SIG invests €90M in aseptic carton plant launch amid increasing dairy pack demands

SIG has opened its first production plant for aseptic carton packs in India. The plant has an initial annual production capacity of up to four billion aseptic carton packs, reportedly meeting environmental standards and creating over 300 local jobs. 

The €90 million (US$94 million) investment, completed within 20 months in India’s Ahmedabad, strengthens the  Switzerland-based aseptic packaging giant’s regional presence. 

Vandana Tandan, head of Market India and Bangladesh at SIG, says: “India is one of the most crucial dairy markets in the world, and over the years, the beverage processing industry has also witnessed remarkable growth.”

“This presents an incredible opportunity for us to cater to customers with innovative and sustainable aseptic packages to meet the evolving needs of consumers. We look forward to increasing our reach within the country and neighboring regions.”

High dairy pack demand

The plant will supply SIG’s growing filler base, which is said to serve “all leading dairy and non-carbonated soft drink players in India.”

Meanwhile, the SIG Board of Directors has already approved plans to invest an additional €50 million (US$52 million) in a local extrusion line that will be operational by 2027.

SIG’s new plant aims to meet aseptic packaging demand in India, adrdressing the shortage of regional dairy packaging.According to recent data provided by Innova Market Insights, approximately 28% of Indian consumers prefer using carton packaging for dairy.

Furthermore, India tops the global dairy producer list with the highest number of milk cows of any country, at 59.5 million cows, according to Statista. The world’s leading cow milk producer is the EU, followed by the US, and India.

With less than 10% of India’s milk consumption packaged and a lack of cold chains, aseptic cartons are a safe, sustainable, and convenient solution. They enable the long-term storage of nutritious F&B without the need for preservatives, energy-intensive refrigeration during distribution and storage, explains SIG.

According to Innova Market Insights, “Lack of availability” is the main reason for Indian consumers not to choose environmentally sustainable packaging, with 45% of consumers actively deciding against it. 

Aligning with market trends 

SIG’s new plant aims to ensure shorter delivery lead times, greater responsiveness to market demand, and enhanced support for India’s dairy and non-carbonated soft drink producers.

Abdelghany Eladib, president and general manager for India, Middle East and Africa at SIG, says: “The inauguration of our 10th global aseptic carton plant in India marks a significant milestone for us.” 

“Manufacturing the packages within the country will help us cater to the surging demand of customers and consumers more efficiently. It will also provide us with the opportunity to innovate and experiment with our designs and packages in line with market trends more conveniently.”