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1.1 Industry Background

Packaging is the technology of enclosing or protecting products for distribution, storage, sale,
and use. Packaging also refers to the process of design, evaluation, and production of packages.
Packaging can be described as a coordinated system of preparing goods for transport,
warehousing, logistics, sale, and end use.

Packaging contains, protects, preserves, transports, informs, and sells. In many countries it is
fully integrated into government, business, and institutional, industrial, and personal use.
Package labeling (American English) or labelling (British English) is any written, electronic, or
graphic communication on the package or on a separate but associated label.

HISTORY

The use of paper for packaging, products like cardboard, paperboard, shipping sacks, and paper
bags, began as early as 1817. The types of paper-based packaging, as we know today, have been
through a number of huge transformations.

Evolution of Paper-Based Packaging

The 1990s: Recycling Impact

The upsurge in recycling in the 1990s further transformed the industry. More Old Corrugated
Containers (OCCs) were getting recycled to reclaim the fibers. While the fiberboard content
varies depending on recycling, it is still relatively higher in kraft-based content Also, Fibre Box
Association introduced a modular standard known as the Corrugated Common Footprint.

PACKAGING SPOTLIGHT

2010: LCA Test

Corrugated Packaging Alliance introduced, for the first time, the Life Cycle Assessment (LCA)
tests for corrugated boards.

The 2020s: Rise of Smart Packaging

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With the inclusion of NFC chips, QR codes and temperature sensors and augmented reality,
smart packaging will be at the forefront of packaging industry changes in 2020 and beyond.

General use of plastics in packaging applications has started after World War 2. Polyethylene
was produced in abundance during the war years and became an easily found material in the
market right after the war. In the beginning it replaced the wax paper used in bread packaging.
The growth in plastic packaging has sped up since 1970s.

With today's technology and conditions, these previous materials have been replaced by more
suitable and economic materials such as glass, metal, plastic, paper and cardboard. During those
years packaging was used only for transport and storage, but with these new materials it has also
begun to advertise the product. So now packaging is part of marketing policy. This is because
packaging creates the distinction between the same type of products sitting side by side on
shelves.

PAPER BASED PACKAGING

Set-up boxes were first used in the 16th century and modern folding cartons date back to 1839.
The first corrugated box was produced commercially in 1817 in England. Corrugated (also called
pleated) paper received a British patent in 1856 and was used as a liner for tall hats. The
Scottish-born Robert Gairn invented the pre-cut paperboard box in 1890 – flat pieces
manufactured in bulk that folded into boxes.

Gair's invention came about as a result of an accident: as a Brooklyn printer and paper-bag maker
during the 1870s, he was once printing an order of seed bags, and the metal ruler, normally used
to crease bags, shifted in position and cut them. Gair discovered that by cutting and creasing in
one operation he could make prefabricated paperboard boxes. Commercial paper bags were first
manufactured in Bristol, England, in 1844, and American Francis Wolle patented a machine for
automated bag-making in 1852

20th century
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Packaging advancements in the early 20th century included Bakelite closures on bottles,
transparent cellophane overwraps and panels on cartons, increased processing efficiency and
improved food safety. As additional materials such as aluminum and several types of plastic
were developed, they were incorporated into packages to improve performance and functionality

In 1952, Michigan State University became the first university in the world to offer a degree in
Packaging Engineering. In-plant recycling has long been common for production of packaging
materials. Post-consumer recycling of aluminum and paper based products has been economical
for many years: since the 1980s, post-consumer recycling has increased due to curbside
recycling, consumer awareness, and regulatory pressure.

1.2 Market Size

While exact figures for the total market size specifically within Namakkal may not be readily
available due to varying definitions and scopes used by different analysts, it can be inferred that
given the number of active manufacturers and the diversity in product offerings along with
competitive pricing strategies, the market size is substantial.

Estimates suggest that regional markets similar to Namakkal could range into several crores
annually when considering all aspects from production capacity to sales volume across various
sectors utilizing these packaging solutions.

In conclusion, while precise numerical data may not be available without specific market
research reports or surveys focused solely on Namakkal’s packaging industry, it is clear that the
market size for packaging in Namakkal is significant, driven by a robust manufacturing base and
increasing demand across various sectors.

