61144442 Uflex Packaging Startegy

SUMMER TRAINING REPORT

Market Research of Flexible Packaging Materials in South East Asia

SUBMITTED BY: Gaurav JainBBA (2009-2012) Roll No. : A3906409281

INDUSTRY GUIDE Mr. Ajoy Gupta GM International Sales & Marketing UFLEX LTD.

FACULTY GUIDEProf. S. K. Dubey

AMITY SCHOOL OF BUSINESS

AMITY UNIVERSITY UTTAR PRADESH


CERTIFICATE OF ORIGIN

This is to certify that Mr. Gaurav Jain, a student of BBA, Amity School Of Business, Amity University, Noida has worked in the Market Research of Flexible Packaging Materials in South East Asia, under the able guidance and supervision of Mr. Pradeep Tyle (CEO, UFLEX Ltd.) Mr. Jagmohan Mongia (JT. President, UFLEX Ltd.) , Mr. Ajoy Gupta (GM international sales & marketing, UFLEX Ltd.). The period for which he was on training was for 8 weeks, starting from 09/05/2011 to 1/07/2011. This Summer Internship report has the requisite standard for the partial fulfillment of Graduate Degree In BBA. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

SignatureProf. S. K. Dubey

SignatureGaurav JainPage | 2


(Faculty Guide)

(Student)

ACKNOWLEDGEMENTI express my sincere gratitude to my industry guide Mr. Ajoy Gupta, (GM international sales & marketing, UFLEX Ltd), for their guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible. I would also like to thank the entire team of UFLEX Ltd. for the constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Prof. S. K. Dubey of my institute, for his continued guidance and invaluable encouragement.

Signature Gaurav Jain (Student)

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ContentsContents................................................................................................................ 4 1. EXECUTIVE SUMMARY........................................................................................6 .............................................................................................................................. 6 ............................................................................................................................. 6 2. INTRODUCTION .................................................................................................8 .............................................................................................................................. 8 3. INDUSTRY PROFILE............................................................................................9 .............................................................................................................................. 9 3.1 Packaging Industry Overview.......................................................................9 3.2 Review of literature on the industry...........................................................12 3.2.1 Packaging Industry in India- An Overview............................................12 3.2.2 BOPP Film Industry Report 2010- 2011................................................14 3.2.3 Which is the Best Food Packaging Film?...............................................16 3.2.4 What is better Paper Packaging Bags Or Plastic Packaging Bags?.....17 3.2.5 Flexible Packaging A New Marketing Tool..........................................18 3.3 What is flexible packaging?........................................................................22 3.3.1 Packaging Films....................................................................................25 4. COMPANY PROFILE...........................................................................................29 ............................................................................................................................ 29 4.1 REVIEW OF LITERATURE ON THE COMPANY................................................31 4.1.1 Uflex Ltd. Becomes A Member Of Industry Council For Packaging And The Environment (INCPEN)............................................................................31 4.2 Historical analysis.......................................................................................32 4.3 GROWTH AND FUTURE PLANS....................................................................32 4.3.1 Uflex To Set Up PET Film Plant In USA With An Investment Of $85 Million............................................................................................................ 33 4.3.2 UFLEX Ltd Q2 FY10-11 Net Profit Up 341% at Rs. 203 crores ..............34 Page | 4

Market Research of Flexible Packaging Materials in South East Asia4.4 Products......................................................................................................36 4.4.1 BOPP FILMS...........................................................................................37 4.4.2 BOPET FILM...........................................................................................38 4.4.3 CPP FILM...............................................................................................40 4.4.4 Thermal lamination films......................................................................41 4.4.5 Metallized films ....................................................................................43 4.5 SWOT ANALYSIS (UFLEX Ltd.).....................................................................43 5. Reflections on what has been learned during the placement experience.......45 ............................................................................................................................ 45 5.1 Production Process.....................................................................................45 5.1.1Production management structure........................................................45 5.1.2 Information & Details about the BOPET production lines......................46 5.1.3 PRODUCTION PROCESS FOR BOPET FILMS...........................................48 5.1.4 PRODUCTION PROCESS FOR CPP FILMS................................................54 5.1.5 METALLIZERS........................................................................................55 5.2 DOMESTIC MARKETING...............................................................................57 5.3 EXPORT MARKETING...................................................................................59

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1. EXECUTIVE SUMMARY

In this era of globalization need to expand your market in every location possible is the most important priority of todays big companies. If you are not moving and expanding globally then your chances of survival in this tough competition is very difficult hence my internship in Uflex deals with the export and international marketing of the companys products in the south East Asian region of the world. Where my work was to find potential customers for Uflex So that the company can carter to the growing demand of flexible packaging material in this particular region. The product which is marketed on international level is flexible packaging films these are PET, PP, CPP films which can be used for wide variety of packaging. Since my work of international marketing is segmented on the basis of geographical area my focus was only on the South East Asian countries which include countries like Vietnam, Singapore, Malaysia, Indonesia, Thailand, Cambodia etc. Along with international market I have also learned about all the documents which are required for the purpose of export as well as how an international order is processed in the company and how the marketing managers contact the overseas buyers and then discuss with them about the possible price quotes. I also spend some time in the production department there I learned how the production process is carried on and how the whole process of production takes place. In modern industries to attain maximum efficiency in the production is the main aim because lesser will be the wastage grater will be profits.

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In the production department my work was related to product understanding also because if you dont know the product then how will you market it to the customers so my first task was to understand the whole range of products and its special features. Then I also worked for the domestic marketing department also where I did field work, by visiting many customers of Uflex in Delhi NCR region where my main work was to take their feedback so that the company can improve its relations with the customers and also improve its customer satisfaction level. Customers is the king in todays market hence u need to satisfy his demands so that a long term relationship can be maintained otherwise your competitors can any time steal your customers from you. Hence the company should understand the customers demand and meet them. This project report will give a complete understanding of the entire flexible packaging material films industry. You will find brief details about each type of flexible packaging film produced in the Uflex along with its whole production process. The report also gives features and applications of each type of these packaging films. This report also caries review of literature for both industry as well as the company which will help in better understanding of this the flexible packaging materials and its scope growth future and trends.

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2. INTRODUCTION

Packaging industry uses multiple types of packaging films. The most commonly used packaging films include polyethylene film (PE), polypropylene film (PP), polyolefin film and polyvinyl chloride or the popular PVC films. However, these are not the only types of packaging films available with the manufacturers and suppliers of wholesale packaging films. These films usually come as a roll and are used to cover and wrap goods, protect boxes and for making other packaging products such as bags, tubes, bubble wrap and sheets. Packaging films are also used for lamination, printing and perforation. Different types of packaging films have different characteristic features. They can be anticorrosive, antistatic, shrinkable or nonshrinkable, as well as slippery or nonslippery. This Project report deals with complete details of these packaging films its eport to various countries, its production process and the the future scope of this market segment my project title is Market Research of Flexible Packaging Materials in South East Asia which covers aal the areas related to the flexible packaging industry along with the following

objectives :1.

To learn about the whole process of international marketing & how an international order is processed.

2. 3.

To learn about all the import export documents required. To learn how to find potential international customers for the company.

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Market Research of Flexible Packaging Materials in South East Asia4.

Spending some time in domestic marketing and visiting domestic customers to take their feedback.

