Industry


Indian Packaging Industry

  • The market volume of the Indian packaging industry amounts to about Rs. 77,570 crore and has constantly grown by approximately 15 percent year on year.
  • The pace of growth will accelerate to between 20-25 percent over the next five years.
  • The highest demand for packaging and the associated equipment come from the food processing industry at 50 percent and from the pharmaceutical industry at 25 percent.
  • The large growing middle class, liberalization and organized retail sector are the catalysts to growth in packaging. Also food and Pharma packaging are the key driving segments.
  • The Indian food market is estimated to total about Rs. 8,82,350 crore according to the ‘India Food Report 2008’ published by Research and Markets.
  • Food retail turnover is expected to grow from the current Rs 3,39,365 crore mark to 7,27,212 crore by 2025.
  • The pharmaceutical industry is expected to average an annual growth of 16 percent till 2012.
  • There are about 600-700 packaging machinery manufacturers, 95 percent of which are in the small and medium sector located all over India.
  • Indian packaging machinery imports are around Rs 606 crore (20-25 percent)while the Indian packaging machinery exports are rapidly growing.
  • Germany and Italy are the largest suppliers of packaging machinery to India but focus is now shifting on Taiwan and China.
  • Indian companies are now placing increasing emphasis on attractive and hygienic packaging. This promises enormous potential for the future.

Packaging & Allied Industries – The South India Scenario

  • Southern states including Andhra Pradesh, Karnataka, Kerala, Bangalore and Tamil Nadu -- now lead the country in a number of indices, including Packaging.
  • South India has emerged as the largest consumer of ‘poly ethylene terephthalate’ (PET) material for packaging mineral water.
  • South India is emerging as a strong pharma hub with strong infrastructure of research facilities and scientists.
  • Dairy product packaging constitutes a large portion of the South India Packaging industry.
  • Abundant tea production in South India brings opportunities in paper bag packaging industry.
  • Retail Sales of packaged food is growing at a rate of 12 percent in South India.
  • As Coffee and Spice output in the Southern hemisphere see a steady incline of close to 10 percent individually and export markets pick up again, newer opportunities arise for various packaging segments.
  • While major components such as cartons, cans and laminates, which are Bureau of Indian Standards (BIS) certified, are of global standards, the glass bottles and outer cartons are areas that need to be upgraded.
Andhra Pradesh Packaging Prospects
  • Andhra Pradesh is the fifth largest economy in the country with contribution 7.01% in the national economy.
  • The prosperity of agriculture harnesses the growth of industries like agro-processing, cold storage, warehousing, fertilisers and packaging.
  • Andhra Pradesh is the major producer of rice in India.
  • Andhra Pradesh ranks 2nd in producing Value Added food products and beverages with country’s 10 percent share.
  • Andhra Pradesh alone contributes 9.5 percent to total Indian pharma market bringing several opportunities to the pharma packaging sector.
  • The pharma market in the State is estimated to be Rs 2,900 crore growing at the rate of 14 percent.
  • Andhra Pradesh leads in Chilli and Turmeric production in the country with 49 percent and 57 percent of the Indian market. The State has a wide market of packaging and export of these products.
  • Andhra Pradesh is the biggest mango market. Fruit Packaging is an integral part of the State.

BulkPack 2010 9-12 April 2010, HITEX Exhibition Centre, Hyderabad, India India Packaging Show 2010