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“Mature market led us to set up unit, up R&D spend”
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Monday, 13 October, 2014, 08 : 00 AM [IST]
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fiogf49gjkf0d  India’s packaging machinery industry has the technological expertise and the business sustenance to cater to the versatile requirements of its food processing sector.
From snacks to candies, Bosch Packaging Technology is one of the leading suppliers of process and packaging equipment.
Setting base in Bengaluru in 1995, the unit relocated to Verna, Goa in 2007, and opened an advanced ISO 9001: 2008 certified facility two years ago. The latter was aimed at designing, manufacturing and marketing form, fill and seal machines for flexible pouch packing, besides flow wrap machines for pillow-packed candy applications.
Sharing his insights on India’s packaging machinery prowess with Nandita Vijay was Ashok Gourish, business head, Bosch Packaging Technology India, who was in Bengaluru recently. Excerpts:
How does Bosch view F&B market to succeed with its novel packaging machinery concepts?
The Indian packaging machinery industry is growing. From Bosch’s perspective, there is a significant contribution. We offer our machinery for the packaging of snacks and confectionery. Our equipment ensures lower servicing costs and reduced machine downtime. There are service outlets across the country to extend the required timely engineering support.
What are the expected investments from the company to fuel the growth prospects in the coming years?
If we really look back, when we saw the market maturing with a clear demand, we made investments in people, spent on research and development (R&D) and opted to set up an advanced plant to manufacture the machinery.
Currently, we operate from a state-of-the-art new facility which is two years old, and are fully equipped to fulfil the market’s demand. Therefore, the intent is to make the required investments as and when required.
How easy is it to get the required trained personnel for your facility?
Currently, the facility has 150 personnel. We have a qualified team of engineers in place. They have been trained on the job. That is because, currently, there is no focussed curriculum in any of the institutes. Although our recruitment process is stringent to scout for the right qualified and trainable candidates, there are on-the-job learning modules, both in India and at our global sites, to mould the incumbent to our standards. The key to this training is that the expertise needed should be market-relevant .
Which of Bosch’s packaging solutions are seen to generate the highest revenues for the division?
Every sector is equally important with respect to brining in technology. Therefore, it is difficult to pinpoint. In the case of food packaging machines, we have qualified human resources managing the task. Usually, either the technology is transferred from the centres of excellence from our global locations, or we opt for design concepts from the in-house research project at our Goa plant. There are a variety of machines which can handle both food and non-food segments. But a few of the food and beverage segments need special retrofitable options. Around 80 per cent are standard machines designs, and the remainder forms the customised orders. We have catered to a wide range of applications, from snacks and savouries to potato chips, candies, seeds, salt, wheat flour, pulses and spices, to name a few.
Could you give us a peek into the packaging manufacturing at Bosch in terms of an annual machine production capacity?
Bosch Packaging produces 250-300 machines annually.
We look at either technology transfer or the development of new designs. Innovation process is an ongoing activity at our centres of excellence, and we are looking to sustain the market as a leading supplier for the Indian and global markets.
Bosch represents a global name in the international market. What is India’s standing in the world market for the food packaging machinery sector?
We all know that India is an important emerging market, and the recognition of the sector is based on the capability of the packaging machinery industry. There is considerable demand for packaging machines made in India for the domestic market, going by the growing food consumption pattern, which is driven by the variety of options in packaged foods. The food packaging machinery offered by Bosch has an impressive market in India. Growing purchasing power and urbanisation are factors accelerating the growth of the sector. Therefore, we foresee potential growth. The Indian packaging machinery industry is making a presence in India and a mark globally. Competition for Bosch depends on the kind of applications and regions the machinery is being marketed in.
Since Bosch has been present in this market for a while, would you be able to point out three novel innovations that have transformed the packaging machinery sector?
If we look at the manufacturing and consumer perspective, safe machines, the highest quality, high-speed advanced technology at good price performance ratio are the key novel concepts. From the manufacturing angle, our consumers look at an easy-to-operate machine by the shop floor personnel. The availability of efficient after-sales services with immediate access to spares is another area where our customers look for new solutions. From a customer’s perspective, it is the need for impressive final finish of the packets they pick up from the retail shelves. There is a constant need for unique concepts which are transparent in appearance, enabling easy packing of ingredients, simple to open and close, effortless to dispose and ideal to store. Therefore, all our machinery innovations are evolved around the demands from the customers. Further, machinery manufacturers also focus on increasing the productivity with higher capacity in production. The world of packaging is dynamic and demanding. The revolution in this market is a matter of time.
India has several food parks. Now do you think the government should look at attracting the allied sectors like packaging machinery manufacturers into these food parks to maximise the opportunities for growth?
The new government has already indicated its focus on manufacturing in its Budget (presented in July 2014). Therefore, things are happening in the right direction. Now if the packaging machinery industry is given the opportunity to set up a full-fledged facility in a food park, it would only be advantageous because of the high growth prospects. It would be economical and practical, and so if it happens, it is beneficial. It should help the food processing industry, which invests in packaging machinery have easy access to the sales and spares and quick solutions to issues.
The Indian packing machinery market is fragmented. Do you see consolidations or mergers on the cards?
Mergers and acquisitions are taking place, and many are on the cards. For the majority of the market requirements, we could apply an 80: 20 rule, where much of the demand is met by the large companies, only because they have an edge on price-to- performance and technology.
What are the challenges for the packaging machinery sector?
It is a growing sector, and an issue to be looked into is the considerable price fluctuations in raw material. Therefore, for this industry to keep its profit margins intact is a challenge. But the industry now needs to look at this as an opportunity to produce more machines which are environment-friendly.
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