3. INDUSTRY PROFILE

3.1 Packaging Industry Overview

Packaging FilmsPackaging industry and packaging film industry is growing and acquiring a comprehensive shape in the market. It is actually the type of packaging industry that defines its growth along with many other factors. Like healthcare packaging material has 5% growth rate whereas it is 3.2% for the beverages. Global packaging industry can be divided into four basic groups depending upon the type of material used. These segments are plastic, paper and board, glass and metal. Out of these paper and board is the largest segment that accounts for 36%. It is followed by plastic, then metal and at last the glass.Page | 9


Global Packaging Industry OverviewGlobal packaging industry is growing swiftly and ready to meet the tomorrow's trends although the global recession of 2009 has also affected the sales of the packaging products and packaging films. During recession a decline in the global packaging sales has been observed which is about 2.6% in 2009. But the global packaging industry has regained its original growth in 2010 and expected to reach $739.9 billion by 2014. The annual growth rate is 3.1%. With such a high growth rate, the global packaging industry has become an integral part of product marketing, merchandising, food chain and logistics. 70% of the sales is estimated in the consumer market and rest of the 30% in industrial market. In consumer market the food industry is the biggest industry using the packaging films and material. After this comes the beverage industry. If we look at global packaging industry then the highest concentration of packaging industry is in North America, then comes the Europe. After this the Asia-Pacific and at last Latin America. There are about 100,000 companies to represent global packaging industry and 45% of the total sales is through the top 100 companies. The growth at the global level needs more advancement in the technologies as the packaging industry is still the low and worst performing segment as per the world's stock markets. For growth, the packaging companies should allocate more R&D budget and reduce the difference between low productivity and high cost. Top Ten Global Packaging Companies According to Fortune 500

Owens-Illinois Crown Holdings Smurfit-Stone Container Ball MeadWestvacoPage | 10


Sealed Air Sonoco Products Temple-Inland Bemis Greif

Packaging Industry in IndiaIn India the retail sector has acquired a burgeoning and very well organized shape. This has given a boost to the packaging industry. From every big to small industry is focusing its attention towards the packaging. Indian packaging industry is growing at the rate of more than 15% p.a and expected to touch USD 14 Billion in the present financial year. The growth is expected to be doubled in the coming two years.Growth of the packaging industry in India can be seen mostly in the Second-tier cities where packaging plays an important role in the launch of new products. Big giants like Hindustan Unilever Ltd, Nestl India Ltd, ITC Ltd, Procter & Gamble India Ltd, PepsiCo India Ltd, Coca-Cola India Ltd and Dabur India Ltd have also become quiet aggressive in this form of advertisement. The growth of the packaging industry is India is because of the low manufacturing cost. Owing to this reason, flattened cans, crown cork, plastic films laminates, paper board, packaging machinery, lug caps etc are exported to other countries. Fastest Growing Segment - laminates and flexible packaging such as PET and woven sacks. Also the growth in the packaging industry in India is attributed to the increase in the number of joint ventures and partnerships with foreign companies. Not only the growth but growth with environmental concern is the aim of the packaging industry in India. Stake holders in Indian packaging industry are holding on environmental concern. In this the Indian Center for Plastics in the Environment is quiet active in promoting the awareness. Then the Ministry of Environment and Forests (MOEF) is playing its role in creating awareness towards waste management materials. Corporations and packaging companies are playing their part by adopting the greener technologies.

Now in order to compete at international level the Indian packaging film industry has to be

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Market Research of Flexible Packaging Materials in South East Asia according to the international packaging standards. This can be done by bringing in the new and innovative technologies.

Top Packaging Companies in India

Parksons Packaging System ITC Limited Tata Tinplate Company of India Hindalco Moldtek Technologies Limited Gujarat Glass Ltd Advance Packaging AMAC Plastic Packaging E C Packaging Pvt. Ltd The Paper Products Limited

3.2 Review of literature on the industry3.2.1 Packaging Industry in India- An Overview

Growing Packaging Industry in India24 December 2010- World Packaging Organisation (WPO) has given the slogan "Better Quality of Life Through Better Packaging" which indicates the importance of packaging in the modern world economy. The scenario for packaging industry in India too is similar to that of other developed parts of the world like the US and Europe. Per capita packaging consumption of India offers huge business opportunity to packaging companies. The packaging industry in India is currently USD 14 billion or Rs. 63,000 crores. It is growing at the rate of more than 12% pa and is expected to cross a turnover of USD 19 billion (Rs. 85,000 crores) by the year

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Market Research of Flexible Packaging Materials in South East Asia 2015. There are many reasons for the growth of packaging industry in India. Let's have an industry overview to understand the same.

Packaging Industry in India- Growth Factors The ever increasing Indian middle class population as well as the fast expanding retail sector of Indian economy are two of the main factors promoting the growth of packaging industry. Other factors responsible for the growth of packaging industry include:

Industrialization and urbanization has lead to increased income per head leading to greater consuming of products. More products and increased purchasing capacity mean more higher buying choices. So, now the Indian consumers prefer to buy products with attractive products made so through packaging.

Liberalized economy has exposed the Indian markets to the global industry standards where attractive packaging designs mean more business. So, the companies too pay more attention to packaging and packaging designs

Rural marketing and low purchasing power of middle or lower class Indians has led to the growth of small packaging products like sachets etc.

Packaging Industry in India- Packaging Materials Used The classification of packaging materials used in India can be broadly divided into three heads- Rigid Packaging, Semi Rigid Packaging, and Flexible Packaging Rigid Packaging- For rigid packaging, the packaging industry uses such materials as bottles, metal cans, wooden boxes, metal boxes, aerosol cans, battery cell cans, aluminum collapsible tubes, injection molded plastic containers made of PVC, PET, HOPE, barrels made from HOPE, paperboards, and corrugated boxes. Semi Rigid Packaging- For semi rigid packaging, the packaging industry uses such materials as carton box, plastic bottles, corrugated boxes etc. Flexible Packaging- Flexible packaging includes multi-layered laminated sheets of single orPage | 13

Market Research of Flexible Packaging Materials in South East Asia a combination of substrates such as plastic, paper or aluminium. For flexible packaging, the packaging industry uses such materials as, papers, plastic packaging films, aluminium foil, cellophane etc.

Packaging Industry in India- Some FactsPackaging industry of India is growing at more than 12% annually. Although flexible packaging is catching up fast, rigid packaging is still dominant in the packaging industry in India. Flexible packaging is gaining vast acceptability due to the protection it offers to the products against environmental threats like moisture, heat, and chemical reaction. Convenience in handling products as well as cost benefits are also some factors that are making companies attracted towards flexible packaging industry in India. Although packaging products made of plastic have gained vast acceptability, Indian packaging industry still remains attracted to paper and paperboard consumption. Currently, India is ranked 15th in the world for its paper and paperboard consumption and is expected to improve its rank in the future. The total demand for paper currently is estimated to be around 6 million tones, of which about 40% is consumed by the packaging industry in India. Indian packaging machinery exports are rapidly growing. packaging. Food and Pharma packaging are the key driving segments of the packaging industry in India.Source :- http://www.packaging-films.com/articles/packaging-industry-india.html

3.2.2 BOPP Film Industry Report 2010- 2011

BOPP Film 6 June 2011- Among all the packaging films, the BOPP films have always shown a favorable growth syndrome. 2008, due to the economic downturn, the BOPP film In

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Market Research of Flexible Packaging Materials in South East Asia industry suffered a setback but has fast recovered and has shown an encouraging growth in the demand for these films.

Growth Rate of BOPP Films Industry Although the demand of BOPP films slowed down noticeably in 2008, it still managed to grow at a rate of two percent to reach a market demand of 51 million tones, and picked up again strongly by 6% in 2009, adding a further demand of 300 000 tonnes of BOPP films. The global demand for BOPP film is expected to grow at rates of six to seven percent per year for the next three to four years. And the growth factors of BOPP films will be driven mainly by the growth in Asia, and to a some extent in Eastern Europe, Russia and Brazil. Future Prospects of BOPP Films Industry in 2011- 2012 In 2010, the global BOPP film demand had grown by 7%. However, the rate of new BOPP film lines coming on stream slowed notably due to the impact of the economic slowdown of the year 2008 on investment decisions. As soon as the financial crisis got over, there was seen a recovery in demand which resulted in a boom in orders for new BOPP film lines in the year 2010. This is expected to lead to another surge in new capacities in 2011 and 2012 and further pressure on BOPP margins. China is continuously leading the way in new capacity but many other regions have developed a good capacity too. These include countries like India and Russia. Challenges for BOPP Films Industry Due to the high growth rates, the BOPP film industry has become an attractive, profitable industry. However, in spite of the high barriers to entry, there appears to be no shortage of capital to fund new plants. This has resulted in an over investment that has further led to persistent oversupply, weak pricing and poor returns with an increasingly powerful and globalized customer base. The growth of BOPP film industry is slowing down in the "so far good markets" of Western Europe, North America and Japan. This will present challenges to the BOPP producers in these regions where many old, slower and smaller BOPP film lines operate with higher costs. Although packaging innovation, raw material and technology developments still are somewhat driven by BOPP film manufacturers in these regions, the market growth, and more importantly converting operations are shifting to other lower cost regions of the world. ThisPage | 15

Market Research of Flexible Packaging Materials in South East Asia will have significant implications for the viability of BOPP film production in the western countries.

Source :- http://www.packaging-films.com/articles/bopp-film-industry.html

3.2.3 Which is the Best Food Packaging Film?By: rashee 06 October 2010- Food packaging is under a strict scrutiny these days. A lot of food contamination is taking place because of the use of improper food packaging. Eco friendly packaging is the last resort for many of the companies which are into the bulk production and packaging of food products. Paper packaging is considered to be the safest of all varieties of packaging prevalent in the market. But many of the negligent food products producers are still using plastic film packaging without a thought.

