Market Potential of Flexible Packaging in Middle East

A
PROJECT REPORT ON
STUDY OF MARKET POTENTIAL IN MIDDLE EAST
COUNTRIES IN FLEXIBLE PACKAGING SECTOR
SUBMITED TO
BALAJI INSTITUTE OF INTERNATIONAL
BUSINESS(BIIB),PUNE
BY
ANUJ MAHAJAN
SRI BALAJI SOCIETY’S
BALAJI INSTITUTE OF INTERNATIONAL BUSINESS(BIIB)
S NO-5/2-7,TATHAWADE,WAKAD,PUNE,41103
1
A STUDY OF MARKET POTENTIAL OF MIDDLE
EAST COUNTRIES IN FLEXIBLE PACKAGING
SECTOR
SUMMER PROJECT REPORT
SUBMITTED BY
ANUJ MAHAJAN
IB1614110
In partial fulfillment of the requirement for the award of the Post Graduate
Diploma in Management
PGDM(IB)
IN
Balaji Institute of International Business(BIIB)
S.NO 55/2-7,Tathawade,Wakad,Pune-411033
2
Certificate from the company/organization
3
CERTIFICATE FROM INTERNAL GUIDE
This is to certify Mr. ANUJ MAHAJAN, Student of two year full time Post Graduate
Programme in Management-PGDM(IB) in Balaji Institute of International
Business(BIIB), Pune-411033 has completed Summer Project Report Title “Study of
Market Potential of Middle east in Flexible Packaging” from 8/05/2017 to 30/06/2017
He has completed the project work to my satisfaction
Signature Of Internal Mentor
(Prof.Nitesh Behare)
4
STUDENT’S DECLARATION
I ANUJ MAHAJAN student of Balaji Institute of International Business, Sri Balaji

Society,Pune hereby declare to the fullest of my knowledge and belief that the project
presented is solely done by me for understanding the market potential of middle east
countries in flexible packaging for uflex Ltd. As a partial fullfillment of Post Graduate
Diploma In Management-(PGDM)
PLACE:PUNE ANUJ MAHAJAN
DATE:
IB1614110
5
ACKNOWLEDGEMENT
I would like to express my sincere gratitude to Mr. Vishal Trivedi (Export Officer) for
giving me the opportunity to work with Uflex Ltd. and for his extensive guidance.
First of all, I would like to thank my Family, they have constantly supported me in my
endeavor.
Then I would like to express my sincere thanks to Prof. Col. A. Balasubramanian,

Dean, BIIB and Dr. Suresh Chandra Padhy, Director, BIIB, for guidance and support
in the project without whom, this project would not have been complete.
Finally, I would like to express my sincere thanks to Ms. Kavita Salhotra (export
officer) and all those who directly and indirectly have helped to me and made my project
a worthwhile and memorable experience.
6
TABLE OF CONTENTS
S.NO. TITLE PAGE NO.

1 EXECUTIVE SUMMARY 9
2 INTRODUCTION 10-17
3 LITERATURE REVIEW 18-19
4 COMPANY PROFILE 20-42
5 OBJECTIVES, RESEARCH 43-46
PROBLEM,
PORTERS 5 FORCE MODEL
6 RESEARCH METHODOLOGY 47-49
7 COUNTRIES DETAILS 50-87
(ATTRACTIVENESS)
8 ANALYSIS AND INTERPRETATION 88-92
9 FINDING 93-94
10 RECOMMENDATION 95
11 BIBLOGRAPHY 96
7
LIST OF TABLE
S.No Table no. Page no.

1 TABLE6.1 57
2 TABLE6.2 57
3 TABLE6.3 65
4 TABLE6.4 65
5 TABLE6.5 72
6 TABLE6.6 72
7 TABLE6.7 79
8 TABLE6.8 79
9 TABLE6.9 86
10 TABLE6.10 86
LIST OF GRAPH
S.NO Table no. Page no.

1 FIG1.1 57
2 FIG1.2 65
3 FIG1.3 72
4 FIG1.4 79
5 FIG1.5 86
6 FIG1.6 90
8
EXECUTIVE SUMMARY
It was great opportunity to work with Uflex ltd.Noida.The research study was conducted
to know about the market potential of the middle east countries in the flexible packaging
sector.
The objective of my study is to find out the potential customers of flexible packaging of
rice, coffee ,dates & nuts in Egypt, Morocco, Oman, Algeria and Jordan .The another
objective is to know about the market attractiveness and market conditions in these
middle east countries.
The conclusion is completely drawn on the the basis of the sample customer database
operating in the business of rice, coffee, dates & nuts in middle east.
9
CHAPTER-1
INTRODUCTION
10
Packaging-
According to the Kotler packaging is defined as “All the activities of designing and
producing the container of product”. The wrapping material around a consumer item that
serves to contain, identify, describe, protect, display, promote and otherwise make the
product marketable and keep it clean is described as packaging
OBJECTIVE OF PACKAGING
 Physical protection
 Barrier protection
 Information transmission
 Convenience
 Marketing
Factors affecting growth of packaging industry

1. labor cost and demand
2. Consumer awareness and brand value
3. Quality of product
4. High cost of raw material
5. Competition in industry
6. Trained and skilled worker
Preference of packaging selection depends on various parameters
COMPETITIVE CONSUMER
PHYSICAL PURPOSE VISUAL IDENTITY
PERFORMANCE PREFERENCE
•Shelf life •Manufacturing & •Image & appearance •Emotion/Satisfaction
•Quality and safety supply chain •Aesthetic& appeal •consumer benifit
•protection & integrity performance •Brand awareness •Differentiation
•supply chain •Specification •Visual communication •Imformation
handelling •Flexibility •Display needs •Convinience
•Environmental respect
•On shelf /off shelf
needs
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Packaging industry division in demand and supply form:
Plastic
Packaging Paper
manufacturing
Packaging
Demand End Metal
machinary
Packaging
services Glass
packaging
industry
Institutional
wood
Supply End Industrial
Consumer/end
user
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TYPES OF PACKAGING
Rigid
packaging
(Larger
market
share)
Packaging
Flexible
packaging
(Growing at
fast rate)
Difference between rigid and flexible packaging

Parameters Flexible Rigid
Weight Light Heavy
Raw material Low High
consumption
Size Good for smaller Suitable for big
package package
Storage 60-70% less Greater space
Reuse Not possible Possible
Re -sealing Possible Not possible
Disposal Easy Disposal
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Flexible packaging:
 Flexible package is defined as a package or any part of package which has no
shape of its own and whose shape can be readily changed. It is fastest growing
area in packaging industry and global consumption is forecasted to grow 3.5%
annually in next 5 years, reaching $231 billion by 2018.
 Flexible packaging uses less sources and energy than any other form of
packaging. It is always having advantage over the rigid packaging by cutting the
costs of packaging and transportation cost between converter, packer/filler,
retailer and end user. Flexible packaging not only takes less space but they can be
created on the spot with the roll materials at the filling location
 In today’s world where everyone is going through a busy and hectic life style,
they prefer mealtime solutions instead of cooking the food with this put the ready
meals in new flexible packaging format. Flexible packaging has grown
enormously in food markets. Food products are typically seen as competition
resistant because customers are likely to need to buy food on steady basis
 In the present day, flexible packaging is good hit in personal care, food and
pharmaceutical sector. Food packaging among the FMCG sector is the largest end
use segment in terms of both value and volume. The growing population and the
concomitant demand for fresh and frozen foods, beverages, personal care products
and pharmaceuticals are some of the factors responsible for the rising demand for
flexible packaging. Backed by investments in technology, equipment and R&D,
the flexible packaging industry will continue to remain encouragingly buoyant in
the times to come.
 Furthermore, rising consumer demand for better, lightweight, convenient, durable,
tamperproof and aesthetic packaging has worked remarkably well in favor of
flexible packaging. Constant innovations, R&D into developing advanced
flexible packages have helped the industry to stay abreast with the changing
trends and customers’ preferences.
14
Factors driving flexible packaging industry
 FMCG are largest consumer of flexible packaging products, food sector
accounts for 38% of flexible packaging market
 Food grocery retail contributes 70% of total retail sales
 Segment is growing at 104% to 482US$bn by 2020
Driver and restraints

DRIVERS
 Replacement /substitution of rigid packaging
 Growth in FMCG and retail sectors
 Higher preference towards processed and packaged food
KEY RESTRAINTS
 Preference towards low cost and low-quality packaging
 Increase competition within countries
Consumption of flexible packaging across globe

 Current global flexible packaging market: USD 80bn 2014, Asia pacific is largest
growing 40% of total global
 North America 25%
 Europe 20%
 South & central America and MENA 15%
 Growth rate of global flexible packaging is 4% to 5% /anum in value
terms and to sustain 4% for next few years
15
Middle east market
 MENA packaging market to grow to US$ 52.4bn by 2019
 In MENA region packaging market valued approx. US$41.4bn in 2014 and is
forecast to grow during the period 2014-2019 at a CAGR of 5.0% to US$ 52.4bn
(2013 prices) according to new market study by Smithers Pira
 The packaging sale of the 5-year period to 2014 (growth) rising trend in middle
east at a CAGR of 6.3% in and Africa 6.9%. Food & Drink sectors are growing at
a steady rate but health sector is growing at faster.
Total packaging division in Middle East
MARKET SHARE
Glass
9%
Metals Board
Board
9% 25%
Rigid Packaging
Others Flexible Paper

