Rexam has announced that it has obtained land in Sri City, Andhra Pradesh and Mahindra World City, Jaipur in order to build beverage can factories that cater to the growth in can consumption which is being driven by the Indian beer and soft drink market. The plant in Sri City represents an initial investment of close to 50 million pounds (approximately Rs 479 crore) and will add a total production capacity of 800 million cans.
Speaking to PrintWeek India, Craig Jones, sector director Rexam AMEA, said, "Following the new plant in Sri City which is due to open in Q4 2016, Rexam will have a capacity of around two billion cans in India and the appropriate footprint to support the growing demand for beverage cans."
Jones further said, " Having plants in different locations across the country will ensure we have a better footprint and are in a position to meet the needs of our customers in the region over the long-term."
The Sri City plant will generate 150 new jobs in the local community. Plans for the land in Jaipur will be announced once they are available. When asked about the beverage can market in India, Jones said, "Currently, the beverage can represents circa 1% of the Indian beverage market, providing great growth potential for Rexam. Last year (2014) our sales were buoyant in India with volumes up 72% as the market demand for cans continues to grow. The beverage can offers an opportunity to capture drinking occasions which other packs currently aren’t or can’t provide."
Speaking about the trends in metal packaging in India, Jones said, "There are a number of innovative trends in the metal packaging segment – from different shapes and sizes to new printing technologies. Last year we launched a new can size into India – the 25cl can – and this has proved very popular."
The UK firm entered the Indian market in 2007 with a beverage can plant in Navi Mumbai by partnering with Hindustan Tin Works. At the Navi Mumbai plant, the company has recently invested in some technical capabilities in design and printing. "This investment has enabled us to design a can alongside our customers and print a 3D can model for them to see in the plant," added Jones.