However its important to know that not all styles of film food packaging is not harmful. Amongst the many packaging styles that are popular for food packaging are the polyolefin packaging films. Polyolefin films have properties that make them the perfect choice for packaging food. They are odorless and free of any contamination. PVC films are also very popularly used for a variety of packaging needs. They are usually used for packagingmaterials that are meant for non edible purposes.

There are some basic differences in both these kinds of packaging films that make them appropriate for different uses. Most of the food packaging brands are specifically using polyolefin films to keep their food products free from any kind of contamination. Many of the packaging films do contaminate the foods. For example polyolefin film is odorless and is considered safe as it does not have any adverse impact on the food being packaged it. It is safe even when it comes in direct contact with the food items. Article Source: http://www.articlesbase.com/ - Which is the Best Food Packaging Film?Page | 16


3.2.4 What is better Paper Packaging Bags Or Plastic Packaging Bags?

September 01, 2010- The debate about what is better of the paper packaging bags and the plastic packaging bags is quite an old one. It's not as easy as environmentalist make it out to be. Paper is recyclable and environment friendly when it comes to the decomposition of the material. But this is not the only thing that needs to be looked at while deciding what is the best for the environment. Let us have a look at the other aspects of paper packaging bags & the plastic packaging bags that count for deciding which of them is better in the longer run.

Paper Packaging Bags Talking about the paper packaging bags first, the most important claim used for promoting the paper packaging bags is that they are environment friendly. There have been efforts by environmentalists for making paper packaging bags a new age trend, but the efforts have failed to a great extent. The main reason for the failure of these efforts is the convenience levels associated with the paper packaging bags. Shopping with paper packaging bags is quite inconvenient, specially grocery shopping and heavy material shopping is quite inconvenient. Paper packaging bags are also costlier options for the manufacturers.

About the environmental concerns aspect. Though paper packaging bags are biodegradable and also recyclable but they also call for a lot of wastage of paper. One of the major reasons for responsible for deforestation is the growing need of paper, which needs to be curbed as soon as possible. Paper packaging is a costly option not just to the manufacturers but also for the environment.Page | 17


Plastic Packaging Bags Plastic packaging bags on the other hand are popular due to the ease and convenience of carrying them. More and more people, as user, feel more comfortable using plastic bags for everyday shopping as they are light weight and easier to carry. They are considered to be environment unfriendly as plastic does not decompose. It is increasingly leading to pollution to the Earth. Due to no proper disposal system for the plastic waste, there are more and more cases of land animals and ocean animals dying by consuming harmful plastic chemicals. Stray land animals in particular are being excessively harmed by such unthoughtful and unsystematic disposal of plastic waste.

Plastic packaging bags are in general more harmful for the environment as compared to the paper packaging bags. But with reusable plastic packaging bags, things can be changed. A feasible solution to this endless debate of what is better among paper packaging bags and plastic bags is to go in for reusable packaging solutions. Reusable packaging bags, pouches, boxes and containers do not result in depleting fauna resources or careless plastic disposal. Read more about sustainable packaging designs & options available in the market. http://www.packaging-films.com/articles/paper-vs-plastic-packaging.html

3.2.5 Flexible Packaging A New Marketing ToolFlexible Packaging Although non packed food is safe for consumption as these do not contain any preservatives but today there is craze for the packed foods. Moreover the fast life and busy schedule forces one to buy packed food more often.Page | 18


Most of the packed food comes in the flexible packaging that are attractive and very functional. Flexible packaging industry includes bags, envelopes, pouches, sachets, wraps, etc., that are made from materials like as film, foil, or paper sheeting. In this more curious packaging formats like pouches, blister packs and overwraps are also covered. The execution, color, size of flexible packaging differ with the product and provides a unique identity to the product it is carrying. Also this packaging is easy and secure thus gives handy way of handling the item to be packed. Packaging industry give lots of importance to visual appeal and convenience of packing. Before the invention of flexible packaging, glass and metal were used for packing. But lot of weight and associated inconvenience had replaced it with more comfortable and trendy flexible packaging. Although there is an economic recession going on across the world but still companies are setting huge amount of budget on packaging as this has come out as an effective marketing tool. In this the food taste same, smells betters and retain all its content for a longer period of time. One of the key roles of packaging in today's supermarket is to create the brand image that is done superbly by the smart and flexible packaging. Also there is one more advantage of using it is that it can be customized as per the requirement of product and business. Material Used in Flexible Packaging Plastic, paper and aluminum either in a single form or in combination is used to make the flexible packaging in the form of multi-layered or laminated sheets. In pharmaceutical, device packaging and nutraceutical industries barrier films are used. Tetra-pack is used for packing the milk that keep the milk safe even after opening. This is because of the barrier films used in flexible packaging. Along with other things more emphasis is given to the biodegradable flexible packaging material that has changed the world of packing and brought new revolution in the whole industry. Hence manufacturing Biodegradable Bags and Food Packaging and bio degradable flexible packaging is one challenge. Along with this competition from the big companies to the smaller ones is another one. Flexible packaging bags and pouches made in developedPage | 19

Market Research of Flexible Packaging Materials in South East Asia countries are superior than the one made in developing countries. This increases the competition and desire to make more convenient and appealing flexible packaging designs. Source :- http://www.packaging-films.com/articles/flexible-packaging.html

RESEARCH METHODOLOGY

A research is done whenever we try to analyze a particular trend, or to study the impact of a new policy on various socio-economic variables in the society. At times it is also undertaken to analyze the effects of some happenings in the past. The way in which such a research is done is called Research Methodology. A research work consists of an objective which tells us what we want to establish or co-relate with the help of our research.

Research objectives of this project

1. To find the potential market of Flexible Packaging in South East Asia. 2. To find the potential Customers of Flexible Packaging in South East Asia.

RESEARCH METHODOLOGY ADOPTEDThe research methodology being adopted in this project is to get Information has also been sought from the related literature (books, business newspapers, and magazines) available in the departmental library. The information thus obtained has been edited and condensed accordingly keeping in mind the scope of the project. Keeping in mind the nature of topic chosen, research has not been conducted or included in this research project.Page | 20


CONCLUSIVE RESEARCHA conclusive research is meant to provide information that is useful in researching conclusion of decision making. It tends to be quantitative in nature which is to say in the form of numbers that can be quantified and summarized. It relies on both secondary data, particularly existing database that are analyzed to shed light on different problems than the original one for which they were constituted and primary research or data specifically gathered for the current study

Data Collected : Secondary Data For analysis of data graphs have been used. Secondary Data Methodology: Secondary data was collected from the web, various reports published on the internet, books, newspapers (Economic Times, Business Standard, Financial Express) and business magazines. This was the main website which were visited and data / information collected from: www.google.com microsoft word microsoft powerpoint

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3.3 What is flexible packaging?Packaging products have gained unimagined importance in the present era due to the consumer oriented society of the day. Packaging is the technique of storing or placing a product- liquid, solid or powdered products- into a protective container or wrapper to protect, carry, identify and merchandise the product. Packaging of any product is a vital link between the manufacturer and the consumer for the safe delivery of the product through the various stages, starting from manufacturing, storing, transporting, distribution to marketing. Functions of Packaging The functions of packaging are many- some of which are very crucial (like that for food packaging products) for safeguarding the items packed into the packaging products. Some other functions of packaging are business oriented for the brands (like that for retail packaging products) who want to communicate, promote and sell their products by using attractive and innovative packaging products. All types of functions of packaging have been listed here: Protective function - The packaging products protect the contents packed into them from outside elements and vice versa. Most of the packing products, especially plastic packaging products ensure full retention of the utility value of the packaged goods. Storage function - Many packaging products have the primary function of storing along with protecting the contents in them. For example, some of the food packaging products like food safety bags made of net etc. are used by home makers for storing and protecting their food itemslike fruits and vegetables in refrigerators.

