Switzerland's SIG To Invest 100 Million Euro On Gujarat Plant

  • Admin
  • 30/09/2023

Switzerland's SIG To Invest 100 Million Euro On Gujarat Plant

Source: BQ Prime

Swiss packaging giant SIG is making a substantial investment in its Indian venture, eyeing India's burgeoning market as one of its top ten globally. CEO Samuel Sigrist expressed confidence in India's potential, citing the country's robust economy, rising incomes, and increased consumption of packaged foods and beverages. The company plans to funnel approximately 100 million Euros (Rs 878.8 crore) into its inaugural plant in Ahmedabad, marking a significant milestone since its entry into the Indian market in 2018.

Sigrist highlighted the exceptional growth of India's beverage industry and the company's impressive compound annual growth rate (CAGR) of 15-17% in the packaged dairy sector. Although India's market size is currently modest, SIG sees substantial growth potential, attributing this optimism to their status as a new entrant and the country's rapid growth trajectory.

SIG laid the foundation for its first aseptic carton plant in India, with an initial investment of 60 million euros (approx Rs 525.98 crore) in machinery and an additional 40 million euros (Rs 351.36 crore) for land and building lease in the first phase. The company aims to begin commercial production in late 2024. The Ahmedabad facility will focus on dairy and non-carbonated soft drink fillers to meet the demands of India's market.

SIG's phased investment plan spans 2023-2025, aiming to achieve a production capacity of up to 4 billion packs annually. Future investments might expand this capacity to 10 billion packs per year. Initially, the company plans to import materials for its aseptic cartons, transitioning to local sourcing in the subsequent phase.

The company has already installed 40 packaging machines and established partnerships with major Indian players such as Amul, Parle, Coca-Cola, Dabur, Varun Beverages, and ITC. SIG acknowledged India's business-friendly environment and expressed enthusiasm for potential collaborations in the rapidly growing Quick Service Restaurant (QSR) industry. Furthermore, SIG is exploring opportunities in the Bag-in-Box and Spouted Pouches segments.

Founded in 1853 and headquartered in Neuhausen, Switzerland, SIG operates globally, producing 49 billion packs and generating 3.1 billion euros in 2022. With its strategic investment and optimistic outlook on India's market, SIG is poised to play a significant role in the country's packaging industry.

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