Date:27/10/2005 URL: http://www.thehindubusinessline.com/2005/10/27/stories/2005102702820800.htm

Back Tinplate packaging industry hopes to double its market share in 5 years

Our Bureau

Hyderabad , Oct. 26

RIDING high on the fast changing lifestyles and growing surplus income levels of urban population across the country, the tinplate packaging industry expects to double its share in the total domestic packaging industry in the next five years, according to Tata Steel's Sales Head (Tinplate), Mr Rajesh Battish.

Addressing presspersons on the eve of the ensuing International Seminar on Tinplate Packaging titled `Cannovation-2005' here on Wednesday, he said the tinplate packaging segment currently accounts for little over five per cent of the Indian packaging market of Rs 35,000 crore.

Stating that the domestic packaging industry has been growing at the rate of 16 per cent per annum, Mr Battish said owing to the changing lifestyles and income levels the growth of the packaging industry was expected to grow at 20-25 per cent per annum in the next few years.

Estimating huge potential for the tinplate packaging segment in the coming years, he said this segment should account for at least 10 per cent of the domestic packaging market.

Manaksia Ltd's Director, Mr Shshil Agrawal, said the country is currently importing around 40 per cent of its tinplate requirement. With the major hot-rolled coils manufacturers such as Tata Steel and Steel Authority of India Ltd going in for massive expansions, the country would be in a position to address the supply constraints of tinplate in the next few years.

The Chief Marketing Manager of the Tinplate Company of India Ltd, Mr Tarun Daga, said the exports of the Indian processing industry have grown substantially to Rs 53,000 crore in 2003-04 from Rs 17,600 crore in the previous year.

Stating that the food packaging industry worldwide meets 87 per cent of its packaging requirements from tinplate, he said the utilisation levels of tinplate in the Indian food processing industry were negligible at present but offered huge potential.

According to Mr Rajesh Battish, the southern region holds the key to achieving the country's dream to becoming the food factory to the world owing to its large marine landing, cashew, tea, spices, fruits, edible oil processing and beverage processing resources.

Further, the State Governments of Andhra Pradesh, Tamil Nadu, Karnataka and Kerala were keen to increase food processing and packaging. The southern States were already providing special emphasis to food parks and agri zones.