1.3 Major Players

Several companies are recognized as major players in the packaging industry within Namakkal.
These companies typically engage in various forms of packaging solutions, including flexible
packaging, rigid containers, and specialized packaging for food and non-food products.
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 Packtech Industries: This company specializes in flexible packaging solutions and is

known for its innovative approaches to meet customer needs across different sectors.
 Sri Venkateswara Packaging: Engaged primarily in producing corrugated boxes and
other paper-based packaging materials, this company serves a wide range of industries
including agriculture and consumer goods.
 Sree Sakthi Packaging: Focused on providing eco-friendly packaging solutions, Sree
Sakthi has gained recognition for its sustainable practices while catering to both local and
international markets.
 Kumar Packaging: Known for its production of plastic containers and films, Kumar
Packaging plays a vital role in supplying various industries with necessary packaging
materials.
 Nandhi Polyplast: This company specializes in manufacturing plastic bags and films
used across multiple sectors. Their commitment to quality has made them a reliable
player in the market.

1.4 Government Policies and Regulations

Government Polices and regulations must navigate a complex landscape of regulations set by
FSSAI, BIS, CPCB, and recent legislative changes concerning labeling and material use in order
to operate successfully within India’s regulatory framework for packaging.

1.5 Recent Trends in the Industry

The packaging industry is currently experiencing several key trends aimed at enhancing
sustainability, efficiency, and consumer engagement. Here are the main trends:

1. Internet of Packaging: This trend involves integrating smart technologies such as QR

codes and RFID tags into packaging, allowing for enhanced brand-consumer interaction
and real-time product information.
2. Biodegradable and Recyclable Packaging: There is a significant shift towards using
materials that are either biodegradable or recyclable, driven by increasing consumer
awareness about environmental issues.
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3. Digital Printing: Advances in digital printing technology allow for more customized and
efficient packaging solutions, enabling brands to produce smaller runs with greater
flexibility.
4. Packaging Automation: The use of AI-driven robots for tasks like picking, placing, and
inspection is streamlining operations and reducing costs in the packaging process.
5. Active Packaging: This type of packaging helps extend the shelf life of products by
incorporating features that actively respond to environmental conditions, thus reducing
spoilage.
6. Custom Packaging: Brands are increasingly focusing on unique packaging designs to
stand out in a crowded market, appealing particularly to younger consumers who value
aesthetics.
7. 3D Printing: This technology allows for rapid prototyping and customization of
packaging designs, making it easier for companies to innovate.
8. Nanotechnology: The integration of nanotechnology into packaging materials enhances
their properties, such as barrier performance and strength.
9. Edible Packaging: Innovations in edible materials are emerging as a way to reduce
waste while providing functional packaging solutions.
10. Augmented Reality (AR): Some brands are incorporating AR into their packaging to
create interactive experiences that engage consumers more deeply with their products.

These trends reflect a broader commitment within the industry to adopt sustainable practices
while also leveraging technology to improve efficiency and consumer engagement.

1.5 Challenges for the industry

(i) Consumer Reluctance to Switch: Many consumers are hesitant to adopt eco-friendly
packaging alternatives due to concerns about durability and functionality. For example,
paper cups can become soggy when used for beverages, leading vendors to continue
using plastic-coated options despite their environmental impact.

(ii) Cost of Eco-Friendly Materials: The raw materials required for sustainable packaging
are often more expensive than those for plastic products. This cost difference makes it
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challenging for manufacturers to offer competitive pricing while maintaining

profitability.

(iii) Lack of Government Incentives: Manufacturers of eco-friendly packaging face

significant challenges due to the absence of government support or incentives that could
help offset the higher costs associated with sustainable materials.

(iv)Durability Issues: Eco-friendly alternatives do not always match the durability and shelf
life of plastic, which poses a challenge in meeting market expectations for packaging
performance.

(v) Regulatory Compliance: The recent regulations banning certain types of plastics and
recycled materials in food packaging add complexity and compliance costs for
manufacturers trying to adapt their products accordingly.

(vi) Market Demand vs. Supply Chain Limitations: While there is a growing demand for
sustainable packaging, the supply chain for eco-friendly materials is not as robust as that
for traditional plastics, limiting availability and increasing costs.

(vii) Competition from Established Plastic Products: The entrenched use of plastic
in various sectors creates a significant barrier for new entrants offering sustainable
alternatives, making it difficult to shift consumer habits.