The Hindu Business Line : Tetra Pak may locate unit in Chennai

With the demand for Tetra Pak packages - the multilayer polyethylene, aluminium and board for packaging liquid foods - on the increase, the wholly owned subsidiary of the Swedish company is set to expand its production facilities.

According to Mr Ashutosh Manohar, Processing Director, Tetra Pak India Pvt Ltd, Chennai is a strong contender as a location for its expansion programme as the unit will have to come up near a port. Tetra Pak exports its packaging material to over 30 countries.

The expansion, a part of its three-year business plan, is likely to happen within two years.

Tetra Pak officials told a group of visiting journalists on a tour of its manufacturing facility at Takwe near Pune that the demand for Tetra Pak packages has been on the increase, particularly in the last two years.

Between 2004-05 and 2005-06 the demand doubled and is seen growing by about 20 per cent.

The facility at Pune would be producing to capacity by the next year and expansion would be inevitable, officials said.

According to Mr Jeff Gratton, Technical Director, in 2004-05 over 400-500 million packages were produced. In 2005-06 this increased to over a billion packs.

Tetra Pak estimates that the growth in coming years would hold at 20 per cent.

What caused the jump in production? According to Mr Gratton, the entry of large brands into fruit juice range and dairy companies launching UHT (ultra high temperature treated) milk in Tetra Pak packages.

Companies such as Parle introduced triangular packs and Maaza came out in a wedge-shaped pack.

Dairy companies, especially co-operatives and some private brands, introduced UHT milk.

Dairy products in Tetra Pak packages have a shelf life of about four months and juices and beverages six months without refrigeration.

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