5%
Flexible Foils
Flexible Plastics
Others
Flexible Plastics
13% Metals
Glass
Flexible Foils
3% Rigid Packaging
Flexible Paper 28%
8%
Source of data is smithers pira
Industry packaging consumption in Middle East:
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CONSUMPTION OF PACKAGING
OTHERS
15% FOOD
34%
BEVERAGE
25%
INDUSTRIAL
BULK
26%
FOOD INDUSTRIAL BULK BEVERAGE OTHERS
Source of data is smithers Pira
VOLUME Share of packaging type in MENA (Middle east and Africa)
VOLUME SHARE
9%
Flexible plastic
11%
Glass bottle
42% Pet bottle
Thin wall plastic container

18%
folding
20%
Source of data smithers Pira

17
CHAPTER-2
LITERATURE
REVIEW
18
LITERATURE REVIEW-
The global flexible packaging market is $65bn whereas the middle east is acquiring 5%
of the whole with $3.5bn serving the population of 1.2bn people. Middle east has huge
potential of growth in future in flexible packaging sector as it was valued US$4bn with
consumption per capita is only US$3 whereas Europe it is US$30.Middle east have one
of the highest GDP per capita which led further consumer to spend more disposable
income to spend on e-commerce retail, luxury retail and retail in store, with the increase
in sale of product will lead to increase in packaging market to serve both consumer and
retailer. The packaging market will increase as there will be increase in purchasing
power.
The significant increase in food production have led to increase in logistics, distribution
and packaging, demand of flexible packaging has grown from 5% (2010) to 7% (2011),
the report states that Nigeria, Kenya and Egypt have shown the growth above the average
trend whereas Morocco and Syria growth have been below the average
The Middle East and Africa flexible packaging market is expected to grow from USD
8.55 billion in 2016 to USD 12.12 billion by the end of 2021 at a CAGR of 5.99%. The
low inflation rate and stable economy in the region gives rise to increase in the disposable
income of consumers so this follows to increase in the Consumption of packaging.
The packaging market in middle east and north Africa is valued US$41.1bn in 2014 and is
forecast to grow to US$ 52.4bn at a CAGR of 5%. The PCI have identified around 270
converters in the region plus small players with 20 major players. High Import of food and
industrial goods in Africa give rise to the flexible packaging market in the region.
Urbanization and rise in the population and with infrastructure development gives rise in
the demand of the packaged food, Africa is turning into an emerging market.
Flexible packaging is constantly evolving market, the innovative, convenient and
sustainable packaging have replaced the traditional method of packaging, there is
increase in recognition of role packaging plays significant role in preservation of goods
with greater focus on environmental considerations and product life cycle. The demand
of flexible packaging has increased by 12% per year for last 5 years which is stated by
PCI. Packaging trends change rapidly, calling for evolutionary style of operation in
packaging sector. while this will be challenging for many of those companies that
manage to keep up with food company demands are seeing a global growth, particularly
in middle east region. The prospect of breaking into the middle east offer potentially huge
opportunities to those companies not familiar with operation in this part of the world,
recent political movements may have influenced opinion negatively. However, there are
also trends in the packaging industry itself that may influence the companies looking to
operate within the region, such as increasing move away from plastic material to green
items such as paper.
Overall the future looks bright for packaging industry in middle east as it catches up with
rest of the world and heads towards becoming a global leader in packaging.
19
CHAPTER-3
COMPANY
PROFILE
20
Over the last three decades, Uflex has earned an irreproachable reputation defining
the contours of the ‘Packaging Industry’ in India and overseas. Since its inception in
1983, it has turned into a multi- billion company focusing on trust, value creation
for customers, quality innovation and customer satisfaction. Uflex has grown from
strength to strength with large manufacturing capacities of Packaging Films and
packaging products providing end-to-end solutions to clients across over 140
countries where it enjoys a formidable market presence thereby becoming India’s
largest flexible packaging company.
Uflex enjoys a global reach with unhindered speed making it truly multinational.
Headquartered in Noida (National Capital Region, New Delhi) it has state -of the-art
manufacturing facilities in India, UAE, Mexico, Poland, Egypt and USA. Uflex
serves as one stop shop flexible packaging solution provider cutting across varied
sectors spanning USA, Canada, South America, UK, Europe, Russia, CIS countries,
South Africa and other African countries, Middle East and the South Asian
Countries.
Uflex manufacturing facilities enjoy ISO 9001, ISO 14001 and HACCP
accreditations. Its products are approved by FDA and BGA. It is also a part of the
D& B Global Database and winner of various prestigious national and international
awards. FPA and AIMCAL Awards have been conferred to Uflex on several
occasions, latest being the prestigious Dupont Packaging Innovation Award in May
2015.
Uflex has a vast production capacity for Polyester chips, Biaxially Oriented
Polyethylene Teraphthalate (BOPET), Biaxially Oriented Polypropylene (BOPP)
films, Cast Polypropylene (CPP) films, Printing & Coating Inks, adhesives,
facilities for Holography, Metallization & PVDC coating, Gravure Printing
Cylinders, Gravure Printing, Lamination and Pouch formation.
Uflex stands committed to the industry by providing technical know-how,

establishing thought leadership and being the trend-setter in the flexible packaging
industry. Being on the edge of innovation, Uflex endeavors to be the fi rst to come
up with advanced products that cater to the ever-changing demands of the packaging
industry. Integrated within its core business profile are allied businesses like
Engineering, Cylinders and Chemicals which further give Uflex a superior edge
above competition. The organization is in the process of setting up first of its kind
21
Aseptic Packaging Plant for liquid packaging in Sanand, Gujarat with an investment
of approximately INR 550 crores.
Uflex has over thirty years of experience in polymer technology. Setting milestones
of success and innovation, Uflex is known for manufacturing and supplying products,
delivering customised flexible packaging solutions and services across the globe to
become an inextricable part of customers’ life.
Uflex offers technologically superior packaging for a wide variety of products such
as snack foods, candy and confectionery, sugar, rice & other cereals, beverages, tea
& coffee, dessert mixes, noodles, wheat flour, soaps and detergents, shampoos &
conditioners, vegetable oil, spices, marinates & pastes, cheese & dairy products,
frozen food, sea food, meat, anti-fog, pet food, pharmaceuticals, contraceptives,
garden fertilizers and plant nutrients, motor oil and lubricants, automotive and
engineering components etc.
Some of Uflex’s clients on the global turf include P&G, PepsiCo; Tata Global;
Mondelez, L’ Oreal, Britannia, Haldiram, Amul, Kimberly Clark, Ferro Rocher,
Perfetti, GSK, Nestle, Agrotech Foods, Coca Cola, Wrigley, Johnson & Johnson
among others
22
VISION AND MISSION
Vision
"Be a leading company and preferred supplier for providing flexible packaging solutions
to customers across the world maximizing value for all stakeholders"
At UFLEX we believe that, to eventually emerge as a World leader in providing total
Flexible Packaging solutions, we need a customer focused approach.
To be the most admired innovative company in the world by:
 Providing flexible packaging solution and experience.
 Creating value for stakeholders.
We shall achieve this through:
 Best practice
 Sustained growth
 Working collaboratively
Mission
To meet customers’ dynamic packaging needs by providing innovative,
productive, cost-effective, optimized and eco-friendly packaging solutions,
continually adding value to their business."
We believe in using our creativity and aesthetic potential in providing flexible packaging
solutions which make packaging easier, faster, more efficient and user friendly. In this
way, we too have a share in contributing to the conservation of resources by enhancing
the shelf life of the perishable products.
Every UFLEX employee has the commitment to achieve Company’s VISION. They have
pledged:
 To consistently deliver quality product by adhering to the set specifications,
contractual, regulatory and statutory requirements
 To achieve enhanced customer satisfaction through cost-effective and timely
completion
 To motivate and train the staff for continual improvement of quality standards
 To update and implement the procedure complying with international standards
23
SWOT Analysis
Strengths
1. The company along with his strong global holding across the globe in around 140
countries such as India, UAE, Mexico, Egypt, Poland, the US, the UK, Mauritius and
Singapore.
2. The UFLEX is complete packaging solution based company as it Provides technical
know-how and is the trend-setter in the flexible packaging industry.
3. They have about 5000 employees working in 3 shifts
4. They are the first to come up with the advance technology one such example is Air
tight cement bag
5. The company rarely rely on the out sources for any input in production as it is having
its own production of raw material such ink, BOPP, engineers, cylinder, etc.
Weaknesses
1. High cost of raw material leads to increase in the production cost
2. Scarcity and availability of raw material for the business is a concern
3. Lesser profit margins
Opportunities
1. Changing food habits &health consciousness of next generation
2. Changing in the life style of today’s world
3. Rapid increase in propagation of polymer based technology products.
4. Continuous investment in R&D and new upcoming technologies so to keep the

cost down
Threats
1. High competition in the market
2. Rise in the customer negotiation power
3. Huge risk associated with the high concentration in polymers as they are
flammable
4. Highly fragmented packaging market
24
HOW TO MAKE THE FINAL PRODUCT FROM ROLL TO
POUCHING
HOW THE ORDER IS PLACED (ART & WORK department,

