CHAPTER - 1

I

CHAPTER- 1

INTRODUCTION

1.1 Introduction

1.2 Definition of Packaging Technology

1.3 Scope and Purpose of Packaging

1.4 Product Properties Influencing Packaging Development

1.5 Economics of Packaging

1.5.1 Introduction

1.5.2 Packaging Development Economics

1.5.3 Packaging affects Demand

1.5.4 Package Distribution Economics

1.5.5 Packaging Cost

1.5.6 Prices of Packaging Products

1.5.7 Consumerts Awareness

1.6 Importance of Packaging

1.7 Packaging Industry in the World

1.8 Packaging Industry in India

1.8.1 Introduction

1.8,2 Indian Institute of Packaging

1.9 Legal Protection

1.10 Packaging Units in Maharashtra

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CHAPTER_ I

INTRODUCTION

1.1 Introduction:

In earlier days, a package was only a container, then it got the role

of affording protection to the contents and ensuring an adequately

hygienic condition for the product. Today, apaft from containing and

protecting the product, the package is also a "Salesman" lending

personality to the product, motivating the customer by creating an urge

and impulse in him to purchase it. When buying goods, the primary

consideration of the buyer is the degree of satisfaction he derives in

relation to the price he has to pay. The three factors, which, go to

determine the consumer behavior are product; satisfaction and price.

Price is the sum of product and satisfaction.

For all products in general and consumer goods in particular, the

compelling problem is the need for a package and the selection of a

suitable pack. A package must not only conserve and preserve its

contents, but also SELL what it contains; e.g. the package has the

function of MOTIVATION, which is a vital too in marketing. Research

on "motivational function of package design" shows the impact the

design has on the subconscious mind of the buyer.

Today's package or container should not only serve its primary

purpose of sorting, preserving and giving information, but should also

take up the difficult task of a salesman and advertiser. In fact, the latter

functions have assumed even greater importance in recent times in

keeping pace with modern sales and marketing techniques.

Packaging is the science, art and technology of protecting products

from the over and inherent adverse effects of the environment. Packaging

1

is the integration of elements of materials, machinery and people to erect

and maintain barriers between the product and those external forces

inexorably seeking to revert the contents back to their essential

components. The package is the physical entity that functions as the wall

between the contents and the exterior.

Packaging development is perhaps as old as man's quest for

innovation based on necessity. The packaging ideas originated to make

transportation of material easier. For instance small object like grains

cannot be transported easily unless they are packed in some container

such as sacks. The next stage of packaging development aimed to do a

little more than ease of transportation, that is, the necessity to prevent

spillage and contamination. lnnovations in packaging developed

continuously since then.

1.2 Definition of Packaging Technology:

The packaging technology is defined by different authorsr and also

in the Acts.

1- Packaging is the science, art and technology of protecting to

products from the overt and inherent adverse effects of the

environment-

2. Packaging can be defined as the means of providing

protection, containment, presentation, identification,

information and convenience.

3. The coverage, which provides strength protection visual

appeal and retains the purity of the products is called a

packaging.

These are general definitions and applied to virtually all products.

However, no simile definition is given complete.

Technology is a word describing the application of science.

4

Although packaging technology has been employed for many years, no

professional society or college curriculum uses the word in its title as of

yet. But the concept is clear: the application of all the elements of

science, chemisbry, physics, biology and mathematics, to the protection of

products.

The origin of an encyclopedia of packaging technology is given in

the original work of the editors and publishers of a now memorable trade

magazine called Modern Packaging.

1.3 Scope and purpose of packaging:

The product itself must meet the needs and tastes of the final

consumers, preferably in a variety of markets, but it should also be

designed with distribution channels and destinations in mind.

The necessity is for producers to adapt their products to the

customer be they in domestic or export markets is self-evident. It is not

so evident that product design should also bear in mind the practicality

and the costs of delivering the product to the consumer. In relation to

packaging, the general rule is that the package must be suitable for the

product. In some cases, however, modifications to the product itself can

make it easier and more economical, to pack. A good example of this is

furniture, which can be designed as collapsible or for nesting and can

have legs and other protruding parts detachable. This can enable a

smaller pack, perhaps providing less protection, to be used.

