India: new growth market for Thai food and packaging business
Eka Global forecasted over 200-million-baht sales in India and aims for 1-billion-baht sale in five years thanks to the opening of its longevity packaging plant in Pune. With the constant growth, the company is securing a plan to be listed on India's stock exchange in the near future.
Chaiwat Nantiruj, Eka Global's Group CEO, disclosed that, being Asia's largest longevity packaging or rigid barrier plastic packaging producer with over 20 years in the business, Eka Global has expanded its business in India. A manufacturing plant was established in Pune, India, in 2022, as the company foresaw the high potential of the market. Pune is the 7th or 8th largest city in India and the 2nd largest in Western India, only after Mumbai, and has remarkably high potential due to high consumption rate and buying power which grow according to the rapidly increasing population of Pune.
In the past year, Eka Global's longevity packaging products have received high response from the local market in India. Key contributions are the light weight, cleanliness, safety, and ability to maintain quality, taste, and color of the food products inside as if it was freshly cooked. More importantly such packaging can extend shelf life to up to two years. The high demand has driven Eka Global's market in India to grow by over 100% every year.
"Competition in the market is not high and copying is limited, especially in the premium packaging segment that we are focusing on. As the pioneer and the leader of such products, we have very strong confidence in the Indian market which is backed by the country's huge population of over 1,500 million. In addition, the majority of the population has high consumption power," said Chaiwat.
Eka Global mainly operates in the Business-to-Business or B2B format. Its key customers are 300-400 small and medium food and sweet producers in India. Each of them has placed an order for more than 10,000 pieces per month, with growing trend. One of its new production plants is located in Pune which can efficiently serve the high demand in the market.
Chaiwat expected the company's sales in the Indian market in 2024 to reach 450 million rupee or about 200 million baht. In 2025, Eka Global expected a sales target of 800 million rupee or approximately 400 million baht, which is on par with the total sales in Thailand.
Backed by Indian market's continuous growth, Eka Global forecasted that its sales would grow by no less than 30% per year. Within five years, its total sales would reach 2,400 rupees, or about one billion baht, based on currently production capacity of 500,000 pieces per day. If everything progresses well, the company plans to be listed on India's stock market.
The company also reiterated on its commitment to sustainability and the environment. Green product development, such products are, for example, polylactic acid (PLA) bioplastic, biodegradable, and post-consumer-recycle (PCR) packaging, are the priority. In addition, the awareness and demand for such products in the Indian market are strong as such green products are gradually replacing other plastic products.
Eka Global's longevity packaging covers six categories: 1) FRUITS for processed fruit products; 2) BABY FOOD; 3) RICE for cooked rice; 4) SEAFOOD/TUNA for fish and seafood products; 5) DAIRY PRODUCTS (yoghurt); and 6) PET FOODS. Each product is produced using advanced technology had has high quality that meets with the international hygiene and food safety standards, e.g. ISO 9001: 2015, FSSC 22000, and GMP/HACCP.