many garment stores offer jute bags on purchase of products from their stores • xxx
  6. 6. Flexible Packaging Market in India 2017 Market Definition & Structure (Contd.) 6 Rigid Packaging Types of Packaging (By End-Use) Consumer Packaging Bulk Packaging Flexible Packaging Others • Metal Containers • xxx • Stand-Up Pouches • xxx • Caps and Closures • xxx Focus of Study • Flexible packaging refers to non-rigid packaging structures used to package and protect products  It is mainly any package or any part of a package whose shape can be readily changed • xxx
  7. 7. Flexible Packaging Market in India 2017 Types of Flexible Packaging 7 Types of Flexible Packaging Description Packing Bags Paper Bags • These are environment friendly bags, which are commonly used as shopping bags Non-Woven Bags • These are environment friendly bags, which are durable, waterproof, easy to carry and are used as shopping bags High Molecular Carry Bags • xxx BOPP Bags • xxx LDPE Bags • xxx HDPE Bags • xxx Polyethylene Bags • xxx Biodegradable Bags • xxx
  8. 8. Flexible Packaging Market in India 2017 Market Overview (Contd.) 8 Packaging Market in India – Overview • Growth in various sectors in India such as FMCG, food and beverage and pharmaceutical are resulting in the increased usage of plastics in packaging industry • The packaging industry consists of Rigid and Flexible packaging • Plastics and paper are the main raw materials used in flexible packaging products, which are made from foil or paper sheet or laminated paper and plastic layers • Plastics, as a raw material dominates the flexible packaging market  It has emerged as the preferred choice of packaging material for various products that include food, beverages, chemicals and electronic items, among others • The overall packaging industry in India was valued at INR X bn in FY 2015, and is expected to reach INR Y bn by FY 2022, growing at a CAGR of A% from FY 2015 • As of FY 2015, flexible packaging constitutes A% of the overall packaging sector in India and the share is expected to increase to B% by 2022 • xxx x2% x1% x1% x2% Rigid Flexible x2% x1% FlexibleRigidFY 2010 FY 2015 A% CAGR Total= INR X bn Total= INR X1 bn FY 2022 Total= INR X2 bn B% CAGR Packaging Market Size, Growth Forecast & Segmentation
  9. 9. Flexible Packaging Market in India 2017 Market Overview (Contd.) 9 Flexible Packaging Market Size & Growth Forecast 0 1,000 2,000 3,000 A% FY 2022e x FY 2021eFY 2020e x2 FY 2019e x3 FY 2018e x4 FY 2017e x5 FY 2016 x6 FY 2015 x7 x8 • Flexible packaging is one of the most dynamic and fastest growing markets in India as compared to rigid packaging • Increasing usage of packaging material in various food service outlets along with increasing demand for packaged beverages, is expected to drive the growth of the domestic flexible packaging market  Demand from rural sector for packaged products is being fuelled by increasing media penetration through internet and television • xxx 0 1,000 2,000 3,000 4,000 5,000 A% FY 2022e x1 FY 2015 x Rigid Packaging Market Size & Growth Forecast
  10. 10. Flexible Packaging Market in India 2017 Market Overview (Contd.) 10 • The Indian packaging industry has witnessed a gradual shift from rigid to flexible packaging as flexible packages being visually appealing, cheaper and durable • Polyethylene and polypropylene account for ~X% of polymer usage in the flexible packaging industry • The per capita consumption of polymers in India during FY 2015 was X kg as compared to A kg in USA, B kg in China and C kg in Brazil • Currently, the plastics and polymer consumption in India is growing at an average annual rate of ~X% • xxx Usage of Plastic in Packaging Industry • About X processing units with Y processing machines have created a manufacturing capacity of X mn MT p.a. in India  Out of these X processing units, about ~Y% of them falls under the small-scale sector • Flexible packaging is dominated by small and medium sized companies • The packaging industry also consumes recycled plastic, which constitutes about ~X% of total consumption • In India, currently, there are ~A organized and ~B unorganized plastic recycling units • xxx Share of Plastic Packaging Products – Type-wise X1% X3% X2% X4% X% Segment 1 Segment 4 Segment 2 Segment 3 Segment 5
