Acknowledgement

We whole heartedly like to thank all the people of harshdhruv packaging & all our faculty
members without whom the completion of the project would not have been possible.

First & for most will like to thank Mr. Ditin patel ( one of the partner ) harshdhruv packaging
who allowed us to join such reputed company and provided with necessary information.

We like to thank Mr. Himanshu Sekhar das (production Manager) harshdhruv packaging for her
continuous help and support.

We extend our grateful thanks to all the executives and the employees of different departments
who have spent time with us for providing vital information for our study.

And last but not the least we would like to thank all our faculty members specially Mr. Vishal
Kalasannavar (Principal of BLA, Belgaum) and Prof. Urjit Swamy for guiding and providing us
such an opportunity to undergo such kind of training.

We sincerely thank all of them.

PACKAGING INDUSTRY IN INDIA
current wave of economic development in India is being seen from all over the world. As
infrastructure, manufacturing, agriculture, and services grow at high rates the packaging industry
is also showing great variety and depth in its growth. India’s packaging industry may achieve an
annual turnover as high as US$ 5 billion in the current financial year with a growth rate nearly 25
per cent in significant segments. Leading companies in the Indian packaging industry show a
compound annual growth rate of 30 per cent and the Indian Rupee is strengthening against the
US dollar at annual rate of 4 to 5 per cent. Even then, the US$ 5 billion figure would represent
about one per cent of the current global packaging industry.
In 2001, the packaging industry worldwide generated an annual estimated turnover of US$ 417
billion. The major regions that made up this total include Europe, US$ 129 billion; North
America, $116 billion; and Japan, US$ 81 billion. India’s consumer packaging accounted for just
US$ 2.3 billion in that year, that is about half of one per cent of the global packaging volume.

Packaging in India in 2010

Today, packaging is produced more quickly and efficiently. It is generally lighter in weight, uses
less material, is easier to open, dispense from, reseal, store, and dispose. Packaging has evolved
from a relatively small range of heavy, rigid containers made of wood, glass, and steel, to a
broad array of rigid, semi rigid and flexible packaging options increasingly made from
specialized lightweight materials.

Flexible Packaging
Flexible packaging consists of multi-layer laminated sheets of plastics (PVC, LDPE, HDPE,
BOPP, BOPET), paper, cloth, or metal foils that are used separately or in combination for
various packaging applications. However, this article discusses flexible packaging as laminates
of plastics that have a unique set of properties that ensure toughness, moisture resistance, aroma
retention, gloss, grease resistance, heat sealability, printability, low odour and taste. These find
use in packaging food, tea, coffee, spices, chewing tobacco, bakery, confectionary, oils, and in
certain other non-food applications such as household detergents, health and personal care,
soaps, and shampoos.

Causes of Flexible Packaging

 Protection:Flexible Packaging gives total consumer protection by keeping the product

clean and protecting it from pilferage and adulteration
 Barrier:It provides good barrier properties against moisture and gases and protects food
from damage and wastage
 Convenience:It provides convenience of handling and disposal after use
 Cost Saving in Material:Flexible Packaging is light — a one kilogram oil pack weighs
less than 10 grams compared to at least a 40 gram HDPE jar or 32-35 gram of PET,
thereby giving tremendous saving in raw material cost.
 Cost Saving in Storage and Transport:It fits closely to the shape of the contents and
saves cost of storage and transport.
 Savings in Raw Material Consumption:Tremendous saving in raw material
consumption, serving the national cause by extension of usage at least times four times.
  More Per Pack:It provides much more product per a given amount of package. Good
examples include coffee, nuts and snacks that come in foil brick packs and pouches rather
than in cans or jars; juice sold in pouches rather than in rigid containers, and household
cleaner refills that come in thin pouches rather than in glass bottles.
 Smaller Units Possible:Thus the option to buy only the required quantity at a time.
 Conservation of Energy:Considerable conservation of energy for conversion. For a steel
coffee can to be efficient as a foil brick pack, the can would have to be recycled at a rate
of 85 per cent. However, steel cans are currently being recycled at a rate of about 45 per
cent.
 Important in Lifestyles:Convenience foods, individually packed small servings,
microwaveable meals, “easy opening” packaging, secure packaging for pharmaceuticals
and hazardous substances, are all examples of packaging playing a role in assisting and
promoting our lifestyles.
 Builds Brands:Helps product manufactures enhance brand images, increase sales and
realize new market opportunities

