Put succinctly in the words of Mr. Rajiv Dhar, Director of the Indian Institute of Packaging "The market is blossoming and the time is perfect!"A confluence of factors is combining to create the opportunity.
India's middle class is roughly the size of the entire US.They are accumulating wealth and generating disposable income at a rate at least equal to their 9% GDP growth.They are clamoring to buy consumer products and the resulting demand exceeds the current capacity.
Consumer retail is born
Second, larger retailers are starting to take hold replacing traditional road side stalls.This requires substantial changes in retail packaging to support the self service retail environment. (The "flip side" though is that generally neither Indian manufacturers nor typical Indian reps have a baseline understanding of packaging norms. They must be introduced and educated in addition to sold on specific machines. This requires extraordinary sales folks and unusual management emphasis.)
Make sure your business is part of the transition
Photo by Mark Shandro
Photo by Ed Batz - AP
from this..........to this
Indian government intends to make it happen
The government is determined to both increase India's role as a manufacturing economy and to address areas of concern in food safety.Much of the manufacturing will be either of processed foods, or for export, and will require developed market packaging to succeed along with all required equipment for distribution channel packaging.However because these three factors are rapidly evolving, a substantial indigenous Indian packaging machine industry never developed.The need is pressing and cannot be domestically filled.Finally, with the budget introduced April 1st, 2006 the government slashed import duty rates on packaging machines (one of only a handful of categories) to a slim 5%.Containers returning to India are often empty meaning that freight charges are minimal.Therefore traditional regulatory and logistics barriers are substantially reduced.
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"business is booming in India... There is interest and the growth is felt across all the sectors of the Indian economy. With the growth of the organized retail sector, companies are now trying new ways of attracting people to their products."
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"The market is blossoming and the time is perfect!"