1. Packaging Industry in India
August 2010
This material, prepared contains, general information only. This material is not a substitute for such professional advice or services, nor should it be used as a
basis for any decision or action that may affect your finances or your business. Before making any decision or taking any action that may affect your finances or
your business, you should consult a qualified professional adviser. The presenter shall not be responsible for any loss whatsoever sustained by any person who
relies on the content of this material.
1

2. Packaging Industry in India – An Overview
• Indian Packaging industry is USD 17 billion (Rs 775.7 billion) in 2008-09
• Consumer packaging market estimated at around Rs 400 billion
• The Indian packaging industry itself is growing at 14-15% annually, expected to
double in the next two years
• It is estimated that more than 80% of the total packaging in India constitutes
rigid packaging, whereas remaining 20% comprises flexible packaging
• India's per capita packaging consumption is less than USD 15 (Rs 675) against
world wide average of nearly USD 100 (Rs 4500)
• The large growing middle class, liberalization and organized retail sector are the
catalysts to growth in packaging
• Indian companies are now placing increasing emphasis on attractive and
hygienic packaging. This promises enormous potential for the future.
• Food and Pharma packaging are the key driving segments
• The Indian food market is estimated to total about Rs. 8,823.50 billion according to the ‘India Food
Report 2008’ published by Research and Markets
• Food retail turnover is expected to grow from the current Rs 3,393.65 billion mark to Rs 7,272.12
billion by 2025
• The pharmaceutical industry is expected to average an annual growth of 16 percent till 2012.
2

3. Major Packaging companies in India
Consumer Packaging
Flexible Packaging • Uflex Industries
• Jindal Poly Films
• Positive Packaging
Rigid / Plastic Packaging • Manjushree Technopak
• Moldtek Plastics
• Pearl Polymers
Metal Cans • Tinplate Company of India
• Hindustan Tin Works
• Shetron
Glass / Pet containers • Hindustan National Glass
• Piramal Glass
• Bilcare
Paper Cartons • ITC Paperboards
• Parksons Packaging
• TCPL Packaging
3

4. Foreign Players already operating in India
In the Indian Packaging sector, there are very few foreign firms operating in
India on a JV basis or as subsidiaries –
• Paper Products (Flexible packaging) - JV with the global packaging major - Huhtamaki
Oyj, Finland
• Alcan Packaging (Flexible packaging) – Subsidiary of Rio Tinto Alcan, UK
• Rexam HTW Beverage Can – JV between Rexam PLC, UK & Hindustan Tin Works
• Tetra Pak India – a part of Tetra Laval Group, Switzerland
• Klockner Pentaplast India (pharmaceutical packaging) – a part of Klockner Pentaplast
Group, Germany
• Can Pack India (Beverage Can) – Subsidiary of Can-Pack, Poland
• Alpla India - 74:26 JV between Indian rigid plastic packaging Yodeva Plastics and Alpla
Group, Austria
• Scott Kaisha (Pharma packaging) – 50:50 JV between SCHOTT AG and KAISHA
Manufacturers
• MWV Wadco – 51:49 JV between Brazilian Packaging material maker MeadWestvaco
Corp and Indian corrugated fibre cartons maker,Wadco Packaging Pvt. Ltd.
4

5. Trend in Indian Packaging Industry
• Like all other fields, Indian packaging industry also tends to follow the
international trends. It also innovates solutions that are India-specific and is
continuously trying to find cheaper solutions.
• The rural markets are showing phenomenal growth and the current logistics are
helping take all the products to them. The industry is responding by developing
packaging to suit these logistics as well.
• The trend is to provide an effective and functional packaging that delivers value
to the customer at a lower price.
• Now-a-days, flexible packaging is also rapidly expanding in pharmaceutical
sector.
• Besides, many players are coming up with solutions for biodegradable
packaging, which is going to be the future trend in packaging industry. Further,
better graphics to increase the shelf-appeal of the products and making
counterfeiting difficult is also a clear trend.
• There is a palpable shift in many sectors to smaller flexible packages due to the
tendency to buy smaller quantities at a time and the efforts of marketers to bring
exotic products to the common man.
5

6. Deals in Packaging sector in India
Deal size
Year Acquirer Target Stake (%) ($ Mn)
Alcan Global Associated Capsules Pvt Ltd
Pharmaceutical Packaging, (Chakan flexible packaging
2008 UK plant) 100% 8.5
Schott Pharma Packaging Kaisha Manufactures (Pharma
2008 GmbH, German packaging) 50% Undisclosed
Truepack Pvt. Ltd (Pharma
2006 Rexam plc, UK plastics) [2.7 X Revenue] 100% 9.5
Mulititech Invesments
2006 Rexam plc, UK (packaging company) 100% 9.0
6