Recent Trend in Packaging

8/8/2019 Recent Trend in Packaging

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THE PACKAGING INDUSTRY IN INDIA

An Industry Presentation fromPPI Blowpack

47,Mittal Chamber, nariman point,Mumbai - 21

- A Demo pack of Select Slides -


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Contents *

Packaging Industry : Global

Packaging Industry : India

Rigid Packaging Metal Containers

Glass BottleRigid Plastics

PaperCartons

Flexible Packaging

Caps & Closures

Labels

Secondary & Bulk Packaging

PackagingMachinery

Profiles of Packaging Companies

ConsumerPackaging : Select Users

Regulatory Environment


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Size of Packaging Industry Worldwide (est.) : USD 600 Bn. ( 2002-03 )

(excludingmachinery)

US packagingmarketaccounts forabout 24 %

Western European packagingindustryisdominatedby Germany,France,

Italy & U.K

Paper& Boardleadswith 36% oftheworldmarket followedby Plastics

World packagingindustry hasbeen growingatarate of 3 - 5 % perannum

Packaging Industry : Global


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Region Value Market Annual

USD Bn Share (%) Growth (%)

Western Europe 125 28 2-3

North America 120 26 1-2

Japan 65 15 1-2

Asia- Pacific 65 15 8

Latin America 30 7 7

Eastern Europe 15 3 6

Rest of World 30 6 7

Total 450 100 2-4

World PackagingMarketby Region : 2001

W. Europe N. America Japan Asia-Pacific Latin America E. Europe Middle East & Rest of World


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Indian Packaging Industry


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Packaging Industry : India

The Indian market foralltypes of packagingmaterialsisestimated variedly

between Rs. 280 & 300 billion perannum

Ofthis,theconsumerpackagingmarket hasbeen estimatedataround

Rs. 140 billion

ConsumerPackaging is highly fragmented,with onlyasmall percentage

ofcompaniesabove Rs.1 billion salesrevenuemark

Bulk packaging is primarilyin thesmallscalesector,mainly on account of

the Governmentsreservation policy forthe SSI sector

In the packagingsector,thereare very few foreign firms operatingin India

on a JV basis orassubsidiaries

On thepackagingmachinery side,whileawiderangeismanufacturedin

India,theindustryalso importsmachinery,especiallyatthe high end


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Product Value

(Rs. Billion)

Flexible Packaging 32.0

Rigid Plastics 28.0

Printed Cartons 24.0

Glass Bottles 16.0

Metal Cans 11.0

Caps & Closures 10.0

Labels 6.0

Others 21.0

Total 148.0

Note : The above excludes bulk packaging, tiny sector and plain films

Market forConsumerPackaging :

India (2002 - 03)


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Market Share of PackagingMedia : 2002 - 03(by value)

Printed

Cartons

7

lass Bottles2

Metal Cans

Others

4

Rigid Plastics

Fle ible

Packaging

22

Labels

3

Caps &

Closures


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Indian Packaging - Notable Developments

Metalcansandglassbottles havelostlargemarketsto rigid & flexibleplasticsand printedmonocartons

Flexible packaging hasreplacedall forms ofrigid packaging;the flexible

packagingsegment hasseen many newinnovations theconcept ofthe

singleuseunit packis nowgloballyacknowledgedasamarketing first

Laminatetube hasalmostentirelyreplacedthealuminiumcollapsibletube fortoothpaste packaging, nowmakinginroadsinto the pharmaceuticalsector

PET bottles & jars havemadeaspectacularentryinto the Indian market,

recordingannualgrowth ratesin excess of 20 % perannum;in itswake,the

demand forawhole newrange of plasticclosures hasalso emergedreplacing

metalclosures

PET bottlesareused formineralwater,edible oil,carbonatedsoftdrinksanda host of otherproducts


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Metal Cansin India

Themarket forMetal Cansin Indiawasaround Rs. 10.2 Billion in 2001;tinplateaccounted forwell over90 % ofthemarket

Tinplate packaging,in India,includes Open Top Sanitary (OTS)cans,

3 -piece GeneralLinecans & seamlesscans - allmanufacturedwithin the

country; Aluminium 2-piecebeveragecansaswellaslimited quantities of

OTS cansareimported

Themarket formetal packagingin India hasbeen nearlystagnant overthe

pastdecade owingto the high cost ofraw materialsandconsequentshift

to otherpackagingmedia

Tinplateis producedin India;large

importstake placeasdomestic

production isinadequate

2-piecebeveragecans have not

yetmadean impact


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Tinplate Consumption : India

Estimatedconsumption oftinplate forOTS, 3- pieceandseamlesscanswas :

Year Consumption

(000 tonnes)

1985 130

1990 150

1995 155

1997 146

2000 150

2001 143

2002 155

Note : Tinplate for15 Kgbulk packagingisreportedto haveaccounted for

an additional 120,000 tonnesin 2002


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SelectMetal Can Manufacturers : India

Tinplate (OTS/ GL) Cans

Comet, Silvassa

Hindustan Tin Works, Sahibabad

India Tin Industries, Bangalore

Kaira Can Company, Anand

L & T, Hyderabad (contractmfr.)

