Huhtamaki India’s Development In Sustainable Packaging

“Our Company continues to leverage the expertise, knowledge and resources of Huhtamaki Oyj in terms of, inter-alia, the strong brand reputation of Huhtamaki in the market, access to a wide range of resources such as technology, financial capital, human resources, network of suppliers/customers, wealth of knowledge and expertise in the flexible packaging industry, which have helped Huhtamaki India further improve its performance. We are at the forefront of transforming the packaging industry in India and have been actively working on sustainable solutions that are both eco-friendly and cost-effective.”
-Dhananjay Salunkhe, Managing Director

Stock Data

Ticker	HUHTAMAKI
Exchange	NSE & BSE
Industry	Packaging

Share Price

Last 1 Month	10.4%
Last 6 Months	-1.6%
Last 12 Months	20.7%

Business Basics

Huhtamaki India is a leading manufacturer of consumer packaging solutions in India. The company has a diverse product portfolio that includes food and beverage packaging, personal care and household packaging, pharmaceutical packaging, and industrial packaging. In the food and beverage packaging segment, the company offers a wide range of products such as paper cups, paper plates, paper bowls, take-out containers, and packaging for fast food chains. In the personal care and household packaging segment, the company provides packaging for products like shampoos, conditioners, lotions, and household cleaners. The pharmaceutical packaging segment includes blister foils, cold-form foils, and child-resistant packaging. The industrial packaging segment offers a range of solutions for transporting and storing goods, such as bulk bags and liners, barrier films, and protective packaging.

Huhtamaki India’s commitment to sustainability is reflected in its focus on developing eco-friendly and recyclable products. The company has introduced a range of sustainable products such as paper-based packaging, biodegradable packaging, and compostable products. Additionally, the company has implemented various initiatives to reduce its environmental footprint, including reducing energy consumption and carbon emissions, optimizing water usage, and implementing waste reduction strategies.

Huhtamaki India has a strong presence in the Indian market, with manufacturing facilities located in Mumbai, Hyderabad, and Silvassa. The company has a wide distribution network that includes direct sales and marketing teams, as well as partnerships with distributors and retailers. Huhtamaki India’s focus on innovation and customer-centric approach has helped it establish long-term relationships with leading companies in various industries.

Q3 FY23 Financial Performance

Huhtamaki India Limited reported Revenue from Operations for Q3 FY23 of ₹692.71Crore up from ₹661.57 Crore year on year, a growth of 4.7%. The consolidated Net Profit of ₹16.84 Crore from the loss of ₹13.52 Crore in the same quarter of the previous year. The Earnings per Share is ₹2.23 for this quarter.

Huhtamaki’s Development In Its Products

Through the blue loop initiative, the company has worked tirelessly across teams to create packaging solutions that promote circularity throughout the entire packaging ecosystem. The blue loop is a line of eco-friendly packaging products available across the entire Huhtamaki company. Blue loop solutions’ brand promise states that they are built for circularity. It is a component of implementing the company’s 2030 Strategy to top the market for environmentally friendly packaging options.

In addition, a cutting-edge facility for recycling multi-layered plastics has been created by the Huhtamaki foundation to recycle post-consumer MLP waste that was previously destined for landfills and disposal facilities. This factory was built in Khopoli, Maharashtra, with the intention of recycling multi-layered plastic, which is difficult to recycle and typically ends up in landfills. The facility has been successful in gathering post-consumer waste from neighboring cities like Pune and recycling it into granules that are subsequently used in conjunction with virgin plastic for secondary applications. The factory focuses on producing products with 100% water filtration, energy-saving lighting, and a minimal environmental impact.

As per the management, “We offer end-to-end solutions through shrink tunnels and applicators. For us at Huhtamaki, the packaging is beyond what goes around a product. It is about building brands, opening new opportunities in new markets, and protecting reputations as much as products. We leverage our rich experience and strong technical capabilities to help brands serve more convenience in packaging, personalization, and sustainability and keep pace with rapid change.”

India’s Packaging Industry

With annual growth rates ranging from 22-27%, the packaging industry in India is one of the fastest-growing industries. The Indian packaging market is anticipated to grow at a CAGR of 12.60% between 2022 and 2027. The demand for packaging has significantly increased in India as a result of the consumer markets’ quick expansion, particularly in the processed food, personal care, and pharmaceutical end-user industries. The packaging categories with the fastest growth rates are laminates and flexible packaging, especially PET and woven sacks.

India’s packaging industry encounters a number of challenges. Unpredictable raw material costs, quick regulatory standard changes, growing environmental concerns, the inability to efficiently recycle mixed plastic waste, the ineffectiveness of plastic recovery, and a lack of state-of-the-art machinery for the packaging industry in India are a few of these problems.

Balmer Lawrie & Co. Ltd, Cosmo First Ltd, Ester Industries Ltd, Essel Propack Ltd, Flexituff Ventures International Ltd, Jindal Poly Films Ltd, Huhtamaki India Limited, Polyplex Corporation Ltd, and TCPL Packaging Ltd are some of the leading businesses in the Indian packaging market. West Pharmaceuticals, Huhtamaki PPL Ltd, and SGD Pharma India Ltd. are significant market participants in the pharmaceutical packaging industry.