Parle Agro to expand PET packaging capacity by 21%

01-Apr-10

As part of expanding its plastic packaging business, food and beverage player Parle Agro, is planning to expand its Polyethylene Terephthalate (PET) production capacity by another 21% in the next fiscal. This capacity augmentation is in addition to an increase in its annual preform production by 17% in FY 2009-10. The company recently installed two new machines — a KM 96 cavity machine and a Husky - HyPET 72 cavity machine at its Silvassa plant, commissioned its second preform manufacturing plant in Orissa and plans to set up its third plant in South India by early 2011. The company's PET division supplies preforms to customers in the bottled water, ready-to-drink beverages, carbonated drinks, edible oil, confectionery and pharmaceutical segments. Its product range in terms of neck type are 30/25 mm (water application); PCO neck (carbonated & juice application) and short neck (water application). Outlining growth segments for the PET business, Schauna Chauhan, CEO, Parle Agro, said, "We plan to increase our presence within the oil, confectionery and pharmaceutical segments while also reaching out to new customers in the liquor segment. The liquor segment is witnessing a shift from glass to PET and we have already started R&D to expand our range of preforms and technology. We recently started manufacturing wide mouth jars in addition to preforms, to cater to the confectionery packaging segment." Only 40% of the total production volume is used for captive consumption, while a majority 60% is supplied to external customers in India and exported abroad to South East Asia and Africa.