Flexible Packaging Demand in India and Worldwide

World demand for converted flexible packaging will grow at more than 4 per cent per year
through 2005 to nearly 14 million metric tons, with a value exceeding US$ 50 billion. The best
gains are expected in the world’s emerging markets, including Eastern Asia, Eastern Europe,
Africa, and Middle East. India holds largely untapped markets with a potential of double digit
market growth. The flexible packaging industry in India is currently estimated to be US$ 1
billion and records a high growth rate of approximately 20 per cent.

The expansion of the Indian flex-pack market has accelerated due to :

 A growing middle class of over 300 million.

 The conversion of the more traditional rigid packaging into flexible forms.
 A favourable government tax structure. Excise duty that was once 24% has been reduced
to 16%.
 Liberalization of the Indian economy since 1991.
 Globalization and the influx of multinational companies.
 Modern plants and equipment available to the flexible packaging industry.

Considering these factors it is only obvious that flexible packaging has a very bright future in
India and is here to stay and grow in a big way.
The major Indian players in flexible packaging

The Indian packaging industry is a combination of organized large Indian and International
companies and the unorganised small and medium local companies. The organized sector of the
industry may be less than 5 per cent of the companies in the overall industry but it nevertheless
controls over 70 per cent of the market by volume. The organized sector operates in the
laminated product segment such as form-fill-seal pouches, Tetrapacks, and lamitubes.
Converted Flexible Packaging Demand
Item   1990 1995 2000 2005 2010
Converted
Flexible
63 153 295 595  1125
Packaging
Demand
By Material                    
19 54 100 190 340
Polyethylene
Polypropylene 5 20 60  160 360
Other Plastics 19 35 60 105 175
By Market 
16 39 74 146 270
Nonfood
Paper and Foil  20 44 75 140 250
Food 47 114 221 449 855

There are around 13,000 converters in India — a majority in the small and medium sector
located in all parts of the country. It is estimated that there are more than 200 flex-pack (flexible
packaging) converters in India – 50 units in the organized sector constituting 40 per cent of the
Indian flexible packaging industry and about 150 in the unorganized sector that make up the
remaining 60%. Most small operations have processing capacities of less than 250 tons a month
and produce overwraps, coextrusion films, and polysacs.At least ten flex-pack converters process
more than 4,000 T/annum and are on par with leading international operations. These larger
Indian flexible packaging companies include   

 Flex Industries Limited

 Paper Products Limited (Huhtamaki Group)
 Positive Packaging
 Multiflex
 Paharpur Industries Limited

Demand in India
The current demand for flexible packaging in India, stands at about 500,000 tons.

Consumption of Flexible Packaging — India in Comparison to the Rest of the World

According to industry experts, annual flexible packaging consumption per capita in various parts
of the world is roughly as follows:

 N. America : US$45
 Japan : US$31
 W.Europe : US$25
 S.Korea : US$15
 Thailand : US$3
 China : US$2
 India : US$1
It is also observed that a mere 20 per cent of the population in India consumes 80 per cent of the
packaged production whereas the remaining 80 per cent of the population have an access to only
20 per cent of the packaged production. There exists an exceptional gap in India between the
necessary and actual demand for packaging of essential commodities and this is one of the major
reasons why the growth of flexible packaging is not an alternative here but is rather an
imperative.

Major Segments
The consumer market dominates the global packaging industry and accounts for an estimated 70
per cent of sales, with industrial applications taking the remaining 30 per cent of the share. The
food industry is the single largest end-user market, valued at around US$ 145 billion, followed
by the beverage industry at approximately US $75 billion.

