In the route of advanced technology
highly fragmented packaging industry is estimated at
Rs 8,000 crore.
industry is growing at the rate of 22-25 per cent per
the next five years, the sector is expected to triple
to around $ 60 bn.
net profit of the packaging industry spurted 104.5 percent
during Q3 FY08, against a growth of 29.5 percent in
the December '06 quarter.
large growing middle class, liberalisation and organised
retail sector are the catalysts to growth in packaging.
than 80 percent of the total packaging in India constitutes
rigid packaging. The remaining 20 percent comprises
are about 600-700 packaging machinery manufacturers,
95percent of which are in the small and medium sector
located all over India.
packaging machinery imports are $ 125 million.
import (customs) duty for packaging machinery is 25.58
percent for 2007-08.
and Italy are the latest suppliers of packaging machinery
to India but focus is now shifting on Taiwan, Korea
packaging machinery exports are rapidly growing.
per capita packaging consumption is less than $ 15 against
world wide average of nearly $ 100.
total demand for paper is estimated to be around 6 mn
tones, of which about 40 percent is consumed by the
products including form-fill-seal pouches, laminated
tubes and tetra packs are growing at around 30 percent
A thriving industry with a large untapped potential
India is the world's 2nd largest producer of food next
is the 2nd largest vegetable and 3rd largest fruit producer
in the world
growth of food processing sector has nearly doubled
to 13.7 per cent during the last four years.
ranks second only to Japan in inland sector fish production
and produces about 6.57 million metric tonne fish every
the world's total annual spice trade of 850,000 tonnes,
India accounts for 44 per cent in quantity and 36 per
cent in value
beer market in India is pegged around 12 million hectoliters.
foods had the market earned revenues of over $ 185 million
in 2007 and this is expected to reach $ 1,161 million
instrumental in driving growth and investment (FDI)
in the Indian food industry are: Effective distribution
network and supply chain Product range that is customized
to suit local market requirements
Superior processing technology
Brand building and marketing
Opportunities for growth in the post WTO regime
sector is growing at a rate of over 13 per cent annually.
sector is estimated to be worth $ 6 billion.
pharmaceutical industry ranks 4th in terms of volume (with
an 8 per cent share in global sales) globally.
terms of value it ranks 13th (with a share of 1 per cent
in global sales) and produces 20-24 per cent of the world's
generic drugs (in terms of value).
is one of the top five active pharmaceutical ingredients
(API) producers (with a share of about 6.5 per cent).
industry is in the front rank of India's science-based
industries with wide ranging capabilities in the complex
field of drug manufacture and technology.
pharmaceutical companies supply almost all the country's
demand for formulations and nearly 70 per cent of demand
for bulk drugs.
pharmaceutical market is a $ 7.3 billion opportunity with
the domestic retail market expected to cross the $ 10
billion mark in 2010 and be worth an estimated $ 12-13
billion in 2012.
industry ranks 17th with respect to exports value of bulk
actives and dosage.
April 2000 to October 2007, drugs and pharmaceuticals
are the tenth largest FDI-attracting sectors in India.
making the Indian pharmaceuticals an industry to reckon
Self-reliance- displayed by the production of 70 per cent
of bulk drugs and almost the entire requirement of formulations
within the country
has the largest number of FDA-approved manufacturing plants
outside the US. The country has close to 100 such units.
cost of production
of National Laboratories
outsourcing of manufacturing processes to India with supported
to improve business efficiencies and competitiveness…
The globalisation of the Indian economy has exposed the
domestic companies to the free market dynamics. With no
protection from the state, these companies are learning
to be more efficient and are re-engineering the business
processes to compete with the global businesses. Among other
things, deployment of IT has been extensive in the better-managed
companies and the one field where it is being successfully
deployed is the management of the supply chain. This has
brought the focus on the Automatic Identification and Data
Capture technologies, which in several companies is integrated
with the ERP/ EDI applications.
entry of MNCs and the retailing shifts have also contributed
to a higher use of barcoding and auto id technologies.