Distinctions can be made between packages for domestic

distribution and for export. Although local packaging can be improved in

most developing countries, requirements should not be over-estimated,

and the packaging should above all be practical and cost effective. Thus

packaging quality should be sufficient to protect and preserve the product

and minimize damage, waste and contamination and should use

5

indigenous raw materials as mush as possible. However, even domestic

distribution systems are changing fast, for instance through the

introduction of supermarkets and self-service stores. Such changes are

having profound effects on the development of packaging, since many

products need to be pre-packed in some way to be handled through self-

service outlets.

By contrast, the quality requirements for the packaging of exported

goods should not be under - rated. Structural strength and sales appeal in

export packaging are often neglected by developing country exporters.

This omission can be disastrous when exports are directed to

industrialized markets with high living standards, intensive retall

competition and consumers who tend to judge a product by the quality ofits packaging.

In short today's package or container should not only serve its

primary pulpose of sorting, preserving and giving information, but should

also take up the difficult task of a salesman and advertiser. In fact, the

latter functions have assumed even greater importance in recent times in

keeping pace with modern sales and marketing techniques.

Customer also appreciates any product only if its packaging is

good. In fact customer sees packaging first even before he / she sees the

product itself. It means, no matter how good your product is, the

customer may not buy it if it is not packed properly. The perfect,

attractive and fashionable packing will satisff and make consumer huppy.

Naturally huppy customers means more sale and tinkling of the cash box.

Package in widest sense will include anything in which an article is

placed orpacked, €.g.box, bottle, casket, tin, barel, case, receptacle,bag,

wrapper, carton, net, sachet, jar, packet, anything in which an article is

placed or packed.

The consumer prefers pre-packed commodity for the reasons, vie

6

1) Reliability of quantity and quality 2) competirive price

3) Convenience 4) Modern 5) Time saving 6) Can choose according need

7) Wide variety of products 8) Wide variety of Size 9) Easy selection

10) Easy comparison 11) Self-service in departmental stores super

bazaars or co-operative stores 12) rn case or poor quality false package,

redressal or filling or complaint easy 13) Relevant information provided

on the package.

According to the Rule No, 6 of the Standards of weights and

Measures (Packaged Commodities) Rule 1977, the manufacture of packer

fixes a label with the declaration on packaged commodity, viz. A) Name

and address of manufactures / packer, B) Common or generic name of the

commodity packed, C) Net contained in the package, D) Month and year

of manufacturing / packaging, E) Market Retail price (M.R.p.),

F) Additional relevant information.

with the progress of time and the public becoming more and morc

sophisticated, their likes and dislikes continually undergo a change and so

do also their buying habits. The marketing executives are normally

averse to introduction changes in package designs particularly when the

product is doing well in the market. Nevertheless, it is important to

rcalize that with the continual change in buying habits and the likes and

dislikes of the public, changes in packages design will be necessary and

should be welcome. Or else, there will be no improvement at all and the

product will suffer backslide.

Packaging affects all stages of the buyer decisions process fromproblem recognition to post purchase behaviour, especially for routinepurchases of low involvement goods. Seeing a package can stimulate

recognition of a problem that could be solved by the product. package

graphics can facilitate information search, evaluation of alternatives and

the purchase decision, by showing the attributes that differentiate the

7

product inside. After the product is purchased, packaging shows how to

use the product, and encourages a repeat purchase. Packaging can also

play a role in purchases that require more extensive problem solving

without the help of salesperson.

In fact, as consumers become more knowledgeable there is

growing recognition that packaging actually saves waste, and makes an

important contribution to lifestyles now enjoyed throughout the world.

The packaging industry has made remarkable strides during the

past decades, stimulated not so much by environmental concerns, but by

the need to develop new materials, new processes, new packaging

machinery and new skills to offer opportunities to manufacturers and so

maintain healthy businesses. Reduction in packaging has resulted from

rnajor shifts in types of pack by substitution, for example from glass to

plastic bottles for beverages, toiletries and sauces; from cans to flexible

pouches for soups; from metal to pet for agrochemical liquids; metal to

polypropylene for paint cans; and from glued paper wrappers to cold

sealed plastic film structures for confectionery bars.

Light weighting has also been dramatic, in ten years there being a

reduction of up to 30 o/o in the weight of materials used, for example in

pet bottles, open top cans, comrgated cases and glass containers. Light

weighting has not been widely publicised as the process is usually in

incremental steps over a period of time, but adding up to significant

progress. One would expect this light weighting to continue in the future.