  11. 11. Flexible Packaging Market in India 2017 Market Overview (Contd.) 11 Usage of Plastic in Packaging Industry (Contd.) Advantages of Plastic Packaging • Safety: Plastics are safer materials for packaging of food products, specially polyolefins which do not react with food. Pilferage and contamination is difficult • Shelf Life: Plastics packaging material offer better shelf life • xxx Common Packaging Products (According to Plastic Type) Polymer Types Examples of Applications Polyethylene Terephthalate (PET) Beverage containers, food containers, boil-in food pouches, processed meat packages xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
  12. 12. Flexible Packaging Market in India 2017 Export : HS Code 12 Export (Value) 0 2,000 4,000 6,000 8,000 10,000 INR mn FY 2016-2017 (Apr-Feb) x4 FY 2016 x3 FY 2015 x2 FY 2014 x1 FY 2013 x A% 0 20,000 40,000 60,000 80,000 x ‘000 Kg’s B% FY 2016-2017 (Apr-Feb) x4 FY 2016 x3 FY 2015 x2 FY 2014 x1 FY 2013 Export (Volume)
  13. 13. Flexible Packaging Market in India 2017 Export Segmentation based on Country: HS Code 13 Value-Wise Segmentation FY 2016 FY 2017 (Apr-Feb) Volume-Wise Segmentation X6% X5% X4% X3% X2% X1% X% Country 6 Country 7 Country 5 Country 4 Country 3 Country 2 Country 1 FY 2016 FY 2017 (Apr-Feb) X2% X% X4% X3% X1% X5% X6% Country 2 Country 3 Country 4 Country 5 Country 1 Country 7 Country 6 X2% X1% X4% X% X3% X5% X6% Country 7 Country 6 Country 5 Country 4 Country 1 Country 3 Country 2 X5% X6% X3% X2% X1% X% X4% Country 7 Country 1 Country 6 Country 2 Country 5 Country 3 Country 4
  14. 14. Flexible Packaging Market in India 2017 Import : HS Code 14 Import (Value) 0 2,000 4,000 6,000 8,000 10,000 INR mn A% FY 2016-2017 (Apr-Feb) x4 FY 2016 x3 FY 2015 x2 FY 2014 x1 FY 2013 x 0 20,000 40,000 60,000 80,000 FY 2013 x1 FY 2014 x2 x FY 2015 ‘000 Kg’s FY 2016-2017 (Apr-Feb)FY 2016 B% x3 x4 Import (Volume)
  15. 15. Flexible Packaging Market in India 2017 Import Segmentation based on Country: HS Code 15 Value-Wise Segmentation FY 2016 FY 2017 (Apr-Feb) Volume-Wise Segmentation X6% X5% X4% X3% X2% X1% X% Country 7 Country 6 Country 5 Country 4 Country 3 Country 2 Country 1 FY 2016 FY 2017 (Apr-Feb) X3% X2% X1% X% X6% X5% X4% Country 4 Country 3 Country 2 Country 1 Country 7 Country 6 Country 5 X6% X5% X4% X3% X2% X1% X% Country 7 Country 6 Country 5 Country 4 Country 3 Country 2 Country 1 X6% X5% X4% X3% X2% X1% X% Country 7 Country 6 Country 5 Country 4 Country 3 Country 2 Country 1
  16. 16. Flexible Packaging Market in India 2017 Market Drivers 16 Growth in FMCG Sector 0 5,000 10,000 INR bn A% 2020e x1 2016 x X1% X% X6% X7% X5% X4% X3% X2% Segment 2 Segment 1 Segment 8 Segment 7 Segment 6 Segment 5 Segment 4 Segment 3 • Fast Moving Consumer Goods (FMCG) is the nth largest sector in the Indian economy  Household and Personal Care is the leading segment, which accounts for ~x% of the overall FMCG market in India • Indian FMCG industry represents the biggest opportunity for the flexible packaging industry • xxx • The benefits of flexible packaging which includes aroma retention, convenient transportation and usage, light weight, strength and barriers against moisture, among others, has led to its greater applications in packing products like tea leaves, snacks, ready to eat and ready to cook foods, cosmetic products and food products • xxx FMCG Market Size & Growth Forecast FMCG Market Segmentation by Revenue (FY 2016)
  17. 17. Flexible Packaging Market in India 2017 Market Challenges 17 • According to the environment ministry of India, currently X tonnes of plastic waste is generated daily in the country, out of which only Y tonnes is collected and processed • Littering of sachets is a huge problem in the country, as they not only choke drains, but burning them leads to air pollution • In Mar 2016, the environment ministry came up with the Plastic Waste Management Rules under the Environment Protection Act, 1986 to tackle the problem of plastic waste • xxx Ban on Plastic Packaging Due to Environmental Concern
  18. 18. Flexible Packaging Market in India 2017 Competition 18 List of Major Players Name Website Company A Company B Company C Company D Company E Company F Company G Company H Company I Company J
