Tag: India

Packaging Industry In India- Factors Affecting Its Growth

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Packaging Industry is one of the major industries in India that has significant role in creating wealth for the nation, by preserving and protecting the value created by other manufacturing units. The industry helps in preserving innumerable products including drugs and medicines, edible oils, fruits and vegetables, milk and biscuits, semi-processed foods, electronic goods and a lot more.

Packaging Industry is not merely remained to ‘packing’ but with the branding in vogue and rising consumer preferences, it’s role has become catalytic in the Indian economy. The objective of packaging is to meet the criteria of attractiveness, convinience and safety. Heightened competition in the Indian manufacturing sector is paving the way for the industry to move towards International market. Other reasons for playing it big in export is due to availibility of low cost packaging material and higher technology means.

The present modern economy follows the slogan, “Better Quality of Life Through Better Packaging”, by World Packaging Organisation s (WPO). The growth of packaging industry has led to the sophistication from health’s point of view. This has led to the manufacturing of environmental friendly packaging materials that demands an attention to be paid on the seggregation and reutilization of synthetic packaging material.

Factors Affecting Growth of Packaging Industry in India:

1. Industrialization, urbanization and Indian economy’s liberalization paired with globalisation are the major factors fuelling its growth.
2. Cost advantages are making India one of the most preferred export hubs.
3. Rural marketing and low purchasing power of middle or lower class Indians leads to purchase of sachets or small packs. Products such as fairness cream, shampoo, toothpaste, food items, tobacco, betel nut-based mouth freshners, etc. are much in demand and this packaging format is not in trend elsewhere.
4. Increasing personal health consciousness among Indians and increasing awareness towards diseases like AIDS and other STDs, have raised the demand for contraceptives’ and disposables syringes’ usage that has led to an increase in packaging required for the same.
5. Changing eating habits among Indians and increasing restaurants and fast food chains all over the country fuelling the growth of packaging all over the country.

Here are the list of Top 10 Indian manufacturers and exporter of packaging in India:

ITC Limited
Parksons Packaging System
Hindalco
Gujarat Glass Ltd
Tata Tinplate Company of India
Moldtek Technologies Limited
E C Packaging Pvt. Ltd
Advance Packaging
AMAC Plastic Packaging
The Paper Products Limited

Purposes fulfilled by packaging industry in India:

1. Containment: Products contained in container can be easily moved from one palce to another. This helps in protecting environment by avoiding lead to spillages that results in severe losses and damages.

2. Protection and Preservation: Packaging is done to ensure that consumers get the products in good condition. Packaging protects the product from contaminants, hazardous substance, climatic effects and from infestation.

3. Added Product Protection: The technology in packaging contributes in food science advancement, reduces food spoilage percentage and ensure food safety.

4. Communication: Packaging is a mode of conveying messages in modern world. The information descripted on products’ cover make the consumers informed to decide for the products purchase and its use.

5. Convenience: Packaging offers convinience as well. Convinient packaging like frozen food packs, wine cardboard casks, microwavable containers, food cans and aseptic cartons, and easy-open beverage are some good examples. Medical packaging is done in a way to reduce the accidental overdose risk and have child resistant closures.

6. Marketing Trends: Packaging gives increased emphasis on sales appeal, retail packing’s quality and look. Packaging supports brand awareness, brand identities, convinience and properly reflect the current consumer trends, preferences and images.

Indian Art And Craft Industry- An Overview

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Indian Art and Craft Industry- An Overview

India is a land where every corner is evident with the greatness of art and craft. The traditional quintessence of Indian art and craft can be seen even in the daily used objects like earthen pot, mugs, bed-sheets or any such things. The objects are created with a great creativity that portrays magnificent work of art. That is what Indian art and craft industry is!

Indian art and craft is an old saga. Although, the present state of the industry is flourishing with a touch of contemporary designs and patterns but it is deeply entrenched with the rich craft customs from the past. The uniqueness in the Industry lies in its own way.

India”s richness in art and craft can be seen in every product whether garments, Jewelleries or household furnishings. These products are a perfect mix of traditional designs and modern techniques. Due to their diversity in designs and their being utilitarian in nature, they are high in demand. This has given many Indian traders to invest in the industry and flaunt India”s custom across the world. Products such as table mats, napkins, bed sheets, lamp shades etc are made out astoundingly with the use of natural material, textile printing, block printing, tie and die, hand printing etc, and are much in demand. Gems and jewelries are other obsession of India. The rising demands in gems and jewelries have transformed Indian craft traditions into a full-grown organized industry. Garments such as woolen shawls and phirens from Himachal, traditional sarees ranging from Banarsi Amru, Tanchoi, Paithani, Patola, and Kancheevaram are the most popular export garments. Indias zardozi and brocade work are highly recognized these days. Other utilitarian craft products like cushions, curtains, bedcovers, sheets, metal furniture, wood furniture, boxes, cabinets, terracotta items, utensils, garden pots, papier-mch products, brass and silverware, carpets, rugs and durries from Kashmir, jute and coir items, wood and stone sculptures, traditional paintings, decorative pieces, embellished wooden sculptures, stone and wood carvings, and many more are on the rise in India as well as in abroad.