PRE-PRESS department, CYLINDER DEPARTMNET)
ARTWORK DEPT.
 Marketing department will bring the format of party need, job name, job size, job
color in form of art work CD from the customer end
 The Artwork department after receiving the CD performs only 10 percent of the
task of creativity and some time that too is not required as 90% of the part is
done from the customers end.
 The file is send in JPG or pdf format to the customer and if any change is their it
is done and sent back to the customer for the approval.
 The creative team of art & work will create design and then send it to the pre-
press department.
 Every image can be created through CYMK colors, these colors are cyan,
yellow, magenta, black, apart from that the rest of the colors are special colors
that are taken as per the customer’s requirements
25
PRE -PRESS department
 Digital Pre-press Department uses a specialized packaging and planning software
ARTPRO & Pac Zed to meet Gravure & Flexo printing requirements.
 The software helps in performing various techniques like color separation,
trapping, bar code generation and pantone.
 The main job of the pre-press department is separation of the colors
 After this the digital print is sent to the customer for which there are special
printer for the 10 colors and the 12 colors printer for the Jammu plant
 The customer will go through the digital print and will give the remarks
 The task performed by the preprocessing are:
 ADJUSTMENT KEY LINE DRAWING
 SAPERATION of colors
 OVERLAPPING
 TRAPPING (Spreading of color up to 3mm or choking is color spread
inside)
 Highly experienced and internationally trained professionals spin their magic
on color calibrated monitors for optimum halftone results. Besides this,
exclusive soft-wares are deployed for making wall papers, wood grain and
texture design cylinders.
 Hexa-chrome technology is used to get the rich and vibrant colors
 The digital file finally gets ready to be engraved on the cylinder. Most
importantly, in order to maintain the confidentiality of the job, our State -of-
the-art ERP solution makes sure to safeguard all the interests of our esteemed
customers
26
GMG Color Management
 Software helps to create color calibrated prints with engraving to match final
printing results.
 The output on actual packaging substrate helps closest validation of colors for
shade approval
 GMG color management to check that there is proper sync between monitor-
printer-engraver -printing
Time & Cost saving management. The output will be at your door step in 24-48
hours
CYLINDER
 Cylinder is made up of steel and plated with copper, though other materials such as
ceramics can also be used. the desired pattern is achieved by laser or a diamond
tool or chemical etching
 There are various machines which are used in production of cylinder such as CNC
Machines, Inner Bore Making Machine, Cone & Flange making Machine, High
Accuracy Grinding machine, Auto Wielding Machine etc.
27
o The cylinders used in gravure print is having small cells embedded creating an
image area and the remaining area is non-image area
o Cost of the cylinder is 15000-30000 it varies according to the size of the cylinder.
The maximum size of Cylinder is 1300mm out of which 1250mm is the print
area. The print area changes with the change in size of the cylinder.
 Speed to market: Design to Dispatch – all in 4 working days.
1) Tool room section

 Marketing department will give the cylinder order to the tool room section, the
order will consist of the measurement, machine number drive cone, etc.
 The cylinders are created and also brought from the vendors
 In the tool room section four steps are done which are
cylinder arival quality check turning quality check
 After the quality check the cylinder diameter is reduced (200-280 micron) which
is done by the less machine
 Than the next stage consists of
grinding cutting down oiling smoothing
 The smoothing is done to remove the rough linings from the surface of the
cylinder and providing it a smooth surface
 Than in the next step the cylinder are sent to the Galvanizing Department
2) Galvanizing department
 To meet engraving meet international level the base shells then undergo a
sophisticated multistage galvanic process environment friendly galvanic line
from MDC Daetwyler, Switzerland.
Here they are cleaned to get rid of dust, oil, dirt or any other foreign particles
before undergoing a uniform electroplating of nickel and copper.
28
 The cylinder is sent for copper plating. In this department cylinders are cleaned
and then they are rotated in the dip of the acid mixture which consist of H2SO4
and copper sulphate in fixed ratio
 Again the 200-micron layer is added and sent for the polishing.
 In chrome plating we can get hardness above 1100 vikers & microcracks 400/cm
(Min.).
 The task performed under this department are De-chrome, Chrome plating,
Nickel plating, De greasing
3)Polishing department
 After copper plating the cylinder is sent further for polishing, where require size
of cylinder is given to it by reducing the diameter.
 Once the perfect size is cut down than it is provided nice smooth surface
 A high precision digitally controlled MDC Daetwyler "Polish master machine"
used to achieve accurate and mirror surface that is required for electronic
engraving on the cylinder.
 There are various parameters are taken care such as roughness, hardness &
quality.
29
4)Engraving department
 Engraving is the process in which small tiny cells are engrave on cylinder either
by electronic or by laser engraving.
Laser Engraving: voc emission improved carbon foot print
 The latest development in gravure industry, engraving s the use of computer-

directed lasers, which, like the electromechanical method, cut cells of varying
depths and sizes.
 The original image is scanned into a computer, where various images densities are
determined, and lasers etch the cylinder. Due to the high light reflectance of
copper, however, it is not particularly for laser etching.
 Laser processes is high speed process at 30,000 cells per second, the 40-inch
wide, 30-inch circumference cylinder mentioned above would only take about 13
minutes.
 Laser engraving on metallic cylinders which performed a high-power Q-switched
ND: YAG laser system at 70 kHz repetition rate tuned for high reproducibility
and stability.
 An exact modulation technique allows fast variation and precise calibration of the
energy of each single laser pulse as well as active modulation of the intensity
profile of the beam. This method permits to engrave with each single laser pulse a
complete cell and to define diameter and depth of each cell (the aspect ratio and
the cell shape) independently and freely from pulse to pulse at a rate of 70 kHz,
controlled by digital image data. Thus, the cell shape can be optimized for the best
ink transfer characteristic on different print substrates.
 Laser technologies which we are using THINK Lab, Japan.
 In this process, we can reproduce fine text quality/ fine design/ hair lines.
 Laser technologies can improve the quality and efficiency of prepress and printing
workflows.
30
Electronic Engraving:
 Electro-mechanical engraving is a copper-coated steel base with a 0.1mm
strong layer of gravure copper and a special surface processing. The so-
called cells are engraved in this surface with the help of diamond stylus
 The cells are formed longer and more compactly depending upon how fast
the cylinder turn around its own axis. The diamond stylus is guided via
engraving system which moves on a slide in parallel to the cylinder axis.
 Darker the grey value and deeper the deeper the insertion, the darker grey
values, the deeper the insertion. up to 1200 cells can be engraved per
second
 The electro mechanical engraving uses an electronically controlled
diamond stylus to cut the cell into the surface of gravure cylinder.
 The original copy is scanned into computer and digitalized, each scanned
image is converted to half tone like dots each having electronic signal
ranging in intensity from 0-100%, depending upon the darkness and
lightness of image.
 The image is converted back into analog signal which then drives the
engraving head, telling it how deep to carve the cylinder (cell depth and
cell area controlled by tapered engraving head)
 The computer than control the engraving head which moves around the
cylinder
 There are over 25 million cells 40inch wide cylinder with 30inch
circumference. At an average speed of 3200 cells per second, it takes 2hour
to engrave a single cylinder
 Supervisors are allotted with the engraving schedule which is given by the
marketing department which consists of the job name, cylinder size, how many
cylinders etc.
 Engraving is to get engrave image by the tools. The stylus used are120/125/130.
Whereas for the surface job tool is 120/110 where 120 is screen and 110 is angle.
There are other tools such as laser for the touch and fine quality and think –
robotics
31
4) CHROME PLATING
 Once the cylinder is engraved it is clean coated with final layer of chromium
 Chromium provides hard surface layer that helps prevent the doctor blade from
wearing out during printing
5) PROOFING
 The last part of process is proofing, where cylinder quality is checked.
 All the manufactured cylinders are proofed to cross check the process parameters
and also to validate output synchronization amongst Pre-press, Engraving
machine and Printing machine.
 Accucheck Proof reader: The unique proof reading process ensures errorless and
efficient, proof checking. The actual proof on substrate is scanned and
superimposed on soft file of the approved design. Any deviation can be easily
detected by this customized software.
 There the sample is created and is sent to the customer for the approval (sample is
created by adding cylinder 1 by 1 in a single tray and by changing the color of the
tray with the change of each cylinder)
 Quality check is done at each and every stage of the process
32
 Once the customer approval comes the printing starts
FLEXO PLATE PRODUCTION
 Digital Flexoplate processing set up offers significant advantages to advance the

quality & productivity of your organization owing to a unique combination of
direct digital imaging and CYREL fast thermal processing.
 A Unique Flexo Plate Proofing Machine Developed by Uflex which

can provide proof on actual substrate with various Anilox rollers as per client’s
requirement.
 Uflex is the only Company in India having Proofing Facility for Flexo Plates &
Sleeves.
FLEXO PRINTING SLEEVES
 Sleeves technology, the fiber glass sleeves are covered with elastomer
or polymer and then the sleeves are directly engraved by using of CO2
or YAG lasers.
 The finished sleeves are then slid onto the air mandrels of the
flexography printing machine.
 A Lead Laser Sleeve making facility has been introduced to make high
precision flexo sleeves at Uflex Jammu plant.
33
Latest launch
 A recently installed Robotic Laser Engraving Line from M/s Think Lab, Japan,
can produce more than 80 Cylinders per day
 To make sure that engraving meets international standards, dynamically balanced
base shells with accurate thickness and hardness are passed through high
precision imported grinders.
PROCESS-
PRINT LAMINATE SLIT
PRINTING- There are two types of printing

