Significance of the Upgrade

The upgraded rating covers a bank loan facility of ₹141 crore and highlights Kris Flexipacks’ strong financial performance and ability to adapt to market dynamics. This achievement underscores the company’s resilience in the face of evolving industry demands and reinforces its position as a trusted partner for innovative packaging solutions.

Diverse and Innovative Product Portfolio

Kris Flexipacks has consistently pioneered advancements in flexible packaging, serving a wide range of industries including:

·        Dairy

·        Food & Beverages

·        Pharmaceuticals

·        Personal & Home Care

·        Health & Beauty

The company’s product offerings include:

·        Shrink Sleeve

·        BOPP WAL

·        Stretch Sleeves

·        Laminate Pouches and Rolls

·        Hygiene Packaging

·        General Flexibles

·        Garment Packaging

Leadership Insight

Chairman and Managing Director Shailesh Sheth expressed his pride in this achievement, stating:

“We are immensely proud of this achievement and the recognition from CRISIL. This upgrade to ‘CRISIL A’ and the stable outlook reflects our unwavering commitment to financial discipline, innovation, and excellence in the flexible packaging industry. At Kris Flexipacks, we strive to deliver superior value to our clients through our cutting-edge packaging solutions and dedicated customer service. This milestone is a testament to the hard work and dedication of our entire team, and we look forward to continuing our journey of growth and innovation.

A Leader in Flexible Packaging

Since its inception, Kris Flexipacks has been committed to providing customized and technologically advanced packaging solutions tailored to client needs. The company’s innovation-driven approach and robust financial health continue to position it as a leader in the flexible packaging industry in South Asia.

This CRISIL rating upgrade further strengthens Kris Flexipacks’ credibility, paving the way for continued growth and excellence.

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The company now aims to use 35-40% recycled material across its primary packaging, including plastic, glass, and aluminium. This includes a target of 30-35% recycled plastic globally. Coca-Cola also seeks to ensure the collection of 70-75% of the equivalent number of bottles and cans it introduces into the market annually.

The revised goals reflect a scaling back from previous commitments. In 2018, Coca-Cola pledged to recycle the equivalent of 100% of its packaging by 2030. Now, the focus has shifted to achieving a three-quarters collection rate. Additionally, no new targets were set for reusable packaging, although the company stated it will continue investing in refillable solutions where infrastructure supports it.

Coca-Cola highlighted obstacles in meeting its goals, including the cost and quality of recycled materials and variations in recycling infrastructure globally. In 2023, 47.7% of Coca-Cola’s packaging was plastic bottles, 26% was aluminium and steel cans, and 10.4% was glass.

Regarding collection, the company acknowledged disparities in recycling systems across jurisdictions and emphasized the need for collective action. “The company will continue to focus on increased advocacy for well-designed collection systems,” it said, adding that the 75% collection target provides a foundation for future growth.

The announcement has drawn criticism from environmental organizations. Break Free From Plastic criticized Coca-Cola for abandoning its reuse goals, with Sam Pearse, Campaign Director of The Story of Stuff Project, saying, “Coca-Cola’s pledge lasted less time than one of their reusable bottles might expect to be in circulation.”

In 2023, only 1.2% of Coca-Cola’s plastic packaging was reusable, despite a 2018 commitment to reach 25% reuse by 2030.

Coca-Cola’s announcement comes amid a broader trend of major brands revising their sustainability targets ahead of 2025. Competitor PepsiCo has also indicated it is unlikely to meet its goal of making all packaging recyclable, compostable, biodegradable, or reusable by 2025.

Meanwhile, Coca-Cola continues to face lawsuits over its alleged role in plastic pollution in jurisdictions like Los Angeles County and Baltimore. A recent report from the Ellen MacArthur Foundation noted that Coca-Cola’s virgin plastic use has increased by about 6% since 2019.

