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In PCI’s recent report we identified a number of exciting opportunities that were emerging in the Indian flexible packaging market and I would like to encourage all suppliers to seriously evaluate these, because they might not be there for long.
- Leading domestic flexible packaging converters continue to make investments in new plant and equipment. This obviously offers a range of supplier’s sales opportunities for such things as converting and packaging equipment, inks and adhesives, as well as sales of substrates.
- While the supply and demand of BOPET and BOPP films is already significant in India, other materials such as CPP and BOPA films are still very much niche products and local suppliers are not as abundant. Low cost offshore substrate suppliers e.g. aluminium foil and BOPA film producers from China have already taken advantage of opportunities to penetrate the Indian market.
- Opportunities for overseas converters to acquire a local converter and gain a foothold in the market, just as Huhtamaki, Constantia and Amcor have done. There are a growing number of well-established and well-equipped companies that are seeking extra funding – the difficulty is finding them.
- The continued move from loose to pre-packed products as well as the development of regional food retail markets in 2nd-tier urban centres has fuelled flexible packaging growth at rates faster than experienced anywhere else in the world. The problem is the need for new supply chain logistics to meet this new demand.
- As in other developing countries, where a substantial proportion of the population still have low incomes, single-serve packs will continue to be used in a wide range of non-food and food sectors in the Indian market. Finding packaging solutions which meet this challenge will undoubtedly bring long term rewards.
- As multi-national brand owners look to take advantage of growth in the Indian market, they will seek to partner with flexible packaging converters able to offer multi-plant sourcing and other services. Many will be the flexible packaging partners they have in other regions of the world.
Last week it was 27oC in Delhi. Why not miss winter and take some time to explore some of these sunnier opportunities?
