The Indian packaging industry is growing at the rate of more than 15% pa and expected to touch US$14 billion (€11.2 billion) in the present financial year (2011 -2012). Further, the growth is expected to double in the coming two years, one of the reasons being the thriving 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.
The total demand of F&B packaging company segment stands at around $16.2 billion and accounts for around 85% market shares followed by pharmaceuticals and other market segments. At present, flexible, rigid and metallic food packaging materials account for around 55% of the total food packaging material market, while printed cartons and rigid packaging segments together represent 28% market shares in value terms. Flexible materials such as food packaging laminates, flexible packaging foils, cookies packaging etc. constitute close to 24% of the overall packaging material market, followed by rigid food packaging material segment.
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).