As Coca-Cola adjusts its ambitions, the move raises questions about the balance between corporate sustainability goals and real-world implementation challenges. Whether these changes will satisfy environmental advocates or consumers remains to be seen.

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The sleeves provide several benefits, including counterfeiting prevention with holographic strips, adaptability to various product sizes and shapes, tamper-evident features through tear-seal caps, and compatibility with substrates like glass, plastic, and metal. The company offers a wide range of shrink sleeves tailored to customer needs, such as full-body, half-body, tamper-evident, cap, and fully customized sleeves.

Shailesh Sheth, Chairman and Managing Director of Kris Flexipacks, stated, “Our range of shrink sleeves demonstrates our commitment to providing exceptional packaging solutions that enhance our clients’ brands. These solutions not only offer superior protection and aesthetic appeal but also help customers achieve their sustainability objectives.”

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With the expanding food service industry, demand for durable and cost-effective packaging solutions, such as aluminium foil and polyethylene film, continues to rise. These materials provide an effective means of preserving food quality and extending shelf life, making them popular among consumers and food service providers alike.

Europe leads the global food wrap film market, benefiting from labour availability and cost-effective production. The regions well-established retail networks further support robust sales growth. Meanwhile, Asia-Pacific is forecasted to show a 2.3% CAGR from 2022 to 2026, as the region’s rapid urbanization and expanding food sector drive increased demand for wrap films. North America and the Middle East also contribute significantly to the market.

Key players are actively pursuing strategic expansions and innovations to capture greater market share. Notably:

• Georgia-Pacific LLC acquired Bakelite Synthetics in 2022, broadening its product offerings and establishing new collaborative opportunities.
• Amcor Plc expanded globally through the acquisition of Phoenix Flexibles, Moda, and MDK, entering new markets across India, New Zealand, and China.
• Berry Global, Inc. introduced advanced circular stretch films in February 2024, enhancing load stability and showcasing a commitment to sustainable packaging.

Leading companies such as Amcor Plc, Berry Global Inc., and Hindalco Industries Limited are leveraging strategic acquisitions and innovative product launches to capitalize on the global shift towards sustainable, efficient food packaging solutions.

The global food wrap film market is expected to remain resilient as consumer demand for eco-friendly, flexible, and efficient packaging solutions continues to grow.

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Manish Bandlish, Managing Director of Mother Dairy, shared, “We are aiming for about 10% growth in the milk segment and 25-30% in value-added products. Our production capacities, product lines, and distribution networks are well-prepared to meet the demand during the festival season. Strong volumes were recorded during Raksha Bandhan and Janmashtami, and we expect this momentum to continue.”

Mondelez India and Parle have also introduced new products to capture the festive market, particularly in gifting and in-home consumption categories. Desmond D’souza, VP of Sales at Mondelez India, said, “We are optimistic about the festive season, driven by robust consumer sentiment and rising demand in both urban and rural areas. We are leveraging growth pockets with a diverse portfolio and best-in-class retail execution.”

Mondelez plans to drive premium category growth through Cadbury Celebrations, Silk, and Bournville gifting packs, with enhanced visibility on digital platforms and outdoor advertising. “Unique on-platform retail media innovations are helping increase brand consideration and boosting sales,” D’souza added.

Mayank Shah, Vice President at Parle Products, emphasized the role of a good monsoon in improving rural demand. “We anticipate strong traction from festival-themed products and marketing strategies, with quick commerce becoming one of the fastest-growing channels in key cities.”

Beverage companies are also preparing for the seasonal demand spike. Sundeep Bajoria, VP of India Operations at Coca-Cola India, noted, “We are well-positioned to optimize market opportunities across both traditional and emerging channels. Our price-pack architecture is designed to meet diverse consumer needs. Festive consumption and gifting are driving positive sales momentum, and we are ensuring 24×7 access for retailers to stay ahead of demand.”

