During our conversation with Mrunal Joshi, CEO and vice-chairperson of Nichrome India, we delved into topics including Nichrome’s groundbreaking innovations within the packaging industry, its strategic partnership with Trio Motion for cutting-edge automation solutions, the shifting landscape of consumer purchasing behaviors, and a closer look at Nichrome’s comprehensive offerings in the FMCG and packaging sectors.
Manash Das: How have you seen the market change over the past decade?
Mrunal Joshi: Changing consumer demands and rising prices of essential goods have driven significant growth in India’s FMCG sector. This expansion is fueled by government initiatives, a growing rural market, a youthful population, and the proliferation of eCommerce platforms.
The FMCG sector, now India’s fourth largest, has seen exponential growth in recent years. Reports project a CAGR of 27.9% until 2027. Both FMCG and packaging sectors are witnessing healthy growth and substantial investments, supported by favorable government policies. For instance, the food processing industry has invested USD 593 million under the PLI scheme, boosting sales and exports of food products. Nichrome is pleased with this growth and aims to solidify its leadership in these sectors.
Manash Das: Have the buying patterns of your customers changed since the pandemic?
Mrunal Joshi: There has been a drastic rise in eCommerce and D2C areas. With the D2C evolution, there is a huge rise in the packaging and FMCG sectors. Thus, we see there is a paradigm shift in the buying pattern of consumers. This has led to factories and manufacturing units changing their production runs.
We primarily witness factories asking for features such as easy changeover for changing from mass production to smaller batch runs. We also see a steep rise in the demand for remote monitoring and remote access services. Additionally, we also see our customers asking for secure and safer machines, especially those that are connected to the IT space.
Manash Das: How do you see the rate of technology adoption in the Indian packaging market?
Mrunal Joshi: Packaging globally is a technology-intensive industry and typically is fast while adopting new technologies. Thus, most of the technological advancements are evident in the FMCG industry. Owing to the various government initiatives coupled with consumer demands, the rate of technology adoption in the Indian packaging market is much higher than that witnessed in other sectors in India. Automation has been widely adopted in the packaging industry for decades. Today, factories are looking at digitizing operations.
Thus, machine learning, artificial intelligence, business intelligence, IIoT, and digitalization of operations and process is commonly witnessed in the Indian packaging market. Earlier, there were 5-6 years of difference from the time new technologies were witnessed in the western world, and these technologies became popular in India. With globalization, increased competition, and ease of access to technology advancements, this difference has drastically reduced. I am sure the packaging market will further see a higher technology adoption in years to come.
Manash Das: Could you highlight your offerings for the FMCG and packaging market?
Mrunal Joshi: Since developing India’s first indigenous milk packaging machine in 1977, we have remained at the forefront of packaging technology. We are a trusted brand known for pioneering innovation, deep industry knowledge, and manufacturing expertise in packaging systems. Nichrome possesses the capabilities and innovation to enhance productivity and customer relationships in countless ways.
As packaging machine leaders, we offer Vertical Form Fill Seal (VFFS), Horizontal Form Fill Seal (HFFS), and sealing systems. Our VFFS machines excel in accurately filling solids, liquids, and viscous fluids.
We provide a comprehensive packaging system portfolio covering product handling, primary and secondary packaging, end-of-line packaging, warehousing, and industry-specific solutions. Our expertise serves the pharmaceutical, food, and non-food sectors, including agrochemicals, fertilizers, adhesives, coolants, paint powder, hardware, cement, pet foods, dyes, and pigments. We take pride in providing a full range of machines for diverse industries, known for innovation, efficiency, reliability, speed, and accuracy, making us the trusted choice for various applications.
Manash Das: Why are strong partnerships essential in the Indian packaging market, and how does your company collaborate with vendors and customers?
Mrunal Joshi: Strong partnerships are of utmost importance in the Indian packaging market. At Nichrome, we recognize the value of long-term collaborations with customers, vendors, and stakeholders. Rather than treating partnerships as one-off relationships, we prioritize lasting connections and cooperative efforts.
Working closely with vendors is crucial for ensuring a consistent supply of high-quality materials, equipment, and components necessary for our packaging solutions. By establishing reliable and mutually beneficial relationships with vendors, we can source the best resources and technology, ensuring the efficiency and quality of our packaging processes.
In our interactions with customers, we emphasize understanding their unique requirements and tailoring our solutions to meet their specific needs. Through open and transparent communication, we gain insights into their challenges, goals, and the dynamics of their markets. By fostering strong relationships with our customers, we deliver customized packaging solutions, dependable after-sales support, and responsive service.
At Nichrome, our approach to partnerships is centered around trust, transparency, and mutual growth. We believe that by working closely with our customers, vendors, and stakeholders, we can create a sustainable ecosystem that drives innovation, efficiency, and success in the dynamic Indian packaging market.
Manash Das: Can you tell us about the automation and software development process with Trio Motion Technology?
Mrunal Joshi: Automation systems are one of the most important aspects of the machine. It is the brain of the system. We work with partners that are able to understand our market and requirements and optimize the solutions for making our machines faster, smoother and rugged, and reliable. Trio Motion Technology is one such partner.
We benefit from Trio’s technology know-how and expertise that helps make our machines highly performant, efficient, and productive. The motion technology, a single controller, and an integrated software approach have benefited us. Their after-market support is also commendable.