And if this is at a similar rate as in the past, many of the targets set for

reducing the amount of packaging will be relatively easy to achieve.

Good packaging cannot compensate for bad product quality - itmay assist one sale, but if the product does not live up to expectations

ereated by the design, the customer will not make repeat purchases.

8

1.4 ProductProperties InfluencingPackagingDevelopment:

First of all the general character of the product should be

considered, i.e. whether the product is food, drug, cosmetic, beverage,

chemical and machine part etc. Different products may have different

packaging legislations to comply such as Package Commodity Act,

Weight and Measure Act etc. and these must be understood right from the

beginning. Other aspects needing consideration are:

A. Physical Form:

This is important in the development of packaging. For example

packaging required is bulk or small unit, solid, liquid or gas or a

combination of these. In case the product is solid, is it in powder form or

granular form and if the product is liquid, is it thin or viscous. All these

product properties need consideration.

B. Speciat Properties:

While designing the pack, special properties of the product such as

heat and light sensitivity, g&S barrier requirements, moisture protection

etc. must be considered. Similarly certain food products are susceptible

to insect infestation. The pack should provide protection to such hazards.

It is very important to anticipate and define all the requirement ofthe pack at the beginning itself to avoid last minute design changes. For

this purpose, a checklist will be very helpful to keep track of all

requirements. The packaging development manager can consider pack ofsimilar product for design and material of construction.

C. Packaging relation to product manufacture:

Production requirement imposes various restrictions in the design

of a pack. For instance certain methods of forming cans and containers

will not permit the depth of the container to exceed a specified ratio to the

9

diameter. Diameter of the container can affect the filling speed. Fillingline speed will also have bearing on the type of adhesive to be used forthe label. The packaging development manager must be fully conversant

with the production process to anticipate packaging constraints.

D. Marketing Requirements:

It is the usual practice for the marketing department to demand

fancy and expensive packaging. The packaging development manager

must be aware of these requirements from the start. He should design the

packing as closely as possible to the marketing requirement keeping in

view the functional properties and cost.

E. Packaging and productivity:

Packaging in the modem time is very well inter-related with

productivity. Packaging can influence productivity in many industries.

For instance, the speed of packaging can influence production output. Acase in point is the faster sealing properfy of some of the recent packing

material like surlyn. Introduction of surlyn as a wrapping material had

considerably increased the output in a confectionery factory. Similarly,

where there are products that are difficult to store in bulk after

manufacture) a faster packing line will increase output. Efficiency ofpackaging will therefore contribute to increased productivity.

F. Selection of pack design:

Having considered the above check list, the packaging engineer can

now prepare a list of possible package design within the technical

feasibility. The list will include material specification, method ofmanufacture and estimated cost. The design can then be consumer tested

to elicit consumer reaction to the pack.

G. Evaluation of pack:

Along with product shelf test evaluation, the packaging also

l0

undergoes evaluation. These evaluation include travel test etc. initiatlythe pack should be designed for all over adequate requirement. Cost

reduction can be effected after studying the product in the market for aperiod of time and judging whether the pack is over designed.

Today the consumer expects fancy and convenient packing system.

He is willing to pay a premium for this. The package design will be

major factor in the success of a product. Having made the product and

designed the packing, the product should be test marketed to obtain

consumer views whether he is willing to buy the product. This will also

reveal shortcomings in the pack design, if any and product deficiency. Adecision then can be taken to modif the pack design, improve the

product of drop the project all together.

1.5 Economics of packaging:

1.5.1 Introduction:

Packaging affects every part of our market economy. The most

obvious component is the packaging supply industry. It may be less

obvious that packaging affects the cost and demand of every product and

factor of production, from food to building materials, to auto parts. Allproducts are packaged in some way and many have been repacked several

times before use. Every manufacturing operation purchases packaging.

Disposal costs accrue to all customers (households and industrial

customers). Most service businesses buy or use packages and incur costs

related to them. Retailing and distribution industry economics are also

affected by packaging.

In a developed market economy, packaging plays a major role indifferentiating products. Per capita packaging expenses is relatively high,

about $280 / year, in order to provide good protection and communication

in long and complex marketing channels.

l1

Packaging plays a significant role in a nation's economic

development. Generally, the expenditure on packaging is much lower inless developed countries.

