1. Vol. 34 No. 3 May/June 2011 ISSN 1477-8467
THE MAGAZINE OF THE PACKAGING SOCIETY A Division of the Institute of Materials, Minerals and Mining
Package to India
A growing opportunity
Building trust Global standards Lifting barriers
Environmental Quality control Melamine-based
labels revised and safety coatings

2. Advantage
India
The Indian consumer goods packaging Another big opportunity that has
arisen from the convenience trend is the
industry is moving forward at a rapid pace increasing use of ready meals. Large
companies with technological strength in
as the economy strengthens buying power. retort pouches, MTR foods Ltd and Uflex
Ltd for example, have already created a
Convenience packs and organised retail strong position.
A unique technological development for
design will set firms apart. Asma Siddiqi, ready meals in India is the development
Research Analyst at Euromonitor of shelf-ready meals packs. This is
a milestone of sorts, considering cold
International, highlights recent trends. chain facilities in retail stores are still
minimal. With this trend, India’s packaging
processes are expected to move up the
technology ladder, such as methods for
he Indian packaging industry has concerns about the environmental impact
T
hot filling, aseptic packaging and form-fill-
changed radically over the past of packaging have risen but there is a need seal in flexible packaging.
two to three decades. From an era for both development and clarification.
when products were mostly sold loose At 393 billion containers, India’s Organised retail design
and opening pack closures was often a packaging market is huge, estimated With the shift from old-fashioned small-
struggle, the industry has transformed, to represent almost 10% of the global scale retailing to organised large stores,
shifting rapidly from loose to packaged market, in terms of unit volumes. It is also product manufacturers have had to
goods and seeing great improvements in one of the fastest-growing markets in the modernise packs. Milk, for example,
pack quality. The rise in consumer incomes world, clocking an amazing 11% year-on- shifted from being sold loose to flexible
has been a key enabler, which has year unit volume growth between 2005- plastic pillow packs and now into premium
empowered them to afford more expen- 2010. Flexible packaging has the lion’s liquid cartons.
sive, but higher quality packaged goods. share, followed by other popular packs – Brands and packers are paying greater
However, Indian packaging remains in paper, rigid plastic, glass. Metal and attention to pack design in order to help
the middle on the packaging development liquid cartons, though relatively smaller products break through shelf clutter. High
curve. It lags behind developed packaging currently, have seen dynamic growth over technology companies like IDE-division of
markets of the West on per capita the past three to four years. Tata Elxsi are seeing huge demand for
packaging consumption and is still a uniquely designed packs and graphics.
highly fragmented industry. Furthermore, Packing for convenience Given specialised stacking requirements
Longer working hours and the increasing for organised retailing shelves, packers are
share of working women have driven now providing many more features like
consumers to seek convenient/easy-to- taping and banding for attractive display,
use packages, including spouted beverage as well as efficient shelving.
pouches, easy open end cans, and
easy dispensing laundry care closures. The Capitalising on flexibility
time-strapped are increasingly consuming A big chunk of Indian consumers with low
foods and beverages on the go and are purchasing power continue to fuel the
seeking lightweight, non-fragile, re-sealable demand for low unit prices, hence the
packs. This has fuelled demand for small prevalence of small sized packs in the
packs of liquid cartons, PET bottles, metal form of 1-10 gramme sachets. Flexible
beverage cans, as well as thin-walled packaging has most successfully
plastic containers. capitalised on this trend, given its low-cost.
8 THE PACKAGING PROFESSIONAL MAY/JUNE 2011

