THE HINDU Business Line
Can-Pack plans second unit
Edited by : AL CIRCLE
2 min read
Polish packaging company Can-Pack, which is currently the only manufacturer of two-piece aluminium cans for beverages in India, has planned to set up a second manufacturing unit in the country.
The company, which already has a manufacturing plant at Aurangabad, had sought additional land from the Maharashtra Industrial Development Corporation to set up its second plant, and plans to invest Rs 450 crore in the capacity augmentation exercise, according to a source. The land allotment committee has granted approval for the project , but the land has not yet been allotted, the source added.
Can-Pack India's current production stands at 950 million cans a year , and the source said that this amounts to near complete utilisation of the present installed capacity.
Can-Pack has invested Rs 500 crore in India as of now, and its manufacturing plant at Aurangabad went into commercial production in late 2009.
The total domestic demand for packaging carbonated beverages and beer is pegged at one billion cans annually, and is estimated to show double-digit growth.
With a virtual monopoly in the Indian market, the capacity utilisation has prompted Can-Pack to step on the accelerator to set up a second plant.
Though, some expansion is possible at the current plant, if the Aurangabad project does not materialise, the company may be constrained to look elsewhere, the source said.
Can-Pack India currently makes aluminium cans from material that is centrally procured in Poland in 330 ml and 500 ml sizes in addition to slender fit cans in two sizes.
It supplies largely to the domestic market, and exports a small percentage of its production.
With only two plants in the APAC region, one each at Dubai and India, the parent company may also look at the Indian subsidiary increasing exports, as also on making cans in smaller sizes.
The company, which already has a manufacturing plant at Aurangabad, had sought additional land from the Maharashtra Industrial Development Corporation to set up its second plant, and plans to invest Rs 450 crore in the capacity augmentation exercise, according to a source. The land allotment committee has granted approval for the project , but the land has not yet been allotted, the source added.
Can-Pack India's current production stands at 950 million cans a year , and the source said that this amounts to near complete utilisation of the present installed capacity.
Can-Pack has invested Rs 500 crore in India as of now, and its manufacturing plant at Aurangabad went into commercial production in late 2009.
The total domestic demand for packaging carbonated beverages and beer is pegged at one billion cans annually, and is estimated to show double-digit growth.
With a virtual monopoly in the Indian market, the capacity utilisation has prompted Can-Pack to step on the accelerator to set up a second plant.
Though, some expansion is possible at the current plant, if the Aurangabad project does not materialise, the company may be constrained to look elsewhere, the source said.
Can-Pack India currently makes aluminium cans from material that is centrally procured in Poland in 330 ml and 500 ml sizes in addition to slender fit cans in two sizes.
It supplies largely to the domestic market, and exports a small percentage of its production.
With only two plants in the APAC region, one each at Dubai and India, the parent company may also look at the Indian subsidiary increasing exports, as also on making cans in smaller sizes.
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