Overview of Indian Packaging

Industry

Prepared for St. Johns Packaging

 Indian Packaging
Industry

Current Size Past growth rate Future Growth rate

U.S.$ 15 billion 15% year-on-year Expected at 25%

consistently Over the next 5 years
 Key Growth Driving Factors

Growing Middle Class

Per Capita Income Households earning above

Middle Class Population
U.S.$ 22,000 per annum
50 million in 2005 $1,050 per person in 2009
4.4 million now
583 million in 2025 $3,231 per person by 2020 18 million in 2020

Retail Sales US$ 353 billion in 2010

US$ 543.2 billion by 2014

Policy Changes In the first half of 2011 India is expected to
open multi-brand retailing for foreign players
which would allow players like Wall Mart,
Carrefour and Target to develop full fledged
setup in India.
India’s Flexible Packaging market to treble from
1000 kilotons in 2007 to 3100 kilotons in 2014

Sectors that constitute demand for

Packaging and Associated
Equipment

50%

Food
Pharmaceutical
Others
25% 25%
 Growth Driving Segments
Food
• Indians spend a higher percentage of their earnings on food
consumption, compared with other countries globally. While
urban India spends around 39% of its income, it is 52% for
rural India.
• The domestic food market is likely to grow to $300-billion by
2015 from the now $190-billion.
• By 2015, the Indian food industry is estimated to grow by
about 40% over the level in 2007. The Government of India is
actively promoting the concept of mega food parks and is
expected to set up 30 such parks, each with a cold storage
facility. The parks will also have facilities for sorting, grading,
processing, packaging and quality control, thereby providing
an investment opportunity to integrated players, as well as
developers.
Pharma
• India's pharmaceutical industry is now the third largest in the
world in terms of volume and stands 14th in terms of value.
• The Indian pharmaceutical market is expected to triple to US$
20 billion by 2015 from US$ 7.1 billion in 2007 at a compound
annual growth rate (CAGR) of 12.3%, and establish its niche
among the world’s leading10 markets.
• Personal care market in India valued at U.S.$ 5 billion in 2009
is estimated to grow at 19% CAGR for the next couple of
years.
• Even with double-digit growth rates, the market penetration of
cosmetics and toiletries products in India is very low. Current
per capita expenditure on cosmetics is about $1, compared to
$36.65 in other Asian countries. This low market penetration
for cosmetics and personal care products in India offers an
opportunity for more significant growth down the road in this
country of 1.2 billion people.
 Global Players in the Indian market-
MeadWestvaco (U.S.)
Established its own subsidiary in India in 1995.
Operational Strategy for In October 2008, MWV acquired 51% stake in
the Indian company called Wadco. Wadco is one
the Indian market of the India’s largest corrugated fibre cartons
maker.
Areas of strength:
MWV- Technological expertise
Wadco- Manufacturing and on the ground
experience required in the Indian market.
Solutions for fresh produce- The MWV Wadco
Area of Operations joint venture is extending the corrugated
packaging design, manufacturing and technology
capabilities of Wadco and MWV to India's local
fresh produce market, where products suffer a
40-per cent value loss due to inefficient post-
harvest practices, processing and handling
before they reach the market.

Pharmaceutical Packaging- MWV also has

partnership with an Indian pharmaceutical
packaging company Bilcare. They jointly
acquired U.S. pharma packaging company
called International Labs in 2008.
 Global Players in the Indian market-
Huhtamaki (Finland)
Operational Strategy for
the Indian market
Area of Operations
Client List
In 1999 Huhtamaki acquired 59% equity capital
stake in India’s leading consumer packaging
company called Paper Products Limited.
PPL is the pioneer and the technology and
market leader in Flexible packaging and
Labelling, with manufacturing facilities at Thane,
Silvassa and Hyderabad.
It meets the premium packaging needs of almost
the entire range of FMCG segments including
personal products, personal wash, laundry,
foods, sauces, beverages, bakery products,
spices, chocolates and confectionery, dairy, etc.;
and also for seeds, specialized chemicals,
electronics and many other specific specialized
uses including anti-spurious packaging.
Amway, Amul, Britannia, Cadbury, Castrol, Coca-
cola, Dabur, DS Group, Emami, Eveready, GSK,
Godrej, Hindustan Latex, HLL, HPCL, Marico,
MICO, Nestle, Perfetti, P & G, TTK-LIG etc.
 Global Players in the Indian market-
Sonoco (U.S.)
In India Sonoco is operational as Conitex Sonoco
Operational Strategy for which is a J.V. between Sonoco U.S. and
Texpack (U.S. company into paper based
the Indian market packaging solutions).

