SIG expects India to rank among the top ten markets after investing 100 million euros in its Gujarat factory

 SIG expects India to rank among the top ten markets after investing 100 million euros in its Gujarat factory

Over time, SIG anticipates a somewhat greater rate of growth in its dairy business. SIG, which collaborates with McDonald's and Starbucks in countries like the US, is looking for possibilities in the QSR sector in this country.

According to Samuel Sigrist, CEO of leading packaging solutions provider SIG, India will likely rank among the top ten markets internationally and the company would invest about 100 million euros (about Rs. 878.8 crore) to build its first plant there. He said that the company, which only recently entered the Indian market, has seen "phenomenal growth" there and anticipates it will "play a very important role for us going forward."

According to him, the expansion of the beverage business in India, along with other variables such as the rising population's affluence and consumption of packaged foods, is highly encouraging. Sigrist responded, "Easily," when asked if India would rank among its top 10 markets in the medium term (about 5 years). Our packaged dairy business' five-year CAGR is kind of in the upper teens, around 15–17%. Usually, we overrun the market. We are the newcomers, and the possibility for expansion is fantastic. India will eventually develop into a very, very large market. We are very thrilled.

However, he asserted, India is today small but expanding quickly. Additionally, it would expand due to the new factory and the expansion of the beverage business in India. SIG on Wednesday set the groundwork for its first aseptic carton facility in India. In the first phase, the company would lease land and a building for about 40 million euros (Rs 351.36 crore) and invest 60 million euros (about Rs 525.98 crore) in capital as gear. "The initial commitment comes close to 100 million euros," he declared.

At its India site, commercial production is expected to start by the end of 2024. The plant in Ahmedabad will serve the country's expanding dairy and non-carbonated soft drink filler markets. The investment will be done gradually between 2023 and 2025 to enable production of up to 4 billion packs annually. According to the corporation, future investments should boost capacity to 10 billion packs annually.

According to him, SIG would make its aseptic cartons using imported materials in the first phase and local raw materials in the second phase. Working with some of India's top juice and dairy companies, such as Amul, Parle, Coca-Cola, Dabur, Varun Beverages, and ITC, SIG has installed 40 packaging equipment in this location. It also praised India's economy, praising its "business-friendly" atmosphere. Globally, SIG receives about 70% of the packaging for the dairy industry, which includes products like cow milk, yoghurt drinks, cream, and sweetened condensed milk, along with 20% of the packaging for beverages and 10% of the packaging for food.

Over time, SIG anticipates a somewhat greater rate of growth in its dairy business. SIG, which collaborates with McDonald's and Starbucks in countries like the US, is looking for possibilities in the QSR sector in this country. In India, the market is likewise expanding quickly. The business of Spouted Pouches and bag-in-box is also present here. SIG is headquartered in Neuhausen, Switzerland, and was established in 1853. SIG generated 3.1 billion euros and produced 49 billion packs in 2022.