Market Analysis: India directly grains is the only country on is a in the world and whose related which nearly

76% of population Consequently the large is

dependant packaging

Agriculture big

industries. complements

food amount

business

agricultural surplus available. Jute bags are mainly used for packing of food grains in Maharashtra, but the traditional trend of using jute bags for packaging are changing into PP raffia bags. Plastic woven sacks and jute woven sacks A comparison..

Woven polypropylene bags (PP bags) and high density polyethelene bags (HDPE bags) are considered to be the toughest packaging material, widely used to pack following materials. y y y y y y SWOT: Raffia industry. Strength Growing industrialization in India, leading to more demand of sophisticated packaging by end customer. y The demand is directly related to demand of end product so till time a new better material does not come to replace the position is safe. y New big player entering the market. Chemicals & Fertilizer. Cement & Polymers. Sugar, Paper, Textiles, Flour Food Grains. Bird Feed / Dog Feed / Cat Feed / Horse Feed / Bird Seeds. Packaging of onions, potatoes garlic, groundnuts, fruits & vegetables etc.

Weakness Training required for handling. Reservation of jute packaging in food grains and other sectors which can be a rich market. y y y y y Manufactures lack commercially viable units. Low resale value. Resale only possible 2-3 times. Stack ability height less than jute. High capacity production required in order to earn profit.

y y

Opportunities y y y y Exports provide a sound market. Poor showing of jute industry. Increasing production of cement, fertilizers etc. Food grain sector can be a huge market.

Threats y y y y y Poor quality of product might affect good export potential. International fluctuation in petroleum products affects industry. Criticism from certain sector of society as being dangerous to environment. Not bio degradable. High dependency on labors.

Conclusions

Foreign raw material manufactures are targeting Indian market, so the

share of import is expected to increase. y Cement serves as an a important lot of market in Maharashtra; unorganized however sector as Raffia well.

manufactures

earn

profit

from

Substantial portion of sales goes to tarpaulin which is again a seasonal market hence the manufacturers keep looking for new areas for

expansion such as paper bailing, defense, geotextiles, etc y y y Domestic market is more price sensitive than quality sensitive. Profit margin in this industry is relatively low due to high overhead charges. Overall, for most of the manufacturers, quality of the raw material does not play an important part. Main factors they consider while choosing

the raw material is cost and availability. y Future of raffia industry show ample growth and many other varied

uses of woven sacks are coming up which shows the industry is going to flourish in future. Also since it is packaging industry demand is a derived demand therefore its demand will always remain until a new

better packaging material is found. y Food grain sector shows ample scope in future as government is relaxing the jute packaging orders. y There is lot of scope in exports for this industry that should be properly utilized by maintaining the quality. y Domestic market also offers a lot of opportunity from unorganized

sectors. y Exports can be of a much more importance than they have now, as it is

a labour centric industry, which provides an edge to India. y One of the major problems concerning this industry is the quality of manpower, which is generally of lower profile mainly illiterate labour force abounds these factories. y Demand for raffia grade for woven sack applications is expected to

grow at a CAGR of 9.2 per cent to over 721.842 tones.

HDPE is preferred for packaging of fertilizers, due to its moisture

resistance property. y Growth in demand from the raffia sector will be largely due to the

exports of woven sacks y Multi layered polypropylene bags can be a good substitute of pp bags in fertilizers and food grains sectors because of its low processing cost and high aesthetic values. y Thus Raffia on the while in we India can has in summarize been view now the of the findings on the and say that the

industry like

focusing large

traditional offered to by

sacking these on in a

application sectors. the The

cement

volumes a strategy

industry and

should tap

formulate in

capitalize both in

opportunities and of non

potential

diversified more and

markets applications

sacking variety

sacking

applications. exit

Many

diversified

markets

globally

can

be

successfully

transplanted to suit the Indian scenario.