FL17.1 : Strategic Framework to Improve Profitability for Flexible Packaging Manufacturers in India
Hello Flexible Packaging Manufacturers,
The most critical problem faced by flexible packaging manufacturers in India today is:
“Getting the desired price for quality products while dealing with high competition and rising input costs.”
🔍 Why is this the top issue?
1. Excess Capacity and Cut-Throat Competition:
o India has seen rapid growth in the number of flexible packaging players.
o Many small and mid-sized units offer extremely low pricing to gain volumes, even compromising on quality.
o This has created a price-war environment, making it hard for quality-driven manufacturers to get paid fairly.
2. Raw Material Price Volatility:
o Key inputs like BOPP, PET, ink, adhesives, and solvent prices fluctuate with global crude prices and import duties.
o Converters often can’t pass these costs to clients in time, especially when on long-term contracts.
3. Buyer's Mindset Shift:
o Many large FMCG clients have moved to reverse auctions and cost-based negotiations, eroding supplier margins.
o Emphasis is on cost, not value, making it harder to justify superior quality or service.
Summary:
Even though acquiring new clients or maintaining delivery timelines are important challenges, the inability to secure sustainable pricing for good quality work—especially in a hyper-competitive market—remains the top concern for most Indian flexible packaging converters.
Solution:
For a Strategic Framework to Improve Profitability for Flexible Packaging Manufacturers in India, subscribe and stay tuned to my YouTube channel www.youtube.com/@rajeshmodhvadia
