Packaging demand slackens since September – Suresh Gupta

February 02, 2022 Post a Comment

Since September afterwards the surge seen in the early months of the lockdown, the demand for packaging has slackened, Suresh Gupta, president of the Indian Flexible Packaging & Folding Carton Manufacturers Association (IFCA), told the Propack India Virtual Conference on xv Oct. Packaging demand got a heave in the early months of the lockdown equally need for fast-moving consumer goods (FMCG) and food products shot upwards dramatically.

According to Gupta, while many converters did exceptionally well during the lockdown, many others did not practice well at all. The large likewise medium convertors, which are well organized, did excellent business, he said. The demand surge for consumer products was apparent from the April-June quarter results appear by leading FMCG companies such every bit Parle, Britannia, Tata Consumers, Marico, and ITC. Need for consumer products shot up after the lockdown was announced in late March to control the Covid-19 pandemic. Consumers started stocking up as they were in a panic, and this created shortages. Convertors, who were well organized and could manage the logistics, did well. The months of June, July, and August were very good for business. However, in recent weeks the demand surge has tempered down.

"From conversations with my colleagues in the manufacture, it is clear that the need has reduced. There has been an credible flattening of this huge demand, and businesses have cooled down since September, and that is the situation every bit of today," Gupta said.

Gupta said that competition among convertors has intensified since September as a lot of the smaller players have come back and are eager to get back their business and share of the market. However, he stated that packaging demand in high growth segments like pesticides remains potent because of the robust rural economy. With above normal monsoons, sowing during the kharif season has been much college than last yr. The bountiful monsoon has created a demand for agricultural inputs such equally
pesticides, fertilizers, and seeds.

Demand outlook seems uncertain as Gdp contracts

Talking nigh the outlook for demand in the about term, Gupta said that the Indian economy'southward contraction would have a articulate impact on consumers' disposable incomes. A recent report by the International Monetary Fund has projected that Indian Gross domestic product will shrink by ten.3% in the 2020-2021 financial year owing to the imposition of the sudden, severe, and prolonged lockdown. The Imf had earlier projected a smaller drop of 4% in GDP for the year in its June report. The government data has shown that the GDP contracted by almost 24% in Q1 2020-2021.

"The demand will begin to settle downwards forth with how the underlying economy is doing. In that location has been a contraction in disposable income due to the chore losses and salary cuts – likewise equally many businesses shutting down," Gupta said.

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