Market Research Report :Plastic Packaging Market in India 2012


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Packaging fulfils the diverse role from protecting products, preventing spoilage, contamination, extending shelf life, ensuring safe storage thereby helping to make them readily available to consumers. India is one of the largest producers of commodities like food grains, sugar, milk, fruits, vegetables, pulses, tea and many other commodities. Plastics have emerged as the most preferred choice of packaging material for various products- from food, beverages, chemicals, electronic items and so on.

The report begins with the introduction section which offers a brief insight into the types of packaging done in India by way of function, way of packaging and type of packaging material used followed by the introduction into plastic packaging and the various types of plastics used for packaging. The market overview section provides an insight into the Indian packaging market and then moves on to the plastic packaging market, highlighting the market size and growth. Market segmentation of overall packaging market is also shown.

An analysis of the drivers explains the factors for growth of the plastic packaging industry. Demand for plastic packaging is expected to increase with the growth of retail sector and rising consumerism. Growing packaged food and beverage sector generates huge demand for plastic packaging segment. Demand from the FMCG and Pharmaceutical sector plays a key role in the growth of the market. Application of plastic packaging in paint and lubricant industry will add to the increasing use of plastic packaging. Under penetrated market provides significant opportunity for further growth. Changing lifestyle influencing the consumption pattern has positive impact on the plastic packaging segment. Contribution of rural sector coupled with logistics advantage will lead to strong growth in the market. The key challenges include ban on plastic packaging, rise in price of raw materials and lack of packaging machinery present in India. Increasing crude oil prices affect polymer, which becomes a cost disadvantage for the plastic packaging segment.

A brief overview of the current trends prevalent with the plastic packaging market is given which includes increasing preference of flexible packaging, use of In-Mold label, plastic packaging of beer, multi-layer plastic for longer shelf life of milk, avant-garde use of bio-plastics in packaging and other various types of emerging plastic packaging applications.

The competition section begins with the Porter’s Five Forces Analysis, illustrating the competitive rivalry, bargaining power of suppliers and buyers and threat of new entrants and substitutes. It outlays the competitive landscape of the plastic packaging market in India briefing about the domestic players existing in the market. This section provides a three dimensional analysis of domestic key players’ revenues, profits and

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Market Research Report :Plastic Packaging Market in India 2012