A high degree of potential exists for almost all user segments in India which are expanding
appreciably:

 Processed Foods
 Mouth Fresheners (pan masala)
 Beverages
 Confectionary  
 Bakery Products 
 Spices
 Edible Oils 
 Soaps and Detergents 
 Drugs and Pharmaceuticals
 Cosmetics and Personal Care
 Chemicals and Fertilizers
 Office Stationary
 Engineering Products
 Tattoos

According to Freedonia, food and agricultural markets dominate the sales of converted flexible
packaging in India and will continue to expand on account of several factors — rising
consumption of packaged foodstuff; the increasing presence of multinational food and beverage
firms in India; the trend towards additional processing of food grains and fresh produce; 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.
In 1999-2000, the total production of rice in India was 90 million tons. If even 5 per cent of the
rice produced were to be packaged it would alone generate a demand for 75000 tons of flexible
packaging material.

The total wheat production in India was 75 million tons. Even if 7 per cent of it were to be
packaged it would create a demand for 90000 tons of flexible packaging material. The total sugar
produced in India was 24.84 million tons. If 5 per cent of this was to be packaged it would alone
generate a demand for 50000 tons of laminates. The total salt produced in India was 5 million
tons. Packing 25 per cent of this quantity would generate a demand of 150,000 tons of flexible
packaging. This clearly shows the tremendous potential for the growth of flexible packaging in
India.
Flexible packaging materials in India

Going by the available data, an estimated 250,000 tons of flexible packaging materials for retail
sales in the form of laminates and co-extruded films were consumed in India last year to pack a
very large spectrum of products covering processed and convenience foods, fruit juice,
beverages, dry and malted products, spices, tea, coffee, edible oils, toiletries, cosmetics, motor
oils, and other products. Almost all the raw materials required in flexible packaging such as
BOPP, PET, PE granules, aluminium foil, adhesives, and printing inks are made in India. These
inputs are of international quality and are exported worldwide.

Packaging Equipment Manufactured in India

India makes most of the equipment needed by the converting industry, including rotogravure
printing presses, laminators, slitters, and pouching machines. A full range of semi-automatic to
fully automated filling, sealing and wrapping machines is manufactured in India. These machines
are of high quality and are very competitive in price and are exported in a big way to developed
countries as well. There are some 600 to 700 packaging machine manufacturers, 95% of which
are in small and medium sector and located all over the country.

The Indian market for food packaging equipment amounts to about US$ 80 million. Currently, a
mere 2 per cent of India’s food production is being processed, and there are plans in place to
increase the food processing level to 10 per cent over a period of ten years thereby increasing the
demand for packaging equipment manifold. Another sector with a large demand for packaging
machinery is the Indian cosmetic packaging segment that is expected to grow at a rate of over 20
per cent in the next few years.

The flexible packaging industry has a very crucial role to play in the lives of the ordinary people
of India and thus has a great future here. Every broad industry or agricultural sector that
consumes flexible packaging has its own unique and dynamic set of requirements. The huge
possibilities latent in each of these sectors have to be defined and cultivated. India is indeed a
dynamic, developing and demanding market and most of its potential has not yet been identified,
leave apart conquered or covered. As new aspects of this market and its consumers’ behaviours
are defined and chalked out everyday, the need for new solutions unique to the Indian market
emerge.
Quality processes such as Six Sigma, waste minimization, the optimisation of supply chain
efficiency through, for example, eCommerce initiatives, can contribute much to improved
performance. So can “added value” products and services and an imaginative approach to
meeting customers’ needs. In a world where commoditization is a fact, it’s evident that
companies that develop unique products and services that are “genuinely out of the box”
solutions to end users’ problems will gain a significant competitive edge. Goethe rightly said,
“Knowing is not enough, we must apply. Willing is not enough, we must do.”