Loading and Transport function - Packaging products are also used for convenience of handling the packed objects. Convenient goods handling entails designing transport packaging products in such a manner that they may be held, lifted, moved, set down and stowed easily, efficiently and safely. Sales and Promotional function - Packaging products are increasingly acquiring the function of promotion and sales of branded goods. Attractive packaging products have been

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Market Research of Flexible Packaging Materials in South East Asia used to lure potential buyers' attention and to have a positive impact upon their purchasing decision Information Providing function - Packaging products also function as an important medium for imparting information that is often printed on packaging. Most of the custom packaging products made by packaging manufacturers are targeted at providing the consumer with details about the contents and use of the particular product. For example, the nutritional details on food packets, pots or dosage information on medicines packages perform this informational function of packaging. Packaging Film Products Packaging Pouch Packaging Bags Food Packaging Laminates Packaging Rolls Pharma Packaging Materials Aluminium Sheets & Coils Aluminium Foil Aluminium Extrusions Aluminium Scrap

Dairy Packaging Cosmetic Packaging Liquid Packaging Products Clamshell Packaging Hot Stamping Foils LED Packaging Metallic Foils Sealing Material Tamper Evident Spangles and Sequins

Electronic Packaging Industrial Packaging Insulation Material Medical Packaging Strip Materials Transfer Foils Wine Packaging Metallic Yarn Glitter

Vacuum Packaging

Packaging Materials Packaging manufacturers use a number of materials to make all types of packaging products. The brand owners, retailers, and consumers demand different types of packaging products for their different needs. As such, the packaging products suppliers and exporters have to keep all kinds of packing products made with different materials like paper, plastic, aluminium, timber, glass, laminates etc. A brief description about all these types of packaging products made with different types of materials has been given here: Paper and Paper Based Packaging Products - Paper packing products are in the form of cartons, boxes, bags wrappers, etc. The advantages of paper packaging material include its low cost, relative weightlessness, easy disposal, easy availability in various types etc. The main demerits include low tear and wet-strength. However they are durable if they are properly treated or coated.Page | 23

Market Research of Flexible Packaging Materials in South East Asia Plastic Packaging Products - There are of two types of plastics for making packaging products -high polymers which includes polypropylene, polystyrene, polyester etc. and low polymers which includes cellophane (coated with polyethylene). Flexible plastic packaging films are used to make plastic bags, wrappers, pouches while a wide variety of rigid plastics are used by packaging manufacturers for making comparatively durable packing materials like thermoformed cartons, bottles etc. Aluminum Foil Packaging Products - Aluminum foil is a very popular packaging material. Aluminum foil has good barrier properties, is greaseproof, shrink-proof, tasteless, odorless, hygienic etc. Read Aluminum Foil Container- Reasons for Rising Uses Types of Packaging Products Timber Packaging Products - Timber is used in the form of box, tub or barrel for the purpose of packing various products. It has an attractive appearance and necessary mechanical strength. The packaging can be treated with casein-formalin, or spread with paraffin-wax or plastics, so that it becomes more water resistant. Glass Packaging Products - Packing materials made from glass include bottles, jars, jugs etc. Glass packaging products can be transparent as well as opaque. It acts as an excellent gas and water vapor barrier. Tinplate Packaging Products - Thin sheet of mild steel coated on both sides with a layer of pure tin are used for making attractive packaging products. Tinplate packing products have good strength that give them excellent barrier properties. It is mostly used as retail packaging product in the form of cans. Laminates Packaging Products - Many kinds of laminates are used for making packaging products. Some typical laminates or laminated films used for packaging are paper polythene, cellophane-polythene, and polyester-polythene. Laminations are made for various reasons such as

to strengthen the film material. to improve barrier properties. to improve grease-resistance.Page | 24


to provide a heat-seal surface etc.

3.3.1 Packaging Films

Packaging industry uses multiple types of packaging films. The most commonly used packaging films include polyethylene film (PE), polypropylene film (PP), polyolefin film and polyvinyl chloride or the popular PVC films. However, these are not the only types of packaging films available with the manufacturers and suppliers of wholesale packaging films. These films usually come as a roll and are used to cover and wrap goods, protect boxes and for making other packaging products such as bags, tubes, bubble wrap and sheets. Packaging films are also used for lamination, printing and perforation. Different types of packaging films have different characteristic features. They can be anticorrosive, antistatic, shrinkable or non shrinkable, as well as slippery or non slippery.

Classification of Packaging Films Packaging films are made of a wide range of materials including polyester, polypropylene, polyolefin, PVC, and vinyl. Packaging film manufacturing also involves use of plastic film, foils or papers. By combining the best qualities of these materials, packaging films offer a broad range of properties with their application in almost all the industries. These films are basically classified as Flexible Packaging Films and Rigid PVC Films.

Flexible Packaging Films Flexible packaging films are made from flexible materials derived from melting and orienting polymers like polypropylene, polyethylene, and other such materials. The fine examples of flexible packaging films include OPP films, BOPP films and CPP films. Flexible packaging films are widely used in many applications like food packaging, cosmetics packaging, pharmaceutical packaging etc. Flexible packaging films are also preferred over other packaging products because they provide packaging machine efficiency, excellent clarity for graphics, and enhanced printing and laminating.

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Market Research of Flexible Packaging Materials in South East Asia Rigid PVC Films There are many industries and products that require rigid packaging solutions to get high impact strength, high stiffness, and high barrier properties. However, these packaging products are required to provide clarity and gloss characteristics too. For such packaging needs, rigid pvc films are manufactured of which the most common one is the rigid PVC film (Polyvinyl Chloride Film). These rigid PVC films find many uses such as for making stationery items, credit cards, adhesive tapes etc. Rigid packaging films are also required for making thin wall containers and service ware. Apart from such features as transparency, aesthetics with inmold labelling, lighter weight, thinner gauges, improved process ability, these rigid packaging films also have extended shelf-life and are recyclable products. Popular Types of Packaging Films Some of the very popular packaging films that are used to pack and make many products attractive while also protecting them from outer environment have been briefly described for sake of imparting knowledge about them. Lamination films - Lamination films are used for water resistant protection they give to the packaged products. They are also used for laminating documents and photographs etc for protecting them from moisture and water. Lamination film is available in different widths and thicknesses. The thicker the film, the stiffer and more durable the laminated product becomes. There are two basic types of lamination films - 'hot laminating films' and 'cold laminating films.' Cold laminating film- sometimes called tape laminating- uses pressure sensitive adhesives to bind the film to the material being laminated. Hot laminating films are used to laminate materials that are sensitive to higher temperatures, such as photographs and documents or images printed with ink-jet printers. Generally, laminate film is categorized into five categories:

Standard thermal laminating filmsPage | 26


Low-temperature thermal laminating films Heat set (or heat-assisted) laminating films Pressure-sensitive films Liquid laminates

Metalized films - Metalized films are polymer films that are coated with a thin layer of metal, usually aluminium. These packaging films offer glossy metallic appearance of an aluminium foil at a reduced weight and cost. Metalized film is widely used for decorative purposes and for food packaging. They are also used for specialty applications like insulation and electronics. Other than aluminium, other materials used for making metalized film include nickel-chromium, plastic and polyester. Air Bubble Film - An air bubble film is made of two or more layers of LDPE sheets. It has many air bubbles trapped in between the layers of plastic in order to provide cushioning to the packed products. Air bubble film is available in a roll form in varying lengths & gauge. It is generally used for packaging fragile products and valuable items to give them extra protection against dents and scratching. This packaging film can be easily fabricated in pouch and cover for packing products like electronic & electrical appliances; glassware; ceramic products; handicrafts; pharmaceuticals; scientific instruments; engineering & automobile spare parts; and fruits & vegetables. Air bubble film is converted into customized packaging solutions in forms like air bubble pouch, bag , cut piece, padded envelope, mailer for packaging products for shipping, box type bag, etc.

