INDEX

SR.NO. TITLE PAGE NO.

1 EXECUTIVE SUMMARY 02

2 CONCEPT OF TOPIC 03-04

3 COMPANY PROFILE 05-06

4  INTRODUCTION OF TOPIC 07-22

 OBJECTIVE
 CHARACTERISTICS
 PROS & CONS
 TYPES AND FORMS,
5 ROLE IN BUSINESS 23-27

6 CURRENT SCENARIO 28-31

7 FUTURE PROSPECTS 32-38

8 LIMITATION 39

9 SUGGESTION 40-41

10 RECOMMENDATION 42-43

11 CONCLUSION 43

12 BIBLIOGRAPHY 44

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 EXECUTIVE SUMMARY
Discover the latest market trends and uncover sources of future market
growth for the Packaged food industry in India with research from team of in-country
analysts.

Find hidden opportunities in the most current research data available,

understand competitive threats with our detailed market analysis, and plan your
corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Packaged food industry in India, our research will save
you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content
from the category reports in India for free.

The Packaged food in India market research report includes:

 Analysis of key supply-side and demand trends

 Detailed segmentation of international and local products
 Historic volumes and values, company and brand market shares
 Five year forecasts of market trends and market growth
 Robust and transparent market research methodology, conducted in-country

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 CONCEPT OF TOPIC
PACKAGED FOOD POSTS HEALTHY GROWTH IN 2017
Essential commodities like edible oils, dairy products and alternatives
contributed significantly to the double digit growth posted by packaged foods during
2017. The shift towards packaged food from unpackaged unbranded products,
premiumisation trend, competition among bigger brands and performance of smaller
categories is fuelling growth within packaged food.

CONVENIENCE AND HEALTHY EATING TRENDS

CONTINUE TO DRIVE SALES
The perception of packaged foods is changing among consumers as
there has been a significant rise in the convenience, availability and affordability of
such products across the country. With the onset of information sharing through
various sources like social and printed media, consumers are more informed about the
benefits and downsides of packaged foods, leading to better informed decisions while
consuming products.

SMALLER COMPANIES GAINING SALES SHARE AND

COMPETING STRONGLY WITH LEADING PLAYERS
Growth continues to be fuelled by the entry of new players, with the vast
opportunities on offer within packaged food attracting companies and fuelling a trend
towards competitive pricing and new product launches. Companies are looking to
attract consumers within areas like olive oil, spreads and ready meals by offering
promotions, new product developments and attractive packaging.

MODERN GROCERY RETAILERS SLOWLY GAINING

SALES SHARE FROM TRADITIONAL RETAILERS
Independent small grocers remained the largest and most preferred
distribution channel for packaged foods during 2017. However, the channel saw a
slight drop in sales share, mainly due to competition from hypermarkets, supermarkets
and internet retailing.

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GROWING NECESSITY, CONVENIENCE AND
AVAILABILITY TO DRIVE FUTURE GROWTH
Packaged food will continue to post double digit growth over the
forecast period, mainly due to rising demand for convenience as a result of the
increasingly hectic pace of modern life, as well as growing awareness and availability.
Essential commodities like edible oils, dairy, rice, bread and breakfast cereals are
dietary cornerstones and will fuel demand among consumers, while products like
biscuits, savoury snacks, confectionery, spreads, soups, noodles, pasta and ice creams
will remain the most dynamic categories over the forecast period.

4
 COMPANY PROFILE

RAJ PACKAGING INDUSTRIES LIMITED

Raj Packaging Industries Ltd., is engaged in manufacturing of

multilayer co-extruded plastic film, a packaging product. It is medium scale
manufacturing unit part of plastic packaging industry. It is a public limited company
having its shares listed at Mumbai & Hyderabad stock exchanges. Its corporate office
is in Hyderabad., state of Andhra Pradesh and manufacturing unit near Hyderabad.
The company is managed by Managing Director under guidance and supervision of
Board of Directors consisting of professional and seasoned personalities.

BOARD OF DIRECTORS CONSISTING AS FOLLOWS

» Shri. Prem Chand Kankaria, F.C.A - Managing Director
» Shri. Suresh Chandra Bapna, M.Pharma - Director
» Shri. V.S.N Murthy, M.Com, ICWA - Director
» Dr.R.R.Pujari PhD - Director
» Ms.Neepa Kankaria, B.E., M.S., (USA) - Executive Director

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 The company was incorporated in June, 1987 as Raj Packaging
Industries Pvt. Ltd., and it was converted into Public Limited company in may 1992
and changed the name as Raj Packaging Industries Ltd. The company has
commenced its commercial production in June 1989 by installing very sophisticated,
imported co-extrusion machines from M/s Paul Kiefel, Gmbh of Germany. The
Installed capacity was 600 MTs p.a and soon achieved this full capacity utilization.
The company had gone for expansion and put up another plant in the year 1995. The
company has added another co-extrusion machine in the year 2005. Today
company’s having total capacity of 2400 Mts. P.a consisting of two three layer
machines and one five layer machine.

Company is a leading manufacture of co extruded film for edible oil

packaging. Film made on sophisticated plant & machinery with the use of new age
advance raw material offers High seal strength, good Hot tack properties combined
with excellent dart impact to with stand the rigors of transportation. That is why
company is able to supply its film to almost all the oils packers in the state of AP.

