PETpla.net Insider 01+02 / 2018

BOTTLE MAKING 16 PET planet Insider Vol. 19 No. 01+02/18 www.petpla.net aging of edible oil stands at seven lac [700,000] tonnes; the most popular format is 1l, followed by 500ml and then 200ml. The market is dominated by companies like Adani Wilmar, Ruchi Soya, Marico, Emami and other national and regional players. Within the PET packaging segment, the 1l PET bottle has 60% market share; 500ml has 30% and 200ml 10%. The market for bulk packs of 5l is primar- ily in HDPE and is mainly for insti- tutional or bulk requirements. While that market is currently dominated by HDPE cans, many companies are actively trying to convert to PET. One of the main challenges with PET is the non-availability of a handle, which is possible in HDPE. The 20l market is in tins, but Manjushree has developed and patented a 20l pack that is stack- able and has a unique inter-locking system that makes it possible to stack up to five jars. This jar also comes with a special cap with a handle that is capable of carrying a fully-filled 20l oil bottle. The design of this jar has a very special rib structure, designed in our studio. A pilot exercise was done to ascertain top load, rigidity and overall performance compared to conventional tin containers. These 20l PET jars are 30-40% cheaper than tin containers. PETplanet Insider: What are the special requirements for edible oil PET packaging in India with regard to design, appearance and shelf life, considering long transportation and very high/low temperatures? Vimal Kedia: PET bottle pack- aging of edible oils is an evolving market. The customer continually strives to stand out with their pack- aging and to ensure a strong visual appeal on retail shelves. Customers require features like easy grip, easy dispensing and FMOT (First Moment of Truth) in all their design choices. The bottles have to withstand long journeys from the manufacturers, as the oil market is concentrated primar- ily in eastern India, north west and south. The versatile nature of PET enables it to withstand various types of climatic conditions. PETplanet Insider: Let’s talk about other packaging materials as well. Can you give us an idea of the shares for PET, pouches, tins, PVC, PP and glass, for example, in the edible oil market? Vimal Kedia: The current packag- ing of edible oil in India is largely dom- inated by five-layer flexible pouches, consisting of an LLDP and nylon combination. While this is the most economical way to package oil it is also highly non-environment friendly. Its multilayer structure and the use of nylon as a material perform very poorly in the recycling stream and creates havoc in the recycling system. The current distribution of edible oil packaging is 60% pouches, 25% tin, 7% HDPE, 5% PET and the rest are other materials. PETplanet Insider: What is your impression of consumer behaviour? Do they currently prefer more expen- sive edible oil brands over cheaper brands that provide discounts? How price sensitive are the people? Vimal Kedia: Since edible oil is a widely used commodity, an everyday home requirement, it is a highly cost sensitive product. Most of the cooking in Indian households is done in oil as it is the most economical medium to cook food. Other value-added prod- ucts like ghee (clarified butter), olive oil, flaxseed oil and other products have a niche market and audience. In the premium edible oil space, mus- tard oil is widely used in Northern and Eastern India. Apart from domestic premium oil brands like Marico, which produces Saffola and Saffola Aura edible oil, there are also imported brands, such as Hadsun, Figaro, Delmonte and so on. Many stores also sell organic oil but these have a very limited market. Our manufactur- ing plants in Pantnagar, Guwahati and Bangalore are strategically placed to cater to the oil hubs of the country like Rajasthan, West Bengal, Andhra Pradesh, and Telangana among others. PETplanet Insider: What are the three most important and influential edible oil brands in India today and how are they ranked? Vimal Kedia: The top three brands in the country are: Adani Wilmar’s Fortune; followed by Nature Fresh, from Cargill and Mahakosh’s Ruchi Soya ranked third. The pre- cise market share across the country varies, depending on the states in which these brands have a strong presence, but these are the top three industrial manufacturers of edible oil. PETplanet Insider: Manjushree is the first company to produce a 2l bottle for edible oil. Is this 2l package the next market trend? And what other trends can be seen in the near future? Vimal Kedia: The market for 2l bottles in India is very small and faces both pricing and dispensing chal- lenges. Manjushree has developed special 2l packaging with a 36mm