Petrox,Mumbai

Shetron Metal, Bangalore

Standard Tin Works,Mumbai

Western Cans,Mumbai

Zenith Tin Works,Mumbai

Aerosol Cans

Asian Cans Pvt.Ltd.,Mumbai

(Tinplate)

Metal Impacts Pvt.Ltd., Bangalore

(Aluminium)


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Glass Packaging : India

India hasawelldevelopedglassbottlemanufacturingindustry

Production ofglasscontainers :

Year Production

(000 tonnes)

1980 320

1985 510

1990 700

1995 730

2000 1100

2001 1170

2002 1220


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Trendsin Indian Glass Packaging

Industrygrowth rate hasbeen around4 to 5 % perannum

Industry hasbeen undercost pressurein recentyears

Profitability hasbeen low historically

Loss ofmarketsto PET containers,cartons,and flexible packaging

Industry hassucceededin makinglightweightglassbottles,glassbottles

of fancyshapes, frosted finish,etc.


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GlobalMarket forPET Containers :

by UserSegment

Other oods

%

Ho tfil

8%

M in e r a l a t e r

13%

Edible Oil

S a e s

6%

C S

%

Others

6%

Non oods

5%


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Market forPrinted Cartons : India (2002 - 03 )

ood

18

Matc es

ga r a t i

18

Cigarettes

15

Persona Care

9

t ers

18

P armace tica s

15

iq or4

osier

3

Tota Market : 420,000 Tonnes


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Flexible PackagingMarket : Global

The Globalmarket forflexible packagingisestimatedat USD 65 Bn.

The US flexible packagingmarketis valuedat

USD 20 Bn.

Themain enduserbeing foodindustryat 50 %

Western European flexible packagingindustryis valuedataround USD 8 Bn.


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ManufacturersOfLamitubes : India

Manufacturer Capacity (Mn. No.)

Essel PropackLtd. (2002-03) 2,800

Sri RamaMulti Tech Ltd. 640

Courtaulds Packaging 120

Essel Propackisthelargestlamitubemanufacturerin theworld


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Caps & Closures : India

The Indian market forCaps & Closuresis valuedat Rs. 8.5 Billion (2002 - 03)

Industryischaracterisedbylarge numberofsmallandmediumsized

manufacturersanda fewlargemanufacturerslikeManaksia Group,L & T, and

Oriental Containers

Plasticclosures hasregisteredan impressivegrowth in recentyearsandis fast

substitutingmetalclosuresin manyapplications

Innovationsin recentyears :Innovationsin recentyears :

ROPPROPP :: Bulged / embossedcaps, pressure holdingcapsBulged / embossedcaps, pressure holdingcaps

PlasticPlastic :: Gualacaps, pressure holdingcaps, tamperGualacaps, pressure holdingcaps, tamper--evidentcaps,evidentcaps,

pourercapspourercaps


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Caps & Closures : India

Type ofclosures & applications...

Type MajorApplications

Crown Cork Carbonated Soft Drink (CSD),Fruit Juice,

Beer, Ketchup

ROPP Cap Pharmaceutical,Liquor, ProcessedFoods,

HairOil, Stationery

Lug Cap Jam, Pickle, Condiment, Cheese Spread,

OtherFoods

Plastic Closures CSD,Mineral Water,Lubricants &

most products packedin PET, PP, HDPE

containers


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Market forLabels : India

The Indian labelmarket forpackagingapplicationsis valuedataround

Rs. 5 billion in 2002 - 03

Including hologramsandbarcodelabels,themarketsizewouldbewell

in excess of Rs. 5.5 Billion

Annualgrowth isaround 15 %

Printedlabelindustryis highly fragmentedwith a vast numberofsmall

printers,spreadall overthecountry; howeverthelabelindustryin Indiais

nearly on parwith itsglobalcounterparts

Theleadersin theindustryaretodaymanufacturinglabelsthatcan be

comparedwith thebestin terms ofgraphicdesign and print quality.

Theindustry hasthecapabilityto print on awide variety ofsubstrates


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Market forLabels : India (contd.)

In recentyears,there hasbeen ashift fromsimple paperlabelsto more

sophisticated productssuch asselfadhesivelabels,shrinksleeves & heat

transferlabels

Sophistication within thecategory of paperlabels hasalso taken placein

terms of high quality of printing,use ofspecial varnishes,coating,laminatingwith films

High end printingmachinesand pre-pressequipmentare now visible -

multi-station flexo andletterpressmachineswith stations forscreen

printing orhot foilembossingandwith in-linediecutting facilities,are now

beingimported

Barcodingand holograms haverecentlyenteredthemarket,addingto the

excitementin thelabelingsector


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PPIBlowpack Pvt ltd.47,mittalchamber

Nariman Point

Opp. INOXmultiplex

Mumbai, India, Pin 400 021

Tel : 91 (22) 30287475 / 76 / 77

Fax : 91 (22) 30287478

email : [email protected]

www.blowpack.com

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