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THE PACKAGING INDUSTRY IN INDIA
An Industry Presentation from McG
Madras Consultancy Group, Chennai
- A Demopack of Select Slides -
McG 2
Contents *
Packaging Industry : Global
Packaging Industry : India
Rigid Packaging Metal ContainersGlass BottleRigid 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
McG 3
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
McG 4
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 8
Latin 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 Asia-Pacific Latin America E. Europe Middle East & Rest of World
McG 5
Indian Packaging Industry
McG 6
Packaging Industry : India
The Indian market for all types of packaging materials is estimated variedly between Rs. 280 & 300 billion per annum
• Of this, the consumer packaging market has been estimated at around Rs. 140 billion
Consumer Packaging is highly fragmented, with only a small percentage of companies above Rs.1 billion sales revenue mark
Bulk packaging is primarily in the small scale sector, mainly on account of the Government’s reservation policy for the SSI sector
In the packaging sector, there are very few foreign firms operating in India on a JV basis or as subsidiaries
On the packaging machinery side, while a wide range is manufactured in India, the industry also imports machinery, especially at the high end
McG 7
Product Value
(Rs. Billion)
Flexible Packaging 32.0
Rigid Plastics 28.0
Printed Cartons 24.0
Glass 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)
McG 8
Market Share of Packaging Media : 2002 - 03(by value )
Printed Cartons
17%
Glass Bottles12%
Metal Cans8%
Others14%
Rigid Plastics18%
Flexible Packaging
22%Labels
3%
Caps & Closures
6%
McG 9
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 flexible packaging segment has seen many new innovations – the concept of the single use unit pack is now globally acknowledged as a marketing first
Laminate tube has almost entirely replaced the aluminium collapsible tube for toothpaste 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, the demand 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 drinks and a host of other products
McG 10
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 the country; Aluminium 2-piece beverage cans as well as limited quantities of OTS cans are imported
The market for metal packaging in India has been nearly stagnant over the past decade owing to the high cost of raw materials and consequent shift to 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
McG 11
Tinplate Consumption : India
Estimated consumption of tinplate for OTS, 3- piece and seamless cans was :
Year Consumption
(000 tonnes)
1985 130
1990 150
1995 155
1997 146
2000 150
2001 143
2002 155
Note : Tinplate for 15 Kg bulk packaging is reported to have accounted for an additional 120,000 tonnes in 2002
McG 12
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)
McG 13
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
McG 14
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 bottles of fancy shapes, frosted finish, etc.
McG 15
Global Market for PET Containers : by User Segment
Other Foods7%
Hotfil8%
Mineral Water13%
Edible Oil / Sauces
6%
CSD55%
Others6%
Non-Foods5%
McG 16
Market for Printed Cartons : India (2002 - 03 )
Food 18%
Matches / Agarbathi
18%
Cigarettes15%
Personal Care9%
Others18%
Pharmaceuticals15%
Liquor4%
Hosiery3%
Total Market : 420,000 Tonnes
McG 17
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 industry
is valued at around USD 8 Bn.
McG 18
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
McG 19
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 sized manufacturers and a few large manufacturers like Manaksia Group, L & T, and Oriental Containers
Plastic closures has registered an impressive growth in recent years and is fast substituting metal closures in many applications
Innovations in recent years :Innovations in recent years :
ROPPROPP :: Bulged / embossed caps, pressure holding capsBulged / embossed caps, pressure holding capsPlastic Plastic :: Guala caps, pressure holding caps, tamper-evident caps,Guala caps, pressure holding caps, tamper-evident caps,
pourer capspourer caps
McG 20
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, HDPE containers
McG 21
Market for Labels : India
The Indian label market for packaging applications is valued at around Rs. 5 billion in 2002 - 03
• Including holograms and barcode labels, the market size would be well in excess of Rs. 5.5 Billion
Annual growth is around 15 %
Printed label industry is highly fragmented with a vast number of small printers, spread all over the country; however the label industry in India is nearly on par with its global counterparts
The leaders in the industry are today manufacturing labels that can be compared with the best in terms of graphic design and print quality.
The industry has the capability to print on a wide variety of substrates
McG 22
Market for Labels : India (contd.)
In recent years, there has been a shift from simple paper labels to more sophisticated products such as self adhesive labels, shrink sleeves & heat transfer labels
Sophistication within the category of paper labels has also taken place in terms 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 screen printing or hotfoil embossing and with in-line die cutting facilities, are now being imported
Barcoding and holograms have recently entered the market, adding to the excitement in the labeling sector
McG 23
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 www.consultmcg.com
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