With the festive season in full swing, brands across the packaged food and beverage sector are poised for significant growth, buoyed by strong consumer demand and strategic market preparations.

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Aligned with the Ministry of Food Processing Industries’ (MoFPI) vision, the partnership seeks to enhance value addition, reduce wastage, and promote sustainable growth within the sector. By uniting academia and industry, the collaboration aims to develop impactful solutions for the Indian food industry.

Key Areas of Collaboration

1. Research and Development: Joint projects will be initiated to explore innovations in food processing, with outcomes such as publications, patents, and technology transfers being shared between the two organizations.
2. Centre of Excellence: A dedicated Center of Excellence will be established at NIFTEM-K, focusing on collaborative R&D efforts supported by Tetra Pak.
3. Capacity Building: Workshops, training sessions, and seminars will be held to enhance knowledge and skills in food science and business management.
4. Internships and Placements: Opportunities for student internships and placements will be facilitated, along with postgraduate fellowships supported by Tetra Pak to assist PhD scholars.

Sustainability-Focused Study

A key initiative under the MoU is a study on food loss and waste (FLW) in India, focusing on the dairy and fruit value chains. The research will assess environmental impacts, including greenhouse gas (GHG) emissions, and identify hotspots where food loss is most prevalent, offering data-driven solutions to mitigate these challenges.

The partnership reflects Tetra Pak’s commitment to sustainability and addressing India’s unique challenges in food processing and packaging.

About NIFTEM

NIFTEM-K is a premier institute under the Ministry of Food Processing Industries, offering various academic programs and conducting cutting-edge research in food technology and management.

This strategic collaboration marks a significant step toward the modernization of India’s food processing ecosystem.

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Bush Brothers, known for its iconic Bush’s Beans, has a longstanding partnership with Sonoco, a leader in metal packaging. Sonoco recently made headlines by announcing a nearly $4 billion acquisition of European metal packaging specialist Eviosys, signalling its strong commitment to metal cans. This move is expected to expand Sonoco’s global market reach to $25 billion, reinforcing the stability and growth potential of canned foods.

Despite the rise of flexible plastic alternatives, metal cans remain a popular choice for food companies due to their affordability and sustainability. Cans are not only cost-effective but also have a high recycling rate, making them attractive to environmentally-conscious consumers. Robert Loggins, Director of External Affairs at Bush Brothers, highlights the “infinite recyclability” of cans as a key advantage, describing them as an “almost perfect packaging container.”

Canned foods, which have been a pantry staple for centuries, continue to hold their ground in the market. Vegetables, tomatoes, soups, and ready-to-eat meals are driving growth, with companies like Sonoco and its competitors seeing steady demand for these categories. During the pandemic and the subsequent inflationary period, canned goods offered consumers a reliable and affordable food source, reinforcing their position in the market.

As companies innovate with convenient features like pull tabs and BPA-free linings, canned foods are poised to maintain their relevance. The combination of cost-effectiveness, sustainability, and consumer trust positions metal cans as a resilient packaging solution in an ever-evolving market.

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Compostable packaging materials derived from natural sources like corn or sugar cane can significantly reduce environmental impact while improving customer engagement. Recyclable packaging, such as paper-based materials, is also gaining popularity, with many QSRs shifting towards sustainable alternatives.

Smart packaging technologies, using QR codes, enable customers to access additional information on nutrition, ingredients, and promotions while also streamlining inventory management and reducing food waste.

Edible packaging, still in its early stages, aims to eliminate food packaging waste by making the packaging part of the food itself.

These innovative packaging solutions offer numerous benefits, including:

• Enhanced customer experience through attractive and functional packaging
• Operational efficiency through reduced waste, improved inventory management, and enhanced logistics
• Environmental impact reduction through compostable and recyclable materials

However, the success of these innovations relies on improving waste management infrastructure and consumer education.

