Cardboard is the most environmentally friendly packaging material

R Srinivasan is a member of the Corporate Governance Committee of Indian Tobacco Co., Ltd. He was interviewed about the global and Indian packaging industry trends.

Paper is an indispensable accessory in the production of tobacco products. Cigarette paper, cigarette packs, and larger packaging. The development trend of the cardboard industry will also have a certain impact on the tobacco industry. Paper is one of the major non-tobacco businesses of Indian Tobacco.

Q: In the past few years, the global packaging industry has witnessed some changes. Can you tell us about the current global packaging industry? Who are the top three fastest-growing packaging companies in emerging markets?

A: The global packaging industry can be divided into four types of materials: paper, plastics, glass and metal, and it is the fifth largest industry in many countries. With the technological advancement in these fields, these four fields are competing with each other and are steadily developing. The United States, Germany, and Japan are the leading countries in technology. The developed markets are growing. The growth of the developed countries continues. The slight decline in profit during the recent period is due to changes in gas costs and variable costs. China, India, Indonesia and Vietnam are all emerging markets. For India, flexible packaging is the fastest growing, but India's paper and cardboard packaging has a bright future and growth is stable.

Q: In the past few years, India's packaging industry has seen tremendous growth. However, the potential of the packaging industry has not yet been fully tapped. What strategies should Indian manufacturers take to promote the industry's future growth?

A: It should focus on export strategies. We did not catch up with the pace of making change like China did. The current export orientation can create opportunities.

Q: Recently, India's packaging market has entered the main areas of global packaging, such as Rexam and Floter Verpackungs service German companies have set up factories overseas. What are the main factors of emerging trends? Do you expect this emerging trend to continue in the future? What is the significance of this trend for the Indian packaging industry?

A: India's increased competition will become a big market second only to China. This will promote competition and enable us to become a world-class market. This trend will continue in the future, which means that there will be more competition, better products for Indian consumers, and more opportunities for Indian companies to enter the global market.

Q: Indian packaging companies are going global. Essel Packaging and Bilcare have established manufacturing bases outside of India. Can you rate this trend?

A: Foreign companies will enter India and Indian companies will go global. The fact that Indian companies go global may not always be because of their manufacturing advantages, but because of geographical advantages. Manufacturers need to be close to consumers. Although the cost of production may be more, it may offset the logistics costs.

Q: On the packaging matrix, cardboard continues to be the favored packaging material in many markets around the world. What do you think is the result of this result?

A: Paper/cardboard is the most environmentally friendly for protection and decorative applications, as well as for reduction, recovery, recycling, and reuse. In our country, we did not make full use of it again, and we did not have a good collection project. Therefore, the project we have set up to raise public awareness is very important. Surprisingly, India imported waste paper from the United States because our country does not have enough raw materials. Cardboard can reduce the number of packages, because the lower grams can maintain a certain degree of toughness. Cardboard also helps in recycling and recycling. Therefore, due to these advantages, cardboard is still the best choice.

Q: Please tell us the key factors in the cardboard packaging industry. What is the strategy adopted by Indian packaging companies for this trend?

A: The key trend is to look for growth drivers for fast moving consumer goods, computers, and durable goods, as well as packaging for these products. In the pharmaceutical industry, non-prescription products will grow steadily over the next few years. Due to the growth of over-the-counter products, the demand for higher quality paperboard has increased. Indian companies are catching up to this trend as quickly as possible, but due to the government's control, our corrugated board industry still lags behind and the industry is still lagging behind.

Q: What are the main challenges facing the global and Indian packaging industry? Please propose how to solve these obstacles.

A: Due to the great buyer's ability to negotiate prices, global packaging companies are faced with situations where they cannot take advantage of technological innovation. For India's packaging industry, the price war will eventually affect future investments. The way to make up for it is to improve the tobacco industry's links through better understanding of growth drivers. At the same time, the merger and acquisition merger will continue.

India Tobacco Commission Data Compilation

Reprinted from: Tobacco Online