  1. 1. Insert Cover Image using Slide Master View Do not distortPlastic Packaging Market – IndiaJuly 2012
  2. 2. Executive Summary  India’s plastic packaging industry has exhibited a rapid growth and development over the past yearsMarket  The market for packaging plastics in India is expected to grow at a CAGR of a1 % during the forecast period of  20xx‐20yy  In terms of volume it is expected to grow at a CAGR of  b% during from 20xx‐20yy Drivers: Challenges: ‐ Retail Growth and Increased Consumerism ‐ Ban on Plastic Packaging   ‐ High Demand from Food and Beverage Industry  ‐ Rise in Price of Raw Materials E ‐ Rise in FMCG sector Drivers &  L ‐ Growth in Pharmaceutical Market ‐ Lack of Packaging MachineryChallenges P ‐ Growing Paint and Lubricant Industry  ‐ Untapped Market Potential ‐ Changing Lifestyle AM ‐ Increasing Demand from Rural Sector ‐ Logistics Advantage S  Flexible Packaging is Gaining Preference  Use of In‐Mold LabelTrends  Plastic Packaging of Beer  Multi‐layer Plastic for Longer Shelf Life of Milk  Avant‐garde Use of Bioplastics in Packaging  Other Trends Major Players Company A Company B Company C Company D Company E Company FCompetition PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 2
  3. 3. •Introduction•Market Overview•Drivers & Challenges LE  •Trends M P S A•Competition•Strategic Recommendations•Appendix PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 3
  4. 4. Packaging industry is using a wide range of materials for  their products Types of Packaging (By Material) Corrugated Boxes Metal containers Plastic and PET Glass Jute   • Pointer 1 • Pointer 2 • Pointer 3 • Pointer 4 • Pointer 5 P LE S AMNote: Plastic Packaging is the scope of the report PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 4
  5. 5. Plastics in packaging is one of the most popular forms of packaging Plastic Packaging – Introduction(1/2) Plastic is the most common form of packaging being used today because of its unique benefits unmatched  by other forms of packaging Broad Classification of Plastic Packaging LE   Rigid Packaging MP Flexible Packaging S A • Extrusion‐sheets production for thermoforming  (sheet extrusion and formed containers) • Polyolefin film extrusion and subsequent film  conversion such as printing and bag making (PE  • Injection molding operations  (injection molding  films and bags) products) • Mono‐tape and flat or tube weaving and  subsequent conversion, printing, bag making  • Blow molding operations HDPE bottles and  (Woven webs and bags) containers (HDPE blow molding products) • Extrusion, lamination, printing of flexible  • Blow molding operations PET bottles (PET  multilayer multi‐materials food packaging films  bottles) (Laminations)  • Flexible packaging tubes (Tubes) • Extrusion – bi‐oriented PP films production  (BOPP films) PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 5
  6. 6. Indian packaging industry is expected to grow at a rapid rate to accommodate the country’s economic growth Market Overview Packaging Market Size (By Value)• India is one of the fastest expanding packaging  INR bn markets in the world, growing with a CAGR of a2% 2,000 a2%• It is the sixth largest packaging market in the world x5 1,500 x4• This growth trend is expected to continue in the  x3 x2 future, owing to greater demand due to economic  1,000 x1 growth• It is expected to become the world’s fourth largest  500 LE   P 0 packaging market by 20‐‐ 20‐‐ 20‐‐e 20‐‐e 20‐‐e 20‐‐e x y S AM Market Segmentation a3% p1 a4% p2 b% a10% p3 a9% p4 a8% p5 a5% a1% a7% p6 p7 a6% p8 PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 6
  7. 7. Plastics have a dominating share in the Indian packaging marketMarket Overview Plastic Packaging Market Size (By Value)• Plastic is the most important packaging material   INR bn E• In the Indian packaging industry, roughly a2 % of the  1,000 a1% x5 L industry’s revenues are from plastic based materials 800 x4 P  Plastics have increasingly replaced traditional materials in this  x3 600 x2 sector due to their light weight and superior functionality x1 M 400  Hence, it is expected that share of plastic packaging in the  A overall packaging industry will increase in coming years 200 S• The market for packaging plastics in India is expected to  grow at a CAGR of a1 % during the forecast period of  20‐‐ ‐ 20‐‐  Growth in various sectors in India like FMCG, food & beverage  0 20‐‐ 20‐‐e 20‐‐e 20‐‐e Plastic Packaging Market Size (By Volume) 20‐‐e mn MT , pharmaceutical etc are the drivers for the increased usage of  plastics in packaging 10 x7• The plastic packaging industry consists of rigid and  8 b% flexible plastics 6• Consumer preference for the use of convenient  packaging and affordable quantities is driving the  4 x6 market towards flexible packaging in India 2  One of the main reasons for the ongoing success of flexible  packaging in India is the smaller quantity of a product that can 0 be packed in these packages as compared to traditional  20‐‐ 20‐‐e packaging PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 7
  8. 8. Drivers & Challenges – Summary Drivers Retail Growth and Increased  Consumerism LE   High Demand from Food and Beverage  Industry  MP SA Rise in FMCG sector  Challenges Growth in Pharmaceutical Market Ban on Plastic Packaging Growing Paint and Lubricant Industry  Rise in Price of Raw Materials Untapped Market Potential Lack of Packaging Machinery Changing Lifestyle Increasing Demand from Rural Sector Logistics Advantage PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 8
