The investment will be made in a phased manner over the period of 2023-2025 to reach a production capacity of up to 4 billion packs per annum. Subsequent investments are expected to increase capacity up to 10 billion packs per annum.
SIG’s investment of about €100 million (INR 880 crores) encompasses state-of-the-art production technology for printing and finishing aseptic carton packs. All the packages will be made adhering to stringent environmental, quality, and safety standards to meet the diverse needs of food and beverage producers and consumers.
Samuel Sigrist, CEO at SIG: “The Indian market is undergoing a transformation, leading to an increase in demand for sustainable aseptic packaging solutions. With our aseptic carton plant in India, we will be even closer to our customers and serve them in the best possible way. We are drawing from the insights and experience we have gained over the past 5 years of our presence in India. The new plant is a testimony of our unwavering commitment to our customers and believe in the prosperous future of India’s food and beverage industry. It is our next big milestone in delivering innovative, high-quality and sustainable packaging solutions for this diverse country full of opportunities.”
Land and buildings for the new facility will be financed through a long-term lease with a Net Present Value (NPV) of approximately €30 million (INR 263 crores). Meanwhile, commercial production is anticipated to commence by the end of 2024. The first phase of the construction is projected to generate around 300 jobs.
Vandana Tandan, Head of Markets India and Bangladesh at SIG: “India’s exponential growth positions it as one of the most prominent markets for us especially with the tremendous potential we see in the dairy and juice segments. We have accordingly decided to set up our 10th aseptic carton plant globally in India in the western city of Ahmedabad. With this new state-of-the-art facility, we will cater to the demands of our customers even more promptly and efficiently. The facility will be fully functional by 2025 and will create 300 jobs in the region. It aligns with the country’s ‘Make in India’ initiative.”
India holds a key position in the global milk market and juice production. According to the Food and Agriculture Organization Corporate Statistical Database (FAOSTAT), India is the world’s top milk producer. In the 2021-22 period, it accounted for twenty-four per cent of global milk production. Simultaneously, the country is also recognized as one of the largest juice producers worldwide. SIG’s new aseptic carton plant in Ahmedabad aims to cater to its growing dairy and non-carbonated soft drink filler base in the country.
Asheesh Mohta, Head of Real Estate Acquisitions India, Blackstone: “We are thrilled to partner with SIG and bring their vision to life. We are developing a build-to-suit facility at Horizon Industrial Parks, focused on quality and sustainability, which will help SIG continue to serve its customers with its world-class materials and services. We share a commitment with SIG of supporting the local economy through job creation and development in manufacturing, one of the key pillars in India.”
SIG entered the Indian market in 2018 and has been rapidly expanding its business across the country. Headquartered in Gurgaon (Haryana), the company is already working with some of India’s leading juice and dairy players, including Amul, Parle, Coca-Cola, Dabur, Varun Beverages and ITC, to name just a few. Recently, it extended its reach to the Southern part of the country by partnering with Milky Mist Dairy Food Private Limited, a Tamil Nadu-based dairy product manufacturer.