SIG Combibloc is expanding its aseptic packaging operations in India with a new plant in Ahmedabad, aiming to meet the rising demand for sustainable dairy packaging in the world’s largest milk market.
In a significant move to bolster sustainable dairy packaging in India, SIG Combibloc, a leading global packaging provider based in Switzerland, is constructing its 10th aseptic packaging plant in Ahmedabad, Gujarat. The plant, expected to be operational by the end of 2024, will create over 300 jobs and enable SIG to meet the growing demand for sustainable packaging solutions in the Indian dairy market.
India is the largest milk producer in the world, accounting for nearly 22-25% of global production, according to the Food and Agriculture Organization (FAO). The country’s dairy market was valued at $115.57 billion in 2022 and is projected to reach $227.53 billion by 2030, highlighting the necessity for innovative and sustainable packaging options. With notable clients such as Amul, KMF, MilkyMist, Heritage Dairy, Coca-Cola, and Parle Agro, SIG is well-positioned to make a substantial impact in this evolving market.
In an interview with Economic Times Digital, Samuel Sigrist, CEO of SIG Group, emphasized the vast potential of the Indian dairy sector. He noted that although less than 10% of the country’s milk is currently processed and packaged, the growth opportunities are immense, driven by rising disposable incomes, an expanding middle class, and increasing urbanization.
The Ahmedabad plant represents a €100 million investment by SIG. It is scheduled to ramp up commercial production in the first quarter of 2025. Sigrist indicated that the company has already planned for an expansion that would allow local sourcing of packaging ingredients, further enhancing sustainability.
At the new facility, SIG will provide its customers with advanced filling machines and packaging materials for aseptic beverage cartons, which preserve the nutritional value of dairy products without the need for additives or preservatives. This technology extends the shelf life of products up to 12 months, a critical factor in a market increasingly served by e-commerce.
The initial production capacity of the Ahmedabad plant is projected at 4 billion packs, with plans for future expansions to accommodate growth. Sigrist pointed out that SIG’s co-investment strategy, where they invest alongside customers in filling machines, supports the scalability of operations across the country.
Addressing concerns about the cost of aseptic technology in a price-sensitive market like India, Sigrist emphasized its cost-efficiency and ability to cater to various price points, ensuring high-value nutrition without compromising on quality.
SIG is also committed to sustainable manufacturing practices. The Ahmedabad facility will run on renewable energy and feature solar panels on the roof. Since 2020, the company has reduced the carbon footprint of its packaging materials by 10-20%, and future efforts aim to eliminate aluminum foil, further decreasing emissions by an additional 30-40%.
Looking ahead, SIG plans to focus investments in Ahmedabad, which will serve as a hub for its operations. The company already has a presence in Maharashtra, including a training center in Pune for customer operators, reflecting its commitment to creating a robust ecosystem around its filling machines.
As SIG Combibloc continues to expand its footprint in India, it aims to play a pivotal role in the country’s dairy industry, promoting sustainability while catering to the growing demand for high-quality dairy products.