Packaging affects every part of our market economy. There is agrowing awareness at the financial level in major processing - packaging

corporations that packaging represents a significant proportion of the cost

of doing business. Even at 5 - l0 oA of the retail price, packaging cosrs

can amount to hundreds of millions of dollars for a multi - billion - dollar

food or beverage firm. It should be recognised that packaging costs must

be analysed in a systems approach, where the basic component purchase

price is only one factor among many.

1.5.2 Packaging development economics:

The decision whether to develop a new product or package is amarket responsibility. In 1990, over $142 bitlion was spent on research

and development in the united States. Most businesses get a highpercentage of their sales and profits from new products.

Most packaging development activities are performed by personnel

in the firm that makes a product and buys and fills the packages. The

costs are associated with the time spent by packaging professional and the

team responsible for decisions and implementation.

1.5.3 Packaging affects consumer demand:

Packaging affects the demand for products. It can increase the

quantity demanded of a product by reducing its cost. For example, as

developments in packaging technology have reduced the cost ofprotecting processed food, the market has growth to include more low -income consumers.

Packaging aan also increase the absolute demand for a product byproviding features that attract a new category of consumers. For

t2

example, the market for paint was increased by the introduction of "spray

paint" to include consumers who has never painted before.

Packaging is used as a tool to differentiate products for market

segmentation strategies. Buyers have unique needs and can be segmented

into broad classes. For example, consumers with physical disabilities

need easy to open packages.

1.5.4 Package Distribution Economics:

Packaging can dramatically affects the cost of distribution.

Transportation costs are directly related to packaging cube and weight

efficiency. Methods to reduce the size and weight of packaging include

concentrating or nesting products, shipping products unassembled, light

weighting containers, improving the efficiency of stacking patterns in unit

loads and vehicles, substituting slip sheets for pallets and reducing the

volume of cushioning materials by decreasing the fragility of products.

Sometimes postponing packaging to a later time and place, for example

packing to order, can reduce packaging cube and investment

dramatically. Material - handling cost is also related to packaging; the

productivity of operations like vehicle unloading and order picking

depends on packaging configuration. If packages are manually handled,

the cost will be much higher than if the packages are unitised in order

quantities.

The cost of the unutilised materials is often offset bv more

economical handling.

Returnable packaging can often reduce distribution packaging cost

if the shipping cycle is short in time and distance and if the shipper and

consignee can work out the partnership details of ownership and cost

sharing. Most returnable packages are initially more costly than single -trip packages, but the per trip cost can be lower. Potential returnable

13

packaging investments should be evaluated on the basis of net present

value to judge the investment's expendable packaging disposal cost,

number of containers required for the logistical cycle, packaging

management costs and return storing, cleaning and transport costs.

The cost of distribution damage is directly related to packaging

protection. But damage is not necessarily related to packaging cost.

Often the cost of damage and packaging can be reduced simultaneously

with a redesign that uses less materials or by substituting less expensive,

yet more protective, materials. Sometimes it is more cost - effective to

distribution damage cost is an important step in reducing packagi.tg -related costs.

1.5.5 Packaging Cost:

Packaging costs depend on the materials and production methods

employed. The choice of materials generally depends on the protection

required and the marketing requirements. Protection and preservation

needs depend on the nature of the product and its logistical system;

fragile products and packages that witl be roughly handled during

distribution require more protection that do rugged products; and for

perishable products to be stored, more preservation is required.

There is growing recognition that package system development

should begin early in the product development process. packaging -related cost tradeoffs are much easier to explore before the product is

fully developed. For example, product modification to reduce fragility

may be more economical that improving package protection.

Most materials and graphics are less sophisticated, the process tomake and fill packages is more labour - incentive and machinery is

slower and less efficient that in industrialised countries. Food is not

shipped long distances and is more likely to be purchased fresh rather

t4

than processed and packaged. There is less variety and much greater

losses due to spoilage. But the packaging that exists is generally

economical, material recovery systems are efficient and there are many

creative packaging applications using indigenous materials and

appropriate technology. Packaging varies enorrnously throughout the

developing world.

Improvement in packaging can facilitate economic growth by

increasing the efficiency of marketing food and other products and by

adding value to exports. Packaging can reduce the cost of food and

increase its supply by preventing losses, which can be as much as 50 yo

for some foods in developing countries. The best way to improve the

value of exports is to package products rather than shipping in bulk.