1) GRAVURE-
o The UFLEX have total 10 machines in which 1 machine is only having 10 color
feature that is ROTOMEC which is made in Italy, whereas remaining all
machines are 8 colors machines and are imported. There is one machine created
by UFLEX and only one Flexo blade machine is there in plant.
o The gravure print is the majorly used in today’s print business as it has the
capability to provide the reverse print also as the process begins with the
unwinding of the BOPP film from unwinder end which is having a film roll
attached to it.
34
o There are 8 or 10 stations depending on the type of print requirement, each station
is having a cylinder attached to the cylinder holder and tray of ink in which some
portion of cylinder is inside the ink tray.
o Each tray carries a different ink as the film unwind it passes under the cylinder
and get the image of print from the engrave area of cylinder to the film. The
doctor blade is attached behind each cylinder use to wipe the ink from the non-
image area of the cylinder.
o As the film passes through one station to another between them there is
temperature hood which provides heat and makes the ink dry so that it does not
get mix with another color.
o The film passes from each station till the final print is made ready and at last it is
rewind in form of roll and sent further to the next department
2) FLEXO BLADE-
o Flexo use to print on the surface as they use to print from the top of the sheet and
the gravure print from behind the sheet(BOPP) so it cannot perform the reverse
print like gravure
o They are not used much as the most of the customers go for the gravure but is still
depends on the budget of customer.
o In this process sleeves get the ink from the anilox and then they transfer ink
further to the sheet where as in case of gravure the engraved cylinders are used for
printing
Misregisteration in print-
o So, there is the pattern made in the plane area in the side of the film. The pattern
consists of the ten circles inside the square with each roll of the cylinder the ink
fills the circle with different color depending on the order is 6 colors or 8 colors or
even 10 in the pattern number of circle filled according to it. If the color spills out
of it results in the misregistration and the print have to be done again as the
produced print is lacking in quality parameter
Once the order comes it has to go through these 3 stages
35
LAMINATION-
 Lamination enables to combine to substrates by wet or dry lamination depending
on product requirement water base and solvent base lamination are done.
 Once the printed Bopp comes the next stage is the than the lamination is done
depending on the customers how many layers they want two, three or four
depending on their need these layers’ changes according to the product
requirements as the layers are of BOPP, PP, LDPE, Fabric cloth, metalize sheets.
 The lamination department is having total 13 machines in which 7 are solvent less
machines, 3 are solvent base machine and reaming 3 are extrusion machine.
DIFFERENCE BETWEEN SOLVENT LESS AND
SOLVENT BASE
SOLVENT SOLVENT
BASE ETHYLE is used and it LESS
gets evapourated in NO ETHYLE is used and
temprature hood with adhesive comes from
heat and adhesive is the company
mixed in plant
The bond does not

The bond comes at the
comes at the same
same time after
time,it is kept in the hot
process
room
36
EXTRUSION-
 Extrusion laminates are constructed by extruding a thin tie-layer of plastic
material to bond together two dissimilar materials such as a polymer film, paper
or a foil.
 In this process, there are granules of plastic such as (PP+LDE) are heated in
315degree temperature and then the hot liquid die is pour between the fabric cloth
(WPP)which comes from one end after the fabric surface is made rough in
treatment plant and printed film comes from another end of extrusion machine
and then they are pressed together with pressure of nib once it passes between
rollers and then the finish product passes from the bottom of machine from one
end.
COLD SEAL-
 The cold seal is used in case of heat sensitive products. Cold seal rolls are used in
place of hot seal so that product don’t lose form and shape once they are sealed.
 In this process, there is a pre-glued roll to which only pressure is needed for
complete seal no heat is required. The rolls are having the glue in a pattern that
they are just need to cut in the shape according to the product.
 Cold seal is majorly performed in case of confectionery packaging (chocolates,
candy& pastry, cookies and bakery good). The cold seal is effective promotional
packaging which not only provide protection of the product from moisture and
oxygen but also provide extended shelf life.
37
CURING-
 Once the lamination process is completed the laminated roll are sent to the curing
room where they are kept in a high temperature room for a strong bond as the
time of curing varies according to the layers.
 Time taken by (Laminate Print+Metalize+Adhesive) to dry as they are kept in the
hot room temperature of 50 degrees.
 BOPP take 36 hours whereas BOPP+POLY takes 48 hours, time increases with
the thickness
 Curing is avoided in case of extrusion, cold sea, surface jobs (in case of EVM 12
hour its kept for shinning)
SLITTING- It is the final step in production process in which the master roll is cut to
final width with the help of laser and razor blade and the edges are removed as scrap
TYPES OF SLIT
 KG OR DIAMETER BASE: (example 300 diameter roll)
 LENGTH BASE: (ex-100 M WIND)
 POUCH BASE: (ex-100 POUCH)
After the slitting, the customer is asked that how he want the roll to be packed in
under binding or over binding. Over binding the print part is outside where as in case
of under binding the printed part is inside.
INCEPTION MACHINE
The inception machine is the machine which is the auto check machine, once the
packing web is formed than they are sent for the inception machine which is used to
cut that part of the sheet which is having a problem in it. There are total 8 inception
machines in UFLEX Noida plant
Example lamination does not attach properly to print film or metalize is not fix than
the person operating inception machine cuts that part of the sheet and the film is again
attach in the continuity with the help of flag
38
PRINTED ROLL details
Each roll is having a tag on it which consist of the complete details of the roll such as-
o PRODUCT CODE
o JOB DESCRIPTION
o PRODUCT ID
o ROLL CODE
o WEIGHT
o MACHINE
o J.E
o OPERATOR
o SIZE
o NUMBER OF FLAG JOINTS
o SHIFT in which it is produced
o LINE NUMBER of production
o Curing date
In all other unit, the department is kept according to the machines
39
1. Big pouching is divided into two departments
 POLYTEX consist of the polytex machine in which the tube is formulated as

the layer of the sheet is double and transfer the tube to big roll form
 CONVERPINCH consist of the converpinch machine in which the tube roll
will be rewind to the one end and it will convert into bags at last by attaching
the side gazette to it than the bottom pinch is done by the machine with hot
seal
2. Cement Bag/block bottom bag- It is the specialty of UFLEX, it is Pinch bottom
bag an air lock bag as one end is open given the tube shape and then there is a flap
inside once the nasal is removed from the opening after filling the cement then it
becomes air tight and lock this is the unique feature of the Uflex production which
makes it its point of difference. It also consists of two ends
 POLYTEX which make the tube of the Laminated Woven Poly Propylene
(WPP) as it states woven is stitching and poly propylene is material
 CONVERTEX tube roll is transfer to the machine which is having
different angles and these angles are decided by the engineers. It converts
the tube roll into final pouches.
 CUSTOMERS- Jk wall putty, Dalmia
40
3. Pouching – It consist of all the food items. The only difference between the big
pouching and the pouching is that those bags which are having capacity more
than 5kg comes under big pouching and those below 5kg are the part of the
pouching
Machines used in pouching-
 3D (sided)bottom fold machine
 Zipper slider
 B&B GERMANY
 NISHIBI
 TOTANI
PROCESS-
 The process of pouching begins with loading the roll on one end and then
the printed film is cut from center with the help of V blade and release of
the film is controlled with the help of the dancer roller which helps in
release the film with the restricted length by creating the tension.
 The printed film is cut into front and back where. There is shoe pad
(Thute) which folds the film for the side gadget and release with regular
interval. The side gadget is attached in between upper and bottom
part(sandwich) with the hot seal and cold seal then move further for
attachment of the bottom gadget which is coming from one end.
 Once the bottom gadget is attached it is given the round corners and matt
finish on boundaries with a special cloth with this the 3D pouch is created
and the zipper, Diaphragm and ripped and thickener are attached
according to the package requirement.
Factory Unit is dependent on other 3 Units (cement, big pouch, pouching) for
expenditure. It acts as a support function to the other 3 units
PPC department-
PPC department will be looking after everything apart from cylinder each and
every sales order is generated through it. PPC department will be generating the
work order which will be consisting of every detail of the order
41
TUBE DIVISION
We are having two types of machines –
1) ISA- There are two types of ISA machines Uflex is having which are ISA1 and ISA2.
Which has the capacity to produce 100 tubes per minute.
2) COMBI-Overlap technique is used and in this the sheet will not have aluminum inside
it. The Combi has a capacity to produce 80tubes per minute.
42
CHAPTER-4
OBJECTIVE OF THE
STUDY
43
(4.1)Objective-
 To identify the potential customers of rice, coffee, dates & ground
nuts in Egypt, Morocco, Algeria, Oman, Jordan
 To find out the attractiveness of the middle east market in flexible

packaging sector
 To Know about the sales trend of packaging rolls in the middle

east countries
(4.2)Research Problem-
The research problem is how to know about the market potential of flexible
packaging of Rice, Dates&Nuts and Coffee in Egypt, Oman, Jordan,
Algeria, Morocco
(4.3) Porters five force model
Threat of new entrant
Barrier to Barrier to
Enter Exit
Rivalry among
existing
Buying power of Buying power of
competitor
supplier buyer
Threat substitute
product or service
44
1) Rivalry among existing competitor
 There are too many competitors which are having the same production techniques
using the same gravure cylinder for the flexible packing
 The customer loyalty is low as they want the better packaging with relatively low
price
2) Threat of new entrant