  9. 9. Demand for plastic packaging will go further with the growth of retail sector and increased consumerismRetail Growth and Increased Consumerism Impact• Pointer 1• Pointer 2  • Pointer 3 P LE S AM Retail Market Size & Growth Major Retail Segments – Consumer Demand (20‐‐) a b INR tr p2%50 x1% a4 p3%40 a5 p4%30 a1 s1 s4 s7 p5%20 a2 s2 s5 s8 p1% p8% p6 a6 p9% p710 a3 s3 s6 s90 20‐‐ 20‐‐e PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 9
  10. 10. Trends – Summary  LE   MP Flexible Packaging is Gaining Preference S A Use of In‐Mold Label Plastic Packaging of Beer ` Key Trends Multi‐layer Plastic for Longer Shelf Life of Milk Avant‐garde Use of Bioplastics in Packaging Other Trends EVENT MANAGEMENT MARKET IN INDIA 2012.PPT PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 10
  11. 11. Preference of flexible packaging over its rigid counterparts is increasing with timeFlexible Packaging is Gaining Preference• Pointer 1• Pointer 2 LE   X P• Pointer 3 Parameter S AM Comparison of Flexible and Rigid Packaging Flexible RigidP1 F1 R1P2 F2 R2P3 F3 R3P4 F4 R4P5 F5 R5P6 F6 R6P7 F7 R7 PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 11
  12. 12. Major Public Companies ‐ SummaryNet Profit/Loss7,5007,000 Size of the Bubble represents Market  V16,500 Capitalization in INR mn6,000 V25,5005,0004,5004,0003,500 LE   P3,0002,5002,0001,5001,000 500 0 V7 V4 V6 V5 S V3 AM V8 ‐500 ‐30,000 ‐20,000 ‐10,000 0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 Total income Company 1 Company 2 Company 3 Company 4 Company 5 Company 6 Company 7 Company 8 PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 12
  13. 13. Public: Domestic Company – Company A (1/3)Company Information Offices and Centres – India  Company A, Street ACorporate Address City B State CTel No. 91 124 7239Fax No. 91 124 4734111Website of IncorporationTicker Symbol 1767 123456 LE  Stock ExchangeProducts and Services ABC MP City B Head OfficeCategory Products/Services Product 1, product 2, product 3,  S A Key People Name DesignationCategory 1 product 4 Person A MD, CEO Product 1, product 2, product 3,  Person B. DirectorCategory 2 product 4 Person C Director Product 1, product 2, product 3, Category 3 Person D Director product 4 PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 13
  14. 14. Public: Domestic Company – Company A  (2/3) Financial Snapshot Key Ratios y‐o‐y change  Total Income Net Profit/Loss Particulars  2011 2010 2009 2008 INR units INR units (2011‐10) 20,000 c d 500 Profitability Ratios a b Operating Margin ‐ ‐ ‐ ‐ ‐ 15,000 Net Margin ‐ ‐ ‐ ‐ ‐ 0 10,000 Profit Before Tax Margin ‐ ‐ ‐ ‐ ‐ R1 R2 R3 -500 Return on Equity ‐ ‐ ‐ ‐ ‐ 5,000 Return on Capital Employed ‐ ‐ ‐ ‐ ‐ 0 -1,000 Return on Working Capital ‐ ‐ ‐ ‐ ‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ Return on Assets ‐ ‐ ‐ ‐ ‐ Financial Summary  Return on Fixed Assets ‐ ‐ ‐ ‐ ‐ Cost Ratios  ‐ The company incurred a net loss of INR d units in FY 20‐‐, as compared  Operating costs (% of Sales) ‐ ‐ ‐ ‐ ‐ E to net loss of INR c units in FY 20‐‐ Administration costs (% of  L ‐ ‐ ‐ ‐ ‐ The company reported total income of INR R4 units in FY 20‐‐,  Sales) P Interest costs (% of Sales) ‐ ‐ ‐ ‐ ‐ registering an increase of m% over FY 20‐‐ The company earned an operating margin of f% in FY 20‐‐, an increase  Liquidity Ratios M Current Ratio ‐ ‐ ‐ ‐ ‐ of g percentage points over FY 20‐‐ Cash Ratio ‐ ‐ ‐ ‐ ‐ A The company reported debt to equity ratio of d in FY 20‐‐, a decrease  Leverage Ratios S of h% over FY 20‐‐ Debt to Equity Ratio ‐ ‐ ‐ ‐ ‐ Debt to Capital Ratio Key Financial Performance Indicators ‐ ‐ ‐ ‐ ‐ Interest Coverage Ratio ‐ ‐ ‐ ‐ ‐ Indicators Value (dd/mm/yyyy) Efficiency Ratios Market Capitalization (INR mn) u Fixed Asset Turnover ‐ ‐ ‐ ‐ ‐ Total Enterprise Value (INR mn) Asset Turnover ‐ ‐ ‐ ‐ ‐ v Current Asset Turnover ‐ ‐ ‐ ‐ ‐ EPS (INR) w Working Capital Turnover ‐ ‐ ‐ ‐ ‐ PE Ratio (Absolute) x Capital Employed Turnover ‐ ‐ ‐ ‐ ‐ Improved Decline PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 14
  15. 15. Public: Domestic Company – Company A (3/3)Key Business Segments Key Geographic Segments A B L M N100% X1 X2 X3 X4 100% a1 b1 a2 b2 a3 b3 a4 b450% Y1 Y2 Y3 Y4 50% c1 c2 c3 c4   0% 0% LE 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐ 20‐‐Business Highlights MP ADescription  News S • Company A, together with its subsidiaries, engages in the production and sale of packaging films in IndiaOverview  Company A is a part of INR x bn Group A  Company A is the largest manufacturer of type 1 and type 2  films in India and also the  xth largest type 3 film  manufacturer in the worldCapacity • PET, BOPP films and Metalizer with production capacity of x tpa, y tpa and z tpa respectively • It has a highly skilled and efficient work force coupled with access to Z Technology through group French Collaborations company B • Company A had last announced on 20‐, the expansion in capacities of type 1 Film, type 2 Film and type 3 Expansion Plans lines at a estimated project cost of INR y bn PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 15
  16. 16. Thank you for the attentionPlastic Packaging Market – India report is part of Netscribes’ Manufacturing Industry Series.For more detailed information or customized research requirements please contact:Phone: +91 33 4064 6214E‐Mail: sales@netscribes.comFollow us on:About NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment & business research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used in the preparation, “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes and prior permission is required for guidelines on reproduction. PLASTIC PACKAGING MARKET IN INDIA 2012.PPT 16