Here is the Swot Analysis of the Indian art and craft industry that gives you more information on the present status of the industry;

Strengths

“The industry has potential in domestic as well as international markets.

“It provides wide variety in each product and exhibit diversified culture of India.

“Industry caters to the different market sectors covering handicrafts, textiles and jewelries.

“Gives potential source of employment

“It requires low capital investment

“It is a great source of foreign revenue as it is a huge export industry.

Weakness

“Industry lacks communication and infrastructure

“Lack of co-ordination between Indian manufacturers-exporters and Government

“Inadequate information available on new technology

“Industry is still confined to rural areas of the nation

“No promotional support is given to the sector

Opportunities

“Emerging demands of Indian crafts across overseas

“Development of retail sectors and changing lifestyles offer huge requirements of such products

“Rise in the industry is due to development in tourism

“Internet has emerged as a mean to develop its market network

Threats

“Increasing competition in domestic markets

“Quality products manufacturing by countries like South Africa and China

“Better trade terms are offering by these countries

“Competing countries offer better technological support and R&D development facilities

“Challenge to establish balance between demand and supply of quality products

The reason why Indian art and craft is highly appreciated and constantly flourishing in domestic and foreign markets are due to its utilitarian nature and high acceptance among people of India and people across the whole world.

Natural Mineral Water Indian Industry Analysis

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Natural mineral water
According to American and European Regional Codex Standard, natural mineral water:
is obtained directly from natural or drilled sources from underground water – bearing strata.
is collected under conditions which guarantee the original natural bacteriological purity.
is bottled at the point of emergence of the source with

particular hygienic precautions is not subjected to any chemical treatment.

Indian bottled Water Industry

The bottled water industry in India is estimated at about Rs 1,000 crore and is growing at 40 per cent. “By 2010, it will reach Rs 4,000 – 5,000 crore with 33 per cent market for natural mineral water.

The formal bottled water business in India can be divided broadly into three segments in terms of cost: premium natural mineral water, natural mineral water and packaged drinking water.

It is estimated that the global consumption of bottled water is nearing 200 billion litres – sufficient to satisfy the daily drinking water need of one-fourth of the Indian population or about 4.5 per cent of the global population at the fourth World Water Forum held in Mexico City in March 2006.

In India, the per capita bottled water consumption is still quite low – less than five litres a year as compared to the global average of 24 litres. However, the total annual bottled water consumption has risen rapidly in recent times – it has tripled between 1999 and 2004 – from about 1.5 billion litres to five billion litres. These are boom times for the Indian bottled water industry – more so because the economics are sound, the bottom line is fat and the Indian government hardly cares for what happens to the nation’s water resources. Since 1991-

1992 it has not looked back, and the demand in 2004-05 was a staggering 82 million cases.

Mineral Water Market in India

For example, the per capita consumption of mineral water in India is a mere 0.5-liter compared to 111 liter in Europe and 45-liter in USA.

But over the last ten years, it has witnessed tremendous growth. The change is very much evident. Once a product found mainly at railways stations, mineral water today occupies a place on the shelf in most superstores, grocers and even paanwalas. From a mere 60 towns in the year 1997, it is predicted that mineral water is today available in more than 1000 towns and cities across India. With a compounded annual growth rate of close to 30% over the last decade, the mineral water market has witnessed a large growth in terms of volumes.

The market is highly competitive with the entry of MNCs like Pepsico and Coke. There are a lot of brands available in the market, each with its own proclaimed differentiation.

2.2 Player in the market

In natural mineral water there are very few company like Himalayan, Aava, Evian is playing in the market. 50% of the market is captured by Himalayan.
While a thousand bottled water producers, the Indian bottled water industry is big by even international standards. There are more than 200 brands, nearly 80 per cent of which are local.
Most of the small-scale producers sell non-branded products and serve small markets.
Despite the large number of small producers, this industry is dominated by the big players – Parle Bisleri, Coca-Cola, PepsiCo, Parle Agro, Mohan Meakins, SKN Breweries and so on.

Consumption of bottled water in India is linked to the level of prosperity in the different regions. The western region accounts for 40 per cent of the market and the eastern region just 10. However, the bottling plants are concentrated in the southern region – of the approximately 1,200 bottling water plants in India, 600 are in Tamil Nadu. This is a major problem because southern India, especially Tamil Nadu, is wate starved.

Mineral water business is restricted only to big hotels & Restaurants. This field has lot of scope because of unawareness in the market and people are becoming health conscious.

Leather Industry Of India

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The leather industry in India holds a very prominent place in the Indian economy. The leather and leather products industry is one of the oldest manufacturing industries in India. The Indian leather industry provides employment to about 2.5 million people in the country and has an annual turnover of approximately US$ 5,000,000.