 There is low entry barrier in the packaging industry
 Training are easily available and there is no technology protection
3) Threat substitute product or service

 Substitute product is inferior: An inferior product means a customer is less
likely to switch from packaging industry to another
 Substantial product differentiation: When products and services are very

different, customers are less likely to find comparable product or services that
meet their needs. This qualitative factor will lead to a decrease in costs.
4) Bargaining power of supplier

 High levels of competition among supplier’s acts to reduce prices to producers
 When there are a large number of substitute inputs, suppliers have less bargaining
power over producers. This is due to competition among substitutes
 The bargaining power of supplier is affected when the production inputs are
similar
5) Bargaining power of buyer

 When the product is important to customers than they end up paying more for that
one product
 Bargaining power of buyer is also influenced by the number of customer as if
there would be large number of customer than they would be having less freedom
to have a bargaining power
45
 Selection conclusion of porters five force model-
Force Current situation New future

Rivalry among competitor High Higher
Threat of new entrant High High
Threat of substitute product Average high
Bargaining power of buyer Strong Stronger
Bargaining power of supplier Low Low
Barrier to enter High High
Barrier to exit Average Average
Conclusion: This is an attractive for exiting player not for the new player because
there are large number of the entry barrier such as.
 Large volume of production and sales is required to meet profitability
 Huge capital investment is needed to set up a new plant for packaging
 High switching costs
46
CHAPTER-5
RESEARCH
METHODOLOGY
47
RESEARCH STUDY
RESEARCH
Research is a systematic method of finding solution to problem; it is
essentially an investigation, a recording and an analysis of evidence for the
purpose of gaining knowledge. According to Clifford woody, “research
comprises of defining and re defining problem, suggested solutions,
collecting organizing and evaluating data, reaching conclusion, testing
conclusion to determine.”
In an exploratory research, the following methods are used for data
collection
(5.1) Methodology:
Secondary research consisted of multiple sources such as financial reports of
publicly held companies participating in the industry, websites of key
industry suppliers, proceedings of packaging conferences, industry
publications, various technology forecasts and global economic projections.
In addition, the data and insight in the study includes valuable information
gleaned from key industry conventions/exhibits related to MENA's
packaging industry
(5.2) Research Type: Exploratory Research.
Exploratory research describes and explores the nature of the problem. The
main focus of exploratory research is on the discovery of ideas. The
approach is very flexible. Exploratory research answers the question. what to
do to solve the problem & how to solve the problem
Although data description is factual, but is totally based on secondary data
and is opted for carrying out a research in the global market.
48
(5.3) Research Design:
The research design used in this research is Descriptive.
(5.3.1) Location:
Egypt, Oman, Algeria, Jordan and Morocco
(5.3.2) Analytical Tool:
Tabulation & Graph
(5.3.3) Data Analysis Technique:
Time series analysis, Market Attractiveness index and google trend analysis
(5.3.4) Data collection:

Secondry data-Secondary data was made available from external sources like the
internet, news article,magazines, etc.
49
CHAPTER-6
CONUTRIES DETAILS
(ATTRACTIVENESS)
50
EGYPT
POPULATION:
Total Population: 95.15 million (2017)
Density: 89 per Km2
Religion: Muslim 90% & Christianity 9%
Urban Population: 39.7% of total population
Rural Population: 60% of total population
Literacy Rate: 75.2%
Language: Arabic
Currency: Egyptian Pound (1Egyptian Pond =3.55rs)
NATURAL RESOURCES:
 Iron ore, phosphate, limestone, manganese, talc, zinc, asbestos and gypsum.
 Honey
 Papyris Plant
 Trade-
 EXPORTSUS$10.36 billion
 Export goods: natural gas, and non-petroleum products such as ready-made
clothes, cotton textiles, medical and petrochemical products, citrus fruits, rice and
dried onion, and more recently cement, steel, and ceramics.
 Export partner: Saudi Arabia($2.42B), Italy ($2.29B), Germany ($1.87B), the
United States ($1.65B) and Turkey ($1.42B). The top import origins
are China ($10.5B), the United States ($4.73B), Russia
($3.97B), Germany ($3.93B) and Italy ($3.36B).
 Egypt Import: 57.91% 2015
 In 2015 Egypt Imported $76.4bn making it 38th largest importer in the world.
During last 5 years the import of Egypt has increased at 3.8%. The most recent
Import is 7.84% of total import which is followed by wheat which accounts for
4.03%
51
Google Trend analysis is used as a tool to measure the potential of the region and
the following highlited region are those which are having the maximum potential in
these region
EGYPT
Intrest by sub region
RICE DATE
52
NUTS COFFEE
EGYPT Intrest over time

120
100
80
60
40
20
0
Packaging and labeling: (Egypt) Rice: (Egypt)

Date palm: (Egypt) nut: (Egypt)
Coffee: (Egypt)
53
Market Attractiveness Calculations International
Market Attractiveness can be computed by calculating International Market
Attractiveness Index and Country factors. Taking MA index on y axis and CA index on x
axis we can plot a point on 9 cell matrix, which tells us about the next move that the
company should take.
Market Attractiveness Calculations

UNATTRACTIVE 0
NEUTRAL OR GOOD 50
VERY ATTRACTIVE 100
54
EGYPT
MARKET ATTRACTIVENESS FACTORS IMPORTANCE RATING

Market Factors 60%
Level of need, want or desire for your product at your 0.25 60
price
Size of market opportunity that could buy your 0.20 70
product
Market potential: non-buyers that could buy your 0.25 80

product
Degree to which your product is affordable in this 0.20 80

market
Degree your product offers performance not available 0.10 80

in this market
1.00 73
Country Factors 60%
Degree to which foreign businesses can operate in 0.25 80

this market
Political stability and attitudes toward your country 0.25 60

of origin
Language and reglious barriers that make success 0.15 30

difficult
Cultural differences in values, attitudes, customs that 0.15 50

cause failure
Degree to which a market infrastructure is in place 0.20 70
1.00 61.00
Market Attractiveness Score 68.20
55
56
Market Size Evaluation:
One of the easiest and relatively quick methods of estimating the market size of a country
is by way of analysis of its trade data. In simple terms, the market size of a country may
be determined by subtracting exports of a product from the sum total of its production
and imports. The same is being adhered to for market size evaluation of Egypt with
respect to certain target sectors.
Market Size = Production + Imports – Exports
EXPORT(EGYPT) TABLE 6.1
INDUSTRY 2011 2012 2013 2014 2015
COFFEE $2,250,000 $3,390,000 $2,930,000 $1,040,000 $6,030,000
RICE $2,850,000 $8,070,000 $2,020,000 $4,420,000 $7,620,000
DATES $2,220,000 $2,630,000 $2,730,000 $4,200,000 $3,210,000
NUTS $4,530,000 $4,250,000 $4,730,000 $4,300,000 $4,440,000
TOTAL 11,850,000 18,340,000 12,410,000 13,960,000 21,300,000
Data Source: United Nations Commodity Trade Statistics Database
IMPORT(EGYPT)TABLE 6.2
INDUSTRY 2011 2012 2013 2014 2015
COFFEE $5,550,000 $8,320,000 $8,130,000 $6,670,000 $8,170,000
RICE $5,220,000 $15,000,000 $1,810,000 $2,410,000 $2,460,000
DATES $3,770,000 $7,130,000 $6,380,000 $9,390,000 $1,220,000
NUTS $5,470,000 $1,000,000 $5,190,000 $8,320,000 $8,550,000
TOTAL 20,010,000 31450000 21,510,000 26,790,000 20,400,000
EXPORT & IMPORT

35000000
30000000
25000000
20000000
15000000
10000000
5000000
0
2011 2012 2013 2014 2015
EXPORT 11850000 18340000 12410000 13960000 21300000
IMPORT 20010000 31450000 21510000 26790000 20400000
EXPORT IMPORT
(FIG1.1)
57
Market Potential Evaluation: EGYPT
Factor Observations Market Attractiveness
Market Size  North Africa region led by Egypt

