When SIG Combibloc, an aseptic beverage filling and packaging machine manufacturer, stepped into the Indian market in November 2017, it worked relentlessly to woo its customers with unique value propositions. At the time, the company had only two customers, but today it has five operational beverage packaging lines in India.
The company supplies beverage filling lines complete with the packaging material. The customers of SIG include ITC Foods, Kandhari Beverages (franchisee of Coca-Cola India), GCMMF – Amul, Dabur, and Ladhani Group (franchisee of Coca-Cola India).
“Our Indian operation is still quite young, but I think we will scale up very fast because we see an immense growth opportunity in India,” said Vandana Tandan, country manager — India, SIG Combibloc.
When asked about why SIG waited so long before entering the Indian market, Tandan said, “We have been looking and studying the Indian market for a long time. I wouldn’t say that we are entrants; rather, it is the right time for us. The opportunities in the market are still huge, and the number of categories for us is still many, such as dairy and juices. Apart from that, there were a few changes at our organizational level that affected our decision to enter India.”
Flexible aseptic packaging lines
SIG aseptic beverage packaging machines offer flexibility in terms of carton sizes. The high-speed machines can produce up to nine sizes of cartons. “A very popular model in India, the CB12 packaging machine can produce nine sizes. The machine can adapt itself according to the size of the carton in a matter of minutes. No other manufacturer in India for aseptic carton filling machine can claim to offer that,” Tandan affirmed.
Drinks Plus
The Indian beverage industry is making a steady shift towards health and wellness products. “Many new products were launched in the health and nutrition segment. There is also a trend of ethnic products. These two segments are booming currently. And as you may also be aware, the dairy segment is growing very fast. On-the-go consumption is rising as consumers are busy and looking for convenience. Additionally, the preference towards small units is also on a rise,” said Benita Paul, head of marketing and business development – India, SIG Comblibloc.
Adding to Paul’s comments, Tandan said, “Last year, the dairy segment saw a good growth, especially in buttermilk products. But functionality and health in all these products is the change. Going forward, consumers will opt for healthier products that offer more indulgence.”
A unique solution by SIG, Drinks Plus, allows brand owners to package particulates along with the drink in aseptic carton packaging. These particulates can be in the form of soft/gelatinous particulates, fruit pieces, hard particulates such as oats, rice, cereals, corn, and coconut, citrus pulp, and sacs, and jelly pearls.
“When we say particulates, we mean chunks or pieces of fruit and grain. There is a lot of innovation happening in dairy products. Breakfast and health drinks, for example, have chunks and particulates in them. Our solution can package the product and fill these particulates as well, which is very exciting for our customers. It allows them to add value to their products and differentiate them in the market. Again, no other competitor offers this technology as of now. This is the reason why many customers who have been using Tetra Pak machines are now coming on board with us,” Tandan explained.
The Plus in the product’s name indicates the particulates. The cartons come with a broader straw for easy access to the product. “The yogurt products packaging with Drinks Plus can stay in ambient temperature for six months. The particulates in it make it a very rich product. It changes the market in a way that this is a completely new product. The value propositions we offer open the market to new possibilities,” Tandan stressed.
Heat & Go
Another new solution by SIG, the Heat & Go aseptic packaging, offers hot drinks in cartons. Safe to be heated in a microwave for up to 60 degrees Celsius, the Heat & Go packaging solution offers high barrier protection for ambient, chilled and heated environment. The protective packaging prevents explosion and substance migration. The product can be produced by the existing machines by SIG and requires stronger straws.
“We see a huge potential in Drinks Plus across as many categories as possible. Currently, there isn’t anything like this in the market across Southeast Asia and other regions. We are actively supporting customers with recipe development and not just our part of the work but both – frontend and backend. We think with all these new products coming up, there will be a whole new category in beverages, and that’s where we see our future growth,” Tandan emphasized.
The company is mainly focusing on dairy and juices – the two main categories in the beverage industry. With strategic partners in the industry, it provides a complete solution, right from filling machines to packaging materials and aftersales services to its customer. The service model depends on the contract with the customer. However, critical shift support with an engineer on site is present during the production time. SIG also provides operator and maintenance training to ensure that the customer’s staff is trained to run the filling lines smoothly.
SIG also works on the ground to collect and recycle the aseptic cartons and paper boards. The company is currently working to replace plastic straws with paper straws, eventually.
Speaking about the expansion plans, Tandan said, “It depends on how we scale up. We are aware of how big the Indian market is, and as we grow, we will think about having our manufacturing plants in India as well.”
Nevertheless, Tandan agreed that the company faced multiple challenges during its formative years. “There were challenges in the beginning on the compliance front. We had to import our material and manage the supply chain, which is also not easy. Additionally, penetrating the market that has been dominated by a single supplier for a very long time was not easy. But we offer unique solutions, and Indian customers have shown great interest in working with us. So far, the response has been positive, and we are working towards expanding beverage categories in the market,” she concluded.
