New Indian can-end plant signals soaring canned food sales

By Mike Stones

- Last updated on GMT

Related tags Food products Chief executive officer Food preservation

A new metal easy open can-end manufacturing plant is planned for Mysore, Karnataka state, southern India.

International Canends Pvt Ltd (ICEPL) is planning the Rs 58-crore investment with funding from private equity or debt financing.

US engineering company Canning Solutions confirmed to that it will supply the technology and equipment for the new plant. Its chief executive officer Dave North said: “Although final details had yet to be agreed, the equipment will consist of two or more complete end making production lines including sheet feed systems, shell presses, compound liners, conversion presses, conveying, quality assurance and support equipment​.” Manufacturers of the equipment have yet to be selected.

The equipment will be supplied in six to eight months and total output is forecast at between 600 to 800m can ends.

We will produce easy open and sanitary ends for food products as well as dry products​,” said North. “There are plans to expand the operation to include aluminum easy open ends for beer, beverage and juices as soon as possible​.”

Booming food sector

Meanwhile, India’s booming food sector is expected to open a wealth of new opportunities for the packaging sector including metal can makers.

In May this year a Euromonitor report predicted growth in Indian packaged food sales of just over 8% between 2007-2012; with domestic companies well placed to exploit the growth.

Although more multinationals are expected to enter the country, domestic players, given their strengths in sourcing and regional distribution, are expected to continue to provide strong competition to multinationals over the forecast period​,” said the report.

“That said, low per capita consumption combined with growing affluence and affordability mean that there should be plenty of opportunities for all players to grow.”

Quickest growth

Growth in the retail sales value of packaged food in 2007 was estimated at 15 per cent; the quickest growth witnessed over the past nine years.

The country ranked second behind Indonesia as the fastest growing packaged food market in Asia Pacific in 2007. “The strong retail volume growth that accompanied the value sales increase for most packaged food products was a reflection of growing consumer confidence ​(and incomes) underpinned by a booming economy and a growing desire for convenience​,” said the report.

Although retail sales of almost all packaged food products rose significantly, value growth was helped by increased average unit prices particularly for milk which affected most other packaged food products.

The report, Packaged Food in India, is available from​ and costs $6500.

Related topics Processing & Packaging