The industry has a massive potential for providing more employment, growth, and exports. Recently, the exports of leather and leather products have gained massive momentum. The exports of Indian leather goods have registered phenomenal growth. This is mainly because great emphasis has been placed on the planned development of the leather industry and at the optimal utilization of available raw materials.

Over the years the leather industry in India has undergone drastic change from being a mere exporter of raw materials in the early 60’s and 70’s to now becoming an exporter of finished, value-added leather products. The main reason behind the transformation is the several policy initiatives taken by the government of India. The proactive government initiatives have yielded quick and improved results. Thanks to the government efforts today, the Indian leather industry has attained a prominent place in the Indian export and has made the industry one of the top 7 industries that earns foreign exchange for the country.

Since India adopted the globalization and liberalized economic policies in 1991, the leather industry has flourished consistently in several ways and has contributed heavily to the Indian exchequer. Though the industry has developed, it still has great potential for more growth and investments. Investing in Indian leather industry is particularly advantageous because the industry is poised to grow further and achieve a major share in the global trading market.

The government of India in its Foreign Trade Policy for 20002009 has identified the leather sector as a focus sector in view of its immense potential for export growth and generation of employment generation prospects.

Investment opportunities in the leather industry lie in different segments related to the industry, which include tanning and finishing of leather products, manufacturing of leather garments, manufacturing of leather footwear and footwear parts, and manufacturing of leather goods, such as harness and saddlery amongst a host of other opportunities.

Amongst all the industries mentioned above the footwear industry in particular holds greater potential for investments in India. India produces approximately 700 million pairs of leather footwear every year and accounts for an 18% share of the total Indian leather export.

After footwear manufacturing of leather goods promise great investment opportunity. Manufacturing of leather products, such as wallets, travel wares, belts, and handbags offer great returns on investment.

India is one of the best destinations in the world for investing in the leather industry because India is endowed with abundant raw materials required for the industry to grow. India has a huge population of cattle. India accounts for 21% of the worlds cattle and buffalo and 11% of the worlds goat and sheep population. Apart from the easy availability of raw materials, investors are able to enjoy an easy and abundant supply of skilled manpower, world-class technology, competent and favorable environmental standards, and the devoted support of allied industries.

Several leading international leather goods manufacturing brand names, such as Hugo Boss, Tommy Hilfiger, Versace, Guess, and DKNY, have invested in India and are engaged in sourcing leather goods from India.

Indian Fisheries Industry Opportunity For Foreign Investors

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India being a peninsular country has a far-stretching coastline. It is surrounded by water on the east, west, and south coasts. As a result there is abundant fishing in India. The fisheries industry in India is huge. With its vast coastline, India is the fourth-largest producer of fish in the world. This is mainly because nearly 10 million people residing in more than 4,000 coastal regions are engaged in fishery activity. These people are mainly dependent on fisheries to earn a living.

India holds great potential for both inland and marine fishing. It has huge reservoirs for fishing. The fisheries industry heavily contributes to the Gross Domestic Product of India. The fisheries industry is responsible for filling the Indian exchequer with about $70 million per annum. Massive production and export has made the fisheries sector an essential part of the Indian economy.

Though the fishing industry in India contributes heavily to the GDP and is a valuable source of earning foreign currency for the country, it still has a huge potential for export. Out of the total area available for fisheries, a significant amount of area is left unutilized.

In the recent past, the fisheries industry has been growing considerably on a consistent basis. It has also caught the attention of foreign investors. Several foreign investors are now investing in the fisheries industry in India for its potential to offer them immense returns. Another reason for the foreign investors to invest in the industry is the easy availability of infrastructure facilities. The liberalized policy of the government is another vital factor for the fisheries industry to attract new foreign investments in India.

Both the central government of India and the state governments have undertaken initiatives and announced several policies to boost the growth of the fisheries industry in India.

The Department of Animal Husbandry, Dairying, and Fisheries is the main authoritative body for development of the fisheries industry in India. This government body has been responsible for implementing infrastructure development programs and welfare-oriented schemes. It is also responsible for formulating appropriate programs to increase the productivity in the fisheries sector. Furthermore, the Ministry of Food Processing Industries is another agency that is responsible for the overall growth of the fisheries industry.

Though the central ministry takes active initiatives to boost the fisheries industry, it is mainly governed by the state governments. Each state has its own set of policies to attract new investments in the fisheries industry of the state.

Some of the most prominent states and union territories that promise huge potentials for investments include:

Goa: The state has a coastline of about 100 km and is rich in marine wealth. Fisheries are the main economic activity of the state. The fishing activity has given a big boost to the canning, freezing, and fish processing industries in the state. These industries offer great investment opportunities.

Kerala: The government of Kerala gives top priority to the fisheries sector. The sector contributes the most to the state governments revenue and brings in foreign exchange. The government is keen to develop this industry further. There are huge investment opportunities for investors in terms of providing technological assistance to the local fishermen, providing storage facilities, fish packaging, and so on.

Apart from these two states, prominent other states and union territories, such as Assam, Orissa, the Andaman and Nicobar Islands, and Lakshadweep also promise great investment opportunities in the fisheries industry.