& Growth which is situated on Nile river bank
accounts for 1/3rd rice demand in
Africa
High
 Country is world leader in date
production and produces 1,084,529
metric tons of dates, 17% of world
date production and 24.2% of
Arabian output
Opportunities  There is still high rate of

unemployment which is leading to
cheap availability of the labor
According to the latest Egypt grain
report the sugar and rice
Medium
production have raised from 5% to
7% which creates opportunities of
rice and sugar packaging
Competition  Already established converters

provide cheap packaging which is
what is sought after given the
economy.
However, offering cost efficient
Medium
packaging can be an entry strategy
worth following.
 HUHTAMAKI, NAPCO, CELLO
PACK are the leading convertors
in the region.
Entry Barriers  Prevailing converters holding


market share
Lack of qualified and skilled labor
Excessive Bureaucracy
Low
 Cumbersome customs procedure
and non-tariff trade barrier
 Government policy for large scale
liberalization is encouraging
foreign investment
58
ALGERIA
POPULATION
Density: 17 per Km2 (45 people per mi2).
Religion: 98% Muslim, 1%, Christian, remaining others
Urban Population: 70.73% of the total population
Rural Population: 29.27% of the total population
Literacy rate: 73.1%
Language: Arabic
Currency: Algerian Dinar (1 Algerian dinar=0.59rs)
NATURAL RESOURCES
 The oil and gas sector is the backbone of the economy, which constitute 35%
of the GDP, and two-third of total export
 Iron Ore, Phosphates
 Uranium and lead
TRADE
 EXPORTS $76.84 billion (2012)
 Export Goods: petroleum, natural gas, electronics and petroleum products
Algeria currently exports about 90% of its crude oil to parts of Western Europe.
Its largest gas and petroleum deposits are found mainly in the Eastern Sahara and
these are transported to various sea ports by means of pipelines.
 Export partners: United States 17.3% Spain 14.3% Italy 11.4% France 8.6%
Netherlands 8.1% Canada 7.1% Brazil 6.4% (2013)
 Import: $48.27 billion (2012)
59
GOOGLE TREND ANALYSIS
ALGERIA
Interest by region PACKAGING
RICE DATES
NUTS COFFEE
60
Algeria intrest over time
120
100
80
60
40
20
0
Packaging and labeling: (Algeria) Rice: (Algeria)

Date palm: (Algeria) nut: (Algeria)
Coffee: (Algeria)
61
ALGERIA

Market Factors 60%
price
Size of market opportunity that could buy your product 0.10 40

product

market

in this market
1.00 30.00
Country Factors 40%
Degree to which foreign businesses can operate in this 0.25 70

market
Political stability and attitudes toward your country of 0.20 40

origin

difficult

cause failure
1.00 50.00
62
63
and imports. The same is being adhered to for market size evaluation of Algeria with
EXPORT (ALGERIA) TABLE 6.3
INDUSTRY 2011 2012 2013 2014 2015
COFFEE $134,000 $379,000 $509,000 $267,000 $938,000
RICE $171,000 $263,000 $697,000 $292,000 $263,000
DATES $2,980,000 $32,700,000 $38,000,000 $48,300,000 $44,000,000
NUTS - - - - -
TOTAL 3,285,000 33,342,000 39,206,000 48,859,000 45,201,000
IMPORT (ALGERIA) TABLE 6.4

INDUSTRY 2011 2012 2013 2014 2015
COFFEE $266,000,000 $311,000,000 $299,000,000 $271,000,000 -
RICE $53,200,000 $69,400,000 $93,800,000 $89,500,000 $61,200,000
DATES $178,000 $394,000 $699,000 $311,000 $531,000

NUTS $44,100,000 $43,700,000 $64,200,000 $53,600,000 $50,600,000
TOTAL 363,478,000 424,494,000 457,699,000 414,411,000 112,331,000
64
ALGERIA EXPORT& IMPORT
500000000
450000000
400000000
350000000
300000000
250000000
200000000
150000000
100000000
50000000
0
2011 2012 2013 2014 2015
EXPORT 3285000 33342000 39206000 48859000 45201000
IMPORT 363478000 424494000 457699000 414411000 112331000
EXPORT IMPORT
(FIG1.2)
65
Market Potential Evaluation: ALGERIA
Market Size
& Growth 

Agriculture constitutes 10%
of the total GDP of Algeria
Algeria ranks 3rd worldwide
for milk and dairy product
Low
import
 Food makes 45% of Algeria
household expenditure
Opportunities  There is high consumption
of biscuits(2.5kg/kg/year)
and bread is the staple food
on average
consumption(900g/day/pers
Medium
on)
 Algeria is one of the world
leader in importers and
consumption of cereals
(220kg per capita per year)
which is used for creation of
pasta and local bread and
expose more packaging
opportunities
Competition  There are small convertors

such as ULMA packaging.
There is no major flexible
packaging convertor in
region which leads to low
Medium
competition
Entry Barriers  Prevailing converters

holding market share
Business risk of operating in
an unstable market.
Low
 Corruption and bureaucracy
 Week financial structure and
legal insecurity in
intellectual property rights
are serious obstacle
66
JORDAN
POPULATION
Total population: 9.88million(may2017)
Density: 107/km2(277.1/sq mi)
Religion: 90 % are islam,2%christian
Urban population: 83.7%
Rural population: 3.79%
Literacy rate: 92.6%
Language: Arabic
Currency: Jordanian dinar(1Jordanian dinar=90.42rs)
NATURAL RESOURCES
 Phosphate deposits were Jordan's primary natural resource and a major source of export
income.
 Potash was the other major component of Jordan's mining sector.
 Oil and Gas
 Water
 The main industrial products are potash, phosphate, cement, clothes and fertilizers
TRADE:
 EXPORT $6.521 billion
 Exports goods: clothing, pharmaceuticals, Potash, Phosphates, Fertilizers,
vegetables
 Export partnersIraq 18.4% United States 17.6% Saudi Arabia 13.6% India 7.3%
United Arab Emirates 4% (2013 est.)
 IMPORT $15.65 billion
 Jordan's economy is among the smallest in the Middle East, with insufficient
supplies of water, oil, and other natural resources
67
JORDAN
Interest by sub region PACKAGING
RICE DATES
NUTS COFFEE
68
JORDAN Intrest over time
120
100
80
60
40
20
0
Packaging and labeling: (Jordan) Rice: (Jordan)

Date palm: (Jordan) nut: (Jordan)
Coffee: (Jordan)
69
JORDAN
Market Factors 50%
price

product

market
Degree your product offers performance not available in 0.25 30

this market
1.00 54.50
Country Factors 50%

market
Political stability and attitudes toward your country of 40

origin 0.25

difficult

cause failure
1.00 50.00
70
71
and imports. The same is being adhered to for market size evaluation of Jordan with
EXPORT(JORDAN) TABLE6.5
INDUSTRY 2011 2012 2013 2014 2015
COFFEE $1,400,000 $14,600,000 $15,300,000 $7,430,000 $6,220,000
RICE $1,150,000 $3,230,000 $1,150,000 $1,110,000 $5,170,000
DATES $6,210,000 $6,250,000 $7,830,000 $9,220,000 $8,350,000
NUTS $323,000 $826,000 $1,170,000 $262,000 $210,000
TOTAL 9,083,000 24,906,000 25,450,000 18,022,000 19,950,000
IMPORT(JORDAN) TABLE6.6
INDUSTRY 2011 2012 2013 2014 2015
COFFEE $50,700,000 $6,380,000 $7,500,000 $7,310,000 $7,810,000
RICE $13,400,000 $14,700,000 $1,340,000 $1,840,000 $1,860,000
DATES $1,220,000 $1,660,000 $1,970,000 $3,090,000 $2,060,000
NUTS $6,170,000 $1,070,000 $1,320,000 $1,210,000 $1,340,000
TOTAL 71,490,000 23,810,000 12,130,000 13,450,000 13,070,000
Jordan Import& Export

80000000
60000000
40000000
20000000
0
2011 2012 2013 2014 2015
EXPORT 9083000 24906000 25450000 18022000 19950000
IMPORT 71490000 23810000 12130000 13450000 13070000
EXPORT IMPORT
(FIG1.3)
72
Market Potential Evaluation: JORDAN
Market Size &  Agriculture sector is declining

Growth due to shortage of rainfall and
impacting the GDP which
constitute 2.4% of GDP
Low
Opportunities  Heavy rainfall in highlands of

