The facility will be able to produce 4 billion carton packs annually. SIG Group, a manufacturer of integrated packaging solutions with headquarters in Switzerland and clients including Pepsi, Coca-Cola, and Amul, is spending about €100 million (about Rs. 900 crore) to build its first aseptic (contamination-free) carton plant in Ahmedabad, Gujarat.
The facility will have an annual production capacity of 4 billion carton packs for the packaging of non-carbonated goods for the Indian and Bangladeshi markets, including dairy, drinks, and food items (soups and spices).
According to Samuel Sigrist, CEO of SIG Group, “We currently supply our cartons and bag-in-box packaging products to companies such as Amul, Pepsi, Coca-Cola, Parle Agro, ITC, and Milk Mist, among others, in India.”
In the following few years, Sigrist stated, “We expect our Indian business to grow at a compounded annual growth rate of 15-20%, and if that occurs, we will ramp up the manufacturing capacity to 10 billion carton packs in the second and third phases.”
In the upcoming 12 months, the €3.1 billion business wants to begin producing at the Ahmedabad facility, he said.
The initial investments are expected to cost €60 million in capex, while €40 million will be used to lease land for the Ahmedabad factory.
The business intends to start off by focusing on the Indian and Bangladeshi markets, which, according to Sigrist, are sure to expand as middle-class disposable income rises and there is an increased need for packaged foods that are hygienically safe and stay longer without refrigeration.
Because of the country’s smaller packs and intense competition, the company doesn’t think profits will be compromised because they plan to make up for it with bigger volumes.