Aug 30, 2014: ITC Ltd has come up with a shelf-ready packaging solution for the consumers goods. The highlight of the same is that the pack turns into a retail shelf thereby minimizing the retailer’s investment on the shelves, optimizing the space and luring the attention of consumers quickly. However, this shelf-ready packaging system is sure to increase the expense for the marketers.
ITC is a conglomerate that combines tobacco, hospitality and consumer goods owning the largest packaging unit inSouth Asia. The firm believes that this new shelf ready packaging solution can alter the FMCG packaging in the same way theSwedenbased Tetra Pak carried out in the dairy and beverages segment.
The company is in plans to pitch the new packaging solution to FMCG companies for whom it takes on packaging and the list includes GlaxoSmithKline Consumer Healthcare, Tata Global Beverages, Colgate Palmolive, Nestle, Ferrero Rocher, Goodricke, Marico, Lotte, Reckitt Benckiser, Bayer, Pernod Ricard and United Spirits that are spread across the world in Africa, Middle East and Europe.
The new packaging business of ITC is a segment of the paperboards, paper and packaging division that managed to generate net revenue of Rs 4,860 crore in the last fiscal year. It is also claimed that the firm has plans to set up this new packaging plant in the western part of India. Moreover, the firm already has three plants located in Chennai, Munger and Haridwar with designing and packaging units.
The ITC packaging department is known for clutter cutting packaging designs of products including Sunfeast Dark Fantasy Biscuits and Engage Deodorants. Regarding the new shelf ready packaging concept, R Senguttuvan, Chief Executive Officer for Packaging and Printing Business, ITC commented that the developed markets use shelf packaging solutions extensively and that this trend will soon catch up in India. Moreover, it appears to be the right time for such a concept to debut as the retailers are trying to minimize the capital cost.