ITC Develops Shelf-Ready Packaging Solution for India’s FMCG Industry
Print this Article | Send to Colleague
ITC Ltd., Kolkata, India, has developed a shelf-ready packaging solution for consumer goods where the pack itself turns into a retail shelf, reducing the retailer's investment on shelves, optimizing space, and attracting consumer's attention faster, but possibly increasing costs for marketers, according to a report by Times of India. The tobacco-to-hospitality-to-consumer goods conglomerate, which also owns South Asia's largest packaging unit, believes its new packaging solution can transform India’s Fast-Moving Consumer Goods (FMCG) packaging companies the way that Sweden-based Tetra Pak did for beverages and dairy industries.
"Developed markets extensively use shelf-ready packaging solutions for modern trade. We believe this is a trend that will catch on in India, especially at a time when retailers are trying to reduce capital cost and we are getting ready for the same," said ITC's chief executive for the packaging and printing business R. Senguttuvan.
The company plans to soon pitch its shelf-ready solution to FMCG firms for whom it undertakes packaging, including Tata Global Beverages, GlaxoSmithKline Consumer Healthcare, Colgate Palmolive, Ferrero Rocher, Nestle, Goodricke, Lotte, Marico, Bayer, Reckitt Benckiser, Pernod Ricard, and United Spirits, besides its clients in Europe, Africa, and the Middle East.
ITC's packaging business is part of its paperboards, paper, and packaging division, which last fiscal year clocked a combined net revenue of 4,860 crore. Senguttuvan said the company plans to set up a new packaging plant in western India to tap potential growth opportunities, though it is yet to decide on a location. ITC currently has three plants — in Chennai, Haridwar, and Munger—which have integrated packaging and design units.