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 INTRODUCTION OF THE TOPIC

Apart from the huge value addition and employment involved in these
activities, packaging has served the Indian economy by helping preservation of the
quality and lengthening the shelf life of innumerable products - ranging from milk and
biscuits, to drugs and medicines, processed and semi-processed foods, fruits and
vegetables, edible oils, electronic goods etc., besides domestic appliances and
industrial machinery and other hardware needing transportation. With water becoming
a consumer product, polymer material-based bottles are becoming a universal
presence.

Heightened competition in all product sectors within the country as also

the increasing need to look for export markets have contributed to the rising demand
for appropriate, and at the same time cost-effective, packaging material and
technologies.

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 The packaging industry’s growth has led to greater specialization and
sophistication from the point of view of health (in the case of packaged foods and
medicines) and environment friendliness of packing material. The demands on the
packaging industry are challenging, given the increasing environmental awareness
among communities.

II. CLASSIFICATIONS ~ PACKING INDUSTRY IN INDIA:

A. FUNCTIONS OF PACKAGES:

Protective Function Convenient Function

 Shock, Drop,  Transportation,
 Pressure, Vibration  Stocking (User, Ware
 Heat, House), Image, Design,
 Water or Moisture Size Protection,
 After Re-Use
Productivity
Graphic Design Psychological Function
 Design  Attraction
 Colour
 Size

B. CLASSIFICATION OF PACKAGING:

1. By Shape (Form or Size)

Heavy Packaging (Large)

 Container
 Wooden Packs

Medium Packaging Light Packaging (Small)

(Middle)  Flexible Packaging
 Carton Box  Bottles, Can (Small)
 Woven Bag  Paper Container
 Can, Barrel, Tub

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2. By Methods (Way of Packing)

 Vacuum Packaging  Gas Flush Packaging

 Aseptic Packaging  Moisture – Proof
 Retortable Packaging Packaging
 Shrink Packaging  Blister Packaging
 Strip Packaging  Skin Packaging
 Tamper – Evidence
Packaging
 Others

3. By Contents

 Food Packaging  Drug Packaging

 Cosmetics Packaging  Liquid Packaging
 Powder Packaging  Clothing Packaging
 Toiletry Packaging  Dangerous Packaging
 Others

4. By Materials

Rigid Packaging
 Bottle, Metal Can
 Wooden Box
 Metal Box, etc
Semi Rigid Packaging Flexible Packaging
 Carton Box  Paper, Plastic
 Plastic Bottle  Film, Alu- Foil
 Cellophane

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III. INDIAN PACKAGING INDUSTRY MARKET:

 The Indian packaging industry itself is growing at 14-15% annually. This growth
rate is expected to double in the next two years.
 According to the Indian Packaging Institute, Indian Packaging industry is USD 14
billion and growing at more than 15% p.a. These figures indicate towards a change
in the industrial and consumer set up.
The growth in the packaging industry in India is mainly driven by the
food and the pharmaceutical packaging sectors. The large and growing Indian middle
class, along with the growth in organized retailing in the country are fueling growth in
the packaging industry. Another factor, which has provided substantial stimulus to the
packaging machinery industry is the rapid growth of exports, which requires superior
packaging standards for the international market. With this the need for adopting
better packaging methods, materials and machinery to ensure quality has become very
important for Indian businesses.

The Indian packaging industry is dominated by plastic flexible

packaging. The traditional rigid packaging users have also been seen to shift to
flexible packaging in recent times. According to industry sources, the main reasons
for this is that flexible packages are found aesthetically attractive, cost-effective and
sturdy. Consumer preference for the use of convenient packaging and packaged
products in affordable quantities in laminates is also one of the main reasons that have
contributed to the growth of flexible packaging in India. The food-processing sector
is the largest user of flexible packaging, accounting for more than 50 percent of the
total demand. The flexible packaging segment is estimated to be growing at over 35
percent annually. Major players in the flexible packaging sector are Paper Products
Ltd. and Flex Industries.

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MARKET DATA:

The Indian market for packaging equipment is characterized by a few large

manufacturers with a nationwide presence along with a large number of small players
in the unorganized sector with a regional presence.

 Laminated products including form-fill-seal pouches, laminated tubes and tetra

packs are growing at around 30% p.a.
 There are about 600-700 packaging machinery manufacturers, 95% of which are in
the small and medium sector located all over India.
 Germany and Italy are the latest suppliers of packaging machinery to India but
focus is now shifting on Taiwan, Korea and China.
 Indian packaging machinery imports are USD 125 million.
 Indian packaging machinery exports are rapidly growing.
 India's per capita packaging consumption is less than USD 15 against world wide
average of nearly USD 100.
 The large growing middle class, liberalization and organized retail sector are the
catalysts to growth in packaging.
 Food and Pharma packaging are the key driving segments.

Although substrates like plastic have gained vast acceptability, attractiveness of

paper and paperboard consumption remains. Currently, India is ranked 15th in the
world for its paper and paperboard consumption and is expected to improve its rank in
the future. Paper is the fastest growing substrate segment with a growth rate of 6-7%.
The total demand for paper currently is estimated to be around 6 mn tones, of which
about 40% is consumed by the packaging industry. If the demand for paper continues
to grow at the same rate, total paper consumption is expected to reach 9.5mn tones by
2010.

