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Tetra Pak eyes rural market in India, opens new Rs 700 cr plant

PUNE: Food processing and packaging solutions firm Tetra Pak is betting big on India, specially opportunities in the rural market of the country for which it is preparing to introduce smaller sized packs. 

The company inaugurated its Rs 700 crore new facility at Chakan today with which its production capacity has been doubled to up to 8.5 billion packaging materials per year to cater to the growing demand of India, South East Asia and Middle East 

"Today India ranks among our fastest growing markets. Investing (in) this factory demonstrates our strong commitment to supporting our customers to meet the growing consumer demand in the region," 
Tetra Pak Group President and Chief Executive Dennis Jonsson said here. 

The new plant has the potential to scale up to 16 billion packages, the company said. 

Highlighting the potential of the Indian rural market, Tetra Pak 
Managing Director South Asian Markets Kandarp Singh said: "We are seeing very exiting rural opportunities. We are working with many key players...As you see we are offering products at 50 ml...We see more coming in future." 

The company provides packaging solution to a host of companies, including Dabur, Parle Agro and 
NestleBSE 0.14 %. 

For the rural markets, it is focusing on small packets of Tetra Fino Aseptic (TFA) which starts from five small sizes of 100 ml, 200 ml, 250 ml, 500 ml and 1000 ml and Tetra Classic Aseptic (TCA) that comes for 65 ml. 

"Tetra Fino is meant for penetrating the country...We have a very wide portfolio. We have packaging system for different cost which is meant for penetrating rural system," Singh said. 

The company that posted turnover of Rs 965 crore in 2012-13 is targeting a growth of 15 to 20 per cent this year. 

With the new plant 
spread over 45 acres going onstream, Tetra Pak would close its manufacturing facility at Takwe, near Pune by this year and shift the operation to Chakan. 

The new plant is Tetra Pak's second largest plant after its Lund plant in 
Sweden. It is a fully integrated site which has product development and innovation center, technical training academy and processing system workshop apart from packaging material converting factory and straw factory. 

Tetra Pak which has came in India in 1987 and started its first factory in 1997 is exporting to 29 countries from India and 
Indonesia and Vietnam are their major market.