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In the world of packaging, where choices abound, glass has emerged as the undisputed champion, symbolizing trust, safety, and sustainability. The global glass packaging market, valued at USD 62.95 billion in 2022, is on a captivating journey, poised to reach USD 86.54 billion by 2030, with a spirited CAGR of 4.2%. Let’s dive into the crystal-clear facets that make this market sparkle.
1.1 Embracing Infinite Recyclability: Glass, the perpetual material, embraces an eco-friendly ethos with its infinite recyclability without compromising quality. It stands tall as the go-to packaging for health and safety, offering a reassuring shield for a variety of products.
2.1 Healthcare and Cosmetics: The Dynamic Duo: The market experiences an exhilarating surge, propelled by the healthcare sector’s expansion and the flourishing cosmetics industry. Glass, with its innate qualities, takes centre stage in healthcare packaging, featuring in ampoules, dropper bottles, vials, and more. The rise of high-end cosmetic packaging, including glass jars and bottles with various dispensing options, amplifies the crescendo of market growth.
2.2 Beverage Industry’s Spirited Influence:
As the global beverage industry takes a spirited ascent, glass packaging rides the wave of demand. Notably, the liquor industry in regions like India plays a pivotal role in propelling the demand for glass packaging. The food industry, seeking the thermal shock resistance that glass provides, further fuels the market. Impermeability and visibility become glass’s trump cards, making it a preferred choice for the food and beverages industry, aligning with the growing consumer demand for safe and healthy options.
3.1 Balancing Act: Higher Maintenance Costs: Amid the celebration, the market faces challenges in the form of higher maintenance and operation costs. The allure of cost-effective alternatives like plastics and tin poses a balancing act, as technological advancements and packaging methods shape the competitive landscape.
4.1 Bottles – The Unrivalled Royalty: In the grand stage of glass packaging, bottles steal the spotlight, reigning supreme with their impermeable design. From preserving the freshness of soft drinks to offering a premium experience in look and feel, glass bottles command attention. Their longer shelf life and reusability contribute to their undisputed dominance.
4.2 Beverages – A Spirited Affair: The beverages segment takes centre stage, holding the largest market share. From alcoholic beverages to innovative designs and reduced bottle weight, glass emerged as the preferred packaging material. As the global love for different bottle sizes and shapes grows, the beverages industry becomes a key player in propelling the glass packaging market forward.
As we raise our glasses to the global glass packaging market, the forecast paints a picture of innovation, sustainability, and unyielding demand. The journey ahead promises to be exciting, with manufacturers continuously adding artistic finishes and shaping the future through technology. So, let the crystal-clear trends guide us as we navigate the sparkling realms of glass packaging, where elegance meets sustainability.
Let’s see who is leading the glass packaging industry in India
| Operational Metrics | AGI GREENPAC | BOROSIL |
| Financials | ||
| 5 yr Average ROE | 6.17% | 7.40% |
| Price to Book | 3.29 | 4.36 |
| P/E | 20.72 | 50.78 |
| 5yr Avg Cash Conversion Cycle | 114.05 Days | 54.09 Days |
| 5yr Average Interest Coverage Ratio | 3.69 | 40.1 |
| 5yr Avg ROCE | 9.45% | 10.24% |
| 5yr Avg Operating Profit Margin | 14.59% | 16.88% |
| 5 yr average Debt to Equity | 0.66 | 0.06 |
| 5yr CAGR Net Profit | -3.89% | 29.01% |
| 5yr Average Return on Assets | 2.90% | 5.69% |
| Shareholdings | ||
| Promoter Holding | 60.24% | 70.21% |
| Change in Promoter Holding (3 Yrs) | 6.33% | -0.29% |
| Change in Mutual Fund Holding (3 Yrs) | -0.49% | 0.86% |
Insights on AGI Greenpac:
AGI Greenpac has strategically divested its building products segment, honing its focus exclusively on glass packaging. Demonstrating robust performance, the company achieved an impressive 99% capacity utilization in Q3 and Q4 of FY23, with the potential to elevate it to 103%, as outlined by the management.
A key asset in their portfolio is a speciality glass plant catering to premium, high-end glass products, boasting a clientele of 500 institutional clients. Notably, AGI Greenpac eyes an ambitious future, contemplating the acquisition of HNG, a move that, if successful, could propel sales to Rs 5500 crore, doubling their current figures, as confidently indicated by the management.
In India, the packaging industry is estimated to report a CAGR of 26.7% during 2022-2027 (Care Ratings Report). The factors driving the demand for packaging can be attributed to the rising population, growing income levels, changing lifestyles and increased internet penetration. The Indian industry is incrementally driven by the rise of the middle-class category, strong growth in organised retail, surging exports, and the country’s expanding e-commerce sector.
Disclaimer:This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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