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 Increasing investments by both domestic and foreign companies in the Indian
food processing sector, especially in beverages, dairy products, processed food, edible
oil, and marine products have expanded the market for packaging machinery. The
food processing industry has contributed in a major way to the growth of the
packaging industry. According to the Indian Institute of Packaging (IIP), only two
percent of India’s total processed food is packaged compared with 70 percent in
western countries. This forecasts large growth in this sector.

SOME IMPORTANT PACKAGING SUB-SECTORS:

I. CORRUGATED PACKAGING & SITUATION IN INDIA:

 A flourishing organised retail have raised the expectations that consumption of

corrugated packaging will begin to expand again as the number and volume of
goods packaged in corrugated increases. MNCs are demanding corrugated boxes of
international standards and the pattern of buying the packaging is changing.
 Prices of corrugated sheet and converted boxes have remained low due to the over-
capacity, manual operations and low productivity. Besides, transport constraints
and high freight costs have meant that small to medium sized corrugated box plants
are located near the customers.
 The over 4,000 corrugated board and sheet plants are highly labour-intensive,
employing over half a million people – both directly and indirectly. The industry is
converting about 2 million tons of Kraft paper into corrugated boxes. Factories are
spreadout in all parts of India, even in the remote industrially backward areas.
 This present scenario is already being challenged by the sweeping changes that are
beginning to take shape. More and more in-line automatic plants are being set up,
as corrugated box makers gear up to meet the new demands for high precision
boxes with attractive graphics and large integrated production capacities.
 Inline Automatic Board and Box making plants will ease out the present semi
automatic production processes.

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II. PHARMACEUTICAL PACKAGING & SITUATION IN INDIA

Pharmaceutical packaging occupies a considerable portion of the overall

drugs and pharmaceutical market in India and is growing steadily with the
same pace of the industry. Pharmaceutical packaging consists of various types
of glass, pet bottles, strip and blister packs, injectibles, ampoules, bulk packs,
etc.

The Indian pharmaceutical packaging industry is witnessing a spurt in

growth. Today, the packaging industry in India is considered a sunrise industry
and its linkages are extensive and highly employment creating. On one side, it
involves manufacture (and sometimes import) of a wide range of packing
material - paper, paperboard, cardboard, a range of polymer products including
rigid and flexible packaging material, aluminium foil, tin and good old wood
and steel. Other backward linkages of packaging including printing, labeling
and binding/adhesive tapes etc. Of course, machinery for making/processing
these products and for packing/packaging is another segment closely linked to
this industry.

Growth will follow upward trends in global medication consumption,

which will expand at a strong pace as aging demographic patterns lead to an
increasing number of diseases and disorders. Pharmaceuticals will assume an
expanding role in worldwide health care delivery based on new product
introductions and economical advantages over other forms of patient treatment.

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FACTORS AFFECTING GROWTH OF PACKAGING
INDUSTRY IN INDIA

1. URBANIZATION

Modern technology is now an integral part of nation's society today with

high-end package usage increasing rapidly. As consumerism is rising, rural
India is also slowly changing into more of an urban society. The liberalization
of the Indian economy, coupled with globalisation and the influx of the multi-
nationals, has improved the quality of all types of primary and secondary
packaging. Also industrialization and expected emergence of the organized
retail industry is fuelling the growth of packaging industry.

2. INCREASING HEALTH CONSCIOUSNESS

As people are becoming more health conscious, there is a growing trend

towards well packed, branded products rather than the loose and unpackaged
formats. Today even a common man is conscious about the food intake he
consumes in day-to-day life.

3. LOW PURCHASING POWER RESULTING IN PURCHASE OF

SMALL PACKETS

India being a growing country, purchasing power capacity of Indian

consumers is lower; the consumer goods come in small, affordable packages.
Apart from the normal products packed in flexible packaging, the use of
flexible in India includes some novel applications not usually seen in the
developed world. Products like toothpaste, toothpowder, and fairness creams in
laminated pouches are highly innovative and are not used elsewhere.

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4. INDIAN ECONOMY EXPERIENCING GOOD GROWTH PROSPECTS

The Indian economy is growing at a promising rate, with growth of

outputs in agriculture, industry and tertiary sectors. Overall economic growth
has proved to be beneficial for the consumer goods market, with more and
more products becoming affordable to a larger section of the population.

5. CHANGING FOOD HABITS AMONGST INDIANS

Changing lifestyles and lesser time to spend in kitchens are resulting in

more incidence of eating away from homes resulting in explosive growth of
restaurants and fast food outlets all over the country. Indians are trying out
newer cuisines and also purchasing similar food items for their homes.
Therefore, the review period has seen new products like pasta, soups, and
noodles being launched in India, fuelling the growth of packaging industry in
India.

6. PERSONAL HEALTH CONSCIOUSNESS AMONGST INDIANS:

With growing awareness towards contagious diseases like AIDS and

other STDs, awareness towards usage of contraceptives and disposables
syringes have increased the demand for packaging required for the same.

7. RURAL MARKETING PUSHING DEMAND FOR SACHETS

India comprises of a big rural market and there has been growing focus
on rural marketing, whereby manufacturers are introducing low-priced goods in
smaller pack sizes. Low priced sachets have proved to be extremely popular in
smaller towns and villages, where people do not prefer to buy larger packs due
to financial constraints.

