Differences between tinplate producers and can makers widens supply and demand gap in India

 

It is undeniable that consumer habits have changed and, therefore, the requirements of the food industry. Takeaway food in small packs has been the predominant trend, a trend that Sanjay Bhatia, Managing Director of Hindustan Tin Works (HTW), one of India’s leading manufacturers and exporters of high-performance cans, says is likely to continue once this pandemic ends.

“People have also realised that metal packaging is recyclable and that environmentally friendly products packaged in this type of packaging have a longer shelf life and can be stored at room temperature. Because of this, demand from the food industry is likely to increase,” although not as much as might be expected, especially in India, as we explain below.

These statements come from an interview for the Indian media Print Week. More and more items are being packaged in metal containers for hygiene and product safety reasons, but awareness of metal packaging in India is still very low. That is why, according to Bhatia, the Metal Packaging Manufacturers Association of India (MCMA) is doing continuous information work highlighting the advantages of metal packaging over other packaging materials.

But, the industry is facing a serious stumbling block and this is the Quality Control Order (QCO) of steel and steel products issued by the Indian Ministry of Steel on July 17, 2020. Thanks to this order – as already explained in the last edition of Mundolatas – the big tinplate and tin-free steel suppliers are not interested in selling to Indian manufacturers – as the Indian MCMA has recently pointed out – as they are not in a position to obtain the BIS licence, a certification required by the government since the middle of last year for the main inputs required by the industry such as tinplate and tin-free steel.

“Already 2020 has caused large commercial losses due to Covid-19 and the blockade – said the director of HTW -. This raw material shortage created by tinplate manufacturers will further damage metal packaging in India.

Despite the many challenges faced by tinplate packaging manufacturers, India’s metal packaging sector is expected to register a compound annual growth rate of 6-7% over the period 2020 to 2025.”

Though it is in mutual interest of both tinplate producers and can makers to work hand in hand, Sanjay Bhatia points out that it is not happening. While producers are pushing for anti-import measures like QCO, anti-dumping duties, etc., on the other hand, the can making industry is pushing for supply of inputs as per their requirements at competitive prices as there is a demand. supply gap in India of Rs 2.50 lakh per annum.” HTWL, in a joint venture with Rexam, set up the first beverage can plant in India in 2007 and successfully worked to open up the beverage can market in India. The demand for beverage cans,” Bhatia tells Print Week, “was around 60 million per annum and we are pleased to note that the demand is now approaching two billion cans per annum.”