Karnataka packaging industry could surge ahead going by the increased business opportunities from the pharmaceutical sector. In the challenging scenario only large packaging players can survive, opined the sources form the state packaging units.
The pharmaceutical sector has been demanding constant innovation in packaging because many companies are entering global markets because of the domestic issues like excise duty on MRP and value added tax and Fringe Benefits Tax' (FBT). Packaging is an integral part of drug marketing and hence qualitative packaging is a key requirement, stated packaging industry sources.
There are no big packaging names in the state and the industry is largely unorganised. The big names in the state are Global Packaging and Printing, Ashish Packaging Industries, Bharath Packaging, Innova Printing and Packaging to name a few.
There is cut-throat competition, hence for packaging companies quality and pricing a key concerns for survival. The growing presence of state pharma players in the global market is expected to accelerate the demand for high quality packaging for branded drugs.
According to packaging experts in the state, the potential sectors for growth is pharmaceutical industry. "With the escalating demand for modern packaging materials, its production requires a wide range of advanced machinery. Current, packaging technologies which show substantial potential for growth are horizontal and vertical form-fill-seal machines for solids, granules and liquids. Blister packing and cartoning machines, form-fill-seal machines for flat-top-and -bottom models, bag-in-box systems, sterilisation and filling technologies for vials and ampoules, as well as filling and sealing of metal containers are also technologies with rising local demand."
"Only if packaging sector is in sync with the future, there could be tremendous opportunities for further growth. It is crucial for industries in the state to keep pace with the technology developments by ensuring ample investments planned in phases," said BK Manjunath, director, marketing Global Printing & Packaging Co. Pvt. Ltd.
"The rapid transformations in the global market is persuading the pharmaceutical units to unravel latest technological options to economise on cost and time. Hence units should adopt innovative packaging strategies to give a fillip to its sales as presentation of the product in a safe and classy manner add value to marketing, stated VR Kannan, pharma consultant and former vice President (marketing) Bal Pharma.
The new trends in packaging are innovative, cost-effective and user friendly. In the area of paper packaging segment, the latest offerings are special shapes of containers and paper board boxes in extraordinary contours with holographic stamps, hot foil stamps, micro grains embossing, spot UV coated box with window patches. A key requirement is the display and dispensing value of the boxes, which are moulded in special shapes, explained Manjunath.
The pharmaceutical sector in the State is looking at the regulated markets and hence superior quality packaging is the order of the day, inform sources from Karnataka Drug Manufacturers Association.
Global Printing and Packaging, which is currently the largest in the state, is yet to make its presence nationally. The main deterrents to opt for outside state orders is the logistics of freight which is exorbitant. This makes it difficult for packaging companies like Global to compete with the outside printers because in costing it loses out on transport charges, stated Manjunath. The main strategy for Global is to service high end customers who do not compromise on quality or bargain on cost. Such customers insist on quality and quick service even if it means at a higher process, he added.
The sector is also bogged down by problems like pricing, major decline in customers loyalty, cut throat competition, payment crisis from pharmaceutical sector which varies between three to six months. "Despite innovation, packaging industry needs to be competitive and customers are cringe to pay for quality," stated a section of packaging industry owners on condition of anonymity.
Hence packaging sector needs to continuously find ways to economise on printing and packaging costs through efficient planning only to ensure customers stick to them for the future, averred Manjunath. "The market scenario portrays that it most orders are based on 'just in time business' demand as no one wants to pile up inventory. This has led to low volume and lower pricing game," he added.
Although the future for packaging sector is bright the scene will be tough as the survivors in the sector could be only units which cater to niche markets and add value to their product, stated Kusum Chaudhury, proprietor Ashish Packaging Industries.
On the demand for plastic packs over paper, Manjunath stated that domination of plastics while there latest available are shrink and stretch film laminates, there are many instances where drug companies exporting to European Union demand aqueous varnish to laminates.