Shrink films - Shrink film is made from polymer plastic film. When heat is applied to this packaging film, it shrinks tightly over whatever it is covering, thus the name shrink film. While packaging products with shrink films, heat is either applied with a hand held heat gun or the product and film are made to pass through a heat tunnel on a conveyor. Also called shrink wrap, this film is commonly used to wrap various types of packaging, including cartons, boxes, beverage cans and pallet loads.Page | 27

Market Research of Flexible Packaging Materials in South East Asia The purposes for using shrink film include stabilizing the packed products, unitizing them, keeping them clean, adding a degree of tamper resistance, etc. Apart from acting as an extra covering for other packaging products, a shrink film can also be used as primary covering for some food items like cheese and meats. It is also used to cover boats after manufacture and for winter storage. Stretch films - Stretch film, also called stretch wrap is a highly stretchable plastic film that is wrapped around items. The elastic recovery keeps the items tightly bound as against the shrink film which is applied loosely around an item and shrinks tightly with heat. Stretch film, in fact, is a high elongation, polyethylene based film that is used to unitize and protect products during storage and shipment. It is used to unitize a number of small, individual items into larger unit loads, normally on a pallet.Packaging Films Anti Fog Films Anti-Static Films Barrier films BOPP Films CD and DVD Overwrap films Cellulose Acetate Films Breathable Films Coated Films Coextruded Films CPP Films Fiber glass Films Filament Films White Films

Fluoroplastic Films Heat Shrink Films Label Films Laminated Films Cold Lamination Films Thermal Lamination Films Laser Films Metalized Films Nylon Films OPP Films Pallet Stretch Wrap PET Films PTFE Films Screen Printing Films

Plastic Films Polycarbonate Films Polyester Films Polyethylene Films Printed Films Protection Films PVC Films Shrink Films Shrink Labels Skin Films Stretch Films Water-Soluble Films

Offset Printing Films

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4. COMPANY PROFILE

UFLEX Limited, the India-based flexible packaging giant, began its existence nearly two decades ago and has come a long way since then offering a vast array of innovative products and services that enrich life, improve performance and create value for the customers and shareholders. About UFLEX Ltd UFLEX Ltd (http://www.uflexltd.com) is the Bombay Stock Exchange (UFLEX: 500148) and NSE listed India's largest flexible packaging company with large manufacturing capacities of plastic film and packaging products providing end-to-end solutions to clients across more than 100 countries. Synonymous with flexible packaging industry in the country, UFLEX group has Gross annual revenue of Rs. 30 billion and Gross Capital Investment across the world of about Rs. 26 billion. UFLEX offers finished packaging of a wide variety of products such as snack foods, candy and confectionery, sugar, rice & other cereals, beverages, tea & coffee, desert mixes, noodles, wheat flour, soaps and detergents, shampoos & conditioners, vegetable oil, spices, marinates & pastes, cheese & dairy products, frozen food, sea food, meat, anti-fog, pet food, pharmaceuticals, contraceptives, garden fertilizers and plant nutrients, motor oil and lubricants, automotive and engineering With a vision to Progress with Distinction, UFLEX is privileged to contribute to society by producing a variety of sophisticated products, on state-of-the-art imported equipment and machines, improving the quality of life for people across the globe. UFLEX manufacture in-house Polyester chips, BOPET / BOPP / COATED / METALLISED / CPP Films, Packaging machines, converting equipment, inks, adhesives, Flexible Laminates and Pouches and have emerged as a one stop shop committed to providing customers with competitive advantage, placing top priority to customer success.

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Market Research of Flexible Packaging Materials in South East Asia At the Film Division of UFLEX Limited, are one of the largest manufacturer, supplier and exporter of a variety of Plastic Films in the world. With consistent quality, production expertise, continuous innovation in products and technologies, a dedicated work force and a highly motivated corporate team, the Flex group is expanding at an immense pace. After Pioneering the growth of the flexible packaging industry in India, Uflex has gained an unchallenged identity. Since its inception in the year 1983 it has turned into a multibillion company that values quality and customer satisfaction amongst other priorities. With consumers spread across the world, Uflex enjoys a global reach. Headquartered in Noida (National Capital Region, New Delhi) it has state of the art manufacturing facilities in India & Dubai. It has also established offices in UAE, Europe, North America and enjoys a formidable market presence in more than 85 countries. Uflex facility enjoys ISO 9001 and ISO 14001 certifications and has FDA and BGA approvals for their products. It is also a part of the D&B Global Database and winner of various prestigious national and international awards like the top exporter of BOPET and BOPP films, and the Worldstar award for packaging excellence. FPA, AIMCAL and the DUPONT Awards in 2004-2005 are the latest in this series. Being a multi faceted organization it has integrated its operations from manufacture of Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metalized form), Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks and adhesives to all types of packaging & printing machines, offering total flexible packaging solution. Uflex has always been committed to the industry by providing technical know-how and being the trend-setter in the flexible packaging industry . Being on the edge of innovation, Uflex endeavours to be the first to come up with advanced products that cater to the changing demands of the packaging industry. As part of the Uflex Group, it has over twenty years of experience in polymer technology. Setting milestones of success and innovation, Uflex is widely known for manufacturing and supplying products, delivering apt services around the world.Page | 30


This global perspective gives the important advantage of developing knowledge of foreign markets, analyzing options and offering world class services to growing customer base in over 80 countries around the globe.

Management Team

PRADEEP TYLE - CEO

ASHOK CHATURVEDI Chairman

Vision - At Uflex we believe that, to eventually emerge as a World leader in providing total Flexible Packaging solutions, we need a customer focused approach. Mission - We believe in using our creativity and aesthetic potential in providing flexible packaging solutions which make packaging easier, faster, more efficient and user friendly. In this way we too have a share in contributing to the conservation of resources by enhancing the shelf life of the perishable products.

4.1 REVIEW OF LITERATURE ON THE COMPANY4.1.1 Uflex Ltd. Becomes A Member Of Industry Council For Packaging And The Environment (INCPEN)

Uflex Ltd., has joined Industry Council for Packaging and the Environment (INCPEN) as one of its members. The Industry Council for Packaging & the Environment (INCPEN) is a research organization, which draws together an influential group of companies that operate throughout the supply chain and share a common interest in packaging, the environment and sustainable development.Page | 31


INCPENs members operate at all stages in the supply chain raw material suppliers, packaging manufacturers, product manufacturers and retailers. Working together and sharing knowledge enables cross-sector improvements for mutual benefit. INCPEN members include some of the renowned companies, including, ASDA, Ball Packaging Europe, Cadbury, CocaCola Great Britain, Colgate-Palmolive, Consol, Dow, DS Smith, Duracell, Gillette, Green and Blacks, Sainsbury, Kelloggs, LOreal, LINPAC Group, Marks and Spencer, Nestl UK, Procter & Gamble, TATA, Tesco, Unilever and Warburtons. Speaking on the occasion, Mr. Ashok Chaturvedi, Chairman & Managing Director, Uflex Ltd., said, It is indeed an honor to be a member of INCPEN. As a member of the organization, Uflex Ltd. will gain the opportunity to be a part of the global packaging community and get access to information on global developments in the packaging sector. INCPEN is one of the few organizations working to address the growing environmental concerns of the public and environmental authorities worldwide from a clear perspective. We are greatly looking forward to work with the organization and to bring healthier and sustainable solutions to enhance Uflex experience to our valued customers. Source :- http://www.uflexltd-packaging.com/

4.2 Historical analysis Major Milestones1994 Start-up of BOPET Film manufacture 1996 Start-up of BOPP Film manufacture 1997 Start-up of PET Chips manufacture 2002 Start-up of Barrier Metallization 2003 Start-up of CPP Film manufacture 2005 Start-up of BOPET Film + Barrier Metlln. at Dubai 2009 Start-up of BOPET Film + Barrier Metlln. at Mexico 2009 Commenced construction of BOPP Film plant at Egypt

4.3 GROWTH AND FUTURE PLANSPage | 32


4.3.1 Uflex To Set Up PET Film Plant In USA With An Investment Of $85 Million

Uflex Ltd, Indias largest flexible packaging company, as part of its overseas expansion plans is set to launch a PET film (polyester) plant in Kentucky, USA. The facility will have a manufacturing capacity of 30,000 MTPA of PET film and the company will be investing approx. $85 million in the project. The new manufacturing plant is part of Uflexs strategy to gain competitive advantage of increased proximity to the markets globally and bring broad portfolio of value added products to its clients at competitive price points. UFLEX is undertaking various green and brown field expansion projects adding manufacturing lines for new product categories across facilities in Egypt, Mexico and India with aggregate investments of $250 million over the next couple of years. Apart from the venture in U.S., Uflex recently initiated the setting up of a new plant for manufacturing of 30,000 MTs of polyester film at Poland. The company will set up the plant in Wrzesnia in Poland with an investment of $80 million (around Rs 360 crore), which is expected to be operationalised by June 2012. With plans of new manufacturing lines and corresponding investments UFLEX is all set to achieve the next milestone of touching the $1 billion revenue mark by 2012 the first company in the flexible packaging sector in India to achieve this milestone. In Egypt, the Company is ramping up production capacities for BOPP films (Bi-axially Oriented Poly Propylene film) to 35,000 TPA; 30000TPA of PET (Polyester) and 12000TPA of CPP films aggregating to total capacity of 77,000 TPA. The companys planned investments in Egypt are pegged at $135 million. This facility has trade pacts with GCC nations, Southern Europe & Africa, Middle East, West Asia and CIS to access larger markets. The first phase of this expansion involving added capacities in BOPP films has already commenced operations, while the second phase of setting up facilities for PET and CPP films is expected to be completed by the 3rd quarter of FY 2011-12.Page | 33


