Metal packaging catching up on consumer awareness

On the domestic front, tinplate packaging is growing by about 8-9 per cent, which is not up to the its potential in the country. On the other hand, the metal packaging industry is, of late, gaining momentum due to consumers' awareness and their fast-changing lifestyle.

Improving lifestyle of the Indian consumer is expected to boost tinplate packaging, which requires good quality steel and, hence, good quality iron ore, said B Muthuraman, managing director, Tata Steel, speaking on the sidelines of a seminar in Mumbai on Tuesday.

Muthuraman was chief guest at the second international seminar on tinplate packaging 'Connovation', which was attended by a good number of delegates from metal-packaging industries in India and abroad.

"The growth is set to evolve in India, but the winner is uncertain. It could be tinplate, plastics, pulp and paper or other packing materials," Muthuraman said in his opening remarks.

Indian metal packaging has not grown as fast as its competing materials because of non-availability, poor consumer awareness, lack of cost-effectiveness and inadequate linkages from tinplate producers to can makers, polishers, lacquerers and, finally, consumers.

Consumers in the west are well aware of the material they use for the protection of their health. Of course, the Indian consumer's mindset would also change and match that of its western counterpart, but it will take some time. "It will surely happen, but not overnight," he said.

"Metal packaging players need to come together with single objective "� to fight with competing materials "� to bring to the position it deserves. Tinplate has great features and that need to be used in the right direction and in a perfect manner. The whole value chain has to act in unison to reach the objective, and I am confident that it will happen some day," Muthuraman said.

On the steel industry, he said that the current decline in prices is a consequence of inventory pile-up, which can be overcome in the next three-four months, as domestic construction activities will take pace soon.

Muthuraman also said Tata Steel was planning to become 30-MT steel company beyond 2015. "We have already acquired NatSteel and acquisition of a greenfield plant in Bangladesh is on the anvil. Currently, we are focussing on expansion projects abroad and other greenfield projects within the country," he said.

The Tinplate Company of India Ltd managing director, Indian Institute of Packaging chairman and Tinplate Promotion Council chairman said currently tinplate is contributing only 5 per cent of total packaging materials in India as compared to 11 per cent in the developed countries. They said India is going to achieve double-digit figures, but will take some time. "India lacks regular innovations, but we are taking care of it. We are bringing in the Chinese model to India, and I am confident that the growth would happen in the future," Bushen Raina, MD of Tinplate Company, said.

He further said India was on the threshold of witnessing steering growth in tinplate making as the industry had been successful in producing tinplate of 0.14-0.15 mm thinness.

The industry needs clean steel for tinplate of which surface finish should be good because of a lot of forward integration on can making like lacquering, printing etc. Thus, apart from good technology, good quality of iron ore is required to produce good quality tinplate, Raina said.

The government had prepared a 'Draft Food Bill', which would be put up in the coming winter session of Parliament for clearance. If this was approved, the metal packaging would get a huge boost, Raina said.

Of late, Indian consumers are becoming discerning and more careful towards their health.

Tinplate Promotion Council is promoting marketing and consumer education. if, in this way, aggressive marketing and technical understandings are taken care of, the tinplate industry would see a good growth.