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THE PACKAGING INDUSTRY IN INDIA
An Industry Presentation fromMcG
Madras Consultancy Group, Chennai
- A Demopack of Select Slides -
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Contents *
Packaging Industry : Global
Packaging Industry : India
Rigid Packaging Metal ContainersGlass Bottle
Rigid PlasticsPaper Cartons
Flexible Packaging
Caps & Closures
Labels
Secondary & Bulk Packaging
Packaging Machinery
Profiles of Packaging Companies Consumer Packaging : Select
Users
Regulatory Environment
* Note : This demo pack has only a few select slides of the
contents
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Size of Packaging Industry Worldwide (est.) : USD 600 Bn. (
2002-03 )(excluding machinery)
US packaging market accounts for about 24 %
Western European packaging industry is dominated by Germany,
France,Italy & U.K
Paper & Board leads with 36% of the world market followed by
Plastics
World packaging industry has been growing at a rate of 3 - 5 %
per annum
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 8Latin America 30 7 7
Eastern Europe 15 3 6
Rest of World 30 6 7
Total 450 100 2-4
World Packaging Market by Region : 2001
W. Europe N. America Japan
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Indian Packaging Industry
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Packaging Industry : India
The Indian market for all types of packaging materials is
estimated variedlybetween Rs. 280 & 300 billion per annum
Of this, the consumer packaging market has been estimated at
aroundRs. 140 billion
Consumer Packaging is highly fragmented, with only a small
percentageof companies above Rs.1 billion sales revenue mark
Bulk packaging is primarily in the small scale sector, mainly on
account ofthe Governments reservation policy for the SSI sector
In the packaging sector, there are very few foreign firms
operating in Indiaon a JV basis or as subsidiaries
On the packaging machinery side, while a wide range is
manufactured inIndia, the industry also imports machinery,
especially at the high end
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Product Value
(Rs. Billion)
Flexible Packaging 32.0
Rigid Plastics 28.0
Printed Cartons 24.0Glass 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 for Consumer Packaging :
India (2002 - 03)
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Market Share of Packaging Media : 2002 - 03(by value )
Printed
Cartons
17%
Glass Bottles12%
Metal Cans
8%
Others
14%
Rigid Plastics
18%
Flexible
Packaging
22%
Labels
3%
Caps &
Closures6%
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Indian Packaging - Notable Developments
Metal cans and glass bottles have lost large markets to rigid
& flexible
plastics and printed monocartons
Flexible packaging has replaced all forms of rigid packaging;
the flexiblepackaging segment has seen many new innovationsthe
concept of thesingle use unit pack is now globally acknowledged as
a marketing first
Laminate tube has almost entirely replaced the aluminium
collapsible tube fortoothpaste packaging, now making inroads into
the pharmaceutical sector
PET bottles & jars have made a spectacular entry into the
Indian market,recording annual growth rates in excess of 20 % per
annum; in its wake, thedemand for a whole new range of plastic
closures has also emerged replacing
metal closures
PET bottles are used for mineral water, edible oil, carbonated
soft drinksand a host of other products
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Metal Cans in India
The market for Metal Cans in India was around Rs. 10.2 Billion
in 2001;
tinplate accounted for well over 90 % of the market
Tinplate packaging, in India, includes Open Top Sanitary (OTS)
cans,3 -piece General Line cans & seamless cans - all
manufactured within thecountry; Aluminium 2-piece beverage cans as
well as limited quantities ofOTS cans are imported
The market for metal packaging in India has been nearly stagnant
over thepast decade owing to the high cost of raw materials and
consequent shiftto other packaging media
Tinplate is produced in India; large
imports take place as domestic
production is inadequate
2-piece beverage cans have not
yet made an impact
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Tinplate Consumption : India
Estimated consumption of tinplate for OTS, 3- piece and seamless
canswas :
Year Consumption
(000 tonnes)
1985 1301990 150
1995 155
1997 146
2000 150
2001 143
2002 155
Note : Tinplate for 15 Kg bulk packaging is reported to have
accounted foran additional 120,000 tonnes in 2002
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Select Metal Can Manufacturers : India
Tinplate (OTS/ GL) Cans
Comet, Silvassa
Hindustan Tin Works, Sahibabad
India Tin Industries, Bangalore
Kaira Can Company, Anand
L & T, Hyderabad (contract mfr.)
