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drink technology India (dti) and International PackTech India serve a dynamic beverage, process technology and packaging market

India is booming. One of the key factors behind its brilliant economic growth is domestic demand, a significant difference that sets India apart from China. This makes it an extremely favourable investment climate for packaging, food processing and beverage companies. The private sector is investing especially enthusiastically. The trade fairs International PackTech India and drink technology India (dti), which will take place in Mumbai from 6 - 8 November 2012, offer a unique platform for technological and market between producers from India and international suppliers of machinery.
The successful trade fair duo continues to grow
The organizers of drink technology India (dti)/Messe M?nchen and International PackTech India/Messe D?sseldorf Two joined forces for the first time in 2010, attracting more than 6,000 trade visitors. Now the range on offer has expanded to meet the growing demand: In comparison to 200 exhibitors covering over 8,000 square metres of exhibition space in 2010, there will be 12,000 square metres in 2012, providing space for a total of 300 exhibitors. The dual fair in the Indian city of Mumbai have advanced to become the leading meeting place for the entire value creation chain of the international packaging, packaging printing, processing, beverage, food and liquid food industry. A trade fair forum with lectures as well as an accompanying conference on topic related to packaging will supplement the presentations at the stands. Two new focus areas in the product categories place a particular emphasis on the converting and packaging printing market with machines for producing, finishing and printing packaging materials and packaging. Gunter Walden, Vice President Vertical Market Management F&B, Siemens: “The growing number of visitors to drink technology India (dti) and International PackTech India reflects how popular these events are. We are on the right track with this fair, without a doubt, and close to the customers.”

Enormous packaging potential
Rajesh Nath, Managing Director at the VDMA’s Indian office in Kolkata, sees the Indian packaging industry growing at an annual rate of 11 percent: “The industry is likely to reach a turnover of 15 billion in 2015. The main motor of growth is the food and beverage sector. The area of food processing could double within the next four to five years, which will lead to enormous demand for packaging material as well as for process technology.” The food and beverage industries generate the greatest demand for packaging, accounting for over 80%, followed by the pharmaceuticals industry and other sectors. The greatest demand is for flexible packaging materials such as films and laminates, followed by solid containers and packaging, tin cans, printed cartons, glass as well as closures and labels. At present, India probably process only between two and three percent of the food produced there. This alone shows the huge potential for packaging in the future. The packing machine manufacturers exhibiting at International PackTech India and drink technology India (dti) thus find most of their customers in the food and beverage industry, who buy more than half of all machines imported. The largest market for packaged food is dairy, with a volume of about 11.2 million tons, followed by bakery products (3.5 million tons), oils and grease (1.5 million tons), dried foods (0.7 million tons) and confectionery (0.2 million tons) – all of which have very promising growth rates.

Pent-up demand for packaged food
In 2011 a total of 21.5 million tons of processed and packaged food were sold in India according to the VDMA, putting it in second place behind China as the second most important market worldwide. Market researchers expect turnover to grow by about 6% per year on average between 2011 and 2016. With a consumption of packaged food of almost 18 kg per-capita, the country still lags far behind when looked at internationally, however - with corresponding potential for growth. Numerous government initiatives aim to pump over US$25 bn. into the food sector and the necessary infrastructure by 2015 – precisely the market that the technologically advanced machinery presented by the exhibitors at drink technology India (dti) and International PackTech India are here to serve. From the point of view of Michael Eumann, from Euwa Wasseraufbereitungsanlagen, a manufacturer of water treatment plants, the trade fair duo offers “an excellent and very effective opportunity to become better known on the Indian market“.

The increasing demand for processed food and beverages is reflected in the trend in imports of such machines. For instance, according to the Food Processing and Packaging Machinery Association within the VDMA, imports doubled between 2006 and 2010, reaching a total volume of €450 million in 2010. Italy, India’s most important trading partner, accounted for 19% of this, followed by Germany, which accounted for 15%.

Middle classes major growth factor
Symrise, the German manufacturer and marketer of flavourings and functional ingredients, is convinced that the Indian target group market for sophisticated food products and beverages or liquid food is set to grow fast: “We expect the Indian middle classes to double in number, from 100 million consumers at present, within the next five years, and we are already preparing ourselves for this growth right now, so that we are ready to serve these potential customers well”, says Declan MacFadden, President of Symrise Asia Pacific Ltd. “We firmly believe in India and Indian economic growth and are convinced that private consumers will stimulate growth in the food sector.” A broad middle class acts as a motor for growth in any economy, giving millions the opportunity to turn their back on poverty. According to a study by the McKinsey Global Institute (MGI), the Indian middle class, which numbered just about 50 million in 2007, will have grown to around 583 million by 2025.

Retail trade regulation puts the brakes on growth
The factor that holds back growth the most, according to the Confederation of Indian Industry (CII), however, is the strict regulation of retail trade in India. Over 90% of perishable food is sold by local traders, for example from street stalls and little corner shops. Investment in modern super- and hypermarkets would also generate more investment in logistics, CII predicts. This change is bound to take place, and this would then result in a great increase in demand for individual packaging for foodstuffs, beverages and commodities, precisely the technologies that the vendors at International PackTech India and drink technology India (dti) will be demonstrating, because the establishment of a better organised structure in the retail trade industry is directly linked to a certain degree of Westernisation of the lifestyle and culture. The number of shops and supermarkets is rising, and with it the demand for packaging for the every day goods they sell.

Packaging as a presentation and sales tool
Packaging also renders valuable services in relation to the introduction of new products onto the market, especially in the large and medium-sized towns. The international multinationals like Nestl?, Unilever, Procter & Gamble, Coca Cola and Pepsi Cola are the best known for using packaging as a presentation and sales tool for their drinks and food products, and more and more national and local companies that aspire to match the international packaging standards, are following in their wake.

