// BLOG
Executive Summary
July 20, 2010
Second-tier cities become centers of Packaging Activity
The rise in organised retailing in India’s second-tier cities made for a competitive packaging market in 2008. Companies like Hindustan Unilever Ltd, Procter & Gamble India Ltd, Nestlé India Ltd, ITC Ltd, Coca-Cola India Ltd, PepsiCo India Ltd and Dabur India Ltd became very aggressive during the review period, and packaging became a big tool for launching new, India-specific products in different shapes and sizes. The review period witnessed a flux of partnerships and joint ventures, with many foreign packaging players entering the scene to gain a slice of the large pie. Alcan Packaging- part of Rio Tinto Alcan, Klockner Pentaplast Group (KP) - a German-based packaging solutions provider, Polish firm Can Pak and Bosch Packaging either announced new investments or disclosed plans for the expansion of their existing investments during the review period. (more...)
Packaging Industry Trends
July 20, 2010
Current Scenario
The booming Indian economy and a flourishing organised retail have raised the expectations that consumption of corrugated packaging will begin to expand again as the number and volume of goods packaged in corrugated increases. MNCs are demanding corrugated boxes of international standards and the pattern of buying the packaging is changing.
Prices of corrugated sheet and converted boxes have remained low due to the over-capacity, manual operations and low productivity. Besides, transport constraints and high freight costs have meant that small to medium sized corrugated box plants are located near the customers. Over 4,000 corrugated board and sheet plants are highly labour-intensive, employing over half a million people – both directly and indirectly. The industry is converting about 2 million tons of Kraft paper into corrugated boxes. Factories are spreadout in all parts of India, even in the remote industrially backward areas. (more...)