The Industry Metal Container Manufacturers Association (MCMA) represents SMEs and MSMEs engaged in manufacturing of metal/, crown caps, varieties of closures, lug caps, stationary items, mosquito coil stand etc.  The Tin / metal container industry forms an integral parts of US $50 Billion Packaging Industry in India. Metal packaging caters to a wide range of food (including dairy products) beverage, pharmaceuticals and non-food products paints, pesticides & chemicals etc.

The metal packaging Industry has 10% market share in overall packaging Industry, which is mainly concentrated in MSMEs sector.  The industry is providing packaging material & packaging solutions in the form of tin container, component closures etc to food, beverages & other household Industry. Metal Industry is fully recyclable, sustainable & environment friendly.  Besides, edible products there is a large use of tin plates in SMEs industries engaged in manufacturing of lantern, stationary boxes, mosquito coil holders and so many other day-to-day low-cost utility items. 

The industry provides direct and indirect employment to over 100000 people. Owing to the rising population, increasing income levels, changing lifestyles, increased media, and the demand for packaging is growing. Moreover, it is one of the strongest growing sectors in the country. The rapid growth of the market is primarily driven by the pharmaceuticals and foods and beverages industries. Huge investments in the food processing, personal care, and pharmaceuticals end-user industries are creating scope for expansion of the packaging market. The end-user of such product includes food, beverage, healthcare, cosmetics, personal care, and household care and industrial segment

SME WORLD in an email interaction with Sanjay Bhatia, President Metal Container Manufacturers' Association:

What is the Tin/metal container industry scenario in India vis a vis the world?

The India Metal Packaging Market is expected to register a CAGR of 6.52% over the forecast period from 2021 to 2026. Recyclability of metal packaging is one of the significant factors that is expected to drive the global metal packaging market over the forecast period. Like aluminium and steel, metal packaging materials are the two most robust raw materials for packaging due to the superior recycling infrastructure.

With the growing middle-income group population, changing lifestyles, and evolving consumer preferences, India's consumption rates are also rising steadily.

North America currently holds the largest share in the global metal packaging market, as consumption rate of canned food is highest in North America. The second largest market in global metal packaging is Europe, followed by Asia Pacific, Latin America and then rest of the world.

How many SMEs are involved in the industry?

Since this particular segment is mainly concentrated in MSME and engaged in manufacture of non-edible products.  Therefore, it mainly uses non-prime material which is commercially available at a lower cost and the industry is able to such material by employment of more people.

Explain the recent control order and how it is going to affect the manufacturers in SMEs segment?

BIS (Steel and steel products Quality Control order) has impacted the tin products in many ways. Already there is a wide gap of app. 2.5 lac MT between demand and supply of domestic tinplate in India. With Covid-19 around, international tinplate manufacturers are not in a position to get certifications under BIS. But the Steel Ministry is adamant about imposing the BIS and not even willing to accommodate equivalent ISO standards. This has kept the foreign tinplate suppliers out of the country and the Indian producers are unable to produce enough material to meet the demand. Additionally, prices of tinplate have hit the roof.

Since the QCO also covers steel products like Easy open ends, Peel off ends, domes and cones and other closures etc., the metal packaging industry imports these products in different sizes and specifications from various countries.  The requirement under QCO of use of Tinplate/ Tin free steel which is approved by BIS for manufacture of such products is totally impractical and unworkable.  The products may be coming from four-five countries in different continents and for all the tinplate suppliers in those countries to supply tinplate to the product manufacturer and asking him to take BIS license in India is not practical at all.  This would result into non availability of these components to the industry as these components are virtually not manufactured in India due to huge investment in plant and machinery especially when the demand in India do not justify such investment.

The demand for tinplate/tin free steel in India outnumbers the supply. How can industry increase its production to do away with imports?

In case imports are curbed through non-tariff barrier like QCO, it will seriously impact the existence of large number of units in the metal packaging sector.  There is no way the domestic can/product manufacturers be able to increase their production rather it will result into loss of job and closure of enterprises.  At present industry requires close to 7 lac tonnes and the domestic production is about 4.50 lac tonnes.  It means there will be no material for huge segment of the industry.  While will finally result into reduction of demand approx 30%.

Use of plastics is gaining ground in a large number of products leading Environmental hazards. Does the Industry have any strategy to discourage plastics?

The raw material tinplate is steel base which is fully recyclable.  Steel remains steel throughout the life cycle and is a sustainable material, it is an excellent packaging medium which provides long shelf life to the product and can be stored in an ambient condition.  It can easily be collected from the waste after use and put the same for recycling.  Since there is an overall growth in the packaging industry where metal packaging is also growing.  Use of plastic is being addressed appropriately by Government of India and large number of NGOs.

Why is the market share of the metal packaging industry as low as 10%. Where are fault lines? What kind of efforts the Association is making in this regard?

In India share of metal packaging industry in the overall packaging segment is less than 10%.  Inspite of various inherent advantages of metal packaging unfortunately it loses a lot of market share due to comparative high cost.  Metal packaging is quiet popular in edible oil and various food products where there is comparatively rough handling of the product or where product needs a sturdy and secure packaging like baby food or various products which requires sturdy body of the can to hold pressure in the can along with a convenient dispensing system like aerosol and beverage cans.  The Association is continuously working towards positioning of metal packaging to all the stake holders like customers, consumers, Government Departments etc. so that  it can continue to serve the market and enjoy the right place in the packaging sector.