Eka Global plans USD10mn investment
in new production plant in India in 2022
Eka Global, a leading longevity packaging producer, plans to set up a new production plant in India in 2022. The 10 million US dollar production plant will enable Eka Global to increase production capacity to meet with the growing demand in Asian markets. With its focus in green products under the circular economy concept, the company aims to boost its annual sales to 3,000 million baht in five years and become one of the world’s top five longevity packaging producer.
Mr. Chaiwat Nantiruj, Group CEO, Eka Global Co., Ltd., said that the packaging industry across Asia is growing at the same rate of the global industry, which is 30-35%. Ready-to-eat packaging segment has enjoyed significant growth due to the changing consumer behavior during the COVID-19 pandemic and the increasing demand for safe and hygienic food packaging, especially in developing countries like India, Indonesia and Brazil.
The new production plant will be built in Pune, the seventh most populated city in India with an investment of approximately 10 million US dollars.
“India is a high-potential market in the global food industry. The country is the world’s 6th largest food market and the world’s 2nd largest in terms of population. The country has rich food resources and strong economy with constantly increasing average income. Such positive trend leads to growing demand for packaging. Considering all these situations, India is one of Eka Global’s targeted markets,” said Chaiwat.
The investment plan in India followed the investment in an additional production line in Thailand. The 10th production line has a capacity to produce 350 million pieces per annum, a 15% increase from the existing 2,500 million pieces per year to 2,850 million pieces per year. The new production line in Thailand was completed and began its commercial operations in October 2021.
Chaiwat added that Eka Global aimed to double its growth in five years with total sales reaching three billion baht per annum. The company also aims to become one of the world’s top five longevity packaging producers. In addition to business growth, Eka Global is strongly committed to producing environmentally friendly packaging according to circular economy concept, which will enable the company to achieve sustainable growth in the long run.
As part of its green strategy, Eka Global is working on research and development of “green products” to meet with the increasing global demand for environmentally friendly products. The company focuses its product development in three categories: 1) Bioplastic (PLA) made from such natural ingredient as tapioca, corn and sugarcane; 2) Biodegradable packaging totally made from natural raw materials; and 3) post-consumer recycle (PCR) plastic packaging.
