“Will be at Metpack to get insights into areas of diversifi cation”

Nipra Industries to venture into new areas

4
areas
Nikhil Jain, executive director of Nipra Industries

Mumbai-based Nipra Industries is India’s leading aluminum closure stock converter engaged in the manufacture of aluminum Roll-On-Pilfer-Proof (ROPP) closures, printed aluminum sheets and printed tinplate sheets. Its target customers are from the beverages segment, mainly in the alcoholic beverages space. In an attempt to test new waters, the company now plans to diversify into some other potential areas of business.

Metpack logo“We have identified a few other potential areas. Next financial year we could see some progress on a new product line related to our current printing set-up but would not be associated with alcoholic beverages. It would be a forward integration onto a new industry,” says Nikhil Jain, executive director of Nipra Industries.

The decision to diversify was taken to reduce reliance on one segment. “Alcohol consumption is something which is not encouraged in India. Clamor for prohibition in a few states is also growing louder. Bihar has already imposed complete prohibition, on both consumption and production of liquor. This resulted in a big setback to some leading companies. All this creates a lot of unpredictability and uncertainty for the industry players,” he says.

Metpack 2017, which will take place from 2 to 5 May in Essen, Germany, is where Jain plans to be to get better insight into the potential new areas. Jain will also be meeting machine suppliers, as Nipra is looking to buy some printing machines to expand its printing capacity. The company currently employs mostly Japanese sheet printing machines at all its plants. Nipra has six manufacturing plants, one at Roorkee, two at Silvassa, one at Umargaon, one at Vasai and one at Bengaluru.

Demonetization and other disruptions

EMBOSSED Printed Aluminium Pilfer Proof Caps
Nipra Industries manufactures aluminum Roll-On-Pilfer-Proof (ROPP) closures, printed aluminum sheets and printed tinplate sheets. Photo Nipra

Alcoholic beverages segment is one in which cash transactions have traditionally been high. The Indian government’s decision to demonetize impacted the industry hard. As a supplier of closures to the alcoholic beverages manufacturers, Nipra too faced several disruptions due to the government’s decision. According to Jain, post demonetization, the company saw drop in orders to the tune of 30%. As if this was not enough, another big disruption that will hit the alcoholic beverages industry from 1 April 2017 is that of ban on liquor shops on national as well as state highways across the country. The Supreme Court of India last year banned the sale of alcohol within 500-m radius of state and national highways. The apex court further directed that all concerned authorities comply with the order and desist from issuing any new licenses for opening liquor shops along the highways.

“This development will have a bigger impact on our business than demonetization. Post the imposition of the ban, the industry will take some time to adjust to the new reality. Then the goods and services tax (GST) is expected to come into force from July. So, with all these disruptions, the industry will remain in a state of flux till August or September this year,” Jain feels.

Exports

Jain will be also going to interpack 2017 but this time just as a visitor. Nipra participated in the last two editions of interpack as an exhibitor. It was Nipra’s first participation in interpack 2011 that opened the company to the global market. During interpack 2014, the company was at the metal packaging plaza. In the last five to six years, Nipra has managed to venture into some new areas in the Southeast Asian and African regions. About 15% of total turnover of Nipra comes from exports.

“Since our first participation at interpack, we have managed to capture new areas. We will continue to focus on exports,” Jain says.

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement ads1@ippgroup.in , for editorial info@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna

Subscribe Now
Previous articleSecond Lombardi Flexoline at Century Labels in Dubai
Next articleFlextrus’ advanced films
Correspondent-Mumbai Shardul has been working and editorially contributing to both Indian Printer and Publisher and Packaging South Asia since 2011, covering the western regions of India. He has extensively covered variety of verticals in both printing and packaging industries. On personal front, he has keen interest in sports and music.

LEAVE A REPLY

Please enter your comment!
Please enter your name here