Uflex had registered an exponential growth of 423% increase in its consolidated net profit for the quarter ended December 31, 2010 at Rs. 251 crore as against Rs. 48 crore for the same period last year, maintaining a consistent record of highest growth by any company in the sector so far. The firms consolidated revenue for the December quarter of 2010 stood at Rs. 1022 crore as against Rs. 595 crore for the same quarter last year, up 72%. For the nine months period ending December 31, 2010, UFlex recorded net profit of Rs. 515 crore against Rs. 144 crore in the corresponding period last year, a growth of 258%. Net revenue of the company for the nine months ended Dec.. 31, 2010 stood at Rs. 2573 crore compared Rs. 1713 crore in the same period in previous fiscal, up by 50%. The companys partial client list includes Unilever, Pepsi, Wrigley, Procter & Gamble, Colgate, Palmolive, Nestle, Gillette, Ranbaxy, Perfetti, Joyco, Monsanto, ITC, Godrej Pillsbury, Tata Tea, Hindustan Petroleum, Indian Oil, Britannia, Dabur, Haldiram, Wockhardt, HUL, Parle Biscuit, and Birla 3M, among others. Source :- http://www.uflexltd-packaging.com/

4.3.2 UFLEX Ltd Q2 FY10-11 Net Profit Up 341% at Rs. 203 crores

Uflex Ltd, the Bombay Stock Exchange (UFLEX: 500148) and NSE listed, India's largest flexible packaging company has set a benchmark registering a landmark growth of 341% increase in its consolidated net profit for the quarter ended September 30, 2010 at Rs. 203crore as against Rs. 46 crore for the same period last year, the highest growth in any quarter registered so far. The firm's consolidated revenue for the September quarter of 2010 stood at Rs. 859 crore as against Rs. 586 crore for the same quarter last year, up 47%. The higher revenue growth is attributed to new capacity expansion, increased utilization and higher net realization of the UFlexs products line.

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Market Research of Flexible Packaging Materials in South East Asia On a sequential basis also, UFlex registered growth in its quarter-on-quarter consolidated net profit of 233% over profit figures of the preceding quarter that stood at Rs. 61 crore in the April-June quarter (Q1 FY10-11). For the six months period ending September 30, 2010, UFlex recorded net profit of Rs. 263 crore against Rs. 92 crore in the corresponding period last year, a growth of 185%. Net revenue of the company for the six months ended Sept. 30, 2010 stood at Rs. 1551 crore compared Rs. 1118 crore in the same period in previous fiscal, up by 39%. According to Mr. Ashok Chaturvedi, Chairman and M.D. of UFLEX Ltd, Our endeavour has been to continuously raise the bar of our performance in the quest to be globally competitive and bring incremental value to our shareholders. Our strategy which rides on innovation has brought about a Darwinian evolution of packaging concepts and packaging designs in the market which has also made a positive difference in the go-to-market initiatives of our clients that has a direct bearing on our financial health as well. UFLEX is continuing with its strategy of capacity expansion and adding manufacturing lines for new product categories across facilities in Egypt, Mexico and Dubai not only to increase proximity to the markets, but also to bring broad portfolio of value added products to its clients at competitive price points. In Egypt, the Company is ramping up production capacities for BOPP films (Bi-axially Oriented Poly Propylene film) to 35,000 TPA; 30000TPA of PET (Polyester) and 12000TPA of CPP films aggregating to total capacity of 77,000 TPA. The companys planned investments in Egypt are pegged at US$ 135 million. This facility has trade pacts with GCC nations, Southern Europe & Africa, Middle East, West Asia and CIS to access larger markets. The first phase of this expansion involving added capacities in BOPP films has already commenced operations, while the second phase of setting up facilities for PET and CPP films is expected to be completed by the 3rd quarter of FY 2011-12. For the financial year 2009-10, the consolidated net profit of UFLEX before extra-ordinary items rose 21% to Rs 186 crore as against Rs 153 crore in the year ago period. Net revenue in the year, however, grew by 12 % to Rs 2419 crore.

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Market Research of Flexible Packaging Materials in South East Asia Uflex's strong manufacturing base in India, Mexico, Dubai and Egypt caters to global markets spanning USA, Canada, South America, UK, Europe, Russia, CIS countries, South Africa and other African countries, the Middle East and the South Asian Countries. Uflex is the only integrated unit of its kind in the world with flexible packaging at its core. It has vast capacities for production of Polyester chips, Biaxially Oriented Polyethylene Teraphthalate (BOPET) and Biaxially Oriented Polypropylene (BOPP) films, Printing & Coating Inks, facilities for Holography, Metallization & PVDC coating, making Gravure Printing Cylinders & Flexo Printing plates, Gravure Printing, Lamination and Pouch formation. The company's partial client list includes Unilever, Pepsi, Wrigley, Procter & Gamble, Colgate, Palmolive, Nestle, Gillette, Ranbaxy, Perfetti, Joyco, Monsanto, ITC, Godrej Pillsbury, Tata Tea, Hindustan Petroleum, Indian Oil, Britannia, Dabur, Haldiram, Wockhardt, HUL, Parle Biscuit, and Birla 3M, among others.

Source :- http://www.uflexltd-packaging.com/

4.4 Products BOPET Films BOPP Films CPP Films Flexible Laminates & Pouches Holograms Packaging & Converting Machines

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4.4.1 BOPP FILMS

Bopp films are bi-axially oriented polypropylene films designed for flexible packaging and label applications. Opp, oriented polypropylene, is a flexible material derived from melting and orienting a polymer called polypropylene. This raw material, an oil by-product, is inert and unaffected by most chemical agents occurring in daily life. Biaxially oriented means that the polypropylene film is stretched in both the machine direction and across machine direction.

Bopp Films FeaturesThe main feature of Bopp films are improved stiffness, high tensile strength, excellent optics and good water barrier properties. They range from 15 to 50 microns and are most commonlyPage | 37

Market Research of Flexible Packaging Materials in South East Asia 15 to 30 microns. These bopp packaging films can be monolayer or coextuded structures, and transparent, opaque, or metallized. They also have the advantage of being non-toxic and fully recyclable. Many Bopp film manufacturers print the BOPP films with new printing technology that provides excellent UV light protection, humidity, aroma and light barriers. Bopp films have superior strength at low gauges, flatness, clarity and excellent printability. They can be treated with acrylic and PVDC PVDC coatings for better sealability and barrier properties. The Bopp films use mainly homopolymer PP and random copolymer PP. Applications: BOPP Films and Packaging

Bopp films are ideal for twist-wrap applications and in laminations for use on vertical and horizontal machines. Bopp films also be used for decorative purposes. They are used in an a almost limitless array of flexible packaging applications, pressure sensitive tapes, labels, stationery, metallizing, consumer products and a wide variety of packaging uses.

Bopp packaging films are widely used for gift and flower wrapping, paper lamination, textile packaging, release film for melamine plates and plate film packaging. These films are also used as the anti-counterfeit covering film on the packaging cases. Various packaging products like packaging pouches, packaging bags, electronic packaging, industrial packaging are produced by Bopp films. In fact aluminium foils and aluminum sheets have good combinations of Bopp packaging films to produce efficient packagingmaterials.

4.4.2 BOPET FILMPolyethylene terephthalate is a semi crystalline polymer used to produce films. Two different film materials PET and PET2 are used to make this film.Page | 38


PET films are biaxially oriented to stretch the polymer chains creating strength, then heat quenched to lock in the structure with a small percentage of polymer crystallization. The heat quenching conditions may leave a residue on the film that may be relieved with later heattreatment. These films have good thermal stability. They can be post-processed in the form of sheet or roll, to have better thermal dimensional stability. They are subject to shrinkage over long periods of time due to stress relaxation. They act as barrier to high oxygen, moisture, and aroma. They have one disadvantage of getting degrade in sunlight unless they contain ultraviolet inhibitors. They exhibit good water vapor and oxygen gas barrier properties.

Applications: PET Films and PackagingPET films find a wide range of applications in magnetic tapes, photographic films, photoresist and hot stamping foils in addition to packaging outlets. This film finds it use in print lamination with CPP or PE, frozen foods like vegetables and meats and sterilized bags. It also finds its use in PU skin, PVC tiles, PC boards and other plate films, laser decorations and insulation covering. The excellent thermal properties of PET allow processing and use over a wider temperature range than most common packagingfilms. It is ideal for retort packaging, dual ovenable lidding and boil in the bag applications. PET film has the chemical inertness and good gas barrier properties that are important for many medical, pharmaceutical and food products. They can be used in the demanding steam, ethylene oxide and radiation sterilization processes. PET films are used to make various packaging products like packaging pouches, packaging bags, aluminum foils, dairy packaging, pharma packaging etc.

