Packaging can be defined as "all products made of any materials of any nature to be used for the containment, protection, handling, delivery and presentation of goods, from raw materials to processed goods, from the producer to the user or the consumer".

The final test of packaging is whether or not it performs its essential task -to contain, preserve and protect the product.

Packaging uses a vast range of materials. Each material has its own uniquen characteristics and the choice of packaging is determined by various factors most import of which is compatibility with the packed product. Some of the key packaging materials and factors considered while determining the packaging option are:

Whatever be the packed product or type of packaging used, consumer packaging delivers significant value by the time its contents are consumed and the packaging is disposed. It ensures the integrity of the product, delivers it in a clean and safe form and prevents spillage or spoilage. It delivers substantial economies and thereby keeps prices down by facilitating ease of handling, warehousing and distribution which may call for varying shelf life depending upon the nature of the product, state of the warehousing and distribution facilities etc.

India is blessed with abundant resources. 169 million hectares of arable land, 7th largest marine landing in the world, wide agro-climatic conditions, one of the largest producers of milk and a host of traditional agricultural products such as Tea, Coffee, Cashew, Mango, Bananas etc. Tropical food products enjoy a huge demand in the developed economies. But this enormous potential still waits to be tapped. The loss on account of spoilage in the food sector is estimated at over Rs 30,000 crores every year. Food processing capacities need to be created and enhanced close to the growing areas, supported by availability of suitable packaging thereby improving the shelf life of the product, enabling storage and distribution.

While on the subject of shelf life, It would be of interest to note that tin cans offer a shelf life incomparable to any other packaging material. In 1820, Sir William Edward parry made two arctic expeditions. One tin of roasted veal carried on both trips was never opened and was kept as an artifact in a museum until it was opened in 1938. The contents, then over 100 years old, were chemically analyzed and found to have retained most of their nutrients. The veal was fed to a cat, who had no complaints whatsoever. Such amazing abilities of the tin container have been enabled by the various properties of tinplate and tin containers as detailed below.

• Excellent barrier properties -Food tends to get spoilt when exposed to atmospheric conditions. Hence the packaging needs to ensure that no gases are permitted to enter or escape from the packaging.

• Ability to withstand heat -Several food products once packed need to be sterilised inside the container. The packaging material must therefore be able to withstand high temperatures for long duration.

• Protection from ultra violet rays -Food products such as edible oils, tend to turn rancid if exposed to ultra violet rays. Thus in order to increase the shelf life of food products, one needs to provide protection from Ultra Violet Rays.

• Rigidity -The packaging material must be able to withstand rough handling and storage conditions to avoid breakage and spoilage. Furthermore, it must also be able to resist attack from rodents while under storage.

In India the above properties and the long shelf life delivered by tin containers are most relevant because of the size of the country combined with the poor transportation and storage conditions. FMCG companies who are today packing their food products in HDPE jars, sachet packs or other composite packs have consciously compromised the shelf life of their product for lower cost. However, in developed countries where food products, which have crossed the expiry date are removed from the shelves, in India such products are not always removed from the shelves and the govt. machinery is also not equipped to handle such cases. The situation is worst in up country areas, which are difficult to reach. There is a growing need to prescribe appropriate packaging to ensure the consumers safety.

Delivering effective packaging at low cost is the foremost challenge for producers of packaging. Consumers are demanding more value for their money in all walks of life. Hence to continuously add value, packaging today must offer more convenience, varying pack sizes, Easy opening but tamper evident options and respect for the environment at minimal cost.

The cost of packaging is largely determined by the basic cost of the packaging material itself, efficiency in material usage and in the production process, supply chain costs, design cost and last but not the least, the cost of disposal. Currently in the Indian scenario, but for a few companies, Indian companies lack the resources to develop and rapidly introduce new and innovative packaging solutions to reduce costs. This failure on our part can be attributed to the fragmented structure of the industry compounded by the very high percentage of small-scale operators in the industry. This current status of the Indian Packaging Industry is opposed to the global trend of expansion, consolidation and globalisation.

