India Slowly Advancing In Packaging Machinery Industry

Food processing is the largest market for packaging machinery industry. It is foretold that it will account for 43 % of global product sales in 2012. If the above estimate holds real, India's packaging machinery producers would be treated with a dual bonanza. India is just the right market for players of packaging machinery producers. Food processing and pharmaceutical industries, the greatest drivers for packaging, are on growth trajectory. The arranged retail market is growing and the government is also thinking over to permission FDI in multi trade name retail. The growing middle class population, rising health consciousness, rivalry from the west, are all the boosters for packaging and packaging machinery industry in the country. The flow amount of the market of the world packaging machinery is around $30.9 billion. Top countries producing packaging machinery are Germany (23%), Italy, (16%), Japan (11%), USA (10%) and China (6%), according to VDMA estimates. The market for India's food packaging equipment totals to about $ 80 million. India has around 600-700 packaging machinery manufacturers, 95% of which are placed in the small and medium sector placed all over India. The imports of India's packaging machinery are valuable $ 125 million and the exports are speedily growing. Though Germany and Italy are the providers of packaging machinery to India the center is now variable on Taiwan, Korea and China. The high-end machinery is imported from Europe and the low-end ones which are a comparatively cheaper from China, says Sanjeev Kansal, MD, Global K Associates. Where producing machinery is related India is producing the basic machinery, however the growing population is creating a demand for advanced state-of-the-art technology. India deficiencies in the production of high-end advanced technology. One cause for India's inability to manufacture developed technology is that the investments are not taking place, says a packaging machine producer.

Also, the fact that the import tariff on packaging machinery equipment is around 30% so it is easier to import machinery in India. But even with low import tariff many Indian packagers are unable to import machinery due to the high cost of the machines. However, the increasing investments by both internal and foreign companies in the Indian food processing sector, specially in drinks, dairy products, processed food, eatable oil, and marine products have extended the market for packaging machinery. India processes only 2% of its food produce, that explains the scope for packaging. One good news for the packaging machinery industry came with the standardisation of excise tax . The excise tax has been reduced from 24% to 16%. With growing awareness Asia, especially India, is admitting the idea of instant cooking and thus opened the trade gates for the packaged food industry in the country. Time restricted consumer (TLC) is the driving factor for the growth of packaged RTE and OTG products in India. The total trade volume of packaged food in Asia in 2009 was around 132 million tonnes. China led the market with a share of around 50 million tonnes, traced by Japan (22 million tonnes) and India (18 million tonnes). India is forecast to reach 25 million tonnes by 2014. In India's packaged food section, dairy led the market with a share of around 11.2 million tonnes. It was traced by bakery products (3.5 million tonnes), oils and fats (1.5 million tonnes), dried processed food (0.7 million tonnes) and confectionery ( 0.2 million tonnes). Packaged dairy industry is waited to reach 15.6 million tonnes by 2014, whereas bakery will touch 4.2 million tonnes by 2014. Also oils and fats will conduce 2 million tonnes, dried processed food 1.2 million tonnes and confectionery 0.4 million tonnes by 2014. The main function of packaging is to protect a product, give it a visual appeal, supply hygiene and maintain it during seasonal variations. From a consumer point of view simplicity of handling and decomposability are the qualities that make a good package. Accordingly packages are developed and delivered.

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