There is a growing demand for more sophisticated packaging materials

and methods to be used for export packaging. There is increasing

realization by govefflment authorities that investment in packaging by

government authorities that investments in packaging technology can

yield economic benefits and the United Nations has implemented

programs to develop human resources in packaging and make

information more easilv accessible.

1.5.6 Prices of Packaging Products:

The prices of packaging products are also affected by competition,

vertical integration and opportunities for inter-material substitution.

Prices are affected by general economic conditions such as recessions that

result in oversupply and growth cycles that strain production capacity.

The export demand for goods and for packaging materials also affects

prices.

Packages can be purchased directly from the converters or from

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independent distributor. While a converter may offer a lower price forhigh - volume orders.

1.5.7 Consumerts Awareness:

one of the main sources of comrption, cheating and black

marketing is short weighing. The weights used for weighing are under

standard. The scales are deliberately so manipulated that they weigh less.

The consumer is cheated. He cannot check the scales, weights and

measures. He has no time. The seller also does not permit it.

Loss of money is not the only tragedy from short weighing. Itresults in mixing lesser ingredients in mixtures that required according to

formula. In case of medicine this shortcoming in manufacture ofmedicines can create havoc.

The remedy of this malady lies in great vigilance on the part of the

government. There is a special department of government to check

shops, weights, measures and scales, still the disease is continuing.

The reason for this is lack of civic sense in shopkeepers and the

personnel of the Weights and Measures Department. But another reasoR

is lack of knowledge of the law on the subject.

1.6 Importance of packaging:

A. Good packing cannot compensate for bad product quality it may

assist only sale, but if the product does not live up the expectations

created by the design; the customer will not make repeat purchases.

Packaging can also increase the absolute demand for a product by

providing features that attract a new category of consumers.

Packaging is used as a tool to differentiate products for market

segmentation strategies.

B. The package must be designed so that the product stays in perfect

condition until it reaches to the end user.

C.

D.

l6

The package must promote the sale of the product in the short and

long term. once a package has fulfilled the requirements ofcontaining, protecting and facilitating handling, it must then be agood 'salesperson' for the product.

The possibilities exist for development of traditional packaging to

meet modern requirements, for instance, by combining indigenous

packaging materials with imported modem ones. Such solutions

may be more environmentally acceptable in target markets than

those, which use only synthetic, non-renewable materials. Some ofthe primary plastic, paper and paper boards, glass, jute and wood

enjoy a prominent position.

Packaging is a small portion (only 5 %) of total steel production,

but is over 25 oA of total aluminum production. The metal

packaging industry is one of the most concentrated of packaging

E.

industry. Paper plays

estimated that 60.7 %

important role in packaging. It is

the packaging materials used today

an

ofconstifutes of paper and paper derivatives.

1.7 Packaging industry in the worldz:

Packaging plays a significant role in a nation's economie

development. Generally, the expenditure on packaging is much lower inless developed countries. Most materials and graphics are less

sophisticated, the process to make and fitl packages in more labour -intensive, and machinery is slower and less efficient than in industrialized

countries. Food is not shipped long distances and is more likely to be

purchased fresh rather that processed and packaged. There is less variety

and much greater losses due to spoilage. But the packaging that exists

generally economical, material recovery systems are efficient, and there

are many creative-packaging applications using indigenous materials and

T7

appropriate technology. Packaging varies enofinously throughout the

developing world.

In a developed market economy, packaging plays major role in

differentiating products. Per capita packaging expense is relatively high'

about $280 I year, in order to provide good protection and communication

in long and complex marketing channels.

Many developing countries have, since generations, been

participation in international trade as suppliers of certain commodities

like tea, coffee, spices, eocoa, sugar, natural rubber, etc. mostly in bulk or

semi - processed form. Much of these goods are still packed in the

traditional way, often using indigenous packaging materials such as, for

instance, jute fabrics or wood. These types of packages afe seldom

suitable for handling in modern distribution systems and will have to be

adjusted or completely changed to meet the new requirements of the

markets. A case in point is packaging of tea in butk where the traditional

plywood tea chests rapidly are giving way to multi - wall paper sacks,

unitized on pallets and transported in freight containers. Changes,

probably quite dramatic, might also be expected soon for bulk packaging

of coffee and black pepper.

By the end of the 19fr Century the industrial revolution had created

a high level of productivity and mass transportation means for moving

products to the consumer. The consumer has become choosy as he

acquired on increasing level of purchasing power. Quality and protection

of goods assured importance. Legislation also come into being in respect

of sanitation and purity in food, drug etc. unit packaging has been

evolved for greater protection to the product and for brand identification.