3. SPECIAL
INDIAN PACKAGING SECTION
Total packaging unit volume of containers 8
4,000 2010 (billion)
7
CAGR % 2005-10
6
(unit volume containers)
Number of units – billion
3,000
5
4
2,000
3
2
1,000 1
0
0 -1
or
ld ina US
A
Ind
ia
pa
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ssi
a
an
y
az
il sia ico UK
W Ch Ja Ru m Br ne ex
Ger do M
In
Packaging unit volumes in selected markets: 2005-2010
It remains a key pack for several high rising consumer affordability and riding on only conducted by individual companies.
consumption products like shampoos, the back of high growth in products such The government needs to play a larger
chewing tobacco, toothpaste and fairness as soft drinks and alcoholic drinks. and more central role. Major players
creams. Large players, such as Uflex Ltd Flexible packaging will remain king, like Tetra Pak India Pvt Ltd, and ITC
and DS Group, lead over small/mid considering its application for a wide Packaging & Printing Ltd, have this focus
players because of bigger scale and variety of consumer goods due to cost already and are better prepared than
lower costs. Energised by the sachet competitiveness. But its biggest challenge smaller companies. Bio-polymers and
success story, new categories like biscuits is the adverse impact on the environment reduced packaging material will hopefully
and crisps have moved to mini packs too. created by its disposal. Rigid plastic too also be a commercial reality over the next
will continue to hold a preferred place, few years too and not mere ideas inside a
Spiralling material costs due to its advantages of low cost and packer’s lab.
Although the market has been expanding, good barrier protection. Although glass sits Increasing investments will make the
rising packaging prices in 2010, especially pretty in many large volume products like scale of India’s packaging market much
for kraft paper, aluminium foil and plastics alcoholic beverages and carbonates, it is more globally competitive in the coming
(accentuated by the surging crude oil losing to plastics and flexibles, and this years. Low cost manufacturing advantage
prices), are thinning margins of consumer may intensify in the future unless glass and special technological capabilities,
goods companies. While leaders like gets innovative, more cost competitive including laminates/flexible packaging,
Hindustan Unilever Ltd and Dabur India Ltd and lightweight. flattened cans, closures and paperboard,
are trying to hedge packaging material will prove to be unique competitive
costs, large packers with high bargaining Tighter legislation advantages. The trend has already begun
power may not be able to accommodate Legislation has progressively tightened with increasing investments seen from
this for long, thus pushing them to hike in India, and in recent times has been local companies such as Jindal Poly Films
consumer prices. very bold. This has been most notable Ltd and Uflex Ltd.
in the form of the early 2011 ban on
Liquid potential flexible packaging for chewing tobacco to
Liquid cartons will also see strong growth help reduce its adverse environmental
FURTHER INFORMATION
considering the huge marketing effort impact. But the bigger challenge is to have
being made by Tetra Pak for this pack stronger law enforcement. Euromonitor International
type and because its ambient shelf life is Recycling initiatives have risen in Tel: +44 (0) 20 7251 8024.
especially suitable for Indian retailing. Metal tandem with rising packaging waste. Website: www.euromonitor.com.
cans are likely to be next, benefiting from But efforts remain scattered and often
THE PACKAGING PROFESSIONAL MAY/JUNE 2011 9

4. Subcontinental
The Indian packaging industry comprises a unique blend of
traditional, political and geographical influences. Eoin Redahan
examines its roots and green shoots.
hey squeeze through innumerable
T bureaucratic hoops. They are made
to wear English-sounding badges
and don garish garb for festivals. The roads
Cosmetics packaging design. Image courtesy of
Desmania, New Delhi, India
are bad, the journeys are protracted
and the sun’s heavy breath is relentless.
Dust nestles in every nook, and then the
monsoon rains persist. The path from
processing to point of sale for Indian
packaging items may not be smooth,
but the industry has never been so
rewarding. The idiosyncrasies of religion,
tradition, colonialism, geography, climate
and politics have combined to sculpt a
distinct market.
For Peter Lennie, Head of Bell
Packaging India, in Mumbai, ‘India is an
amazing country to operate in’. He points
out that there is a greater respect for
packaging on the subcontinent. ‘Unlike in
Europe, where packaging is perceived by
the public and politicians as being evil and fitted to the premises to prevent any robustness, using PVC and polypropylene
a disposable item, in India it is appreciated outside contamination. Once we have in gauges of 100-500 microns in several
and reused. Typical examples are manufactured the packaging, it is shapes, including tubes and cuboids.
plastic bags, which are made in a much immediately sealed into transit cartons.’ The sun also has a bearing on aspects
thicker micron than we see in European With the monsoons pouring forth for of packaging, including colour choice and
supermarkets. As a result, they are much three months of the year, he adds that print quality. However, Hiren Panchal of
stronger and therefore reused’. board-based products are particularly at Litmus Packaging Design, based in
risk and must be protected using extra Ahmedabad, India, says that the sun has
Dust never sleeps liners and polythene outers and inners less of an influence on aspects including
There are, however, many challenges within the transit cartons. print than some would think. ‘Honestly,
inherent in the Indian packaging sector. Heat, too, is an issue. According to we never take care of this issue, as here
Lennie explains that the climate and Lennie, manufacturing operations must in India consumption is immense. So,
dust are constant encumbrances, ‘In be kept at a constant humidity and the product is not going to be in direct
our factory, we have had to introduce climate controls are kept in place. Road exposure of the sun for much time’.
stipulations to ensure the packaging area conditions and long travel distances
is dust free. ‘Our Indian personnel wear have necessitated more durable retail Manufacturing change
special clothing, secondary doorways have packaging. Bell Packaging India has Despite the challenging climate, the
been introduced and additional seals produced packaging for increased sector is thriving. ‘The country’s GDP
is growing at 9-10% per annum. The
packaging industry is growing even
‘
The country’s GDP is growing at 9-10% quicker. From the hand assembly
techniques that were used 10 years ago,
per annum. The packaging industry is companies are now importing the very
’
best in box production, and the quality
growing even quicker. of finished products is improving all the
time’, Lennie claims.
10 THE PACKAGING PROFESSIONAL MAY/JUNE 2011