IFCA themes its seminar, packaging at crossroads

Abhay Avadhani (AA): What should one expect from the IFCA seminar?
R Chandrasekhar (RC): The seminar attempts to capture the opinions of different stakeholders in the packaging industry. Our main focus is to get speakers from the entire value chain in the packaging industry. From raw material suppliers to converters as well as brands.

AA: Can you elaborate more on the theme, “Packaging at Crossroads”?
RC: Packaging industry is at a crossroad. While brand owners want a more sustainable and recyclable packaging at the same cost and turnaround time, regulators want to end littering and promote recycling.

Packaging machinery companies are providing a larger processing window for recycled materials and new grades. Between all of this, is the converter who has investments on the ground, with low margins. The converter is left with only two options for his survival: either to innovate or drop the prices to retain his customer. The way in which this story will turn, will set the pace for the coming decade.

AA: There are many speakers coming for the seminar, how do we spread the message that packaging is sustainable?
RC: Packaging has an image problem. Everybody wants it as it represents a form of convenience but everybody grumbles about the generated waste. The crux of the problem of sustainability is not packaging but the inability to successfully collect waste and manage it. Today, there are more technologies for reprocessing compared to five years ago. The key is effective communication for the industry.

AA: Today, brands are leaning more towards sustainable and customer-centric packaging. How is the industry keeping up with the new trends?
RC: There has been a stream of innovations in materials and processing technologies. The packaging industry has become more sensitive to the need to create more sustainable and customised solutions. The challenge is that the returns one gets from from packaging business is not enough to support new investments in order to fulfil this transition towards sustainability.

AA: Can you tell us more about the IFCA Star Awards ceremony? Has the pandemic affected the participation of companies? 
RC: IFCA Star Awards is an independent peer recognition award. When your peers recognise your efforts and praise it, it is the best form of recognition. IFCA Star Awards strives to make this peer recognition process robust and transparent. When we invited entries for the awards in April 2021, we were pleasantly surprised to see the strong response and flurry of entries. The pandemic did not impact the process of innovation and the need to excel to delight customers.

AA: Can you give us an overview of the jury day and judging criteria for the awards? Any innovative packaging or technology you have come across this year? 
RC: The jury always feels the pressure to decide the entries which qualify for the awards. The key criteria is innovation in the substrate, design and printing. We have added a new criteria: sustainability.The criterias and the marking system we follow have evolved over the last 22 years. Yet, as always it is a close call between the entries.

 IFCA Star Awards 2021

AA: What are your views on flexible packaging in the food and beverage industry?
RC: Flexible packaging is a critical success factor for the food and beverage industry. It provides convenience and is important for ensuring the product integrity. In India, given the price sensitivity and the need to find solutions for the bottom of the pyramid, flexible packaging has become a very important driver of growth for this sector.

AA: Has sustainability in packaging improved since the introduction of folding cartons? Do they match the industry trends?
RC: It has come a long way. It is continuously evolving and we can say that it has met the industry trends.

AA: What are the strengths and weaknesses of this industry? What is your observation when you visit packaging factories, manufacturing lines, and the manner in which products are being produced?
RC: The packaging industry in India is an interesting amalgam of large global players, large local Indian companies, few medium scale enterprises and a long tail of small and micro enterprises. Technologies and practices differ significantly across various players. The investment levels are different and so is the innovation and product development capability. There is a high level of fragmentation and this often leads to unhealthy price competition resulting in poor returns for the industry.

AA: Since 1990, India has seen GDP grow tenfold to USD 3.2 trillion and average income per capita rise more than fivefold to USD 2200. Has this growth benefitted print?  
RC: Yes GDP growth definitely leads to growth for packaging companies. As the purchasing power increases, the demand for better packaging based on more convenience grows.

AA: The number of Indian billionaires rose last decade from 55 to 140 which is now third highest after the US and China. Strikingly, more than two out of three Indian billionaires are new to the list in the 2010s. Why is there no packaging CEO in this list?
RC: Packaging companies operate on thin margins and are highly sensitive to raw material cost fluctuations. They do not have strong financial returns and the industry in India is still fragmented. Though the process of consolidation has been going on for the last few years, we have a long way to go to get into the top league.

AA: Only 20% of women are formally employed and doubling that to 40% - merely average for a lower-middle income country such as India, would be transformational. How can we achieve this?
RC: It is my belief that true progress can happen only when women (who represent around 50% of the population) start contributing to value creation. Along with political and social empowerment, financial and economic empowerment of women is a key to success of any society. Very often we are still bogged down with conservative values which hinder integration of women in economic activity.

Still today we have come a long way in certain sectors when it comes to employing women. We need to continually push women education and skill development while focussing on softer cultural issues which act as barriers for women. It may take time but it will happen.