With the advent of affluence, education and frequent travels, the

packaging development made rapid strides. Apart from protection of the

content, consumer started looking for convenience in packaging. Thrm

l8

easy opening devices, easy re-closure devices; smaller unit portions etc.

are the nonns in packaging. Today a product cannot be successfully

marketed if the packaging is not attractive and convenient. F{ence,

packaging has immediate and long-range influence on sale and profit of

product. In today's competitive market situation, packaging development

assumes great importance in most of the successful companies; packaging

development is an important function.

Packaging is a $300 billion worldwide industry with about one

third or $100 billion inthe United States. The expenditure of this much

money has carefully and frequently reviewed by independent financial

professional and found to be coast effective. Some might lament that

since packaging is not apart of the product, it is no needed. Others have

cried, and continue to state, that the package materials are useless after

their immediate protective function has been fulfilled and therefore

should be restricted or banned. These arguments have been heard for

decades from persons who continue to benefits from the performance of

packaging. When they eat, they are safe guarded because their food has

been protected by cans or bottles or purchase or bags or cartons. When

they sick, their pharmaceuticals are sterile.

Packaging represents a large segment of the U.S. economy.

Included in the packaging industry are the manufactures of packaging

materials, the manufacfures of packaging machines, ffid the packaging

operations in every manufacturing firm.

Industry shipments of packaging materials in 1989, for example,

were 567.4 billion, and sales of packaging machines were $2.498 billion.

Combined these represents 25 yo of all U.S. Manufacturing Shipments

(see Table No. 1). This estimate does not include the nation's packaging

operation costso since the data are not available. The packaging industries

1.8

l9

performance parallels the nation economic performance, since almost all

products are packaged.

The amount of packaging materials used per product varies

enorrnously, and depends on the product characteristics and marketing

requirements. Consumer products use 78 yo of the packaging produced

and industrial product use 22 o/o. Of consumer products, the largest

segment is the food and beverage industry, purchasing over $36 billion /year. For the top 100 packaged brands, producers spent over $12 billion

for packaging in 1993 and 20 %o of the nation's total packaging material

expenditure.

Packaging Industry in India3:

1.8.1 Introduction:

India has built up a strong agro-horticultural base and the industrial

sector definitely pints to that level of growth. The compulsions of export

and market needs also demand newer systems of packaging materials and

forms. It is therefore of importance to evolve suitable strategies for the

growth of the packaging industry in the country. Currently the

agricultural sectors employ 18 percent of work force and contributes to

19 percent of industrial production. The demand for processed foods

during 1991 in the urban sector and exports is about Rs. 6000 crores but

is estimated to make a quantum jump to the level of Rs. 40,000 crores,

exports contributing to the tune of Rs. 15000 crores. The growth rate ofpharmaceutical indusby is also expected to be around 30 percent. The

engineering sector has kept a target of Rs. 10,000 crores by value ofexports by 1995, from the present level of Rs. 4500 crores. Similarly the

electronic goods exports are envisaged to double by 1995 from Rs. 980

crores of 1991.

The packaging indusfiy in India holds a good promise and

20

excellent potential never comes to a debate. What is more important is to

identiff the technology needed, infrastructure to be built-up, the right

material and machinery with specific reference to domestic product and

markets and other influencing factors.

In modern India, we are living with many paradoxes. While we are

most modern and advanced in some areas, we are also considered

backward in many. To every new concept there is always segment ready

to oppose. Yet we are progressing and adopting technologies and

materials, which provide as convenience and economies. In the

beginning i.e. in the old day's people used to give protection,

transportation and preservation, wooden boxes i.e. or metal boxes.

According to the development of the society, people found some durable

and cheap material for their household as well as luggage, soft wooden

i.e. blimsy (soft and thin) for giving protection, godown - transportation.

Wood and plastic and tin happen to be one such group of materials, which

is the most recent entrant in the area of food, fruits and household

rnaterials. Packaging and find a growing use in societies.

On the technical side, the packaging industry in our country has

made tremendous progress in a short space of time - we have latest

automatic machinery, precision gadgets and sophisticated quality control

equipment and so on, to manufacture containers of unlimited variety ofmaterials. We have developed the resources and facilities to manufacture

these in unlimited quantities, though we are faced wit shortage of raw

materials occasionally. But have we made the same progress in the field

of package design? Have we developed packaging as a "silent

salesman"? The answer is decidedly on the negative and we have to

admit that there is vast scope for improvement in the quality of design of

our package.