 Indian Packaging Industry Market:

 The Indian packaging industry itself is growing at 14-15% annually. This growth rate is
 expected to double in the next two years.
Indian Packaging industry is USD 14 billion and growing at more than 15% p.a. These
 figures indicate towards a change in the industrial and consumer set up.
 However, the Indian fascination for rigid packaging remains intact. It is estimated that
more
 than 80% of the total packaging in India constitutes rigid packaging, which is the oldest
and
 the most conventional form of packaging. The remaining 20% comprises flexible
packaging.
 Rigid packaging constitutes glass bottles, metal cans, aerosol cans, battery cell cans,
 aluminum collapsible tubes, injection molded
Corrugated Packaging & Situation in India:
A flourishing organized retail have raised the expectations that consumption of corrugated
 packaging will begin to expand again as the number and volume of goods packaged in
 corrugated increases. MNCs are demanding corrugated boxes of international standards
and
 the pattern of buying the packaging is changing.
 Prices of corrugated sheet and converted boxes have remained low due to the over-
capacity,
 manual operations and low productivity. Besides, transport constraints and high freight
 costs have meant that small to medium sized corrugated box plants are located near the
 customers.
 The over 4,000 corrugated board and sheet plants are highly labour-intensive, employing
 over half a million people – both directly and indirectly. The industry is converting about
2
 million tons of Kraft paper into corrugated boxes. Factories are spreadout in all parts of
 India, even in the remote industrially backward areas.
 This present scenario is already being challenged by the sweeping changes that are
 beginning to take shape. More and more in-line automatic plants are being set up, as
 corrugated box makers gear up to meet the new demands for high precision boxes with
 attractive graphics and large integrated production capacities.
 Inline Automatic Board and Box making plants will ease out the present semi automatic
 production processes.
 Deployment of Folder Gluers, Rotary Diecutters will be on the increase.
Use of corrugated for display/promotional packs, POPs and dispensers.
 Advances in multicolour, flexo printing will facilitate in-house flexo printing and do
away
 with screen printing, contract printing on offset presses.
  plastic containers made of PVC, PET, HOPE,
 barrels made from HOPE, paperboards, and corrugated boxes.
 However, with the expanding middle class and rising income levels, the patterns of
 consumption are bound to change substantially and the demand for quality and
 convenience-based products will increase. Concurrently, the increased interaction with
the
 developed world will considerably influence the aesthetic and quality norms of the Indian
 consumer and lead to better consumption standards. This is expected to stimulate greater
 consumption of branded products and increase the use of rigid and flexible packaging.
 Flexible packaging contains multi-layered laminated sheets of single or a combination of
 substrates such as plastic, paper or aluminium. Flexible packaging finds varied use
because

Carton is the name of certain types of containers typically made from paperboard which is also
sometimes known as "cardboard". Many types of cartons are used in packaging. Sometimes a
carton is also called a box.

Types of carton

Folding Cartons

Typical blank for folding carton

A carton is a type of packaging suitable for food, pharmaceuticals, hardware, and many other
types of products.

Folding cartons are usually combined into a tube at the manufacturer and shipped flat (knocked
down) to the packager.

Tray styles have a solid bottom and are often shipped as flat blanks and assembled by the
packager. Some also are self-erecting.
High speed equipment is available to set-up, load, and close the cartons.

Egg Carton

Egg Cartons

Egg cartons or trays are designed to protect whole eggs while in transit.

Traditionally these have been made of molded pulp. This uses recycled newsprint which is
molded into a shape which protects the eggs.

More recently egg cartons have also be made from expanded polystyrene (similar to styrofoam)
and PET.

[Aseptic carton

French milk carton

Cartons for liquids can be fabricated from laminates of paperboard, foil, and polyethylene. Most
are based on either Tetra Pak or Combibloc systems.

One option is to have the printed laminate supplied on a roll. The carton is cut, scorred, and
formed at the packager.

A second option is to have the pre-assembled tubes delivered to the packager for completion and
filling.

These are suited for aseptic processing and are used for milk, soup, juice, etc.
] Gable top

Gable top cartons

Gable top cartons are often used for liquid products such as milk, juice, etc. These used
polyethylene-coated paperboard and sometimes a foil laminate.

Most are opened by pushing open the gables at the top. Some have fitments to assist in opening
and pouring the contents

Consumption pattern

Percentage

Food & Beverages, Pharma, Chemicals

37%
Govt Officials, Media & Others
53%

IT & Logistics
10%