More than three-quarters of small-, mid-size Indian packaging companies plan to increase their production capacity, but 54.7% say poor infrastructure is a major obstacle, survey finds; 49% expect growth next quarter

LOS ANGELES , November 14, 2011 () – More than three-quarters (78.3%) of small- and mid-size packaging companies in India said they plan to expand their production capacity, while 21.7% had no plans, according to a IndiaMART Knowledge Services survey, reported the Business Standard on Nov. 15.

Less than half (49%) of those responding to the survey said that they expect the market to grow next quarter, while 30.1% forecast negative growth and 20.7% called for stable conditions.

However, 63.2% were optimistic about their business prospects in the coming quarter, while 16.9% were pessimistic and 19.8% were neither, the Business Standard reported.

Participating in the survey were packaging companies involved in flexible packaging, glass packaging, liquid cartons packaging, metal packaging, paper-based containers and rigid plastic packaging.

On a question about order books after December 2010, about 31.1% said that theirs had increased by more than 20%, 34% said that they saw anywhere from zero to a 20% increase, 31.1% indicated no change and 4.1% had a decline, reported the Business Standard.

Poor infrastructure was noted by 54.7% of respondents as a major obstacle to growth, but 45.2% did not agree. Financing was cited as a hurdle by 63.2% of participants, but 36.7% did not share this opinion.

Nearly 70% (69.9%) felt that hiring skilled workers was a big challenge, but 33% did not feel that way.

Increasing their workforce was planned by 69.8% of respondents while the remaining participants had no plans. Just 48.1% expected to increase their office network staff n their office, while 51.8% did not, the Business Standard reported.

The primary source of this article is the Business Standard, New Delhi and Mumbai, India, on Nov. 15, 2011.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.