Many developing countries like India have centuries of experience

2l

in exporting their basic commodities. The distribution systems were

established generations ago, business contacts are long-standing and there

have been few major difficulties. However, the rapid development ofpackaging technology and of transport and handling methods poses new

and difficult problems, even for well-established products and theirexporters.

The packaging industry in India is a heterogeneous mix of both

organized and unorganized sectors. They comprise of number ofmanufacturers of basic materials, converted packages, machinery and

ancillary materials which are primarily in the small scale sector. On the

plea that India is poor and that therefore, consumer cannot affordpackaged goods / foods. It must be maintained that industry and trade

had not shown that dynamism to help the cause of consumer protection

through improved packaging. If their arguments were true it is difficultto understand the success achieved by a large number of trans - nationals

with in the country who have popularized packaged food.

Happily the challenge has now been taken by teading national co-

operatives and among them it is different not to mention the annual

experience. The modem packaged distribution of fairly long time milkby Amul at a cost below the retail market price in the distant parts ofIndia has come as an eye opener to many and an extension of this

concept.

Table No. l.l indicates approximate consumption of packaging

material in India during the period from 1984 - 2000.

It is observed from the Table No. l.l that the consumption ofplywood packaging is 20 million sq. meters in India and it is the highest.

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Table No. 1.1

Apparent consumption of packaging material inIndia During 1984 - 2000rl

Sr.No. Item Quontity (Millions)

I Jute 1.002 Paper and board 0.083 Glass container 0.044 Black plates 0.025 Tin Plates 0.036 Aluminum 0.027 Plastics 0.01B Cellophane 0.019 Timber (Mill cut Mts.) 0.01IO Plywood (Mill sq.m.) 20.00

Source: "Artha Samvad", Marathi Arthashastra parishad euarterly Issue,

Oct. - Dec.2002.

1.8.2 The Indian Institute of Packaginga:

The importance of packaging for export was given due recognition

in the early 1960s, when the government and industry joined hands to

create the lndian Institute of Packaging (IIp) in 1966 with the specific

objective of improving packaging standards.

Activities of the institute today are in line with those of the premier

packaging institutes the world over training and education, consultancy

and projects, laboratory testing, Q.C. schemes, exhibitions and design,

information services, besides promotional activities.

The institute is closely liked with international orgarizations. It isrecognized by the LINIDO (United Nations Industrial Development

Otganization) and the ITC (lnternational Trading Centre) for consultancy

and training. The IIP is a member of the Asian Packaging Federation

(APF); the Institute of Packaging Professional (Eopp), USA; the Institute

of Packaging (IoP), uK; Technical Association of pulp and paper

Industry OAPPI), usA and the world packagin g organization (wpo).

A.

new,

own

scale

some

23

Trade liberation and exposure:

Indian packaging is as diverse as the country itself, with the ultra

new and the old, working side by side, each at its own pace and its

capacity. While a large number of units are located in the small-

sector. There are also medium-scale, large-scale manufacturer and

MNCs. We manufacture sophisticated packaging machinery and

systems for some operations - these are in good demand in Asia, Europe

and the USA. Our flexible packaging materials find ready markets in the

Middle East countries. In short, we have the capabilities to cater to

domestic and export needs. Liberalization in phases was supported by

import of sophisticated and modern technologies. The doorways opened

to trade, when export oriented orgarizations (governmental and non-

governmental) look an active interest in encouraging Indian participation

in International Trade Fairs dedicated to packaging and printing.

The impact of exhibition on exchange of trade information,

exposure to the latest developments and technology in the packaging,

converting and material sectors cannot be overlooked. Exhibitions played

a key role in bringing together manufactures and users, infusing a healthy

spirit of competition and displays of capabilities. The potential ofexhibitions as a major trade promotion activity began to be realised

during the post liberclization era.

The flood of imported consumer goods into the country as an

offshoot of the government's liberalization of trade restrictions has seen a

growth in shopping malls, supermarkets and arcades. This has had a

cascading effect on the Indian packaging industry. Indian goods with

varying degree of finish and non-committal packaging are fighting for

shelf space beside sophisticated goods in their shining, attractive

packages. This has prompted the Indian packaging indusfiry to grow-up

in hurry. Indian goods finding a growing market overseas is yet another

24

reason for the packaging industry to seek and adapt newer technologies

for cost efficient, environmentally friendly easy - to - use - and - dispose

packaging.

