Northern Technologies International Corporation and Harita NTI (HNTI), a TVS Group company, have signed an MoU with ITC Limited for joint development and commercialisation of biopolymer paper products targeted at the burgeoning consumer goods packaging market in India.
Northern Technologies and Harita are manufacturers of sustainable bio-based and certified compostable bioplastic materials.
The two companies are jointly developing solutions for the Indian market for providing biodegradable / compostable products such as food service ware, food packaging, personal care product packaging and other fast-moving consumer goods packaging.
NTIC's biopolymer technology platforms, manufactured in India by HNTI, will be integrated with paper manufactured by ITC's paperboards and specialty papers division (PSPD).
The two companies would also develop and promote joint branding and messaging for these products.
"This alliance promises to bring significant benefits to both parties as it creates a unique portfolio of sustainable environment friendly alternatives to conventional plastic products," said N Sriram, president of Harita NTI.
The existing market for flexible packaging in India is estimated at about $2.8 billion and is expected to grow by at least 14-15 per cent annually in the foreseeable future fuelled primarily by the enormous demand for consumer packaged goods by India's growing middle class, according to a company statement.
The development of biopolymer paper products becomes important given the growing opposition for the use of conventional plastics such as polyethylene and polypropylene in flexible packaging due to environmental and waste-disposal concerns.
