#Priya Kumbhat –

FIIB Batch 2009/2011

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Comparative study on Indian and Chinese Packaging Industry - Research Methodology

Comparative study on Indian and Chinese Packaging Industry - Research Methodology

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OverviewOverview

• Packaging Industry - Introduction

• Research Objective & Methodology• Objective• Methodology

#Packaging Industry China & India3

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Packaging Industry – India & China Packaging Industry – India & China Element Indian packaging Industry Chinese packaging Industry

Volume and Growth Rate

Market volume of Indian packaging Industry is about USD 14.8 Bn (INR 70k Cr).The industry is expected to grow at a rate of 18-20% from current 15%.India stands at the 11th position in the world packaging Industry.

The market volume of Chinese packaging Industry is about USD 175.7 Bn (RMB 1.2 trillion).The industry is growing at a rate of 18% p.a.China is world’s second largest packaging producer .

Contribution to economy

Indian economy is primarily service sector driven and Service sector contributes to 54% of GDP. Manufacturing sector contributes to about 30% of GDP which is a key factor for growth of packaging Industry.

Manufacturing sector contributes to about 50% of GDP in China and Service sector’s share is 40%. Packaging Industry is China’s 14th largest industrial sector and contributes about 2.5% of country’s GDP.

Demand The highest demand for packaging and the associated equipment come from the food processing industry at 50 percent and from the pharmaceutical industry at 25 percent .

China has demand for both bulk packaging i.e industrial packaging and consumer packaging (for processed food, pharma etc).

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Packaging Industry – India & China Packaging Industry – India & China Element Indian packaging Industry Chinese packaging Industry

Regulatory Environment

Category based regulations are there for various types of packaging – Pharma, packaged food etc. However, there are no specific standards for quality management for the food packaging industry and there is lack of uniformity in standards.

The Chinese packaging sector is undergoing massive restructuring and reformation . Major regulations are being framed around “Green packaging” , use of recycled material, restriction of used of plastic bags etc.

Segments Flattened cans, printed sheets and components, crown cork, lug caps, plastic film laminates, craft paper, paper board and packaging machinery are the key export elements for India. The fastest growing packaging segments are laminates and flexible packaging, especially PET and woven sacks

There are about 11,000 packaging enterprises in China .Advanced packaging (packaging of electronic components like chip sets, mobile phones, SIM etc) , flexible packaging, corrugated packaging and packaging machines are some of the key segments in China.

New Trends/ opportunities

Increasing organized retail sector, processed food sector and growing pharma sector. Growth of FMCG market in rural segments is also a major reason from growth in packaging industry.Due to lower manufacturing costs, India is fast becoming a preferred hub for packaging production.

Increased focus on Green packaging technologies.Presence of bulk industrial units.China also enjoys a low cost of manufacturing for packaging production.

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Research Objective and MethodologyResearch Objective and Methodology

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Objective of research Objective of research

• The objective of research is to carry out a comparative study on Indian and Chinese Packaging Industry and to detail out the similarities between the two. To identify factors contributing to growth, key challenges and opportunities for packaging industry in both the markets.

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Research MethodologyResearch Methodology

Top Down Approach – Market Analysis based on industry reports and data available

Top Down Approach – Market Analysis based on industry reports and data available

Monitoring Industry Trend

•Collecting related data from published industry reports• Identifying areas of dependencies and similarities•Studying growth areas and indentifying factors affecting growth.•Domestic and global demand and supply factors.•Studying annual reports and financials of companies.

Analysis of related industries and external factors

•Analysis of trends of related / customer industries – e.g. Pharma, retail, food processing etc.

• Growth trends in customer industries • Analysis of regulatory environment, import / export trends.• Raw material availability and ease of production. • Cost of production

Data Standardization

•Consolidation and reconciliation• Data correlation• checking and validation.

• Meeting Industrial bodies like FICCI, CII• Understanding of the views of regulators and industrial bodies on Chinese and Indian industries.

Survey with Industrial bodiesSurvey with Industrial bodies

• Meeting key manufacturers to understand ground level challenges, opportunities & threats • Use of questionnaire for obtaining inputs.

Survey with Manufacturers and suppliers

Survey with Manufacturers and suppliers

Understanding Industry global scenario. Classification based on functions, products, raw material etc.Understanding Industry global scenario. Classification based on functions, products, raw material etc.

Bottom up Approach – Survey and discussions with various industry elements in both the countries.

Bottom up Approach – Survey and discussions with various industry elements in both the countries.

•Data Consolidation•Using statistical models to generate output / conclusions.

Analysis and ConsolidationAnalysis and Consolidation

Comparative Study – Data Finalization & Report writing

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Packaging- Inputs and OutputsPackaging- Inputs and Outputs

Packaging Industry

Glass Industry

Paper IndustryAluminum Industry

Inputs for Packaging

Packaging Industry

Pharma Industry

Processed Food Sector

Organised Retail

Output from Packaging

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• At the end of research a report will be prepared elaborating a detailed comparatives between Indian and Chinese Packaging Industry. The following areas will be covered –

• Growth Trends - Volume growth, export trends

• Opportunities - New Areas such as advanced packaging, emerging technologies, global factors etc

• Key strengths - Cost of production, availability of resources, superior technology etc

• Key Challenges – technological, availability of raw material, labour and other factors, market forces.

• Synergies between market – to explore areas of synergies between the two countries for bigger growth.

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Output and RecommendationsOutput and Recommendations

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Thank You Thank You