SIG eyes India as next destination for strategic investment
SIG, a leading systems and solutions provider for aseptic carton packaging, is looking to enhance its operations in India, considering strategic investment in a new packaging plant. The Global CEO of the SIG Group, Samuel Sigrist, visited India on 13-15 April, accompanied by a high-profile team. The aim of the visit was to meet customers and industry experts to further understand and discuss the future of the Indian market.
15 Apr 2022 | By Rahul Kumar
SIG is on a strong growth track. In the annual results for 2021, the company showed core revenue of 2.05-billion euros with 6.6% year-for-year growth at constant currency. The company is also strategically investing in broadening its packaging portfolio with the planned acquisition of Scholle IPN, which increases SIG’s capabilities to include bag-in-box and spouted pouch solutions.
SIG entered the Indian market four years ago. Presently, India is one of the fastest growing markets in the SIG world.
SIG India’s journey started with two iconic customers, ITC and Coca Cola India, as it set up its local headquarters in Gurgaon in November 2017. Its exponential growth journey in the country has seen the aseptic packaging major gain entry into most leading dairy and juice brands in India, including Coca-Cola, Amul, Dabur, Varun Beverages (PepsiCo bottler), ITC, Haldirams, Milky Mist, and Godrej Creamline. Today, with a base of 17 high-speed filling machines across the country and a full-fledged, experienced local team, SIG is looking to further accelerate its growth trajectory in India.
Sigrist said, “After opening our second plant in China and starting construction of a plant in Mexico for the North American market, India is our first priority for the next investment in a new packaging plant. The decision-making process is still ongoing, but we are very confident that we will be able to start building a plant in India in the near future. The construction time for a new SIG packaging plant is 12 to 18 months.”
SIG’s USP has been its unique technology that allows the company to offer unmatched volume flexibility along with high speed, across its machine platforms. This lets brands change volume sizes and maintain key price points — crucial in a dynamic market like India. SIG’s packaging technology can also be used to fill beverages with fruit chunks, cereals like oats, juicy pearls and more, giving brands the opportunity to create innovative, differentiated, premium product offerings, tailor-made for Indian consumers.
SIG is also developing India-centric solutions to address the needs of smaller dairies and juice brands. The recently launched CFA 1212 filling machine brings the same volume flexibility offered by its high-speed portion pack filler, now at a slower speed of 12,000 packs per hour. With this, SIG enables mid-sized brands to have smaller capacities, as per their requirements, at a more affordable price.
SIG on sustainability
According to the company, sustainability is an integral part of SIG. It has to its credit a host of industry firsts — sourcing 100% of its renewable paperboard from FSC-certified sustainable forests, using 100% renewable energy to produce all its carton packs, and creating the world’s first aseptic carton pack without aluminium foil, the world’s first paper straw for aseptic cartons and the first carton linked to only renewable materials, to name a few.
For SIG India, sustainability has meant close engagement with industry groups like the Action Alliance for Recycling of Beverage Cartons (AARC) and with Government bodies, to increase the collection and recycling rates of used beverage cartons. SIG India also currently offers its customers paper straw solutions as an alternative to SUP and is committed to work with the industry to help optimise the cost of these solutions, and in future, develop local options for customers.
SIG India's growing customer base and wide range of packaging SKUs bear ample testimony to the success it has seen so far in this market. As such, for SIG India, this is just the start — the commitment to India is clear, and the company is now focused on delivering on its plan for growth.