Overview Packaging Industry in India

• Combination
A) Organized large Indian
B) International companies
C) Unorganised small and medium
local companies
Converted Flexible Packaging Demand

Item 1990 1995 2000 2005 2010

Converted Flexible Packaging
Demand 63 153 295 595  1125
By Material Polyethylene 19 54 100 190 340
Polypropylene 5 20 60  160 360
Other Plastics 19 35 60 105 175
By Market  Nonfood 16 39 74 146 270
Paper and Foil  20 44 75 140 250
Food 47 114 221 449 855
 Demand in India
• The current demand for flexible packaging in India, stands at about 500,000 tons.
• Food and agricultural markets dominate the sales of converted flexible packaging in
India.
• This demand will continue to expand on account of several factors —
a) rising consumption of packaged foodstuff
b) the increasing presence of multinational food and beverage firms in India
c) the trend towards additional processing of food grains and fresh produce
d) ongoing efforts to improve sanitation and food safety.
Key markets include rice, other grains, food crops, various processed foods, and
chewing tobacco. Personal care products such as cosmetics and toiletries are also
important with fast growing Indian markets. Growth is seen in the pharmaceutical
sector also due to expanding penetration of a large drug-producing industry.
The Indian processed food industry stands at about US$ 30 billion and accounts for
about 13 per cent of the country’s exports and involves 6 per cent of the total
industrial investment in the country. Of this packaged food stands close to only about
US$ 0.85 billion. Thus there is a tremendous potential for growth of flexible packaging
in the food and processed food sectors