Packaging with an annual growth rate of 15% – and rising
In fiscal year 2011/2012 turnover in the Indian packaging industry will probably exceed €11 billion, according to an analysis carried out by the Indian office of the VDMA. It has risen by 15% per year, on average, for the past seven years, and this rate of growth is likely to continue to accelerate, which is entirely logical if you look at the current per capita consumption of packaging material and compare it with levels worldwide. The average American consumes 13 kilograms of packaging per year, while the average in Japan is 15 kilograms and in India just 0.3 kilograms. Indian consumers want simple and cheap packaging, on the one hand, but on the other are increasingly demanding attractive and hygienic forms of packaging and small portion packs, for example for household goods and toiletries. Mahesh Gopaldas, Head of Packaging Projects at Pidilite Indiustries Ltd, Mubai, “met a lot of innovation-driven international exhibitors” at his last visit to International PackTech India. “Our visit resulted in us meeting a very promising contact with a specialised supplier, with whom we are now negotiating a joint venture. This year I will be attending the fair together with a colleague and we hope to have the opportunity to discuss various relevant projects and find out about innovative technologies that are currently being pushed internationally. Specifically, I am interested in one international machine manufacturer who is looking to set up a production facility in India in the long term“.

Manufacturers invest in India
India has opened up increasingly to the international market in recent years. Foreign direct investment is permitted in many areas of the economy and several international manufacturers of beverage bottling lines or process technology have already set up branches in India, for example, KHS in Ahmedabad, Krones in Bangalore, Ziemann in Pune. Tetra Pak plans to open a new plant in Chakan, initially for 8.5 billion, and subsequently for 16 billion units, and Uflex, a manufacturer of flexible packaging, wants to extend its existing factory in Noida/New Delhi. Rexam is building a new high-speed production line for drinks cans in Taloja, thus increasing its capacity in India to 950 million cans per year. Ronchi Mario S.p.A from Italy, one of the leading manufacturers in the sector of volumetric filling machines for detergents, cosmetics, pharmaceuticals, chemicals and food products, has opened an office in Uttar Pradesh in order to serve the growing number of customers on the Subcontinent from a local base. Apart from this investment, the company also sees its presence at International PackTech India as an important building block in its expansion plans in the promising Indian market. At the coming fair they plan to present a new machine model developed especially to meet the demands of the food and pharmaceutical industry.

The subcontinent is growing to become the second-most important market of the future, after China, for suppliers in the beverage and packaging industry. The demand for improved packaging methods, for modern process technology and for machines and materials that assure quality is apparent. This is an ideal situation for exhibitors at International PackTech India and drink technology India (dti).
Original quotes in English - Exhibitors:
Michael Eumann, Euwa Wasseraufbereitungsanlagen: "A very good and sufficient possibility to become better known in the Indian market."
Gunter Walden, Vice President Vertical Market Management F&B Siemens:
"The growing number of visitors reflects the popularity of dti, which for us was confirmed by the quality of the technical discussions. Verdict – we are on the right track and close to the customer!"

Rajesh Nath, Managing Director German Engineering Federation (VDMA) Indian Office, Kolkata India:
“The Indian Packaging Industry is estimated to be worth approx 10 Billion Euros. The industry is growing at 11% annually and is expected to reach about 15 Billion euros by 2015. This segment is made up of organized to medium to large players as well as unorganized local players. The main growth drivers for the Indian packaging industry are food and beverage sectors. The food processing sector is likely to double its capacity over the next 4-5 years which will lead to a huge demand for the packaging materials.”

Gian Mario Ronchi, Ronchi Mario S.p.A.:
“The Indian subcontinent has certainly become a popular destination for prospective business ever since the Indian Government relaxed its laws and regulatory policies related to starting a business activity in this country.
And this is one of the main reasons that gave us impetus at doubling our presence in Asia. After RONCHI ASIA based in Bangkok, we have now opened a subsidiary in INDIA, which we do intend to grow-up quickly, aimed at offering our services to the customers located in that area.
The new branch is based in Uttar Pradesh and it is headed by Mr. Anirban Sengupta, a packaging specialist boasting a great experience in the industry.
May we add that our participation to Pack Tech India is also intended to strengthen our presence on such a huge market, potentiality of which is definitely undisputable. At Pack Teck India we will display a new machine model, especially designed to meet the requirements of food and pharmaceutical industry.”

Stefan Kuenzle, Sales Director, Tipper Tie Technopack GMBH:
“Tipper Tie sees strong potentials in India as this market is fast growing and important for our business and hence a permanent presence in this market is essential. Our participation at International PackTech India is a good entry point for us into India. We want to tell our customers of our commitment to the Indian market. We are the flexible partner for different and also difficult processing and packaging solutions. During the exhibition, we have received several good enquiries on our products and also met with potential distributors for the different sectors. We will definitely be back again in 2012 to broaden our presence in this market extensively.”

Visitors:
Mahesh Gopaldas
I have visited the last fair and it has benefited in identifying new technology driven International suppliers. The benefit & outcome of the fair visit, where we could identify a supplier and we are in the process of negotiation for one of our requirement.
This year too, I will be visiting the fair along with my colleagues. Our expectations are to discuss various relevant projects & identify latest technologies/ Innovation happening around the globe.
My specific interest will be with International machine manufactures, who in a long term perspective would like to set up a manufacturing base in India.

Press contact:

Messe M?nchen GmbH
Johannes Manger and Benjamin B?ttner
Tel. (+49 89) 949-21482 / -21484
[email protected]
Benjamin [email protected]

Messe D?sseldorf GmbH
Eva Rugenstein/Desislava Angelova
Tel. (+49 211) 45 60 -240
[email protected] and
[email protected]

12 Sep. 2012

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