Vital Paper to set up a packaging unit in Sri City
Singapore-based Vital Paper Products, which currently produces office and school stationery among other paper products at its existing units in Sri City, has laid the foundation stone for a new corrugated packaging division with an investment of Rs 60-crore. To be set up on a 2.8-acre plot, the packaging unit will house a four-colour printing facility, which is expected to be ready by next April. It is expected to employ 70
In 2013, Vital Paper Products had set up two units in Sri City, one at the Domestic Tariff Zone (DTZ) and the other at Special Economic Zone (SEZ) with making an investment of Rs 300-crore. The packaging unit will come up in the SEZ.
The proposed new division, which will make corrugated packaging material with four colour printing, rotary slotted cartons, open and pre-fold trays and telescopic corrugated cartons, is expected to be ready by April 2017.
Sri City: An impetus to packaging
Spread over 7,500 acres in Andhra Pradesh, Sri City is an integrated business city situated 55km north of Chennai. It is well-connected by rail and road networks and has access to four ports and four airports.
Sri City has at present 108 units set up by companies from 26 countries which are either operational or under construction. These companies have committed an investment of Rs. 23,000-crore.
The industrial park has seen a lot of traction from FMCG and food companies thanks to a combination of strategic location, modern facilities and subsidies. To name a few, PepsiCo, Mondelez, Kellogg’s, and Colgate-Palmolive have made investments to set up manufacturing bases in Sri City. While just outside the business park, companies like ITC, Britannia, Heritage Foods, Godrej Agrovet and Godfrey Phillips have started setting up operations.
Besides the food and FMCG firms, a host of electronics and automobile companies are also setting up their manufacturing bases in Sri City.
Taking a cue, major packaging converters are eyeing investments in Sri City.
In 2015, Rexam had announced that it has obtained land in Sri City. The plant represented an initial investment of close to 50 million pounds (approximately Rs 479-crore) and was supposed to add a total production capacity of 800 million cans.
Earlier this year, in January, Faridabad-based Khemka Containers (KCL) said it plans to set up a Rs 100-crore unit in Sri City. KCL is one of the leading and largest companies in the paper printing and packaging industry in India. It was listed as one of the ‘Top 10 corrugators in India’ by PrintWeek India in its special publication The 1000 in 2012. The Sri City plant was to occupy a 10-acre plot and provide employment opportunities for about 200 people.
Besides this, in March, Parksons Packaging, a Mumbai-based manufacturer and exporters of printed and laminated folding cartons, announced setting up a manufacturing base at Sri City with an outlay of Rs 70-crore.
According to experts, the packaging industry in South India will get a major impetus thanks to the investments in the Sri City business park.