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4.4.3 CPP FILMCPP films or cast polypropylene films are multilayer

polypropylene films with co-polymer and homo-polymer. It is used as a heat seal layer along with BOPP or polyester film in a laminate for packing of food articles. CPP films have been known in the packaging field to be the more elegant brother of polyethylene film, with higher gloss, greater transparency and better heat resistance. CPP films have higher gloss and transparency, higher strength, superior barrier properties and excellent sealing strength. They are available with a polished or embossed surface, gloss or matte finish, stiff or flexible, clear or coloured, or in a combination thereof. These cast polypropylene films are versatile and the most cost effective films. Cpp Film Storage and Handling Although CPP films are suitable for use within 4 months from the date of delivery, it is advisable to rotate film stock. It is recommended that dry conditions at temperatures below 35 degree C are used for storage of these films; otherwise a reduction in surface treatment level may be experienced. On account of the elastic memory of thermoplastic film, a prolonged period of storage of cpp films may cause problems of profile and blocking. The film should be kept in its original wrapping until it is used and should be kept at room temperature 24 hours prior to processing. Cast polypropylene films are very sensitive and any damage or load on the CPP roll may cause blocking.

Applications: CPP Films and Cast Polypropylene Film Packaging CPP films are used in household paper packing, stationery packaging, portfolios and food packaging. In stationer industry, they are used for photo albums and page protectors. CPP films are used as a lamination layer, both as sealant and as heat resistant layer and in the pressure sensitive industry for adhesive coating and diaper closures. Also used as anti-leak layer for diapers, material for automatic packing of electrical and hardware products and covering films for audio and video cassettes, CDs and DVD cases.Page | 40


Ideal for textile industry for packaging of hosiery, socks, shirts; for floral wraps as sleeves and sheets for cut flowers, pots, dried flowers; food industry for packaging of bread, vegetables, and candies. Various packaging products made from these films are

Packaging rolls Packaging pouch Packaging bags Food packaging laminates Dairy packaging Cosmetic packaging Pharma packaging materials

4.4.4 Thermal lamination films

Thermal lamination films are films laminated onto the steel plates after their coating. These are widely used for packaging purposes. The outer layer of the film has a heat activated resin coating hence the term Thermal Lamination. The thickness of the polyester determines the stiffness of the film, and the quality of the polyester usually determines the clarity. Laminate usually consist of 2 plies with each ply made up of overlaminate film and an adhesive. The document is placed between the two plies and passed through the equipment where the dry adhesive is made tacky by heat. The adhesive is then pressed onto the document under high pressure. After cooling, the adhesive solidifies. Thermal lamination films are available in a range of thickness and finishing characteristics. They are also available in colored metallic finish. Thermal laminating film is the ultimate way to finish printed materials for beautiful and long-lasting results. The films can be used to make various packaging products like attractive packaging pouches, packaging bags, sheets, gift wrappers etc.

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Lamination Film Finishes Glossy Clear Film - A film with a glossy, shiny surface and excellent optics. It is bi axially oriented polypropylen film with uniformly extrusion coated with adhesives all along the film surface. It shows excellent bonding with all kinds of printed paper products. Matt Film - A film with a matte surface, a surface that enhances the appearance of laminated products. It is bi axially oriented polypropylen film with uniformly extrusion coated with adhesives all along the film surface. It shows excellent bonding with all kinds of paper products.

Advantages of Thermal Lamination Films

The film leaves no residue on removal Film has low cost of installation and application Keeps scratches, dust and moisture away from painted steel plates Protects surface from damage during storage and transport Easy to set up Needs less space Low luster film Enhances contrast Enhances image and presentation

Applications of Thermal Lamination Films

Steel and aluminum industry Tire manufacturers and automotive suppliers Automotive industry Construction industry Plastic industry Ideal for protecting trade show images Great for packaging

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4.4.5 Metallized filmsMetallized films are polymer films that are coated with a thin layer of metal, usually aluminium. These packaging films offer glossy metallic appearance of an aluminium foil at a reduced weight and cost. Metallized film is widely used for decorative purposes and for food packaging. They are also used for specialty applications like insulation and electronics. Other than aluminum, other materials used for making metalized film include nickel-chromium, plastic and polyester.

4.5 SWOT ANALYSIS (UFLEX Ltd.) Strengths Huge growing requirements for flexible packaging materials. Decades of experience in Film production. Plants in 6 different locations of world to strengthen the supply and logistics. Uflex sound business profile is driven by the growth in FMCG, Pharma and Food and

Processing Industry New Innovations Uflex were the first to offer both stitched and non-

stitched WPP bags Lowest tariff rates in the world. Expansion at Mexico USA is the biggest consumer of packaged goods worldwide. Seeing the

opportunity Uflex has successfully commissioned a plant of PET film with a capacity of producing 26400 MT of film in Mexico

Weakness Most of the raw materials for packaging industry in Egypt are heavily dependent on imports; any change in government policy can have direct impact on thePage | 43

Delivery time is greater than its other competitors Uflex has started implementing plans to put manufacturing capacity in Egypt.

Market Research of Flexible Packaging Materials in South East Asia manufacturing cost of the company. High cost of service provision. Low income countries like India cannot afford to replicate expensive telecom

infrastructure.

Opportunities

Increasing demands for packaged goods Indian packaging market is growing at an annual rate of 12 to 15% Flexible packaging is the second largest packaging segment in the New entry of FMCG companies in India will enhance demands for

U.S., garnering 18 percent of the U.S. $135 billion

flexible packaging going forward

ThreatsRise in Input costs The competition is increasing with the addition of new capacities and emergence of new global players especially from China. Given the European problem overhang rising of funds through equity at fair

valuations may be difficult. Uflex might have to dilute equity at a low price if markets don't rebound over the next year as they might need funds for their expansion plans. Political instability.

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5. Reflections on what has been learned during the placement experience5.1 Production ProcessDuring my internship I spend time in the production department of the company and learned how the whole process of production takes place and also how the whole production system is managed. Now below is the management stucrue which is in place to handle the whole production process.

5.1.1Production management structure

GM general Manager of 3 linesPage | 45


EM Executive Manager 1 for each line JEM Joint executive manager 2 for each line Shift Incharge 2 for each shift day and night EO Executive Officer LABOURThe Films Division of the company manufactures the following type of films as described in the previous topics. 1. BOPET film 2. BOPP film 3. CPP film 4. Metalized film There are a total of 6 production lines in the company and each of it manufactures a particular kind of film. The company has got following system to manufacture these films.

5.1.2 Information & Details about the BOPET production linesPage | 46


Line 1 Production 50 tons/day Wastage 10% per day Recycled all the wastage is recycled Corona treatment is provided Voltage pinning system is used Extruder is of BARMAG company MDO & TDO are of DORNIER company NSF 2, LLF 1 Film size 8 micron to 50 micron

Line 2 Production 55-60 tons/day Wastage 12.5 tons/day Recycled all the wastage is recycled Treatments provided corona treatment, chemical coating Film size 10 micron to 36 micron Multilayer film 1 extruder & 1 co-extruder Main ex is of Rosin MDO & TDO are of DORNIER company CO-EX is of ketron

Line 5 Production 55-60 tons/day Wastage 12.5 tons/day Recycled all the wastage is recycled Film size 8 micron to 50 micron Single layer

Line 3 Production 40-60 tons/day Wastage 5 tons/dayPage | 47

Market Research of Flexible Packaging Materials in South East Asia Recycled all the wastage is recycled Treatments provided corona treatment Film size 15 micron to 45 micron Multilayer film Air knife pinning system 2 main extruder & 2 co-extruder Co-ex & extruder are of Davis company MDO & TDO are of DORNIER company Winder is of J KAMPH co. Slitter is of GALILIO co.

