The domestic packaging industry is a USD 35 billion and is increasing at around 25 percent annually.
Hindalco Industries is betting big on the packaging and transport containers segment. The move is cause of the low per capita use of aluminium in the country which is at 2.6 kg now and being the largest producer of the metal, it gives an additional advantage to the AV Birla flagship.
In the transportation business, the company will be contract manufacturing aluminium containers for bulker carriers and trailers which will help the goods transport industry bring down cost as the light weight aluminum containers can carry more payload.
As part of entering the packaging business, Hindalco recently partnered with the Jute Corporation to make recyclable packaging material to reduce single-use plastic.
The company has launched the country's first aluminium foil-laminated jute bags for the Tirumala Tirupati Devasthanams, the trust that manages the Tirumala Temple in Andhra.
The company plans to roll out these jute bags at other temples across India, and for other industries, too, as a smart and sustainable packaging option.
These new bags will substitute plastic bags used for carrying the famous Laddu Prasadam. The aluminium foil lamination ensures that the ladduoos retain freshness and aroma, and remain free from moisture and bacteria. These 100 per cent recyclable bags are expected to replace single-use plastic bags.
At its aluminium foil manufacturing plant in Nagpur, the jute cloth is laminated with food-grade aluminium foils, and sent to artisans in Telangana for fabricating the bags in different sizes, which are available at an affordable price.
Ajay Kumar Jolly, chairman and managing director Jute Corporation of India remarked, “The partnership with Hindalco has been an innovative journey to find a unique and sustainable solution to plastic pollution. India’s natural materials offer tremendous scope for alternative packaging materials.”
There is a strong response to the aluminium-foil jute bags and already 60,000 bags have been sold in the past six months alone.
Satish Pai, MD, Hindalco Industries, said, "The environment-friendly packaging option is another example of how Hindalco is guided by its purpose, making Metals that are Greener, Stronger, Smarter.
"Moving forward, we pursue to make aluminium the 'smart metal of choice' by displaying it as a supermaterial, with innate properties of strength, light weight, anti-corrosion and 100 percent recyclability," Satish Pai said.