The killer application for these technologies, however,
is expected to be in the field of e-governance with not
only the central and state governments adopting the technologies
in ID projects and driving licenses etc., but also local
administrations like municipal corporations and village
panchayats expected to use the technologies to stream
AIDC industry that includes Barcodes, smart cards, RFID,
biometrics and EAS is probably the fastest growing segments
of the economy anywhere in the world. Though the base
is still small in our country, the over 40 percent growth
that is taking place year on year is increasingly becoming
significant. The incremental growth is large enough already
to catch the eyes of the largest global players. The factors
that drive the domestic requirements all indicate that
the demand itself will ensure the present rate of growth
in the years to come. If the Indian industry can leverage
its IT strengths and grab the opportunities that are coming
its way, it is not inconceivable that India can be a major
hub to provide the software, integrated solutions and
finished products in these fields to the entire world.
The barcode industry is around Rs. 2.5 billion and is
growing at over 30- 35 percent every year. The hardware-
Printers and scanners contribute equally to the 50% of
this turnover while the consumables- tags, labels and
ribbons contribute 35% and the services account for the
rest. The industry has around 50 players with 5 large
players having a turnover of over Rs. 100 million. There
are other 10 companies that have turnovers of between
50 - 100 million. The major international suppliers- Symbol
, PSC, Metrologic & Unitech for bar code scanners
and Zebra, Intermec, Printronix, Sato, Toshiba & Datamax
for barcode printers have their presence in India. Ean
India, an affiliate of Ean International has played a
large role in creating awareness about barcodes while
developing and implementing standards across the industry.
AIDC Technology Association has helped organize the industry
by forming this association of all stakeholders of this
and logistic industries are the active user of barcodes.
The auto industry uses barcoding for auto data capture
of information about its materials and supplies during
receipt, storage, Work in progress (WIP), dispatch and
sales operations. In retail sales of auto parts spares
and accessories, this is used to facilitate stock control,
track and trace, consumption forecasting, etc. Pharma
and healthcare are another large user of barcodes. They
are used effectively to track distribution of the drugs
in the market place and to recall them if necessary. They
are also used provide quality service by tracking expiry
dates of medical supplies, patient identification and
billing, hospital stock management and order replenishment
etc. The largest growth segment is however, organised
retail. The use of barcodes is already well established
in major retail sales institutions. The proliferation
of malls and food bazaars is driving the growth in this
segment. Logistics contributes around 10% of the barcode
industry. Retail contributes around 40% and nearly 50%
comes from all other industries like auto, pharma etc.
Over the last few years, the awareness of smart cards
and its applications have gradually increased among the
potential users in India. Significant growth has taken
place in wireless cellular applications, retail loyalty
applications, healthcare applications and driving license
and vehicle registration applications. Several pilot projects
have also been implemented for multi-application campus
cards, banking, ID, automatic fare collection, toll, healthcare,
etc. With the smart card market expected to grow from
the current base of 40 million cards to 400 million cards
in the next few years, both Indian as well as foreign
smart card companies are showing keen interest in this
Schlumberger, Gemplus, G&D, Obethur, VCT and Orga
are the globally recognized card manufacturers who also
dominate the Indian market. Shonkh, Rolta, Smartchip,
CMS, Siemens (SISI), CA Satyam and E-Cube are the major
system integrators. STMicroelectronics, Philips, Infineon,
Reneseas and Atmel are the chip manufacturers who are
already present in the the country.
the SIM card market has driven the growth in the last
5 years, the rate of growth in banking and retail sector
is expected to be larger in the coming years. The usage
in the transport and health care sectors is also expected
to increase. However, the industry is looking at the government
usage and the much-touted national ID project for a spiraling
growth in the next few years.
the SIM card market has driven the growth in the last 5
years, the rate of growth in banking and retail sector is
expected to be larger in the coming years. The usage in
the transport and health care sectors is also expected to
increase. However, the industry is looking at the government
usage and the much-touted national ID project for a spiraling
growth in the next few years.
both the private and Government sector organisations search
for more secure authentication methods, they increasingly
become aware of biometrics as the killer technology for
near foolproof security. It may not be long before all password
and card based systems currently in vogue get replaced with
biometric devices. The little over Rs. 1.5 bn market in
India is growing at anywhere between 70- 100%. While there
is a growing demand for both physiological and behavioral
biometrics devices, fingerprint recognition is the current
hot favorite. Lack of infrastructure, standardisation in
the industry, high costs and duties are the impediments
in the growth of the industry. Most of the biometrics hardware
is being imported from USA, Germany, Israel and in recent
times from China. Indian manufacturers are also getting
into the act with some fingerprint scanners now being made
available in the market.
