In order to tap the opportunities arising from rapidly growing dairy and non-carbonated soft drink sectors in India, Switzerland-based SIG on Wednesday formally commissioned Phase-1 of its first aseptic carton plant in Gujarat, constructed with an investment of Euro 90 million.
The company is now lined-up plans for Phase-II of development in this unit located at Bhayala near Ahmedabad where it will invest an additional Euro 50 million.
“This is our first aseptic carton plant in India and the 10th in the world. It has a capacity for printing and finishing 4 billion carton packs per annum and will employ about 300 persons. This facility also has the capacity to expand. We have approved Phase-2 of construction where we are investing an additional Euro 50 million. We will set up facilities for in-house board construction for packing material. This unit will be commissioned by 2027,” said Abdelghany Eladib, president and general manager of India, middle-east and Africa, for the company.
The official opening ceremony was held on Wednesday in the presence of Swiss State Secretary for Economic Affairs Helene Budliger Artieda and a Swiss economic delegation.
The carton packs produced in Ahmedabad will be used to service the company’s clients in dairy and non-carbonated soft-drinks including Amul, Milky Mist, Heritage, Parle Agro, ITC, Coke, Pepsi and others.
“India is a strategic area for us. It is among the top three countries in terms of dairy products, globally. India has the capability to become the Diary of the World. The opportunity lies in seeing how loose milk reaches consumers in a safe way. That is the role aseptic cartons play. Our products ensures a shelf life of 12 months and can be made available in different sizes and shapes, catering to different price points,” Eladib, who was in Ahmedabad for the inauguration of the new plant, told businessline.
India, the world’s largest milk market and a major juice-producing country, presents immense growth opportunities for aseptic packaging solutions. With less than 10% of its milk consumption packaged and a lack of cold chains, aseptic cartons are a safe, sustainable, and convenient solution, as they enable the long-term storage of nutritious food and beverages without the need for preservatives, energy-intensive refrigeration during distribution and storage.
In subsequent proposed expansions of this plant — Phase-3 and Phase-4, SIG plans to increase the carton production capacity to 10 billion.
“We are currently in line with our business plan in India and going forward we hope that Phase-3 and Phase-4 expansions also happen in line with our plans,” he said adding that the commissioning of the new plant will help SIG get 14 percent of its annual revenues from the India, Middle-east and Africa. India is the key growth driver in this region and we look forward to more growth from this region,” Eladib added.
Since entering the Indian market in 2018, SIG has experienced rapid business expansion, achieving robust double-digit revenue growth in 2024.
In the near future, the company is also targeting to export the packaging produced in the Ahmedabad unit. “We do not build factories to serve only the local market. So after we satisfy the Indian subcontinent, this unit is capable of tap export opportunities,” the official said.
Vandana Tandan, Head of Market India and Bangladesh at SIG, added: “India is one of the most crucial dairy markets in the world, and over the years, the beverage processing industry has also witnessed remarkable growth. This presents an incredible opportunity for us to cater to customers with innovative and sustainable aseptic packages to meet the evolving needs of consumers. We look forward to increasing our reach within the country and neighboring regions.
Source : The Hindu Businessline