Production of textile carriers for the spun yarn

Area of Operations industry, and offers full packaging and handling
solutions for spinning mills around the world.

Other products include: Flexible Packaging,

Paper Bags, FIBC (FIBC (Flexible Intermediate
Bulk Containers) Bags, BOPP (Biaxially Oriented
Polypropylene) Bags, Corrugated Pallet, Plastic
Pallet, Labeling System, Custom Printing, Stretch
Film and Other Packaging.
 Global Players in the Indian market-
International Paper (U.S.)
Operational through a Corporate Sales Office in
Operational Strategy for Hyderabad.

the Indian market

The Company operates in six business

Area of Operations segments: Industrial Packaging, Printing Papers,
Consumer Packaging, Distribution, Forest
Products, and Specialty Businesses and Other.
 Global Players in the Indian market-
Alcan Packaging (U.S.)
Alcan Packaging established its own
Operational Strategy for manufacturing setup in India during 2008 with an
estimated cost of U.S.$ 10 million.
the Indian market
Alcan Global Pharmaceutical Packaging - a
division of Alcan Packaging, a business unit of
Rio Tinto Alcan acquired the Chakan (Pune)
flexible packaging plant from an Indian company
called Associated Capsules Private Limited.

Producing flexible packaging for food,

Area of Operations pharmaceutical and personal applications in
India.
 Global Players in the Indian market-
Sealed Air Corporation (U.S.)
Sealed Air Corporation operates in India through 2 fully
Operational Strategy for owned subsidiaries in Bangalore and Delhi.

the Indian market

Its Cryovack division offers following solutions in food

Area of Operations packing

Vacuum Shrink Bags

Multi-Ply Bags
Equipment
Barrier Trays
MAP tray lidding system
Absorbent Pads & Case Liners
Laminates
Rigid Packaging
Oxygen-absorbing Sachet

• Multi-ply Paper Block Bottom Bags- used for packaging a

wide range of powdered and granulated food powders
requiring protection during distribution and hygienic
processing.

• Thin Walled Food Containers- designed for high speed

 Global Players expected to foray
into the Indian market in 2011
U.S.$ 4 billion company manufacturing
Pactiv Corporation disposable plastic, foam, molded fiber, pressed
paperboard, and aluminum packaging products
(U.S.) for grocery stores, mass merchandisers, and
discount chains.

U.S.$ 4 billion provider of packaging solutions for

Graphic Packaging a range of products to food, beverage and other
consumer products companies. The Company
(U.S.) operates in three business segments: paperboard
packaging, multi-wall bag and specialty
packaging.

Graphic Packaging is evaluating opportunities in

the multi-pack beer market in India.
Ball Packaging Europe, a subsidiary of Ball
Ball Corporation Corporation, USA, had planned to enter the
Indian beverage can market in 2009 by opening a
(U.S.) plant at Aurangabad. The company however had
put the plan on hold due to recession and has
now decided to commission its Rs 260-crore
beverage can-making plant during the first
quarter of 2011.
 Major Indian Players-
ARUN PLAST PRIVATE LIMITED
Manufacturer of polythene bags, polythene
Company Profile packaging bags, wicketed poly bags, poly bags,
printed poly bags, wicketed bags, resealable poly
bags, food packaging bags, bio degrable poly
bags, sandwich bags and garment poly bags.

LDPE, LLDPE, HMHDPE, POLYPROPYLENE

Products LAYFLATE TUBES, ROLLS, SHEETS,PLAIN &
PRINTED BAGS, ( T-Shirt carry bags, Garbage
bags, Gusseted bags,hanger type bags, sealking
tape bags, Textile bags )

Revenue- Around U.S.$ 2 million

Scale of Operations No. Of Employees- 50-100
Location- Tamil Nadu
 Major Indian Players- ITC
ITC's Packaging & Printing Business is the
Company Profile largest value added converter of paperboard
packaging in South Asia. It converts over 70,000
tonnes of paper, paperboard and laminates per
annum into a variety of value-added packaging
solutions for the food & beverage, personal
products, cigarette, liquor and consumer good
industries.
Three Factories in India:
Scale of Operations • Chennai (South India)
•Bihar (East India)
•Haridwar (North India)

The Division supplies value-added packaging to

Clients ITC's various FMCG businesses.