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8. OTHER PROSPECTS

Packaging machines such as automatic form-filling and sealing

machines, tetra pack aseptic packaging machines for sterilized filling and
packing of liquids, and testing instruments offer considerable business
opportunities. The Indian packaging machinery manufacturers in the
unorganized sector mostly fabricate general-purpose equipment to serve the
basic needs of the industry.

One area that has been identified as having good market potential is
equipment for manufacturing aluminum beverage cans. Machinery for
cleaning and drying containers; automatic high speed labeling machines and
capping machines; sealing machines for cans, boxes, and other containers;
machinery for filling, and closing bottles and cans; packing/wrapping
machines; and moulding machines also offer good prospects.

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KEY SUPPLIERS

Indian imports of packaging equipment consist mainly of highly

automated advanced machines and systems. The major equipment suppliers to the
Indian market include Germany, Italy, Switzerland, and others including Taiwan and
the U.S.

Currently, there are an estimated 20 major companies in the organized

sector that manufacture packaging machinery. Technology, price, delivery, and
performance standards are critical factors that determine whether packaging
equipment can be sold in the Indian market. Due to intense competition in the end-
user market, the cost of equipment and low running cost remain one of the primary
factors that influence the sale of the packaging equipment. Upgrading would be
another extremely important factor in the buying decision of Indian end-users. After-
sales service is also a key concern of buyers.

Some of the major domestic equipment manufacturers supplying the

market are Flex Engineering Ltd., (Noida), ITW Signode India Ltd. (Hyderabad),
Print Pack Machinery Ltd. (Faridabad), Eagle Manufacturing Co. (Mumbai), Larsen &
Toubro for various type of packaging machinery; Acrofil India (New Delhi), S.P.M.
Engineering (Bangalore), E.C. Packaging (Faridabad), specifically for filling and
sealing machines; S.P Ultraflex Systems (Mumbai) for flexible packaging machines;
and Multi Pack Machines Pvt Ltd. (Hyderabad), and Primo Pack (Ahmedabad) for
pouch packing machines.

Many domestic firms have established joint ventures with foreign

companies to produce a variety of packaging machinery.

German companies are the lead suppliers of machinery for filling,

closing, sealing and labeling bottles, cans and boxes, and wrapping and aseptic
packaging machinery. U.S. firms mainly export filtering/purifying, wrapping, aseptic
packaging and form-fill-sealing machines and extruders.

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 OBJECTIVE OF THE TOPIC

 To motivate the food processing industries for adoption of food safety and
quality assurance mechanisms such as TQM including ISO 9000, ISO 2200.
 To prepare them to face global competition in post WTO Regime.
 To enable adherence to stringent quality and hygiene norms.
 To enhance product acceptance by overseas buyers.
 To keep Indian industry technologically abreast of international best practices.

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 CHARACTERISTICS OF PACKAGING FOOD INDUSTRY

All food packages can be generally described by the three fundamental

forms of rigid, semi-rigid and flexible. Rigid forms of food packaging have
experienced a long history of use. However, the flexible packaging market has
experienced exceptional growth in recent years due to several factors such as
increased consumer demand for package convenience, numerous package styles and
high quality package graphics compared to metal or glass. Over the years, many rigid
food packages have met the shelf life requirements (moisture barrier, oxygen barrier,
light barrier, etc.) from a single, homogeneous material such as steel, aluminum and
glass. However, flexible food packages are typically composed of a combination of
materials in an effort to achieve these desired properties. As a result, flexible
packaging converters, designers, and users are now required to have a thorough
understanding of the specific needs of each packaged food product in order to design
flexible materials that will provide maximum shelf life. This presentation will cover
the essential flexible packaging material requirements for various food products.

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 PROS AND CONS OF PACKAGED FOOD INDUSTRY

Packaged foods are considered the best alternative for cooking. Living
in a hostel has made me dependant on them to quite some extent. Here, I would like to
highlight some pros and cons of packaged food. But before talking about them let’s
know about some of the packaged food items. These are ready to eat meals, instant
mixes, canned food, vegetables and fruits, chutney pastes etc.

First let’s talk about its pros. Packaged foods are considered a boon for
people living away from home. They are ready to eat at any point of the day. Also
they are convenient to keep and store. They need not be wrapped nor kept in
containers for storing.

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 They are found safer and less vulnerable to contamination than the
unpackaged food. Though the Food and Drug Administration (FDA) have their doubts
on the safe use of recycled packaging, yet they are known to be safe. The shelf life of
such food products is more. They last longer and stay fresh for a longer period.

The food quality of packaged food is better as it packing provides

protection from physical and environmental damage during handling, transport and
storage of foods. Packaging such as glass, aluminium or plastic containers prolong the
shelf life of their contents. Last but not the least is the convenience quotient. They
save our time and effort from shopping to preparations and cooking as well.

After talking about all these benefits let’s have a look at their
disadvantages. Food packaging results in a lot of waste. It has accounted for a large
amount of waste in US. Packaging accounts for a percentage of all food
manufacturers’ costs, therefore increasing the final cost of the food and making it
more expensive than unpackaged food.

The biggest disadvantage is the effect of packaged food on health.

