The Indian economy continues to demonstrate long-term resilience which makes it compelling for carton converters to order new high-configuration machines, even when the consumer economy is flat and GDP growth looks like it may not reach 6% in the financial year. Consumer product companies are in the 5 to 5.4% growth region, with rural demand for consumer products perhaps outstripping urban demand growth. Nevertheless, the converters are commissioning exceptional capacity this year for a variety of reasons.
Some installations are from previous orders and the need to replace older and smaller presses since demand for more complex carton decoration continues to grow. In addition, converters are seeing both the opportunity and the need to scale up with new technology to meet the quality and volume demands of brand owners within shorter delivery times. They are aware of rising prices and longer supply chains from the European and Japanese equipment suppliers, and the competitive need to establish their capacities quickly to meet foreseeable demand.
With new plants and infrastructure already in place, converters are readier than ever before to absorb newer and bigger packaging lines. While there are few greenfield projects coming up amongst the large multilocational converters, there is one planned for commissioning in South India in February 2025. A couple of new players are also setting up greenfield plants.
Our earlier estimates of Indian monocarton printing and converting capacity creation in the current financial year are likely to be surpassed by the end of the year on 31 March 2024. IppStar’s research (www.ippstar.org) indicates that a substantial number of the mostly 7-color plus coater offset presses configured for packaging have already been imported and installed. Brand new die-cutters and folder gluers are also in place – sufficiently outnumbering the new presses so that there are fewer inefficiencies and bottlenecks in the converting department.
We can reasonably expect that by the end of the year in March, 30 multicolor sheetfed offset carton presses will be installed. Each press will have at least one coater and an IR dryer and many will contain multiple interdeck UV curing systems. Most of the packaging presses are in B1 40-inch format with a few in slightly smaller formats and perhaps a couple in the B2 format.
The combined value of the sheetfed packaging presses imported this year will likely reach Rs 400 crore or approximately Euro 45 million. While Komori is expected lead the market in the number of packaging presses, in terms of value Heidelberg will lead the Indian market. Heidelberg’s improved showing in our market reflects its successful order-taking at drupa earlier this year. In addition, it is possible that after many years, all five known suppliers, Heidelberg, K&B, Komori, Manroland Sheetfed, and RMGT will install at least one multicolor packaging press with coater in the Indian market by March 2025.
On the converting side, we expect the installation of 50 to 55 new die-cutters this year from Bobst, DGM, Eterna, Robus, and MasterWork. Folder-gluer installations are expected to reach figures between 70 and 75 by March end.
Corrugated board making and cartons
According to IppStar’s research (www.ippstar.org) based on reliable industry inputs, the corrugated box industry is growing annually at approximately 8.5% to 9% in volumes, and perhaps slightly more in nominal terms. The corrugated board-making and carton industry continues to improve by upgrading its technology.
Approximately 18 new corrugated board-making lines will be installed this year including two or three from BHS. The investments in BHS equipment comprise greenfield projects, additional lines in existing plants, and technology and capacity upgradation of various modules and pain points on existing lines. In addition, BHS has invested over Rs 200 crore in setting up its 5-acre manufacturing plant in Pune in Western India. The first phase for manufacturing various corrugating rolls is expected to be commissioned in the first quarter of 2025.
For corrugated box making, apart from the numerous slotter-diecutter-printer machines, about eight inline corrugated flexo printers, diecutters and folder gluers (FFG machines) will be installed till 31 March 2025. There is a demand from consumers including eCommerce suppliers for higher quality board and more accurately produced boxes – which is described as “squareness.” A high degree of squareness is required by the automated case erectors that are increasingly used in the filling and sealing operations for order fulfillment by brand owners and aggregators.
The overall capacity creation reflects a push to automation and inline operations such as the FFG lines, in an effort to reduce manpower. The improvements are necessary to meet the just-in-time demands of the customers who are within the acceptable 300-kilometer range for shipping corrugated boxes.
Rigid boxes and convergence packaging
It is no longer enough to have just a rigid box-making line. This luxury segment has now gone beyond cell phone boxes into a variety of products including personal care, cosmetics, electronics, footwear, and confectionary that demand both premiumness and sustainability.
Since paper-based packaging is associated with recyclability amongst consumers, many converters of these boxes used for a variety of premium branded goods are opting for comprehensive plants to produce rigid boxes, pulp molded inner fitments, and carry bags. While perhaps a dozen new rigid box-making lines will be added this year, we learn that Zhongke India will likely install five comprehensive plants for producing rigid boxes, fiber-pulp molded inner fitments, and carry bags.
