Packaging giant Tetra Pak will invest Rs 500bn in its Indian operations to set up its second plant in the country, Indian news agency the Economic Times has reported. The company says the move is an indication of the potential and opportunities the Indian market poses.
Speaking to the Economic Times, Dennis Jonsson, president of Tetra Pak says the board has approved a new factory in India and once the land purchase is finalised, which would be near the company’s existing plant in Pune, work on the project will commence.
Jonsson adds that in many other markets Tetra Pak has been opening new factories every second year. In India, however, the upcoming plant will be its first in a decade saying India was a high-priority market registering growth of about 20-25 per cent though on a small base.
With food and beverage companies focusing on a slew of healthier drinks, convenience foods and cooking aids, and beverage firms gradually reducing dependence on glass, Tetra Pak India sees huge growth potential in India.
Once the second factory commences operations, the company plans to channel surplus capacity to export markets in countries in South Asia and the Middle East – its existing exports markets. Tetra Pak India says exports account for 40 per cent of the company’s production as of now.