According to www.sustainabletable.org, food additives and artificial flavours that are
commonly included in packaged foods may not only reduce or worsen the flavour, but
may also prove to be unhealthy and/or unsafe for human consumption. Some of these
possible health risks include unexpected allergic reactions, indigestion and increased
susceptibility to a variety of diseases such as lung or heart disease. However to solve
this issue, many products are required to have the FDA food label. These labels not
only provide a list of all ingredients, as well as expiry dates, but also nutrition facts
such as serving size and vitamin and mineral content.

In the end it could be said that like all other the things packaged food
also has its positive and negative characteristics. And as said too much of everything
is bad, it goes true for this as well. It is for us to decide to what extent we will indulge
in these food items.

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 TYPES & FORMS OF PACKAGED FOOD INDUSTRY

The above materials are fashioned into different types of food packages
and containers such as:

Packaging Type

Aseptic
Primary Liquid whole eggs or dairy products
processing

Trays Primary Portion of fish or meat

Bags Primary Potato chips, apples, rice

Corrugated box of primary packages: box of cereal

Boxes Secondary
cartons, frozen pizzas

Cans Primary Can of tomato soup

Cartons, coated
Primary Carton of eggs, milk or juice cartons
paper

Flexible
Primary Bagged salad
packaging

A series of boxes on a single pallet used to transport

Pallets Tertiary
from the manufacturing plant to a distribution center

Wrappers Tertiary Used to wrap the boxes on the pallet for transport

Primary packaging is the main package that holds the food that is being
processed. Secondary packaging combines the primary packages into one box being
made. Tertiary packaging combines all of the secondary packages into one pallet.

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 ROLE IN BUSINESS OF PACKAGED FOOD
INDUSTRY

The food processing and packaging industry is an important global business

earning multi-trillion dollars. This is because of the rise in the living standards of the
residents of developing countries. Moreover, people are getting more aware and
conscious about their health. That is why, they are opting for packaged food. As a
result, the need to follow food safety guidelines becomes stronger and the rules
become more rigid.

Hence, this review paper includes the recent advances in food packaging
sector, which include active packaging, intelligent packaging, smart packaging, non-
destructive inspection methods, printing techniques, applications of robotics and
machineries, automation, architecture, software systems and interfaces.
Worldwide, the sales of processed foods are estimated to be $2 trillion
whereas that of packaged food range around$1 trillion. This is due to the enhancement
in the incomes in developing countries which has resulted in rise in standard of living
for their population. Further, people are opting for processed foods rather than foods
like rice and barley.

Packaging is the cornerstone of the food processing industry. The processing

and packaging industries transform the food from one stage to another by using
different types of techniques and methods. Hence, it must be driven by health and
hygienic factors, food safety, quality, fresh tasting and balanced nutrients. Beside
these, it must include toxin removal, marketing and distribution, maintenance of taste,
year-round availability and long shelf life.

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ADVANCEMENTS IN PACKAGING MATERIAL

The packaging materials are selected on the basis of specific type of

food. For example, oxygen-sensitive foods require packaging with some barriers
which prevents the spoilage caused by oxidation. The use of green plastics, which are
biodegradable and environment-friendly is increasing,as we know that there is lot of
waste generation from the food processing industry. Packaging material should be
developed in such a way to get more of recovery and less wastage. For example,
polyactide acid plastics, sugarcane pulp, fibre composite, starch-based films and so on.
Besides wood, glass, aluminium active packaging is the advancement where the
packaging material itself interacts with the food for longer shelf life and safety.
Similarly, smart packaging involves the usage of sensors while fuzzy logics and neural
networks are involved to get intelligent sensors. Nanotechnology-based packaging is
concerned with molecular level for shelf life enhancement. Nanotechnology-based
sensors and coating material are used to trace the product storage history.

ACTIVE AND INTELLIGENT FOOD PACKAGING

Active and intelligent food packaging plays a key role in the

preservation of food as it allows the package to interact with the food and the
environment. These advancements lower the oxidation, control the rate of respiration,
arrest the microbial growth and eliminate the moisture migration. Active packaging
technology basically includes carbon dioxide absorbers or emitters, odour absorbers,
ethylene removers and aroma emitters. It can manipulate the selective permeation of
various gases to the packaging materials. By using the coating, micro perforations,
lamination, co-extrusion, polymer binding; selective permeation can be manipulated
to alter the atmospheric concentration of gases inside the food package in accordance
to oxidation and respiration kinetics of food. Intelligent packaging is designed to
monitor and communicate the information about the food quality..

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OXYGEN SCAVENGERS

The presence of oxygen inside the package can accelerate oxidative

reactions which may result in food deterioration. Oxygen facilitates the growth of
aerobic bacteria, moulds which may lead to generation of off-flavour, off-odour and
reduce the nutritional quality. Therefore, oxygen scavenger is used to eliminate the
oxygen from the food package and to prevent the undesirable changes. Oxygen
scavenger can be in sachets that can be kept in headspace, labels, films or closures.
These are usually based on the principle of oxidation of iron powder, catechol (an
organic compound) oxidation, ascorbic acid oxidation etc. The combination of
enzymes like glucose oxidase and catalase can also be used to eliminate the oxygen
from the food package. The triggering mechanism like photosensitive dye irradiation
can also be allowed for the removal of oxygen. These are successfully used in the meat
industry.