Jordan leading growth of olive,
dates and rice
Growing retail sector and
extending super market chains
Medium
pushed demand for new food
product
Competition  Albehar and packaging industry

ltd company are the major
leading convertors in the region
Offering cost efficient packaging
can be an entry strategy worth
Low
following.
Entry Barriers  Prevailing converters holding


market share
Geopolitical instability
Bureaucracy and corruption
Medium
 High rate of Terrorism
73
Morocco
POPULATION
Total population: 33.8million(1sept2014)
Density: 73.1/km2 (189.3/sq. mi)
Religion: 98.9%Islam,0.9% Christian
Urban population: 58% of total population
Rural population: 40% of total population
Literacy rate: 72%
Language: Arabic
Currency: Moroccan dirham (1 Moroccan dirham=6.59rs)
NATURAL RESOURCES
 FISH is a huge natural resource in Morocco
 OLIVE and ORANGES
 Phosphates and magnese
 Iron ore
 Lead, zinc and salt
 Morocco is also known for its crops of dates, grain, tobacco and sugar beets.
TRADE
 EXPORTSUS$ 22,26 billion
 Export goods: clothing and textiles, electric components, inorganic chemicals,
transistors, crude minerals, fertilizers (including phosphates), petroleum products,
citrus fruits, vegetables, fish, motor vehicles
 Export partner: The top export destinations of Morocco
are Spain ($5.49B), France($4.54B), India($1.13B), Italy ($1.08B) and the
United States($1.05B). The top import origins
are Spain($5.57B), France ($4.55B), China($3.15B), the United States($2.28B)
and Germany($2.19B).
 Import 39721 MAD Million
 Morocco imports crude petroleum, textile fabric, telecommunications equipment,
wheat, gas and electricity, transistors, plastics. Its main imports partners are:
France, Spain, China, Italy, Germany, United States and Saudi Arabia.
74
MOROCCO
Interest by sub -region PACKAGING
RICE DATES
NUTS COFFEE
75
Morocco Intrest over time
120
100
80
60
40
20
0
Packaging and labeling: (Morocco) Rice: (Morocco)

Date palm: (Morocco) nut: (Morocco)
Coffee: (Morocco)
76
MOROCCO
Market Factors 60%
price

product

market

in this market
1.00 70.00
Country Factors 40%

market

origin

difficult

cause failure
1.00 40.50
77
78
EXPORT(MOROCCO) TABLE6.7
INDUSTRY 2011 2012 2013 2014 2015
COFFEE $181,000 $123,000 $252,000 $99,200 $262,000
RICE $1,820,000 $497,000 $465,000 $1,080,000 $1,440,000
DATES $177,000 $835,000 $3,020,000 $1,320,000 $742,000
NUTS $119,000 $502,000 - - $567,000
TOTAL 2,297,000 1,957,000 3,737,000 2,499,200 3,011,000
IMPORT(MOROCCO) TABLE 6.8

INDUSTRY 2011 2012 2013 2014 2015
COFFEE $8,750,000 $1,070,000 $1,120,000 $1,260,000 $1,100,000
RICE $2,670,000 $17,300,000 $1,110,000 $1,770,000 $2,880,000
DATES $6,870,000 $8,140,000 $7,840,000 $10,400,000 $10,700,000
NUTS $2,040,000 $3,820,000 $3,610,000 $9,060,000 $400,000
TOTAL 20,330,000 30,330,000 13680000 22,490,000 15,080,000
MOROCCO IMPORT & EXPORT

40000000
30000000
20000000
10000000
0
2011 2012 2013 2014 2015
EXPORT 2297000 1957000 3737000 2499200 3011000
IMPORT 20330000 30330000 13680000 22490000 15080000
EXPORT IMPORT
FIG1.4
79
Market Potential Evaluation: Morocco
Market Size &  Agriculture sector

Growth

constitute 15% of GDP and
is dependent on the rainfall
and keeps on fluctuating
According to Euromonitor
High
there is rise in the footfall
of the consumers in
supermarket than
traditional market as
perception is created of best
quality cheap price
Opportunities  Attractive consumer market
for agri-food manufacturers
and retailers because of
rapid urbanization and rise
in disposable income
Medium
 The market for flexible
packaging might turn
attractive as the people are
slowly turning towards
western food culture from
traditional cuisine.
Competition  International paper is the

leading packaging company
in the region along with
many small convertors
The major packaging is
Medium
provided by the UAE and
Saudi Arabia
Entry Barriers  High import duties


Business risk of operating
in an unstable market.
Bribery and civil unrest.
Low
 No particular trade
assistance from the ignorant
government
80
OMAN
POPULATION:
Density: 15 per Km2
Religion: Muslim 85%, Christianity 6.5%, Hinduism 5.5%
Urban Population: 77.26% of total population
Rural Population: 22.34% of total population
Literacy Rate: 93.97%
Language: Arabic
Currency: 1Omani Rial=167.56rs
NATURAL RESOURCES:
 petroleum, copper, asbestos
 marble, limestone, coral reefs
 chromium, gypsum, and natural gas.
TRADE-
 EXPORTSUS$48.4 billion (2012)
 Export goods: Petroleum, fish metals, textile
 Export partner: China 31.9% Japan 12.9% United Arab Emirates 10.1% South
Korea 10.0% Thailand 4.4% Singapore 4.4% (2012 est.)
 Import: 23.4 billion (2012)
 Oman main imports: Transport equipment (24% of total imports), electronic
machinery and mechanical appliances (18%)mineral products (14%)and base
metals and other (13%)
 Major imports partner: UAE (27%), Japan (13%), US (6%) other includes South
Arabia,
81
OMAN
Interest by sub region Packaging
Rice Dates
Nuts COFFEE
82
Oman Intrest over time
120
100
80
60
40
20
Packaging and labeling: (Oman) Rice: (Oman)

Date palm: (Oman) nut: (Oman)
Coffee: (Oman)
83
Market Factors 60%
price
Size of market opportunity that could buy your 0.15 80
product

product

market

in this market
1.00 59.00
Country Factors 40%
Degree to which foreign businesses can operate in 0.25 70

this market

origin

difficult

cause failure
1.00 50.00
84
85
EXPORT(OMAN) TABLE 6.9
INDUSTRY 2011 2012 2013 2014 2015
COFFEE $215,000 $278,000 $409,000 $698,000 $369,000
RICE $1,520,000 $3,840,000 $1,550,000 $500,000 $1,100,000
DATES $8,070,000 $3,300,000 $9,320,000 $1,170,000 $1,190,000
NUTS - - - - -
TOTAL 9,805,000 7,418,000 11,279,000 2,368,000 2,659,000
IMPORT(OMAN) TABLE 6.10

INDUSTRY 2011 2012 2013 2014 2015
COFFEE $1,130,000 $1,320,000 $1,190,000 $1,320,000 $1,150,000
RICE $1,600,000 $1,740,000 $2,290,000 $2,520,000 $2,470,000
DATES $8,350,000 $7,080,000 $1,050,000 $1,180,000 $1,290,000
NUTS $261,000 $259,000 $182,000 $289,000 $388,000
TOTAL 11,341,000 10,399,000 4,712,000 5,309,000 5,298,000
OMAN IMPORT & EXPORT

12000000
10000000
8000000
6000000
4000000
2000000
0
2011 2012 2013 2014 2015
EXPORT 9805000 7418000 11279000 2368000 2659000
IMPORT 11341000 10399000 4712000 5309000 5298000
EXPORT IMPORT
(FIG1.5)
86
Market Potential Evaluation: Oman
Market Size &  The contribution of

Growth

agriculture sector
expected to be 3.6% in
2020 from 1.5% in 2015
Food consumption in Oman
is
Low
is expected to grow at
CAGR of 4.5% to 3.9
million tons in 2021.
Opportunities  The cheap availability of
labor along with stable
economy and government
support for government
create more opportunities
Medium
for flexible packaging
 The market for flexible
packaging might turn
attractive few years down
the lane.
Competition  There are many local
leaders in packaging
business in Oman such as
SOAG,
PACKAGING, FIPCO etc.
SUN
Medium
 There most of the
packaging convertors do
rigid packaging so the
entrance with unique
flexible packaging can
make a difference in Oman
market
Entry Barriers


Large amount
government bureaucracy is
involved
of
Corruption and civil unrest.

