Constantia expands Indian Packaging Films Output

Austrian flexible packaging manufacturer Constantia Flexibles is investing around €13 million to expand capacity at Parikh Packaging, its Indian subsidiary since 2013.

The new facility in Ahmedabad, Gujarat, is already under construction with the extra output scheduled to come on stream in 2019. The project will add a PE blown film extruder and other equipment to produce fully recyclable high-barrier laminates.

Constantia said the additional production will serve growing demand from leading multinationals in India’s food, home and personal care industries. It noted that the flexible packaging market in India is expected to show double-digit growth in the mid-term, driven by an expanding retail sector and increasing urbanization.

“Major FMCGs [Fast-Moving Consumer Goods] are demanding the highest level of sustainability for their packaging material and they will have to comply with upcoming Indian Plastic Waste Management (PWM) regulations that promote only fully recyclable flexible packaging,” explained Stefan Grote, executive vice president of Constantia Flexibles’ Food division.

Last November, the company announced it was spending a “double-digit million” euro sum to expand capacity for pharmaceutical packaging at Constantia Patz in Loipersbach, Austria. Due on stream in early 2019, Constantia is installing equipment to meet rising demand for different blister foil specifications.

The Vienna-headquartered group, which regards itself as the world’s fourth largest flexible packaging producer, implemented a new organizational structure from Jan. 1. It said the restructuring followed the sale of its labels division last October to Multi-Color Corp for €1.15 billion as well as the decision to expand its food and pharma businesses.

CEO Alexander Baumgartner said the new, lean divisional structure would increase flexibility, reduce complexity, lower costs and speed up decision-making processes. He commented: “We now have a strong platform to move forward with our ambitious growth plans and shape the ongoing consolidation of the flexible packaging industry.”

As part of the changes, the regional management offices in Houston, USA, and Dubai have closed.