|
|
|
You can get e-magazine links on WhatsApp. Click here
|
|
|
|
|
|
“India underserved in terms of packaged food”
|
|
Monday, 20 November, 2023, 08 : 00 AM [IST]
|
|
|
 Manjushree Technopack, India’s largest rigid plastics packaging solution provider, backed by Advent International caters to the FMCG, liquor, F&B, agro chemicals, pharma, home care and personal care segments. With a large converting capacity of over 200,000 MT of plastics to films, bottles, containers PET preforms and recycled resins, the group through its ESG initiative, ‘Born Again’ has commercialised & invested in recycled resin plant, which is gradually becoming trusted source with the industry for eco-friendly packaging in India.
“Currently, sustainability is at the forefront of packaging. To this end, rigid plastic packaging (RPP), use of 100% rPET for food applications is the latest and most significant one. We are well positioned to grow and take advantage of the significant opportunities ahead as the plastic packaging market continues to expand. A key enabler is investing in innovation, new business development and expanding into other geographies and segments,” Thimmaiah Napanda, MD and CEO, Manjushree Technopack, tells Nandita Vijayasimha in an email interaction. Excerpts:
How do you view the current scene for packaging in food sector?
Packaging in food sector is significantly evolving due to ever growing demand for packaged food, newer food products, new start-ups coming in differentiated product, e-commerce, challenges around supply chain: farm to fork and also brands looking to differentiate their offerings. Packaging is increasingly being viewed as an extension of the brand’s values. Technology is constantly evolving where packaging is becoming more efficient, greener and also economical. Plastic packaging in food sector is estimated to be approximately $8bn and growing at steady 6-8%
What are the visible trends you sight?
Increased requirements for shelf-life, unique designs which communicate brand values, small-pack adoption and sustainable packaging are the key trends in packaging. Speaking of rigid plastic packaging (RPP), use of 100% rPET for food applications is the latest and most significant one. MTL has partnered with Ganesha Ecosphere to provide one-stop solution to brands looking to move to recycled PET packaging. Coke has already launched a 100% rPET 230ml pack in partnership with Manjushree and Ganesha. With Plastic Waste Management rules slated to come in force by 2026, Manjushree would pioneer this shift towards sustainability.
Do you see the need for a PLI (production linked incentive) scheme for the food packaging sector?
There are many government schemes with PLI in the packaged food sector. Take example of the Dharwad-Hubli FMCG corridor in Karnataka, which is really providing good incentives as well as PLI. We need more such initiatives to boost investments in this segment, given that we want India’s growth to be equally driven by consumption.
With respect to using recycled polymer in plastic packaging, building capacity to produce FDA certified rPET granules is key to meet the growing demand. As of now, we do now have enough capacity to fulfil the demand that would come in 2026. The capex required is significant and also the technological know-how is limited. To bridge this gap quickly in a short period of time, PLI scheme would be helpful.
In your opinion what is the biggest transformation on the Indian food packaging landscape?
Currently, sustainability is at the forefront of packaging. Talking of RPP specifically, first transformation is: designing for recyclability. This means correct use of polymers, masterbatches, labels/shrink sleeves, closures, pumps in order to make it recycle-friendly. Brands and us are now consciously designing RPP with this as a central focus.
Secondly, a lot of RPP is getting collected and recycled at an unprecedented scale. Brands and consumers are valuing packaging made from recycled materials immensely.
This has led to RPP emerging as a leader in sustainability aspect as compared to other packaging materials.
Where does India stand in food packaging in the global market?
India is still underserved in terms of consumption per capita of packaged food as compared to global numbers. E.g., India’s per capita soft drinks consumption is large, but just 1/20th of that of the US, 1/10th of Kuwait, one-eighth of Thailand and the Philippines, and one-third of Malaysia.
Increasing discretionary income and evolving consumption patterns are helping shift from loose to packaged food. That leaves with a lot of headroom to grow.
How has Manjushree fared with the acquisition of Advent in 2019. What are the advantages of the private equity entry into this space?
Manjushree is well positioned to grow and take advantage of the significant opportunities ahead as the plastic packaging market continues to expand. A key enabler is investing in innovation, new business development and expanding into other geographies and segments. Advent is partnered with Manjushree to support this growth journey, and provides strong knowledge of the Indian market and consumer packaging sector.
This is phase of climate change deliberations, so how much has the company’s ESG initiative, ‘Born Again’ enabled Manjushree to achieve its objective as a clean and green enterprise?
We are truly a one-stop solution organisation when it comes to recycled RPP requirements. Our partnership with Ganesha Ecosphere Ltd has given us access to FDA approved rPET capacity. We also have an inhouse polyolefins recycling facility (Born Again PCR brand).
Our Innovation team partnered with Indian Institute of Science (IISc) Bengaluru to develop Industry leading rPP and rHDPE grades which now help brands reach their sustainability goals faster. This makes us the only end to end solution provider for all the recycled RPP needs.
Apart from this, ESG initiatives have definitely helped Manjushree lower the carbon footprint and drive towards sustainability. Our Bidadi factory is India’s first LEED Gold certified green factory. At an organisation level over 40% of our energy consumption is met through renewable energy sources, and we are planning to take it to above 60% in next one year.
What are the likely greenfield and brownfield expansions envisaged by the company?
We are looking for geographical expansion to suit to our clients’ demands and capacity needs. We will soon be commissioning two factories in south India. We are exploring acquisition opportunities that help us plug gaps in our offerings and clientele.
Manjushree houses some of the best in the class technologies such as Husky, Sacmi, Reifenhauser. What are the likely developments, we can expect?
These OEMs have definitely helped us work efficiently at scale and deliver on promises. We are working on capacity expansion, new PET based sustainable applications and further technological enhancements which can keep us ahead in this game.
How is the Manjushree Museum faring?
We would like to make it an Innovation Hub which will demonstrate end-to-end capabilities to bring out products quickly and reduce time to market. We expect it to get operational in a few months from now.
What are the likely future efforts of the company in the area of expansion of plants, hiring workforce, acquisitions and investments?
We are looking for geographical expansion to suit to our clients’ demands and capacity needs. We will be setting up two factories in South India soon. We are exploring acquisition opportunities that help us plug gaps in our offerings and clientele.
|
|
|
|
|
|
|
|
|
|