The Packaging Professional speaks to several key players for the lowdown on the Indian packaging industry and the challenges ahead.  

Q: What is the state of the Indian packaging market?

Partho Ghose, Vice President at KHS Machinery in Ahmedabad, India
‘The increased presence of global multinational companies in India has resulted in high and sustained growth. Although the so-called “retail revolution” is yet to sweep the nation as strongly as predicted a few years ago, that growth is still largely intact.’

Ashok Gourish, Business Head at Bosch Packaging Technology India, Goa
‘The Indian packaging industry is growing at 14-15% annually, and with rising income levels, the demand for quality and convenience-based products is increasing. It is estimated that more than 80% of packaging in India constitutes rigid packaging. The remaining 20% comprises flexible packaging. Within the next five years the ratio will be 3:1 (75% rigid packaging and 25% flexible packaging).’

Venkii Iyengar, Vice President, Sales & Marketing at Rexam HTW Beverage Can, Mumbai
‘The per capita spend by the Indian consumer on packaging is only US$15 (£9.26) compared to a world average of US$100 (£61.73) which gives India ample room to grow in the future.’

Michal Sloniec – Director of Sales at Can Pack India, Aurangabad
‘Since Indians now travel abroad more, they expect to have the same products available in their homeland, but there is still a long way to go before it will be on a par with Europe or North America.’

Rajiv Dhar, Secretary General of the Aseptic Processing and Packaging Industry Association of India, Gurgaon
‘Besides being the world’s largest milk market, there is tremendous opportunity in India across liquid food categories. Considering today’s competitive market, it is imperative for companies to emphasise not only maintaining quality of product but also providing attractive costeffective packaging.’  

Q: How does India differ in terms of packaging infrastructure, design and technology to the European industry?

Partho Ghose
‘In the same way as any emerging economic superpower will differ from largely saturated developed markets. With a burgeoning population and a gap between rapidly developing urban India and relatively slowmoving rural India, the complexities of the challenges become apparent. The infrastructure is asking for improvement in big and quick strides while the right technologies are the need of the hour.’

Rajiv Dhar
‘The industry is cautious about technology investments. While the best technologies can be seen with producers of primary packaging, many producers of transport packaging still prefer to work with old technologies, sometimes resorting to low-cost automation techniques.’

Venkii Iyengar
‘Efforts to improve infrastructure are not moving at the pace expected of a fast growing economy like India. Design is one area where India has moved quickly, through the sheer quality and number of professionals it generates. Many multi-nationals have global packaging development teams based there, which is an acknowledgement that India, a cost-conscious and pricesensitive country, has encouraged ‘out-of-the-box’ thinking and come up with several successful packaging innovations that can be adopted in other parts of the globe.’

Q: What does the growth of the Indian middle class mean to the sector?

Partho Ghose
‘This segment is increasingly interested in easy-to-handle, top quality, convenient and environmentally responsible packaging. However, the ‘value for money’ mantra is deeply ingrained in the Indian mind and will continue to play one of the most important factors in defining future trends.’

Ashok Gourish
‘With an increasing population of working women, the trend is towards consumption of fast food and ready-to-eat items. Rural marketing and the low purchasing power of middle and lowerclass Indians leads to sachets or small packs. Products such as fairness cream, shampoo, toothpaste, food items, tobacco, and betel nut-based mouth fresheners are much in demand in this format not on-trend elsewhere.’

Venkii Iyengar
‘As the Indian middle class moves from ‘need’ based products to ‘want’ based products due to rapid urbanisation, there will be more opportunities for global brands to make their footprint in India, and domestic brands will have to reinvent and face stiff competition.’  

Q: How important is sustainability to Indian consumers and packagers?

Partho Ghose
‘The food processing industry contributes to nearly 50% of the Indian packaging industry and is aggressively focusing on making consumers aware of its efforts towards environmentally responsible, sustainable and minimal packaging. While the plastics packaging industry is working towards bio-plastics, lower energy and water use, the glass packaging industry is bringing in newer technology, such as narrow neck press blow to reduce glass weight by nearly 30% while improving its sturdiness and strength.’

Venkii Iyengar
‘Fast moving consumer goods players will need to proactively start building a sustainable business model to drive competitive advantage in the future, instead of simply complying with stipulations and regulations.’  

Q: Is more custom packaging necessary to cater to the wider variety of different cultures?

Venkii Iyengar
‘It is often said that India is 29 countries with 325 languages. Indians adapt themselves very quickly to change and are ready to experiment – this has created a market for packaged products that are global in appeal with a local twist. So, in effect, India offers immense opportunities due to the sheer numbers and multi-cultural diversity.’

Partho Ghose
‘Although a wide variety of different cultures co-exist in India, no significant trend towards custom packaging will develop in the mid-term future, perhaps because Indians are generally united in a value for money culture. However, packaging machines or solutions that are custom-built to operate within Indian conditions, such as the hot or humid climate or frequent power failures and fluctuations, will have a distinctive cutting edge.’  

Q: What are some of the hurdles facing European companies trying to break into this market?

Michal Sloniec
‘India has quite a unique and complex tax system, and the country is protected by relatively high customs taxes that do not support companies manufacturing within India. Keeping the pace of growth will require more companies to enter the Indian market, not just with a few representatives sitting on the 30th floor of an office block but with well prepared manufacturing facilities able to cater to growing demand.’

Partho Ghose
‘The main hurdle is probably the huge, but equally fragmented market. For industry players, it probably makes more sense to enter the Indian market region by region. In that way, they can implement lessons, adapt quickly and use their resources optimally.’

Rajiv Dhar
‘In India, there exist challenges in terms of competition on many fronts and across liquid food categories – loose as well as packed. The aseptically processed and packaged food market is still comparatively small and in a formative stage.’

Venkii Iyengar
‘UK companies are better off in dealing with India than other countries due to historical links. The presence of the large Indian origin community in the UK has also helped companies in the UK to understand the Indian market better. India is the largest English speaking country in the world, which is its biggest asset.’