B. Packaging for exports:

The focus on exports will continue to dominate the industrial

outlook in India in the decades to come and Indian packaging will have to

continually update and upgrade itself with current developments, trends

and technologies worldwide. The institute currently works with National

Export Development Authorities like APEDA (Agricultural and

Processed Foods Export Development Authority), MPEDA (Marine

Products Export Development Authority) and the Spices Board for

Designing Bulk and Consumer Export Packs.

In the processed food sector, many traditional media are still in

vogue, source in modified versions. Processed foods packaging has

witnessed a fantastic change in packaging by was of introduction ofsynthetic, co-extruded and laminated structures, solventless coating,

coated films, thermoformed trays, tubes, closures, stretch blow molded

packs, bag in-box, aseptic system, report system, etc. possibilities for

export of these items can be explored.

C. Export potential for packaging:

Over the years, the packaging industry has emerged as a potential

exporter of basic films, flexible laminates, woven sacks, FIBCs (flexible

intermediate bulk containers) and trash bags largely to the Middle East

Countries. In the machinery section, exports to Bangladesh, Srilanka,

some of the African countries, the Middle East, Europe and America (in

recent years) are, for from - fill - seal, shrink packaging machinery for

the comrgated industry and printing machinery and equipment.

25

The service sector has a strong base in our country in the fields of

engineering management and information technology. With the intemet

finding newer application in packaging, there is every reason for Indian

IT professionals to develop software, not only for local packaging

applications but also for exports. While trade activity and e-commerce

are on the increase in the west, there is plenty of scope for development

and growth in these areas, which could open up opportunities overseas.

They also need to be examined and explored [tng up technology

exports.

1.9 Legal Protection:

In India, uniform standards of weights measures, based on

metric system, were established, for the first time, by the Standards of

Weights and Measures Act, 1956. The standard established by the 1956

Act were, however, based on international system of units, as recognized

by the General Conference of Weights and Measures (GCWM) and

International Organization of Legal Metrology (IOLM). To sustain and

assist scientific and technological research in the country, more accurate

standards of weights and measures, as in the S.L were required for the

measurement of space and time, temperature and heat, magnetic

quantities, x-ray dosages, nuclear radiation, etc.

To meet this requirement [ndian Parliament placed on the statute

book the Standards of Weights and Measures Act 1976 to establish

standards of weights and measures to regulate inter-state trade or

commerce in weights, measures and other goods which are sold or

distributed by weight, measures or number and to provide for matters

connected therewith or incidental thereto.

26

l.l0 Packaging Units In Maharashtra:

Table l.2indicates the details of packaging units in Maharashtra.

Table No. 1.2

Packaging Units

Source: 'oArtha Samvad", Marathi Arthashastra Parishad Quarterly Issue,

Oct. - Dec.2002.

It is observed from Table 1.2 that there are 715 packaging units

(47.66 %) in Pune district and 140 packaging units (9.33 %) in Satara

district

Plastic and the paper packaging units in comparison with the other

packaging units dominate in Mumbai. There are 618 packaging units

(86.43 %) in Pune district and l2l packaging units (86.42 %) in Satara

district. This leads us to conclude that corrugated paper, plastic and paper

are commonly used as the packaging material.

,Sr.

No.Material-wise Maharashtra Mumbai Pune Satara

1.Corcugated

paper2305

(excluding otherdistricts)

270 37 07

2. Wooden 043 I3 04

3. Polvthene 087 22 02

4. Tin 0r7 06 0I

5. Plastic 643 584 il46. Paper 460 34 07

7. Glass 009 02 01

8. Saclcs 017 06 02

9. Corks 044 I] 02

Total I 590 715 t40

Percentage r00.00 47.66 9.33

27

Reference

1. A. V. Vaidya (2001): "Packaging Technology" Educational

Volume I: Indian Institute of Packaging, Mumbai.

2. Aron L. Brody and Kenneth S. marsh: "The packaging

Technology: Brody and Marsh, Second Edition 1997.

3. P. V. Narayan status of Packaging Industries in India.

4. Directory: Indian Institute of Packaging, Mumbai,400093.