Low
87
ANALYSIS &
INTERPRETATION
88
Potential customer database:
SAMPLE SIZE: 226 Customer

RICE COFFEE DATES & TOTAL
NUTS
OMAN 17 10 11 38
EGYPT 38 26 23 87
MOROCCO 7 12 4 23
ALGERIA 2 2 22 25
JORDAN 9 30 14 53
TOTAL 73 80 74 226
SALES POTENTIAL
RICE COFFEE DATES&NUTS
OMAN 22% 12% 15%
EGYPT 50% 31% 31%
MOROCCO 9% 14% 5%
ALGERIA 7% 6% 30%
JORDAN 12% 36% 19%
TOTAL 100% 100% 100%
89
MARKET POTENTIAL
60%
50%
50%
40% 36%
31% 31% 30%
30%
22%
19%
20% 15% 14%
12% 12%
9%
10% 5% 7% 6%
0%
OMAN EGYPT MOROCCO ALGERIA JORDAN
RICE COFFEE DATES & NUTS
FIGURE1.6
SALES FORECAST-
10
Forecast of quaterly sales of uflex in middle east
9
5
SALES(bn)
4
YEAR
3
CMA(4)
2
FORECAST
1
0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
SALES(bn) 8.3 9 8.3 7.8 8.6 8.5 8.8 7.5 7.7 8.9 8 7.4 7.2 7.9 7.6 6.5
YEAR 0 0 0 0
CMA(4) 8.39 8.36 8.36 8.39 8.24 8.18 8.13 8.01 7.94 7.75 7.58 7.41
FORECAST 8.46 9.06 8.79 7.86 8.11 8.67 8.42 7.52 7.75 8.29 8.04 7.18 7.40 7.91 7.67 6.84 7.05 7.53 7.29 6.50
90
QUATERLY SALES OF UFLEX in middle east in mil ion
akaYT BASELINE YT/CMA YT/ST
TIME YEAR QUARTER SALES(bn) MA(4) CMA(4) ST,IT ST DESESONALITY TT FORECAST
1 year1 1 8.3 0.98 8.47 8.63 8.46
2 2 9 1.06 8.49 8.54 9.06
3 3 8.3 8.35 8.39 0.99 1.04 7.98 8.45 8.79
4 4 7.8 8.43 8.36 0.93 0.94 8.30 8.36 7.86
5 year2 1 8.6 8.30 8.36 1.03 0.98 8.78 8.27 8.11
6 2 8.5 8.43 8.39 1.01 1.06 8.02 8.18 8.67
7 3 8.8 8.35 8.24 1.07 1.04 8.46 8.09 8.42
8 4 7.5 8.13 8.18 0.92 0.94 7.98 8.00 7.52
9 year3 1 7.7 8.23 8.13 0.95 0.98 7.86 7.91 7.75
10 2 8.9 8.03 8.01 1.11 1.06 8.40 7.82 8.29
11 3 8 8.00 7.94 1.01 1.04 7.69 7.73 8.04
12 4 7.4 7.88 7.75 0.95 0.94 7.87 7.64 7.18
13 year4 1 7.2 7.63 7.58 0.95 0.98 7.35 7.55 7.40
14 2 7.9 7.53 7.41 1.07 1.06 7.45 7.46 7.91
15 3 7.6 7.30 1.04 7.31 7.37 7.67
16 4 6.5 0.94 6.91 7.28 6.84
17 year5 1 0.98 7.19 7.05
18 2 1.06 7.10 7.53
19 3 1.04 7.01 7.29
20 4 0.94 6.92 6.50
91
SUMMARY
OUTPUT
Regression
Statistics
Multiple R 0.830848241
R Square 0.6903088
Adjusted R
Square 0.668188
Standard
Error 0.297716924
Observations 16
ANOVA
Significance
df SS MS F F
Regression 1 2.765983765 2.765983765 31.20632168 6.70811E-05
Residual 14 1.240895133 0.088635367
Total 15 4.006878898
Standard Lower Upper

Coefficients Error t Stat P-value Lower 95% Upper 95% 95.0% 95.0%
Intercept 8.723763082 0.156124072 55.87711731 7.41304E-18 8.388910251 9.058615914 8.388910251 9.058615914
- - - - -
TIME 0.090195601 0.016145967 -5.58626187 6.70811E-05 0.124825256 0.055565945 0.124825256 0.055565945
92
FINDINGS:
EGYPT
 Egypt is the leader amongst all the 5 countries Oman, Egypt,Jordan, Morocco and
Algeria by acquiring largest market size in Rice , Dates & Nuts and second largest
in coffee business
 The country is having largest market share of Dates as country is alredy world
leader in dates
 Egypt most important rice market situated on Nile river bank
 North Africa region led by Egypt accounts for 1/3rd rice demand in Africa
 UN predict Egypt will reach state of water crisis by 2025. Water shortage in upper
Egypt, the Nile delta and part of Giza
 Egypt planning to decrease the land allocated to production of rice next year, due
to water scarcity this decision is taken by the irrigation minister
ALGERIA
 The country is having least potential in coffee business which accounts almost
20% of the Egypt market
 Algeria rice market is relatively low amongst all the countries due to irregular
imports
MOROCCO
 Morocco has the largest market of Coffee which accounts 14% of total market
comparison of Rice, Dates& nuts and is almost the double of Algeria and half
of Egypt.
 Morocco has the low potential of dates in comparison to other countries as the
country is having least number of traders who are in dates business.
JORDAN
 Jordan is the leader in coffee market in comparison to other countries and
account 36% of market
 Dates and nuts are the second largest market with 19% whereas the potential
customers of rice are small in size with just 12%
93
OMAN
 Oman rice market accounts almost the half of the Egypt rice market with
percentage of 22 percent and is having the maximum potential in Oman in
comparison to rice, dates& nuts
94
Recommendations
 Algeria along with dates & nuts market we should also focus on the
biscuit and bread as the consumption of these to food items are
increasing at high rate as the bread is stapple food their.
 The egypt market is in a good shape along with with dates ,rice and
nuts packaging company should focus for the target customers of
sugar and confectionery
 Jordan though having stable market for rice and dates but their have
been significant increase in the growth of olives which create more
opportunities of flexible packaging of olive oil
 Suggestion:
 The rapid increase in health sector in these 5 countries create more
opportunities for pharamaceutical packaging(blister packaging)
 According to production point of view company should focus on
minimization of waste in each step of production .
 The company should come up with new innovative packaging such
as wood packaging as innovation is the key of success in the
packaging industry.
 The company should launch an mobile application with the help of
which the customer can track his/her order .
95
BIBLOGRAPHY
 http://www.bbc.com/new/world- africa-14118852
 http://timesofoman,com/article/government/expatriates-likely-
topartnerbeallowed-to-start-a-business-inoman-without-an-omanin
 http://www.heritage.org/index/country/egypt
 http://atlas.media.edu
 www.packagingdigest.com/flexible-packaging/middle-
eastandafrica-dynamic-region-flexible-packaging
 http://www.directionsmag.com/entry/determining-potential-
markets-for-a-business-location/123456
 http://www.tutorialspoit.com/international-business-
management/country-attractiveness.htm
 http://flexiblepackmag.com/articles/88210-2016-flexible-
packaging-top25convertors
 http://www.smitherspira.com/news/2014/august/mena-packaging-
market-growthto-2019
 http://www.polymerupdate.com/news/2014/august/mena-
packaging-market-growthto-2019
 http://www.worldriceproduction.com
 http://www.worldatlas.com/article/worldleading-countries-
growing-freshdates.html
BOOKS
1) Philip Kotler, Marketing Management, Pearson India

Education Services Pvt. Ltd,
2) MRKETING METRICS EDITION 2
96
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STUDY OF MARKET POTENTIAL IN MIDDLE EAST

COUNTRIES IN FLEXIBLE PACKAGING SECTOR

BALAJI INSTITUTE OF INTERNATIONAL

SRI BALAJI SOCIETY’S

BALAJI INSTITUTE OF INTERNATIONAL BUSINESS(BIIB)

EAST COUNTRIES IN FLEXIBLE PACKAGING

SUMMER PROJECT REPORT

Balaji Institute of International Business(BIIB)

He has completed the project work to my satisfaction

Signature Of Internal Mentor

I ANUJ MAHAJAN student of Balaji Institute of International Business, Sri Balaji

PLACE:PUNE ANUJ MAHAJAN

Then I would like to express my sincere thanks to Prof. Col. A. Balasubramanian,

S.NO. TITLE PAGE NO.

S.No Table no. Page no.

S.NO Table no. Page no.

Factors affecting growth of packaging industry

Preference of packaging selection depends on various parameters

Supply End Industrial

Difference between rigid and flexible packaging

Driver and restraints

Consumption of flexible packaging across globe

Total packaging division in Middle East

Others Flexible Paper

Industry packaging consumption in Middle East:

Source of data is smithers Pira

VOLUME Share of packaging type in MENA (Middle east and Africa)

42% Pet bottle

Thin wall plastic container

Source of data smithers Pira

Uflex stands committed to the industry by providing technical know-how,

2. Changing in the life style of today’s world

3. Rapid increase in propagation of polymer based technology products.

4. Continuous investment in R&D and new upcoming technologies so to keep the

2. Rise in the customer negotiation power

4. Highly fragmented packaging market

HOW THE ORDER IS PLACED (ART & WORK department,

1) Tool room section

cylinder arival quality check turning quality check

grinding cutting down oiling smoothing

 The latest development in gravure industry, engraving s the use of computer-

FLEXO PLATE PRODUCTION

 Digital Flexoplate processing set up offers significant advantages to advance the

 A Unique Flexo Plate Proofing Machine Developed by Uflex which

FLEXO PRINTING SLEEVES

PRINT LAMINATE SLIT

PRINTING- There are two types of printing

The bond does not

In all other unit, the department is kept according to the machines

 POLYTEX consist of the polytex machine in which the tube is formulated as

 To find out the attractiveness of the middle east market in flexible

 To Know about the sales trend of packaging rolls in the middle

(4.3) Porters five force model

Threat of new entrant

2) Threat of new entrant

3) Threat substitute product or service

 Substantial product differentiation: When products and services are very

4) Bargaining power of supplier

5) Bargaining power of buyer

Force Current situation New future

The research design used in this research is Descriptive.