CARBON DIOXIDE ABSORBERS AND EMITTERS

Carbon dioxide has the benefits as it retards the microbial growth in

meat, poultry, cheese and baked food products. It also lowers down the respiration rate
of fresh produce. It overcomes the problems of oxygen scavenger like collapsing of
package. Carbon dioxide available in various forms like moisture activated
bicarbonate chemicals in sachets and so on. Moreover, high levels of carbon dioxide
may cause the oxidative changes in the food. Therefore, it must be removed.

MOISTURE CONTROL AGENTS

The presence of excess moisture inside the food package is detrimental

to its quality, as it may lead to caking in case of powdered food products, softening of
crispy foods.

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ETHYLENE ABSORBERS AND ADSORBERS

Ethylene is one of the natural plant hormone formed during ripening of

the produce. It is responsible for the maturity, senescence of the produce. The removal
of ethylene from the food package will enhance the shelf life of the product. The
agents used for its removal are potassium permanganate which oxidises the ethylene to
acetate and ethanol. Moreover, activated carbon, zeolite can also be used for its
physical adsorption. These agents can be incorporated in the sachet form.

TEMPERATURE CONTROL: SELF-HEATING AND COOLING

These employ the usage of magnesium oxide or calcium oxide and

water to carry out the exothermic reaction. It can be used for plastic coffee cans,
military rations etc. whereas the self-cooling packaging involves the evaporation of
external compounds that eliminates the heat from the packaged contents.

AUTOMATION IN PACKAGING MACHINERY

Different machines are used on the production line for various foods.
These are cartooning, wrapping, labelling, shrinking, sealing, case and tray forming,
capping, cooling and drying, feeding, palletising, picking and placing (robotic system),
cleaning and sterilising along with the inspection and detection and so on. Robotic
system can be used for packaging of meats and chocolates into the trays at a faster rate
and also they fulfil the hygienic requirements as well. This system can handle four
production lines and multiple product types at a time.

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SAFETY, TRACEABILITY AND SUPPLY CHAIN

The main concern of food packaging is food safety, as many people die
because of food poisoning. Food safety regulations are given by FDA to overcome
such problems. Traceability is very important not only for food safety but also for the
authenticity of the product. Traceability is considered to be the entire information for
each step in the process chain. For this, barcoding and radio frequency identification
(RFID) systems are used. Radio frequency identification can easily monitor and track
the temperature, humidity and so on and also, manual scanning is not required in it.
Moreover, research is being carried out over development of biosensors and
interfacing devices like micro fluidic systems.

AUTOMATED INSPECTION

It is very important,as it is not only going to reduce the cost of labour

but also leads to higher productivity. Mainly x-ray-based and multispectral inspection
is used. The difference in absorption of x-ray is caused due to difference in density and
thickness of packaged food. Further, imaging techniques can also be used.

PACKAGING PRINTING AND SECURITY

The printing inks used should be safe to use and must be made from
organic compound. For plastic cartons or rappers, flexography printing process can be
used. The electron beam printing procedure can also be used which prevents the usage
of heat and light for coating and drying of adhesives.

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 CURRENT SCENARION
Right from the cultivation and harvest of crop, upto the consumption of
product by consumer, there is certain degree of value addition in every product. This
value addition can be of numerous types. As it goes from producer, to wholesaler, to
retailer and finally to consumer, every stage adds some value to the product. In this
value chain there may be value addition by Sorting, grading, packaging, branding etc.
These activities not makes product attractive, more usable, gives choice and
awareness to customers and also enhances shelf life of products. Apart from this
service rendered by intermediaries to pass on product from producer to customer is
also valuable.
Most of the agricultural products are not consumable in their original
form, for which they are processed. Wheat is converted into flour, Paddy into rice,
sugarcane into jagery, Sugar, ethanol, alcohol etc. These products can be further
processed such as flour into bread. Apart from this, left over part of crop such as risk
husk can also be processed to get some useful product for e.g. Rice Bran oil, cattle
feed, Sugarcane bagasse can be used for power cogeneration.
Hence, food processing not merely adds value to the agro products, but
also increases their utility. We know that activities in an economy are broadly divided
into Agriculture, industry and Services. Food processing Industry is the product of
agriculture and Industry.

Where India stands and why food processing is important?

India Food Processing Industry is estimated at $135 billion industry
which is growing at about 8% annually. This growth rate is significantly more than
agricultural growth rate which remains around 4%. These signals indicate toward
phenomenal shift toward food processing from traditional ways. GDP by processing
constitute about 10% that of agriculture. But given potential of India, this is an
underachievement.

