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"The Indian packaging industry is at a very nascent stage"
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Tuesday, 14 June, 2011, 08 : 00 AM [IST]
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 Can-Pack India is a wholly-owned subsidiary of Can-Pack Group of Poland. The company's brand new, state-of-the-art facility at Aurangabad, Maharashtra, has a manufacturing capacity of 950 million 'aluminum beverage cans' annually and is well equipped with technology that is known only to a few manufacturers across the world.
Since May 2009, the company has been producing and supplying beverage cans in 500 ml and 330 ml sizes and in recent times it has introduced Fit 300 ml and Fit 330 ml can sizes, as per the requirement of the local and international markets. In an interview Harsh Jajoo, MD, Can-Pack India, gives an insight into the packaging industry in India, with an emphasis on the can packaging market. Excerpts:
How big is the can packaging market with regard to the food and beverage segment?
The can packaging market for food and beverage segment includes 2-pc (piece) and 3-pc cans of tin and aluminium both. Can packaging forms about 5% of the country's Rs 60,000 crore packaging industry. The overall packaging industry in India is growing at 5-6% year-on-year; however, the 2-pc beverage can market is growing at 10% year-on-year. With the 'can' being eco- friendly, its great barrier properties, superior shelf life and attractiveness make it apt for the Indian market, which demands and requires packaging with value addition.
What are the new developments which have taken place in your company with regard to F&B packaging?
Our company produces 2-pc aluminium 'cans' only for beverages. We have recently launched the new 'slender can' known as the 'Fit can' in two sizes i.e. 300 ml and 330 ml. All coca-cola 'cans' are available in the '300 ml Fit' can size. We are also starting our second aluminium beverage 'can' manufacturing plant in India in Rai in the NCR (National Capital Region). The plant will get commissioned by early 2013, increasing our annual manufacturing capacity to 1.6 billion 'cans.'
What are the challenges for aluminium to survive as a packaging material for F&B, given that other mediums of packaging like retort and Tetrapak are fast guzzling up the packaging space?
Every package type caters to a particular need of the consumer. The Indian packaging industry is at a very nascent stage and is expected to burgeon in a very short span of time; hence no packaging poses an overwhelming threat to the others. However if you take sustainability in consideration, aluminium beverage 'cans' are the most green packaging type and most responsive to the challenges of new economies. With the implementation of pro- ecological activities and strict government norms on the usage of natural resources and electricity, we feel that 'aluminium beverage cans' will become the No. 1 packaging solution in India also.
Do you think the regulations in India are supportive enough for the growth of the can packaging industry?
To set up a state-of-the-art facility for 'can' manufacturing requires huge capital and land equipped with utilities. Moreover the machinery required and most of the raw material required for daily production, needs to be imported. If there could be more support from the government in terms of speedy paperwork and concessions on import duties any industry
could do much better.
What are the technological advances happening in the industry?
India has become the food basket of the world and with the consumers demanding more value for the money, to delight consumers, it is imperative to have the packaging more appealing. Basically the packaging remains the same; however, certain subtle variations are introduced which need advancement in technology. Introduction of the new can sizes such as the 'Fit can,' embossed printing, high resolution image printing on the cans, innovative re- sealable lids and technologies which make a particular product attractive in a 'me-too' market are the trends with regard to any technological advances happening in the industry.
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