5.1.3 PRODUCTION PROCESS FOR BOPET FILMSWe have lines 1, 2 & 5 which are manufacturing BOPET films. Following is a common process used for the production of BOPET films in the company. Product The plant and equipments are designed to produce high quality Biaxially Oriented Polyester Film (BOPET) for the usage of packaging films, industrial films, hot stamping films, and electrical/electronic films thickness of the product. Raw Material The raw materials used for producing BOPET are:

The thickness of BOPET ranges from 6-125U, the width of

6700mm, and an annual capacity of between 6300 ton and 18000 ton depending on the

Additives Polymer Regranulation of recycled materials

Process

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Market Research of Flexible Packaging Materials in South East Asia The additivated chips (additives incorporated in the chips before polymerization process) are used in combination with virgin unadditivated chips (film grade) of the requested specifications by blending or co-extrusion. The main process steps are extrusion of primary film by a three manifolds die, followed by quenching of extruded film on chill roll, sequential stretching of MD with a ratio of 1:1 1:6 and TD with a ratio of 1:3 1:5. It is then edge trim by in-line coating before it is given a corona treatment and a winding. Because of its versatility, the equipment is capable of producing all the ranges of film presently available worldwide in the thickness range and throughput indicated above.

Raw material Feeding:

indoor / outdoor silos / stainless-steel high pressure low speed transportation for Polymer enhanced film quality edge percentage controlled by accurate thickness gauging high precision gravimetric dosing system K- Tron System

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Extrusion:

optimized twin screw extrusion technology with short residence time low melt temperature and excellent mixing vapour circulation heating technology for filters and melt line low energy consumption increased filter surface area - highest uptime fast change-over, multi-layer die advanced feed block for different layer configurations

Casting:

Sprayed-water chill roll - increased cooling capacity and temperature accuracy processing of films with lowest haze easy internal maintenance - no rotary unions backlash free drive gearingPage | 50


high level prolonged water bath advanced pinning system (air knife / band pinning)

Machine Direction Orienter MDO

highly flexible stretching configuration enhanced control of stretching energy saving vapour heating technology for MDO rolls direct drive roll configuration easy maintenance, accessible from top and bottom

Transverse Direction Orienter

electrically / gas / oil heated TDO advanced oven concept for lowest energy consumptionPage | 51


high speed fully flexible chain track system chain track system completely independent from oven driven inlet and outlet sprockets for minimal chain friction and highest speed performance magnetic clip closing and opening

Pull Roll Stand

easy automatic threading advanced edge cutting system high-speed, high-precision X-ray measurement system individually driven rolls vacuum roll technology advanced corona / flame surface treatment

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Thickness measurement

X-ray technology reading of all the defects of the film provides accurate and fast feed back to the automatic die highest resolution higher travelling speed than conventional systems and lower statistical noise no operating license, no health hazard, no restricted areas excellent repeatability precise measurement and control of film edges

Winder

high performance winder for exceptional winding quality MD direction movement of the turret - constant winding angle no oscillation required due to advanced measuring perfect control of winding characteristics and alignment wrinkle free jumbo rolls

Computerized Process Control

advanced, easy-to-operate computerized process control system fully redundant system with the highest reliability rate available

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advanced PLCs with advanced high speed data transfer

5.1.4 PRODUCTION PROCESS FOR CPP FILMSThe points of the CPP cast film production processes: T-type die is one of the key equipments in the line, the die head should be designed to make all the materials flow out evenly and fluently along the lip with the same temperature, we should think about the rheological behaviours of the materials and other reasons. We should use the precise machining dies; always use the decreasing manifold hanger head. The cooling roller surface should be finishing precisely, the roughness should be less than 0.15mm, the speed should be stable and the dynamic balance performance should be good to avoid fluctuations in vertical thickness. We should adopt -ray or infrared measure to check the thickness of the film, in order to achieve a satisfactory thickness tolerance. The major impact on the films is the temperature. When the resin temperature is rising, the film's longitudinal (MD) tensile strength the transparency will increase, and haze will gradually diminish, but the film's transverse (TD) tensile strength will also decrease. The suitable temperature is 230 ~ 250 . The upwind knife of the cooling roller can form a thin air layer between film and cooling roller, to cool the film evenly and then we can maintain high-speed production. Wind knife adjustment must be appropriate, the wind is too strong or the angle is improper can make instability thickness of the film or paste roll, the result is that there will have wrinkles or pattern which will affect the appearance. Cooling rolls temperature increases then the film stiffness will also increase as well as the haze.

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Market Research of Flexible Packaging Materials in South East Asia If there are some materials precipitating on the surface of the cooling roller, we should stop to clean the roller, or else it will affect the film surface. As casting film is soft, so rolling must be according to the thickness, production speed to adjust stress and tension. Otherwise it will cause ripple to affect the film flatness. Tension selection should be according to the tensile strength, usually higher winding tension, harder to come out with relaxation and deviation at the end of the rolling but easier to have ripple at the begging of the rolling then it will affect the flatness. Contrarily, lower tension can result good performance at the beginning, but it is getting easy to have relaxation and deviation. Therefore, the tension should be moderate and constant.

5.1.5 METALLIZERSMetallization involves the application of a thin layer of aluminium to a film substrate. The process takes place inside a chamber, where heated aluminium is evaporated onto the film as it is unwound and then rewound at high speed in a vacuum. The result is a film that is not only visually more attractive but also considerably more resistant to oxygen and water vapour transmission. Metallised film is used in a wide variety of food packaging applications where either high barrier or striking appearance is required for example in crisp packing (BOPP), bread wrap (PE) or sweets (CPP).

To make metallized films, film is first drawn through a vacuum chamber with a hot metal ingot. An electromagnetic field directs streams of ions toward the metal as the heat causes thePage | 55

Market Research of Flexible Packaging Materials in South East Asia metal to give up particles, which then migrate onto the films surface. The result is a reflective layer with very little mirror effect. Finally an ultra clear polymer layer is laminated on that and the hard coating of materials like acrylic is applied. This finally gives out the quality metallized films. Metallized films can be of various metals including aluminium, chromium, or a combination of nickel and chromium. Metallized films are available in two version, Metallized polypropylene film and Metallized polyester film. Metalized Polyester Film Metallic polyester film is manufactured through micro slitting process so that it may have consistent weight and uniform coating. It is suitable for flexible lamination and holograms. Metallic polyester film is widely used as twist wraps for candies. Some of its other uses include decoration, colour-coding, cueing, and splicing etc. Aluminium Metalized Film These metalized films have highly consistent optical density. It acts as a barrier to moisture and light, with superior heat sealing properties. These metallized films are highly craze and crack resistant. DETAILS OF METALLIZERS IN THE COMPANY There are total of 5 metalizes installed in the company K-5000 of GENERAL co. 2 valmet of GENERAL co. K-4000 of GENERAL co. 1 metallizer of GALILIO co. Capacity avg around 4500 kg per 1.5 hrs

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5.2 DOMESTIC MARKETINGDuring my training I spend 4 days in domestic marketing department where my work was to visit customers of the company and take their feedback over various points the following is a questionnaire which I had prepared for interviewing the customers to know their feedback about the company. Questionnaire 1. Contact details of the customer/company 2. What type of product are you using? 3. What are the different varieties of films you purchase? 4. What are the applications of your product? 5. What quantity of product do you buy? 6. While using the product do you required any type of technical support? 7. How you rate the after sales service of Uflex and your satisfaction level? 8. Are you satisfied by the response time when dealing with Uflex? 9. How do you rate the quality of the product provided to you? 10. Which other company do you purchase product from?

Following is the analysis of the feedback given by the customers and there are also some common problems listed below. Problems are faced by the customers to replace the faulty rolls or damaged rolls. Communication gap with the domestic marketing department was seen which led to delay in the delivery of certain products to the customers.Page | 57

Market Research of Flexible Packaging Materials in South East Asia Management should be more accountable and responsible for the product delivered by them. Delivery time is more. Lack of information about the companys dealers and there contact details.

Following are the companies and their contact details which we visited for the feedback purpose. Brijwasi Art Press Ltd. A 81, Sector 5, Noida, Uttar Pradesh - 0120 2423847 Contact Person Mr. Goswami Tristar Foils C109/10 Sector 10, Noida, Uttar Pradesh ( Central ) - 201301 0120-2526268 Contact Person Mr. Sabarwal Gopsons Paper Sector 64, Noida, Uttar Pradesh - 0120 2401672 Contact Person Mr. Anil Staple Paper Converter Pvt. Ltd. D-42, Sec-63, Noida - 201301, Uttar Pradesh , India Contact Person Mr. Manoj Goyal Sagar colour pack D 154, Hosiery Complex, Phase-II, Noida (U.P.) 0120 4733650 Contact Person Mr. Pradeep Basant Paper Mart B2/3, Sharp Bhavan, Basement, Azad Pur Commercial Complex, Near Aakash Cinema, Azadpur, Azadpur New Delhi, Delhi 110006 Contact Person Mr. S.V. Jain 011 27676606Page | 58

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