Its client list includes several well-known national

and international companies like Nokia, Colgate
Palmolive, Pernod Ricard, Diageo, British
American Tobacco, Philip Morris International,
Agio Cigars, UB Group, Tata Tetley, Tata Tea,
Reckitt Benckiser, Radico Khaitan, Akbar
Brothers, Surya Nepal, VST Industries, etc.
 Major Indian Players-
Parikh Packaging
It is a Parikh Group Company offering flexible packaging
Company Profile solutions in Pharmaceutical, Food, Non-Food and FMCG
sector.

3 Side Seal Pouch

Products Stand Up Pouch
Side Gusset Bag
Spout Pouch
Packaging Rolls
Wicket Pouches
Lidding Film
45000 square feet factory in Gujrat
Scale of Operations

Hindustan Uniliver, Nirma, Amul, Bisleri, Dabur, Kingfisher,

Clients Zydus Cadilla, Torrent, Merck and Sanofi Aventis.

In March 2010 Parikh Packaging has tied up with Bharti

Walmart, the JV between Bharti Enterprises and Walmart
Stores Inc., for packaging prodcuts for its stores.
 Major Indian Players-
Jai Corporation
Diversified group with six business areas.
Company Profile Plastic Processing Division- Manufacturer and exporter of
PP woven sacks for packaging polymers, fertilizers, PP
woven fabric laminated and unlaminated in different width
as per requirements and GSM for wrapping, covering
applications.
Products & Services
Products
Geo Membrane
Geotextiles
HDPE Ropes
HDPE Woven Sacks
HM Polythene Bags
LD Polythene Bags
PP Leno Bags
PP Non Woven Fabric
PP Ropes
PP Woven Fabric
PP Woven Sacks

4 Plastic Processing Divisions

Scale Of Operations 1 Plastic Processing & Mastet Batch Division
1 Plastic Processing & PSF Division
 Major Indian Players-
Parksons Packaging
Leading high quality manufacturer of folding
Company Profile cartons in India.

Folding Cartons- capacity to produce 1 billion

Products units per annum
Litho-Laminated Cartons
Plastic Cartons
Labels for liquor, food and FMCG clients
Retail Ready Packs for Gift Packs like
Chocolates
Lined Cartons for liquids, granules, powders, tea
etc.
3 Manufacturing Plants in Daman, Pantnagar and
Scale of Operations Pune.

3 Marketing Offices in New Delhi, Kolkata and

Chennai

Corporate Office in Mumbai

 Tecnova’s Work in the Packaging
Industry
Client Work done by Tecnova
Opportunity Assessment for MWV’s products in the Indian
MeadWestvaco market
(U.S.) Formulation of Business Plan
Implementation of Business Plan
Identification and Selection of Vendor Network
Executive Search of Key Executives
Location Analysis for setting up Ball’s greenfield plant in
Ball Corporation (U.S.) India

Opportunity Assessment for their products in the Indian

Huhtamaki (Finland) market
Opportunity Assessment for their products in the Indian
Sonoco (U.S.) market
Opportunity Assessment for their products in the Indian
International Paper (U.S.) market

Opportunity Assessment for their products in the Indian

Frantschach Packaging (Mondi market
Group Company)- Austria
 Tecnova’s hold in the Packaging
Industry
• Experience with nearly 6 global packaging majors in helping them to understand the Indian
market for their products, avoiding pitfalls made by other players and implementing low asset &
low-risk business model.

• Strong capabilities in evaluation, cultural, social and financial due-diligence, negotiations and
deal closures in case of acquisitions of small to mid-size family based Indian companies

• Nearly 2.5 decades of experience with global Food and Consumer companies like Perfetti,
SABMiller, Godiva, Haribo, Borges, Danone, Royal Canin, Moet Hennessy. L’Oreal, Mary Kay,
Amway, USANA, Nu Skin and Kao.

• On the ground approach- Exhaustive Primary research through interviews with Industry experts,
vendors, purchase decision makers and end-users.

• Tecnova’s Chairman and President (both on the Board of the company) are ex-employees of
Metal Box (U.K. based packaging company acquired by South African company Nampak in 1988)
and bring with them years of experience and knowledge of what succeeds in the packaging
industry in India.
Thank You