Message from Dr. Y.B.Vasudev : President & CEO, BY Innovations - Consultancy India Pvt. Ltd.
 
Flexible Packaging: Immense Market Potential

India is world's largest producer of fruits (46 MnT) and second largest producer of vegetables in the world (80 MnT). According to recent agency and government reports, country's fruits and vegetable wastage is pegged at Rs.30,000 Crores out of annual produce worth Rs.1,00,000 Crores due to lack of post harvest facilities. India 's per capita availability of fresh fruits and vegetables is one the lowest in the world. The country is largest producer of banana, mango, cauliflower, and peas yet its world trade share of fresh produce is meager 1%. The productivity of most horticulture crops was below optimum due to poor crop management practices along with lack of post harvest packaging know-how.

As a part of liberalization programme, Government of India has prioritised export of fruits and vegetables, thereby encouraging the business entrepreneurs to explore opportunities in developing specialised packaging films. The size of the flexible packaging market is estimated to be 1.1 MMTA. The Indian flexible packaging market generated sales worth $ 950 million in 2006 and is expected to grow at 17 % per annum. This unlocks a new area for entrepreneurs in flexible packaging films domain to develop customised films. The advent of retail growth has thrown open a wide range of opportunities. One of the crucial growth drivers is organised efforts of brand building linked to food and life style products.

Multilayer films provide flexibility, and can be designed to give optimum barrier properties to maintain the product quality. The key demand driver for multilayer films is the food sector both processed RTE and commodity foods. The growing demand is on account of lower cost, light weight, small pack and shelf appeal.

Modern packages are offering many opportunities as well as challenges to all players. Opportunities are due to changing food habits of society, rapid urbanisation etc. whereas challenges are due to special needs. For films extrusion plant manufacturers the challenges are in running the machines at faster outputs as well as processing the temperature sensitive and odour sensitive additives.

The manufacturers of multilayer extruders are constantly increasing the output and are providing computerized & automated systems to minimise gauge variations. Good quality extruders, correct polymer selection along with maintaining proper processing parameters are the key to optimum quality manufacture of multilayer films.