Key Highlights:

• Innovative food packaging solutions transform the QSR industry.
• Compostable, recyclable, and smart packaging materials reduce waste and enhance the customer experience.
• Edible packaging aims to eliminate food packaging waste.
• Benefits include improved customer experience, operational efficiency, and environmental impact reduction.
• Waste management infrastructure and consumer education are crucial for success.

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In a statement released, ITC noted, “While green shoots of demand recovery emerged during the quarter in the paperboards, paper, & packaging segment, performance remained impacted largely due to cheap Chinese supplies in international markets, including India, and a surge in domestic wood prices.”

The company also highlighted that muted domestic demand further affected performance. ITC pointed out that structural weaknesses in the Chinese economy persist, contributing to the challenging market conditions. Additionally, ITC observed strong growth in its value-added agricultural products segment, driven primarily by coffee and spices.

Financial Performance:

• Net Profit: ITC reported a marginal increase in standalone net profit for the quarter ended June 30, 2024, at Rs 4,917.45 crore, compared to Rs 4,902.74 crore in the same period last year. This figure was below market expectations of Rs 5,122 crore.
• FMCG Segment: Revenue from the FMCG segment jumped 6.3% on a high base, with growth driven by staples, snacks, dairy, personal wash, fragrances, homecare, and agarbatti. The segment’s EBITDA margin expanded by 25 basis points year-on-year to 11.3%.
• Cigarettes Segment: Net segment revenue from cigarettes increased by 7%, while segment PBIT (Profit Before Interest and Taxes) rose by 6.5% year-on-year.

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1.      Plastic: Plastic is a widely used material in food and beverage packaging because it’s versatile, affordable, and practical. Different types of plastics, like PET (polyethylene terephthalate), HDPE (high-density polyethylene), LDPE (low-density polyethylene), PP (polypropylene), and PVC (polyvinyl chloride), offer various benefits such as durability, protection, and transparency. However, concerns about plastic’s impact on the environment and human health are leading to the search for more sustainable alternatives.

2.      Paper and Cardboard: Paper and cardboard packaging are gaining popularity as eco-friendly alternatives to traditional materials. They offer simple, cost-effective solutions for packaging products like juice, milk, and other items while reducing environmental impact. However, regular paper isn’t suitable for food use due to its poor barrier properties, so it’s often treated with additives or coated with materials like aluminium or plastic to improve its functionality. Despite their growing use, recycled paper and cardboard can pose health risks due to harmful additives that may migrate into food products.

3.      Metal: Metal packaging, such as aluminium and steel cans, offers excellent protection from light, oxygen, and moisture, helping to keep perishable products fresh. Aluminium is lightweight and easy to recycle, making it a sustainable choice. However, there are concerns about the environmental impact of metal production, including carbon emissions and resource depletion.

4.      Glass: Glass is a recommended packaging material due to its ability to be reused, recycled, and its chemical neutrality. Glass has been used for thousands of years to preserve food, protect it from contamination, and maintain its taste. For example, beer is stored in dark glass bottles to prevent spoilage. Glass packaging is also popular in the alcoholic beverage market and is becoming more common in food and medical packaging. Its ability to provide long-term storage and endless recyclability makes it an eco-friendly packaging solution that helps reduce food waste and harmful greenhouse gases.

5.      Compostable & Biodegradable Essentials: Biodegradable packaging made from renewable materials is becoming a viable alternative to conventional plastic packaging. The food and beverage industry are increasingly turning to biodegradable and compostable packaging made from plant-based polymers, bioplastics, and other renewable sources. These materials offer similar benefits to traditional plastics but with less environmental impact. However, they have limitations, such as lower moisture resistance and higher costs, which ongoing research aims to address.

6.      Hybrid and Innovative Materials: Innovation in packaging continues with the development of hybrid and new materials designed to meet modern needs. These include bioplastics, edible packaging, and active packaging systems that can improve product safety and extend shelf life with features like antimicrobial properties and oxygen absorption.

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