Packaging Machinery Loans

Industry overview

In the year 2000, the Indian packaging market was valued at US$ 300 million. Flexible plastic packaging was then the fastest-growing Indian packaging category, and at the time of review, had achieved a CAGR of 16.6%. With widening consumer preferences leading to higher consumption of packaged goods, packaging plays a very visible and catalytic role in modern economy. Attractive packaging that is both safe and convenient naturally gains a larger market share. As a whole, the packaging industry boosts consumption and in turn, economic growth.

Current industry

The annual growth rate for indigenous packaging machinery remains at 11.8%, indicating that a large section of the industry is still dependent on indigenous equipment. India’s per capita consumption of 4.3 kg is quite low as compared to other developed countries that have a per capita consumption ranging from 20 to 42 kg, which means that there is a great opportunity for growth in the Indian retail market, from which the packaging industry can only benefit.

Expected growth

With expected revenues of US$ 43.7 billion in 2016, the Indian packaging industry is expected to emerge as the fourth-largest packaging market across the globe. The demand from packaging end-user markets, especially pharmaceutical and processed food, is anticipated to grow rapidly, both domestically and internationally, and is expected to continue to remain high in the foreseeable future.

Share in SME

Due to the large domestic consumption of crucial products like beverages, vegetables, food and food grains, dairy and pharmaceuticals, the packaging of each of these products is a key driving segment. There are close to 22,000 packaging companies in India, more than 80% of which are in the MSME space. Food packaging (content-based packaging) and corrugated packaging (material-based packaging) are the two major segments of the Indian packaging industry, and the units that operate in both of these segments are predominantly SMEs. The packaging industry in India being highly fragmented, operations of SMEs in the packaging industry are spread out throughout the country, including in remote locations. They are often located close to the units responsible for their products’ demand generation, which helps to minimize logistics and transportation costs.

EFL contribution

In today’s competitive market, staying updated with the latest technology is a must, and this needs large investment. Direct capital is not always an option, especially in the initial stages of tentative exploration. EFL provides dependable financial assistance to companies in search of packaging equipment and machinery finance. Our team of experienced consultants answers queries that most customers have, and offers both help and guidance in fulfilling your business needs.

Machines we finance

  • Filling & sealing machines
  • Capping machines
  • Labelling machines
  • Blister & strip packaging machines
  • Cartoning systems
  • Bottle washing machines
  • Wrapping machines
  • Packing machines
Whenever your business requires packaging equipment finance, feel free to get in touch with us!