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 India has about 26 types of different climatic conditions, 46 varieties of soils
are there in India out of total 60 types of soils worldwide. 127 ‘agro climatic zones’
have been identified in India. Also, Indian food is known worldwide for its unique
taste and aroma.
India’s regional and cultural diversity is perfectly reflected in food.
Every state in India has something unique to offer. For e.g. South Indian, Gujrati,
Bengali, Rajasthani and Punjabi delicacies are different and are admired in many parts
of the world. But they haven’t been able to make inroads in other countries the way
Mc Donald’s, Domino’s etc. has done in India. This is because lack of creativeness,
innovation, branding and most importantly shallow pockets of Indian manufacturers.
India is largest producer of Pulses, Mangoes, Banana, Milk, ginger,
Buffalo meat and 2nd largest producer of rice, wheat, potato, garlic, cashew nut,
groundnut, dry onion, green peas, pumpkin, gourds, cauliflowers, sugarcane, and tea
in the world. We produce 17 per cent of the global total of vegetables and 14 per cent
in the case of fruits. About 40 percent of the world’s mangoes and 30 per cent of the
world’s bananas and papayas are produced in India. Further, India has many unique
things to offer such as Alphonso Mangoes and wheat of Madhya Pradesh is uniquely
protein rich.
No surprise, that India is net exporter of agricultural products. But
value addition of Indian product remains quite low. Indian Manufacturers haven’t
moved much ahead in value chain. Say If mangoes are processed in to Mango Juice or
pulp; it will result in more value addition, industry, employment, GDP and foreign
exchange, but we export mainly mangoes as it is.
Indian agriculture is infested with post-harvest wastage problem. In
category of fruits and vegetables it is about 30-40%. Overall, cost of wastage is
estimated at about 18% ranging from 50000 crores to 1 lakh crore. Wastage is
attributable to several factors including non-availability of facilities for sorting,
grading, packaging, storage, transportation, cold chain and low level of processing of
agricultural produce. Food processing can halve this loss.

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GLOBAL SCENARIO
Food processing is one of the largest global sectors at $7 trillion annual
production. Look around and you’ll find companies of Cold drinks, Wafer chips,
Juice, restaurant chains to be among biggest ones. Italian pasta and pizza is now
consumed in almost all countries, so are the burgers and sandwiches. Sugar free
products, cornflakes, oats, ketchups etc. are among most demanded consumer goods.
Currently only 2 % of India’s vegetable and fruits production is processed. In
comparison USA and China processes their 90% and 40% produce. Other developing
countries, such as Thailand, Philippines, and Brazil are processing as high as 30, 78
and 70% of their produce.
India’s food processing sector ranks fifth in the world in exports,
production and consumption.
Importance of this sector is significant and it deserves a priority
treatment by government. Accordingly sector has been made part of ambitious ‘Make
in India’ initiative.

INFRASTRUCTURE

SUPPLY CHAIN –
Any product is mobilized from producer to consumer to be consumed.
This route is called supply chain. This movement involves both time and costs.
Lengthier supply chains will push prices upward and result in more wastage. In last
articles regarding marketing of agro-products we came across various government
policies and institutions, which among other things, increase number of
intermediaries. Adequate storage facilities, direct farming, contract farming and
negotiable warehouse receipt system are mechanisms to streamline, strengthen and
shorten the supply chain.

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STORAGE OF FOODGRAINS –
FCI deals only in food grains and about 67 per cent of the storage
capacity is concentrated in the six major procuring states namely, Punjab, Haryana,
Uttar Pradesh, Andhra Pradesh, Rajasthan and Uttrakhand. Several States have
emerged in recent years as important states for foodgrains procurement, namely,
Bihar, Odisha, Jharkhand, West Bengal, Madhya Pradesh and Chhattisgarh presently
account for 13 per cent of the current storage capacity.
Under the National Storage Policy, the bulk grain handling facilities are
now being created on the Built Own Operate (BOO) basis at identified locations in the
country. Much of the problem here can be relieved by timely offloading of stocks.

STORAGE OF HORTICULTURE PRODUCTS –

Mainly NAFED – it also owns godowns and cold stores.
India is currently having severe shortage of cold storage facilities. Significant majority
of cold storage facilities were created between 2000 and 2011, assisted to some extent
by interventions from National Horticultural Board (NHB), National Horticultural
Mission (NHM), Horticulture Mission in North East and Himalayan States,
Agricultural and Processed Food Products Export Development Authority (APEDA),
Ministry of Food Processing Industries and Department of Animal Husbandry &
Fisheries.
Cold stores are to some extent product specific. Majority of the cold
stores in India are dedicated to potatoes. There are some that provide storages for
chilies, dry fruits, spices, vegetables etc. Cold storage for meat, fish, milk and milk
products and for other commodities such as spices account for only 1 percent of the
total cold storage capacity. These cold storages are also usually smaller in capacity.

Nearly 96 per cent of cold storages are in the private sector and about
75 percent capacity of cold storages is used to store only potatoes while another 23 per
cent fall under the multi-product category.

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 FUTURE PROSPECTS OF PACKAGED FOOD
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33
WHAT ISSUES WILL AFFECT THE FOOD PACKAGING MARKET?

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34
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38
 LIMITATION
 Some of the pertinent issues are hygiene, toxins in packaging, environmental
effects and consumer protection.
 Packaging reduces exposures to contaiminants in the air and bacteria during
handling, which can lead to illness – including food poisoning.
 Food packaging increases the cost of food.
 Packaging is responsible for significant portion of the waste stream.
 Products with more packaging also use more resources in production.
 Harder to control fat, salt and sugar levels.
 Cost per serving may be higher thant homemade.
 Convenience food are typically high in calories, fat, saturated fat, sugar, salt
and trans- fats.
 They tend to lack freshness in fruits and vegetable.

