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“PET bottles, which cater to beverage industry, are in demand”
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Monday, 05 November, 2012, 08 : 00 AM [IST]
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fiogf49gjkf0d  The Indian Institute of Packaging (IIP) was set up in May 1966 by the Indian packaging and allied industries and the Government of India, ministry of commerce, with a view to improve and promote the packaging sector. The body addresses various needs of the industry - exports, infrastructure, and R&D and testing. Harcha Bhaskar talks to N C Saha, director, IIP, to know more. Excerpts:
What is the growth rate of the Indian packaging industry, and by how much is it expected to grow in the coming year?
As per the March 2012 statistics, the Indian packaging industry is growing at an average of 15 per cent per year. But to be more specific, it also varies depending on the consumer demand and trends currently in the market for a particular sector. As far as the sector-wise growth is concerned, flexible packaging is growing at 12-20 per cent, paper packaging at 10-12 per cent, glass at six per cent and metal at eight per cent.
How close is the Indian packaging industry to its international counterparts in regards to packaging systems, packaging materials, equipment and processes?
The Indian packaging industry is much higher than other international packaging industry in every aspect (including material conversion, tools and machinery, manpower, etc.) The Indian packaging industry is growing at a very rapid rate of 15 per cent, which ranks at number two in the international market and is second only to China, whose growth is approximately 18 per cent.
Do we export packaging material to other countries, and is the raw material readily available in India?
Raw material for the packaging industry is readily available in India, and with the availability of sophisticated machinery and manpower, we do export to the African and Middle-Eastern countries. In fact, these countries prefer Indian packaging only.
Can our research and development match up to the international standards for quality of packaging materials?
Yes, India's research and development is upto the standard of other countries, and that is why we are into export. We are very particular when it comes to FMCG clients who are the major contributors to our economy. We are very much into research, including experimenting with new design, new packaging material for products and machinery.
What are the various types of packaging that are prevalent in India?
The major type of packages that gets produced in India is plastic packages with flexible laminating, which is mostly used in the food processing and bakery industries. Also, the production of PET bottles, which cater to beverage industry (specifically to liquid base products like soft drink, mineral waters, etc.), are in demand.
What are the various innovations that have taken place in the industry?
Our target is to increase our export level and upgrade the level of packaging as per the needs of the consumers. We are thinking of innovations in packaging at three levels, namely testing and quality evaluation, training and education, and research and development.
Is there any future expansion programme in regards to research and training centres from IIP?
Currently IIP is headquartered in Mumbai with branches in Delhi, Kolkata, Chennai and Hyderabad. Now as per 12th Five-Year Plan, we have huge expansion plans for creating awareness and boosting the export market. We will soon have three new branches at Bangalore, Guwahati and Ahmedabad.
How does packaging contribute to the marketing process and influence the consumers in their buying patterns?
Packaging is an integral part of the market as every product needs certain packaging, especially in the case of consumer goods. The outer packaging of a product constitutes the first impression of the core product. The design, pattern and material act as tools for marketing the product.
What are the challenges faced by the industry?
There are no major challenges as such, but those I would call challenges are producing packages which are of a high quality as well as cost-effective and do not burden consumer pockets, and competition with China, which is the world's number one for packaging. Though China may or may not be good in terms of quality, but in terms of cost it is. China has the upper hand as far as cost is concerned, as they have low taxation and low excise duty. Thus, they are able to provide packages at lower rates to consumers, whereas packages produced by us in India go through various taxation and excise duties, thus becoming expensive by the time it reaches in the hands of consumers.
Are low awareness and lack of education about the packaging industry among the challenges faced by the industry?
Yes, it does, but we are overcoming it, with the help of the Indian Institute of Packaging (IIP). We have initiated several awareness and training programmes under the aegis of our institute, by giving advisory visits to other companies and providing them consultation services. For youngsters, IIP is the only national institute that offers a specialised full-time post-graduate diploma course in packaging with 100 per cent job placement guarantee. The salaries for jobs in packaging range from Rs 4 lakh to Rs 10 lakh per annum. As per the Twelfth Five-Year Plan, we are also starting a B Tech degree programme.
Could you throw some light on transformation of the packaging industry from a labour-intensive job to a professional creative job?
Today, every industry is looking for a high degree of sophistication. Packaging is a need-based industry. This industry is driven by consumers' demand towards the product like attractiveness, low weight, eco-friendliness, good design, shape, colours and graphics, thus moulding itself into a professional creative job.
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