Despite the geopolitical tensions, currency fluctuations, rising oil prices, and continued pricing pressure, India’s packaging converting sector remains firm on an investment path. According to Puneet Agarwal of DGM Technology, converters across the country continue to expand capacity and invest in new technologies, demonstrating confidence in the packaging industry’s long-term growth prospects.
While conversations within the industry often revolve around economic uncertainty and market challenges, Agarwal believes the ground reality tells a different story. Converters may be cautious in their outlook; however, they continue to place orders and modernize their operations.
“Everybody says the market or situation is not good, but when I ask them about their own business or company, they say they are doing well,” Agarwal said during a recent interaction.
The observation reflects a contradiction that many machinery suppliers are witnessing today. While global uncertainties continue to influence sentiment, investment activity in India’s packaging converting sector remains robust.
Investment momentum remains intact
According to Agarwal, DGM installed 45 machines in the previous financial year, while total bookings reached approximately 50. The company expects installations to cross the 50-mark in the current financial year, supported by a healthy order pipeline and continued customer confidence.
“No complaints as such. We are getting business despite war, oil prices, and currency fluctuations,” he said. “All our projects that got a handshake are maturing. We are doing new deals in between.”
The pace of investment decisions remains noteworthy. Agarwal cited a recent order from a new customer largely driven by an existing customer’s recommendation. The order was finalized, payment was received the next day, and the machine was dispatched within three days.
Such examples indicate converters continue to invest when they see a clear business case and a trusted technology partner.
Growing demand for sophisticated carton applications
The nature of demand is evolving. According to Agarwal, converters want equipment that is capable of handling more complex carton structures and value-added applications rather than simply expanding basic production capacity.
Demand for four-corner and six-corner cartons, along with specialized folder-gluer configurations such as bump-and-turn systems, is steadily increasing. “More and more complicated cartons are coming into the market,” Agarwal said. “People don’t want just a simple machine. They want a machine capable of doing everything.”
The trend is being driven partly by export opportunities and the need to meet more demanding packaging specifications. As Indian converters expand their presence in global markets, packaging structures are becoming increasingly sophisticated, creating demand for higher-capability converting equipment.
Regional investment patterns evolve
While North and West India continue to account for the largest share of machinery investments, Agarwal said South India is emerging as an important market. According to him, DGM’s decision to deploy a dedicated service engineer in Sivakasi has significantly strengthened the company’s presence in the region, resulting in multiple machine installations over the past few months.
The development highlights the growing importance of local service support and faster response times in influencing purchasing decisions. East India, although smaller, is showing encouraging signs of activity, with several recent installations and growing customer interest.
Automation gains momentum across converter segments
Automation continues to remain one of the defining themes of the packaging converting industry. However, Agarwal believes automation should not be viewed only through the lens of fully automated production lines. According to him, converters across tier-1, tier-2, and tier-3 markets are all investing in automation, although at different stages of technological maturity.
Smaller converters are moving from basic machinery to more capable systems, while larger converters are focusing on advanced automation features such as automatic feeding, collection, and intelligent machine setup systems.
“Nobody is investing in labor. Everybody wants to get rid of labor,” Agarwal said. “Tier-2 and tier-3 converters are also going for automation because of capabilities, volumes, and cost effectiveness.” Rather than budget constraints alone, he believes production volumes and business requirements largely determine the pace of automation investments.
Though investment sentiment remains positive, labour availability is a challenge across the industry. According to Agarwal, many converters have adequate business but struggle to find skilled operators capable of running sophisticated equipment. Seasonal migration and workforce shortages continue to affect production planning, particularly during peak periods. As a result, labor constraints are important factors that drive automation and productivity-enhancing investments.
Positive outlook
Looking ahead, Agarwal expects investment activity to remain healthy, supported by export growth, increasing packaging complexity, and the industry’s continued focus on productivity.
For DGM, the outlook remains optimistic despite ongoing geopolitical and economic uncertainties. “They are under pressure, but they are investing,” Agarwal said. The statement summarizes the mood of India’s packaging and converting industry today — cautious about external challenges, yet confident enough to continue investing in technology, capacity, and future growth.
