Monthly Archives: July 2012
The Indian flexible packaging industry, currently worth $3 billion a year, has the required potential to challenge European markets in the next few years, if industry experts are to be believed. Researchers believe that huge opportunity exists in the sector and if it is tapped, the Indian market can surpass the European stalwarts. A recent report by PCI Films predicts that the Indian share of the world market, which currently represents 5%, will continue to grow at around 15% each year until 2015.
Rising consumer demand, a fast growing food retail sector, new technology and greater investment by domestic and international companies in the food packaging market have all been attributed as factors to India’s growth.
Another good news for the Indian market is that demand for packaging in India continued to rise during the global slowdown due to the increase in packaged good sales at the expense of unpackaged goods and the launch of several new products such as beverages, alcoholic drinks and dairy and home care products.
Experts are unanimous in saying predicting that the Indian flexible packaging market will grow along the same lines as the Chinese market in coming times.
Contributing its share to the Indian packaging market is Uflex Ltd. which is India’s largest flexible packaging company. The company has registered the Consolidated net revenue for the March quarter of 2012 of Rs. 1195 crore as against Rs. 986 crore for the same period last year, up 21%. The higher revenue growth has been achieved due to availability of new capacities and higher utilization thereof.
UFLEX’s agenda of global expansion and consolidation of its position as a truly Indian MNC (Multinational Corporation) is reinforced with its strategy of capacity expansion and adding manufacturing lines for new product categories across facilities in Dubai, Mexico, Egypt, India, Poland & USA – not only to increase proximity to the markets, but also to bring broad portfolio of value added products to its clients at competitive price points.
With a commendable 15% growth rate per annum, the Indian packaging industry is set to touch US$14 billion this year. This growth will double in the next two year accounting to the booming retail sector in India.
The growth of the packaging industry in India can be seen mostly in the second-tier cities where packaging plays an important role in the launch of new products. Big giants like Hindustan Unilever Ltd, Nestle India Ltd, ITC Ltd, Procter & Gamble India Ltd, PepsiCo India Ltd, Coca-Cola India Ltd and Dabur India Ltd have also become quiet aggressive in this form of advertisement. Also the growth in the packaging industry in India is attributed to the increase in the number of joint ventures and partnerships with foreign companies.
In a bid to further up its presence in India and abroad, Uflex Ltd has chalked out aggressive business and investment plan of more than €190 million ($250 million) for the next two years, which includes the setting up of various green /brown field projects globally.
Uflex has a strong manufacturing base in India and Mexico, Dubai and Egypt catering to the global markets in USA, Canada, South America, the UK, Europe, Russia, CIS countries, South Africa and other African countries, the Middle-East and the South Asian countries. The investment is intended to cope with the growing demand for flexible packaging in national and international markets. Apart from the overseas project, Uflex is also expanding its Indian capacities for its flexible packaging products involving a total investment of around € 45.6 million ($60 million).