Worldwide, RFID is being driven by an electric mix of researchers
and businessmen of Indian origin and provides an unprecedented
opportunity for the country to export services and software.
The technology whose applications are limited by ones imagination
is primarily finding use in fleet management, inventory
and asset management, warehouse automation, asset tracking,
quality control, packaging, security and access control,
hazardous material management, advertising and promotion,
delivery and smart card -based payment systems. The application
is happening in many industry segments but still the areas
of focus are retail and supply chain management. The technology
has got a new impetus with the emergence of Electronic Product
Code (EPC), a set of standards that weaves basic RFID technology
into a numbering scheme as they move across the business
supply chain. As the benefits of the RFID-EPC technology
become evident, more industries are investing their research
effort into product development to lower the cost of RFID
tags and weed out the teething problems. With its highly
skilled workforce and strong IT base, India is a natural
choice for firms engaged in RFID product development. India
is also being used as a center for executing RFID implementations
for the entire Asia-Pacific region. The country by itself
is also a huge market for RFID solutions. Already, the interest
in the technology is evident with the Indian pharmaceutical,
defense and export sectors being the early birds in exploring
its use. As a part of the supply chain for multinational
corporations, the Indian companies are also expected to
adopt the RFID-EPC technology.
logistics sector attracted investments worth Rs. 23,200
crore in first half of 2008.
outclassed some of the major sectors including aviation
(Rs 20,890 crore), metals and mining (Rs 8500 crore)
and consumer durables (Rs 6000 crore) among others.
has emerged as the preferred location for the development
of logistics parks with an investment of approximately
$ 200 million.
development of seven to eight logistics parks are in
pipeline on 600 acres around Mumbai.
large number of upcoming SEZs have necessitated the
development of logistics for the domestic market as
well as for global trade.
logistics industry is expected to grow annually at the
rate of 15- 20 percent, reaching revenues of approximately
$ 385 bn by 2015.
share of organised logistics players is also expected
to double to approximately 12 percent during the same
110 logistics parks spread over approximately 3,500
acres at an estimated cost of $1 bn are expected to
be operational and an estimated 45 mn ft2 of warehousing
space with an investment of $ 500 mn is expected to
be developed by various logistics companies by 2012.
The Indian bulk packaging market started moving significantly
only in the 1990s as the industries acquired bulk handling
capabilities to compete in the globalised world. The markets
really took off at the turn of the new millennium spurred
by an export led and domestic growth in the agro produce
& food; bulk drugs & generics; chemicals & pesticides
and Petroleum & lubricants. The market grew at around
28% for the first 6-7 years and then settled down to a 15-20
% band largely bucking the world wide slowdown.
The Rigid Packaging industry that comprises of Drums and
Containers made from Metal, Plastics, Fiber Board and Composite
materials is growing at about 13% PA. Within the industry,
there is a migration to plastics and the major metal drum
manufacturers have joined the bandwagon themselves by setting
up parallel facilities for manufacturing Plastic containers.
The 6 million units Plastic Drum market (INR 5 bn.) is growing
at over 16% while the 10 million drum steel market still
manages a positive growth of 2% and is valued at around
INR 2 bn. The fiber drum and composites valued at INR 4
bn. is also growing at around 10%.
INR 140 bn. flexible bulk packaging industry that includes
woven sacks, leno bags, wrapping fabric, and flexible intermediate
bulk container (FIBC) is growing at over 20% with FIBC containers
expected to grow three fold in the next 5 years riding an
increased industrial production and a shift toward higher-value
containers offering enhanced performance and supply chain
efficiency. In fact, the global slowdown has been an opportunity
for the Indian FIBC manufacturers as the production cuts
by the companies in Europe and USA has resulted in the sourcing
shifting to India adding an important factor to the growth