Midfield Industries-IPO Note - ANS Pvt. Ltd.

INDUSTRY OUTLOOKIndian Packaging IndustryGrowth of around 9% in the last couple of years achieved by the Indian manufacturing sectorhas fuelled the demand for better and higher packaging needs which are expected to grow incoming years. The growth in demand for industrial packaging is not only forcing the companiesto think about how to make the packaging more attractive and/or durable but also find ways &means to be more cost efficient without compromising on the quality. The corporate arereinventing the way they package the product for transportation to its final destination as wellas constantly innovating to make packaging options cheaper and cost effective besidesimproving on the same. Industrial packaging can broadly be classified into two segments i.e.one catering to Heavy industries and the other catering to Lighter Industries. Packaging needsand consumables for both the segments are totally different. Heavy Industries requirepackaging which can not only sustain the heavy weight of the product like steel and aluminum,but, also facilitate easy movement of the product by providing easy grip. The lighter industrieson the other hand require packaging depending on the specifications of the product, as well as,the mode of transport used. It is designated to be used in light and medium duty applicationslike package reinforcement, unitizing, building, palletizing and box closure.The actual size of market is hard to estimate due to the highly fragmented and unorganizednature of the market but is currently estimated at $ 18.8 billion with a growth rate of above15% per annum. Growth rate is expected to be doubled with in coming two years. India’s percapital packaging consumption is less than world wide average which offers mammoth businessopportunity to Indian Packaging Industry.(Source: http://www.packplus.in/Industry.htm)The growth drivers that have contributed to the development of this industry are• Changing demographic pattern of the country• Changing lifestyle• Increase disposable income• Industrial Development• Higher integrating of the economy with availability of better modes of transport• Growing middle class