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 has a well developed glass bottle manufacturing
industry
Production of glass containers :
Year Production
(000 tonnes)
1980 320
1985 510
1990 700
1995 730
2000 1100
2001 1170
2002 1220
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Trends in Indian Glass Packaging
Industry growth rate has been around 4 to 5 % per annum
Industry has been under cost pressure in recent years
Profitability has been low historically
Loss of markets to PET containers, cartons, and flexible
packaging
Industry has succeeded in making light weight glass bottles,
glass bottlesof fancy shapes, frosted finish, etc.
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Global Market for PET Containers :
by User Segment
Other Foods
7%
Hotfil
8%
Mineral Water
13%
Edible Oil /
Sauces
6%
CSD
55%
Others
6%
Non-Foods
5%
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Market for Printed Cartons : India (2002 - 03 )
Food18%
Matches /
Agarbathi
18%
Cigarettes
15%
Personal Care
9%
Others18%
Pharmaceuticals
15%
Liquor
4%
Hosiery
3%
Total Market : 420,000 Tonnes
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Flexible Packaging Market : Global
The Global market for flexible packaging is estimated at USD 65
Bn.
The US flexible packaging market is valued at
USD 20 Bn.
The main end user being food industry at 50 %
Western European flexible packaging industryis valued at around
USD 8 Bn.
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Manufacturers Of Lamitubes : India
Manufacturer Capacity (Mn. No.)
Essel Propack Ltd. (2002-03) 2,800
Sri Rama Multi Tech Ltd. 640
Courtaulds Packaging 120
Essel Propack is the largest lamitube manufacturer in the
world
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Caps & Closures : India
The Indian market for Caps & Closures is valued at Rs. 8.5
Billion (2002 - 03)
Industry is characterised by large number of small and medium
sizedmanufacturers and a few large manufacturers like Manaksia
Group, L & T, andOriental Containers
Plastic closures has registered an impressive growth in recent
years and is fastsubstituting metal closures in many
applications
Innovations in recent years :
ROPP : Bulged / embossed caps, pressure holding capsPlastic :
Guala caps, pressure holding caps, tamper-evident caps,
pourer caps
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Caps & Closures : India
Type of closures & applications...
Type Major Applications
Crown Cork Carbonated Soft Drink (CSD), Fruit Juice,
Beer, Ketchup
ROPP Cap Pharmaceutical, Liquor, Processed Foods,
Hair Oil, Stationery
Lug Cap Jam, Pickle, Condiment, Cheese Spread,Other Foods
Plastic Closures CSD, Mineral Water, Lubricants &
most products packed in PET, PP, HDPEcontainers
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Market for Labels : India
The Indian label market for packaging applications is valued at
aroundRs. 5 billion in 2002 - 03
Including holograms and barcode labels, the market size would be
wellin excess of Rs. 5.5 Billion
Annual growth is around 15 %
Printed label industry is highly fragmented with a vast number
of smallprinters, spread all over the country; however the label
industry in India isnearly on par with its global counterparts
The leaders in the industry are today manufacturing labels that
can becompared with the best in terms of graphic design and print
quality.
The industry has the capability to print on a wide variety of
substrates
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Market for Labels : India (contd.)
In recent years, there has been a shift from simple paper labels
to moresophisticated products such as self adhesive labels, shrink
sleeves & heattransfer labels
Sophistication within the category of paper labels has also
taken place interms of high quality of printing, use of special
varnishes, coating,laminating with films
High end printing machines and pre-press equipment are now
visible -
multi-station flexo and letterpress machines with stations for
screenprinting or hotfoil embossing and with in-line die cutting
facilities, are nowbeing imported
Barcoding and holograms have recently entered the market, adding
to theexcitement in the labeling sector
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McGMadras Consultancy Group
VI - 2, Habib Complex
3, Durgabai Deshmukh Road
R. A. Puram, Chennai 600028, India
Tel : 91 (44) 24939161 / 24936321
Fax : 91 (44) 24934862
email : [email protected]
www.indianindustryprofiles.com
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