  19. 19. Flexible Packaging Market in India 2017 19 Public: Domestic Company – Company A Company Information Products and Services Category Products/Services Packaging Films Printing and Pouching Films, Barrier Films, Overwrap Films Lamination Films Thermal Lamination Films, Wet Lamination Films Key People Business Description • Company A, headquartered in State A, India, engages itself in the manufacture and sale of bi-axially oriented polypropylene (BOPP) and thermal films in India and internationally • The company offers a comprehensive range of BOPP Films for flexible packaging, lamination, labelling and industrial applications, including specialty films such as high barrier films, velvet thermal lamination films and direct thermal printable films • It offers packaging films, such as transparent, matte, pigmented white/pearlized, and metalized printing and pouching films, transparent, white, and metalized barrier films, and transparent and white overwrap films, as well as BOPP and PET based thermal, wet lamination films, label face stock, wrap around label, in mould label, and direct thermal printable films • xxx Corporate Address Company A Tel No. +91-xx-yyyy-zzzz Fax No. +91-xx-yyyy-zzzz Website www.xyz.com Year of Incorporation 2016 Stock Exchange : Ticker XXX Name Designation XXX XXX
  20. 20. Flexible Packaging Market in India 2017 20 Public: Domestic Company – Company A (Contd.) Key RatiosFinancial Snapshot Key Financial Performance Indicators Indicators Value (22/05/2017) Market Capitalization (INR mn) xxx Total Enterprise Value (INR mn) xxx EPS (INR) xxx PE Ratio (Absolute) xxx Particulars 2013 2014 2015 2016 Profitability Ratios Gross Margin % Net Income Margin % EBITDA Margin % EBITA Margin % EBIT Margin % Return on Assets % Return on Capital % Return on Equity % Return on Common Equity % Liquidity Ratios Current Ratio Quick Ratio Leverage Ratios Total Debt/Equity Total Debt/Capital Interest Coverage Efficiency Ratios Total Asset Turnover Fixed Asset Turnover Accounts Receivable Turnover Inventory Turnover Net Profit / LossTotal Income x z x c d e a b c d e f0 y FY 2016 a e FY 2015 b f FY 2014 c g FY 2012 d h
  21. 21. Flexible Packaging Market in India 2017 21 Public: Domestic Company – Company A (Contd.) Key Business Segments Key Geographic Segments 20% 40% 80% 100% 0% 60% x x3 FY 2014 x x2x1 FY 2013 x x4 FY 2016 x FY 2015 Segment 1 Segment 2 80% 60% 0% 20% 40% 100% x x3 FY 2014 x x2 FY 2013 x x1 x x4 FY 2015 2016 Country 1 Country 2
  22. 22. Flexible Packaging Market in India 2017 22 Private: Domestic Company – Company B Company Information Business Description • Company B, was established in 19-- and is headquartered in State B  The company was established as a division of its parent company, Company C, which is a leading manufacturer of cooling towers and industrial cooling technology in India and is headquartered in State C • Company B manufactures custom printed packaging materials in the form of roll stock films and pouches using LDPE, HDPE, LLDPE, PET, BOPP, CPP, nylon, aluminium foil, paper, and other materials, stand up pouches, spout pouches, zipper pouches and re-sealable packaging in various shapes, sizes and structures with custom printed packaging designs • The company supplies high quality flexible packaging materials for packaging food, beverage, tea, coffee and edible oils to FMCG companies in India and globally • xxx Products and Services Category Products/Services Food Packaging Flow Wrap, Stand Up Pouches, Pillow Pouch, Pillow Pouch, Profile Pouch, Side Gusset and Big Bags, Pillow Pouch, Stand Up Pouch, Lidding, Retort Grade Spouted Pouch, Stand-Up Pouch Other Flexible Packaging Liquid Packaging, Home and Personal Care Packaging, Agricultural Packaging and Pharmaceutical Packaging Key People Corporate Address Company A Tel No. +91-xx-yyyy-zzzz Fax No. +91-xx-yyyy-zzzz Website www.xyz.com Year of Incorporation 2016 Name Designation xxx xxx
  23. 23. Flexible Packaging Market in India 2017 Rules and Regulations under Food Safety and Standards Authority of India (FSSAI) 23 General Requirements • A utensil or container made of the following materials or metals, when used in the preparation, packaging and storing of food shall be deemed to render it unfit for human consumption  Containers which are rusty  Enameled containers which have become chipped and rusty  Copper or brass containers which are not properly tinned  Containers made of aluminum not conforming in chemical composition to IS:20 specification for cast aluminum & aluminum alloy for utensils or IS:21 specification for wrought aluminum and aluminum alloy for utensils • xx
  24. 24. Flexible Packaging Market in India 2017 Date Category Description Impact Feb 15, 2017 Product Launch High Oct 24, 2016 Expansion Medium Oct 19, 2016 Product Launch High Recent Developments 24
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