In a recent conversation, Samuel Sigrist, chief executive officer of SIG Group, shared insights into the company’s strategic vision for India, highlighting the importance of sustainable packaging, local production, and growing opportunities in the Indian dairy and ready-to-drink markets.
Sigrist began by outlining the company’s ambitious expansion plans in India, notably the progress of SIG’s 10th global aseptic carton plant in Ahmedabad, which is on course to commence commercial production early next year. “We are on track with our plans and excited to begin the ramp-up in early 2025,” Sigrist said. He said that the plant will serve as a critical hub, enhancing the company’s ability to meet local demand while aligning with ‘Make in India’ initiatives.
The EUR 60 million investment in the Ahmedabad plant, with an additional EUR 50 million for future phases, highlights SIG’s commitment to scaling its local operations. According to Sigrist, this expansion will allow the company to produce packaging materials locally, shortening lead times for customers and making supply chains more agile. “We will have an initial capacity of 4 billion packs per annum and the facility is designed to accommodate further growth,” he said.
Sustainability at the core of SIG’s packaging solutions
When discussing SIG’s sustainable packaging efforts, Sigrist was quick to highlight the significant environmental advantages of aseptic cartons. “Our packaging has the lowest carbon footprint in its category,” he explained, adding that 75% of the raw materials used come from renewable sources, such as forests certified by the Forest Stewardship Council (FSC).
The company’s shift from using aluminum in packaging to barrier films is a major step toward further reducing its carbon footprint. “Removing the aluminum layer decreases the carbon impact by 40%, and increasing the paper content boosts the share of renewable materials,” Sigrist shared. He also acknowledged the challenge of cost, noting that aluminum remains the most cost-effective barrier but emphasized SIG’s goal of achieving price parity for the more sustainable film-based alternative.
Adapting to the unique challenges and opportunities in India
Reflecting on the challenges SIG faces in India, Sigrist pointed to the need for highly specialized talent. “India has an amazing talent pool, but transforming engineers into field service specialists takes time – up to two years,” he explained. Despite this bottleneck, he highlighted SIG’s rapid growth in the market as a positive sign of things to come.
The company has also tapped into the evolving trends in India’s dairy sector. With the country being the largest milk market in the world, SIG has identified a shift from loose milk to packaged, processed dairy products as a key opportunity. “As disposable incomes rise and the middle class grows, demand for processed, packaged milk will continue to surge,” said Sigrist. He also noted the increasing consumer preference for healthier, additive-free products with fewer preservatives – an area where SIG’s aseptic packaging technology offers a competitive edge by preserving the beverage’s nutrients without refrigeration for up to 12 months.
Flexible filling solutions for a growing RTD segment
One of SIG’s major differentiators in the packaging industry is the flexibility of its filling lines. According to Sigrist, SIG’s filling machines can switch between different packaging types in few minutes, a significant advantage over competitors. The machines are also capable of handling high-particulate content, further setting SIG apart in terms of versatility.
This flexibility is particularly crucial in the ready-to-drink (RTD) segment, which has seen rapid growth in India. “Our job is to make sure our customers can meet consumer needs, especially in an environment where inflation is a challenge,” Sigrist said. SIG has responded to the growing demand by offering smaller pack sizes that help maintain price points, while also increasing the output of their filling machines to cater to higher volumes.
Vandana Tandan, head of markets India and Bangladesh, emphasized the company’s commitment to evolving with market demands, stating, “Looking ahead, we are developing products that will contain up to 90% fiber by 2030 and adopt a more circular design. This will minimize waste and encourage greater recycling of our packaging.”
India – a critical growth market for SIG
In concluding the interview, Sigrist reiterated India’s significance to SIG’s global strategy. “India is probably the number one growth market globally for us,” he said, adding that India is poised to become a major contributor to SIG’s revenue over the next five to ten years. He went on to compare India’s potential to that of China, forecasting that India could eventually surpass China in terms of importance to SIG’s business. “The sheer scale of the market, coupled with the demand for packaged products, makes India an incredibly exciting prospect for us,” Sigrist said.