The manufacturers of consumer products are increasingly multinational companies with significant export markets, who demand competitive prices and international quality. This is leading to the rationalization of the manufacture and purchase of packaging and has compelled packaging suppliers to think in tenns of similar enlargement. For example, AMCOR an Australian packaging company which produces Glass Containers, Corrugated Boxes, Aluminum and Steel Cans, Plastic Containers and Flexible Packaging has emerged as one of the world's leading packaging groups after massive acquisitions across the globe as detailed below:

• Merger with Danisco and A&R in Europe for flexible packaging
• Acquisition of two flexible packaging plants in Britain from Rexam
• Acquisition of flexible packaging and extrusion business in Spain from Tobepal Group
• Acquisition of the closures and plastic bottle business from Schmalbach Lubeca

Today the AMCOR group has an annual sales turnover of A$11 billion with the distinction of being the world's largest manufacturer of PET bottles for soft drinks. Such scales of operations and presence in all major fonns of packaging would enable sharing of best practices and investment in R&D thus delivering innovative high quality packaging solutions at competitive cost. While the use of new technologies will help to reduce costs, efficiency in material usage will remain a major driver for cost reduction. Manufacturers are looking to merge primary, secondary and tertiary packaging without affecting the functionality. Furthennore, reduction in usage of raw materials is leading to Lightweighting in the industry, be it glass containers, corrugated boxes, plastic jars or tin containers. To give you an example from the tin container industry, the average weight of the tin can has fallen by almost 40% over the last 20 years.

This reduction has been made possible by the use of double reduced tinplates and also through new can making process for draw and wall iron cans (DWI). DWI cans are produced mostly from 0.20mm soft tinplates and are drawn and then wall ironed. The final thickness of the can is as low as 0.14mm, which means a reduction of almost 30% during can making.

Disposal cost for packaging is not yet an issue in India. However, with the growing concern over protecting the environment, we should soon expect to see a legislation in India in line with the various legislation's already in place in Europe and other countries like Japan, Australia and the US.

In Europe, the basic purpose of the legislation is to place a legal obligation on the retailers and manufacturers to take back and recycle secondary and sales packaging. Non govt. organisations have been formed who for a fee take on the legal obligations of the manufacturers for collection and recycling of packaging waste. The disposal fees for some of the major packaging options are given here as an indication of the disposal costs. Use of environment friendly packaging options not only helps the image of the product, but is a factor in determining the final cost of the packaging. However, packaging cost needs to be viewed in light of the benefits delivered. While some innovations may add to cost marginally, they may be delivering substantial value by providing customers with convenience. For example the development of easy open ends has virtually announced the death of the can opener. Today consumers are able to open cans anywhere without having to worry about an opening device. Some other examples of convenience are:

• the ability to re close the container especially in case of products, which are consumed over a period of time

• Ease in dispensing the product. In the case of edible oils and other liquids, easy pouring is an important virtue of the packaging design. In the case of pressurized products like deodorants and shaving foam, the aerosol can effectively contains the product and allows the consumer to dispense the product in measures as desired.

Indian packaging companies need to drive down their cost continuously to remain globally competitive especially in view of the falling tariff barriers. Packaging companies must invest in new technologies to ensure the continuing evolution of the industry. Finally, packaging is a key promotional tool in the hands of brand managers. Studies show that in developed economies where super stores are commonplace, 70% of the purchase decisions are made in the store. Packaging plays an important role in differentiating competing products and can be decisive in influencing the purchasing choice of consumers. In conclusion I may say that in the new millenium, change will be the order of the day and survival will depend upon growth strategies. Companies who look for easy options simply will not survive. In order to survive and grow, companies will need to be flexible and adaptable, invest and innovate and develop skills to meet the forthcoming challenges.