Tetra Pak set to expand in India

Swiss processing and packaging major Tetra Pak International SA will invest Rs 500 crore in its Indian operations to set up its second plant in the country, in Maharashtra. Tetra Pak India’s biggest clients include Parle, Amul, Dabur, PepsiCo and Coca-Cola.Tetra Pak group’s global President and CEO Dennis Jonsson said, “The Board has approved a new factory in India and once we finalise the land which would be near our existing plant in Pune, we will commence work on the turnkey project,” he said. The € 8.6 billion firm is targeting flagging off operations at its second India plant in about two years’ time. The company, meanwhile, is in discussions with Reliance Retail to partner its private dairy venture, in addition to various other potential partners.Mr Jonsson said that in many other markets, the privately-owned Tetra Pak has been opening new factories every second year. In India, however, the upcoming plant will be its first in a decade. “It is an indication of the potential and opportunities this market poses,” he said. On a short India visit to review local operations, Mr Jonsson said India was a high-priority market registering growth of about 20-25% though on a small base. The company’s penetration into sectors such as dairy is still under 1% in India – the biggest producer of milk worldwide. With food and beverage companies focusing on a slew of healthier drinks, convenience foods and cooking aids, and beverage firms gradually reducing dependence on glass, the Rs 750-crore Tetra Pak India sees huge growth potential in India. Outlining the firm’s growth strategy, Mr Jonsson said Tetra Pak was targeting two main segments – dairy and other beverage categories such as juices. “We are trying to partner with key companies in the beverage sector and additionally take forward our association with existing established partners,” he said. In other markets, Tetra Pak partners with makers of milk, juices, water, sauces and purees, soups, icecream, cheese and wine. On how Tetra Pak was coping with rising cost pressures and demands of more cost-effective packaging by companies, the global CEO said, “We are innovating on size, shape, functionality, performance, safety and efficient cost reduction.” Once the second factory commences operations, the company plans to channel surplus capacity to export markets in countries in South Asia and Middle East – its existing exports markets. Tetra Pak India MD Peter Hane-Weijman said that exports account for 40% of the company’s production as of now. Tetra Pak, with a presence in over 150 countries and operating 12 R&D centres, belongs to the Tetra Laval group, a private industrial group

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