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 SUGGESTION
Suggestions to strengthen the processing sector are as follows:

1. FOOD PROCESSING INDUSTRY SHOULD BE RECOGNIZED AS HI-

TECH INDUSTRY:

Food processing industry should be treated as Hi-Tech industry and

should be given status and support similar to IT industry as it involves
efficient postharvest management and contributions from bio & nano
technology. Once it enters into high value product area farmers can also reap
benefits. Example; Cooperative marketing mechanisms in dairy industry to
bring white revolution can be replicated for Green Agriculture.

2. ESTABLISHMENT OF MODEL AGRO-PROCESSING CENTRES:

A typical Agro-Processing Centre in the Catchments should be

developed (depending upon the commodity produced) and should be
functionally demonstrated for equipments & techniques for cleaning, grading,
drying, packaging, storage, transportation etc. Emphasis should be laid on
establishment of modern food agri zone and identification of export oriented
regional clusters. Steps should be taken towards establishment of Agricultural
Training Institutes (ATI's) in rural areas with emphasis on of Food Processing
Training Centers (FPTC) at community/ block/ district to fill the skilled
manpower gap. Rural woman should be encouraged to set up small scale
processing units under Self Help Group (SHG) formats.

3. REENGINEERING THE FOOD PARK MODELS:

Issues related to Food Parks should be addressed more carefully

specifically targeting the location aspect i.e. i) Consumption Centre and ii)
Production Centre. Above 50% of processed product market is in Urban/
Metro areas thus Food Parks should be Hi-tech and with Ultra Modern
facilities to reduce wastage and achieve economies of scale.

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4. TAX ISSUES AND PERSPECTIVES:

Tax incentives / holidays as accorded to IT companies should be

extended to food processing sector to facilitate its multifarious growth.
Further, excise exemptions for CAPEX items should be re-looked, On lot of
food products and raw materials for food products (eg confectionery products,
frozen foods, preparation for infants, etc), there continues to be high incidence
of custom duty. A lower tariff could provide a stimulus to the Indian food
processing sector, which uses imported and domestic raw material for the final
product. With the Government planning to introduce GST, it must be ensured
that all the existing tax benefits/ concessions are adequately subsumed in the
GST regime. Thorough review is required for mandi taxes and other such
taxes, as they are not being used for the right purpose of infrastructure
development.

5. ADHERENCE QUALITY AND SAFETY NORMS:

Remaining compliance to CODEX and Food laws should be addressed

to meet the international quality standards. Introduction of 'Certification
Zoning System' to facilitate high value exports (like Pesticides free zones,
organic production zones). Categorizing Food testing labs based on their
capability and designating identified labs as National Referral Lab. Food units
to encourage set up in-house labs to be recognized for self regulation.
Encouraging voluntary certification for ISO 22000 promotion of ISO 22000 in
SMEs phased implementation, South African model for ISO 9000 phased
implementation of ISO 14000 in Japan, UK and France etc. Emphasizing
regulatory checking through accredited agencies with varying frequency based
on risk category (swab samples and product samples).

41
 RECOMMENDATION
The food industry in India is yet to fully develop. Presently, only about
2 per cent of fruits and vegetables are processed. Other agricultural products
processing does not go much beyond the primary stage. Looking at the potential,
food processing industry can grow at more than 20 per cent per year. Accelerated
development of food industry will not come by itself and would not be qualitatively
good unless positive steps are taken by all stakeholders. The Conference addressed
these issues and made the following recommendations.

1- Development of food industry necessitates effective networking and

constructive partnerships between industry and Government, agriculture and
industry and industry and research organizations. The Ministry of Food
Processing Industries should set up a small Committee with 10-12 members
representing these interests to coordinate policies and activities.

2- The starting point of food processing is the availability of right quality of

agricultural raw materials. Hence coordination with farmers in the use of seeds
(including GMOs), fertilizers (including fortified fertilizers), pesticides
(including bio-pesticides), post harvest handling of agricultural products etc. is
extremely important.

3- Micronutrient deficiencies are widespread and a business model should be

developed to fortify foods. Food laws should be modified and Government
should evolve guidelines for fortificants to be used and the extent of
fortification to be undertaken in any product (as per cent of RDA)

4- Government had brought out a notification about nutrition labeling which is

currently under further review. The new draft notification will be open to
public suggestions in the light of which final legislation will be promulgated.
Labels have to be clear, accurate, truthful, scientific, consumer friendly,
practical and give all essential information to help consumer make his choice.

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 CONCLUSION

The food industry has observed major advancements in the packaging

sector with most active and intelligent innovations. These advancements have led a
way towards the improved food quality and safety. This paper has overviewed the
recent advances in the food packaging sector regarding the security and sustainability.
This new approach has mainly focussed on retarding the oxidation, regulating
moisture migration, microbial growth, respiration rates and improving the overall
system of food packaging sector. Various aspects of technologies, systems, standards
like advanced packaging material and machinery, automation and control solutions,
supply chain management, inspection system, usefulness of robotic platforms, and
software application have been reviewed.

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 BIBLIOGRAPHY
 Food Politics: How the Food Industry Influences Nutrition and Health :
M Nestle

 Quality Assurance for the Food Industry: A Practical Approach :

J.A.Vascancellos

 Instrumentation and Sensors for the Food Industry : Kress Rogers

 Competitiveness in the Food Industry : B.Trails.

WEBLIOGRAPHY

 www.google.com

 www.scribd.com

 www.wikipedia.com

 www.rajpack.com

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