"Government needs to do more to develop this sector," says Sanjay Bhatia, MD of Hindustan Tin Works, one of India`s largest Tin packaging companies. In an exclusive interview with ImagesFood.com, Bhatia revealed that though the food processing industry is getting a lot of impetus and thrust from the government, the packaging industry is largely ignored. Despite being an intergral part of the food processing sector, the government does not take packing into consideration, whether in terms of infrastructure development, special economic packages or subsidies. This industry is largely dependent upon steel prices and sees huge fluctuations on a day to day basis, facing a tough challenge when it comes to keeping the prices low.
When it comes to the end consumer, they will always have the option of moving to plastic, paper or glass, whereas, tin packaging, though offering advantages in terms of durability, stacking and printing options, gets affected by the price of raw material. For, however attractive and easy to stack a packaged food item may be, it is the price, which is the determinant when it comes to deciding on the package to be picked up. Using thinner guage may not always be the best answer as there are factors of food safety and stability to be adhered to, says Mr Bhatia. It is volumes then that help keep the company keep ahead of its competitors. Towards this end, the company has started looking at expanding its export market from the current Rs 10 to 15 crore to about Rs 50 crore by 2011.
BOXMain purpose of food packaging is to protect it from contamination, water, oxidation, and any other biological, chemical or physical damage, apart from convenience of storage and transportation.
Convenience seems to be the single biggest driver in the ready-to-eat market and single person housholds, working partners and those with higher disposable incomes are increasingly influencing the way food is manufactured, packaged and marketed. These changing demands and lifestyles are therefore placing greater demand on food packaging industry as well. Innovative, active and intelligent packaging concepts are being developed to:
Enhance product attributes (look, taste, feel, aroma)
Communicate product information, conditions and history
Confirm product authenticity and prevent spoilage, pilferage
The growth in food processing and dairy sector has definitely contributed to the growth in packaging industry. As the food processing sector gets a fillip, the packaging industry is all set to grow and reap benefits alongside. Mr Bhatia says, packaging and processed food is like marriage — unavaoidable and totally necessary for the success of both. For even if a consumer or a manufacturer were to adopt flexible (paper, pouch, foil) or other kinds of hard packaging (glass, pet), processed food, by its very nature demands that it be packaged in a stable, non-corrosive enclosure.
Recent developments in technology and awareness have resulted in various innovations, such as authentication seals, RFID tags, dye packs and other anti-theft and anti-tamper devices, being introduced in the industry. An important role that is being increasingly attributed to the packaging industry is its importance in marketing communciation, where the pack itself acts as an effective Point of Sale display device. Brand promotions have been known to be created around packaging and retailers are awarded handsomely by brands for using the packaging in an effective display.
As the market sees entry of single serve packs, microwaveable packs, self heating packs and more, the consumer is slated to be crowned king yet again!
FACTSTotal size of packaging industry in India: Rs 60,000 crore.
Metal packaging at 3 - 5 per cent stands at Rs 3,000 crore — so huge scope for expansion, up to 15 per cent, which is the rate of growth of paper and other flexible packaging.