Nichiru India's general manager Ichiro Mizuuchi said in an interview at Plastivision in Mumbai, India, on January 20th that although the global market has been depressed during the economic crisis, the demand for Nissei Machinery in the Indian market is still very strong. In addition, this market has great potential for the transformation of packaging materials such as glass into PET packaging.
He disclosed that the expansion project of the Indian factory broke ground in December last year and is scheduled to be completed by October 2012. By then, it will increase the number of employees from about 700 to more than 1,000, and the blowing machine production capacity will increase by 65%. The annual output of Nissei's machines in India is about 400 units.
Mizuuchi said that the expansion will also double the annual production capacity of the mold to about 2,000.
He said that the Mumbai factory was completed in 2000 and was mainly put into operation as a low-cost manufacturing site for Nissei. Low-cost manufacturing is still the main advantage of the plant—about 65% of the products are now shipped to Nissei headquarters in Nagano, Japan, and then supplied to the rest of the world.
He said, but the proportion of sales of Mumbai factories in India has increased significantly, from just about 10% when it was built in 2000 to 35% now.
He said that today's Indian PET packaging market is equivalent to the US market of 30 years or more, and is about to undergo a major transformation to PET packaging products.
According to Nissei, according to the market size, the share of PET bottles and packaging in India is only equivalent to 20% of similar applications in the mature Japan-US market.
Mizuuchi said that if we look at per capita consumption, the gap is even more pronounced. India's PET per capita consumption is only about 1/40 of the United States.
He said that it can be seen that the Indian market has great potential, but he also pointed out that India will not be as fast as the United States to transition to PET packaging, in the United States, in just one year, 80% of peanut butter bottles are replaced PET material.
He said that India's transition speed is estimated to be much slower, because India's poor are many, still using very cheap plastic bags or plastic bags to buy bulk milk or liquids.
He said: "In the next 20-30 years, PET packaging will be popular in India. But it will take time."
However, he said that because India has a huge population of 1.2 billion, even if only 10% of Indians use PET bottles, they will form a very large market. He said that the pace of transformation in the Indian market is accelerating.
Mizuuchi said: "This is the reason why the Indian market has great potential and is becoming an important market for us."
He said that in addition to production, Nissei is still seeing great potential in harnessing India's technical skills, and intends to increase its R&D efforts in the region.
He said that the expansion of the new plant will open up more space for research and development, and may use the shift system to add 24 hours of engineering operations. He said that Nissei will also expand the types of models produced in India, and currently only produce relatively simple models.
He said that Japan’s headquarters will still produce machines that Indian factories cannot produce, especially for medical, hot-filling or specialized markets. Mizuuchi said that he hopes to show Nissei's ambition to expand its business capabilities in India through this exhibition.
Nissei exhibited its larger tonnage of professional machines produced in Japan at the booth: 650EXHD for the production of 5-gallon polycarbonate water bottles. He said: "We told our customers that after the expansion of the Mumbai factory, we will be able to produce such machines in India. We expect to produce various special machines in India in the future."
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