Tetra Pak, the processing and packaging company, provider for liquid food manufacturing, is setting up a new packaging material factory in India at Chakan, near Pune.
The total investment in the new factory is expected to be around Rs 600 crore. This is the fourth green field facility worldwide of Tetra Pak followed by Russia, China and Pakistan.
The company has targeted five billion packages by 2013. In 2010, it has sold three billion packages with total revenue of Rs 850 crore.
It exports 50 per cent of the production to the Asian countries. Also, Tetra Pak is launching new products like flavoured milk, mango pulp juice and candy ice cream.
The total capacity of the new plant will be 8.5 billion packages per year, with the potential of scaling up to 16 billion packages across carton packaging materials as the Tetra Brik Aseptic (TBA), Tetra Fino Aseptic (TFA) and Tetra Classic Aseptic, making it amongst the top five packaging material plants for Tetra Pak worldwide.
The plant will also support the company’s growth in South East Asia and the Middle East. Commenting on this, Alejandro Anavi, Executive vice president, supply chain operations, Tetra Pak said, "We are committed to supporting our customers to meet growing consumer demand in these regions.The convenience of packed dairy beverages and fruit-based drinks, more people are becoming aware of the nutritional benefits of aseptically processed and packaged milk. There is more demand in Asian markets for packaging than Europe and we are moving our focus to the it. "
Globally it has closed down operations in Switzerland, Italy and UK.
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Tetra Pak has invested approximately Rs 150 crore in India which includes establishing the existing packaging material factory in India, also near Pune. The existing facility, which has now been in operation for nearly 14 years, is reaching its full capacity.
According to Kandarp Singh, Managing Director for South Asia Markets, "With strong economic growth, a dynamic consumer base and modernization of distribution and retailing there is high demand across all categories. With a capacity of 8.5 billion in the new factory, we are gearing up to reach the growing demands of the consumers." Singh added, "We will continue to focus on providing our cus tomers with the latest packaging solutions. This will make the Indian operations Tetra Pak’s biggest manufacturing facility in the South and South East Asia region.