The rise of Asia’s largest capsule manufacturer: ACG
Dr Sheikh Akbar Ali details how ACG is pioneering integrated capsule and packaging solutions to support personalised medicine and global distribution
16 Jul 2025 | 674 Views | By Anhata Rooprai
As the pharmaceutical industry undergoes a transformation from advanced drug formulations to patient-centric delivery systems, packaging has assumed new significance. It’s no longer just about containment; it’s about protection, traceability, and sustainability.
At the forefront of this shift is ACG, a 65-year-old global leader headquartered in India, offering integrated solutions across capsules, barrier packaging, engineering systems, and inspection technologies.
“We’re Asia’s largest capsule manufacturer and the second-largest globally,” says Dr Sheikh Akbar Ali, general manager and head of development and technology at ACG. “We also hold several patents that give us a significant edge, such as our capsule-in-capsule technology, which can simultaneously carry solids and liquids.”
This technology, he notes, is increasingly relevant in the nutraceutical space, where complex combinations, such as oil and powder supplements, need to be delivered in single, convenient formats.
Dr Sheikh Akbar Ali, general manager and head of development and technology at ACG
Science behind ACG’s offerings
ACG’s approach is defined by integration. Its capsules division is not just about producing hard-shell gelatin and plant-based capsules; it also offers lab support, regulatory compliance, machine compatibility testing, and customisation.
The company’s vegetarian capsules are now fully plant-based. Dr Ali explains, “Our Aurangabad plant now exclusively produces these. Unlike gelatin capsules, which are sensitive to moisture and heat and may stick together or degrade, plant-based capsules are more stable and sustainable.”
On the packaging side, ACG manufactures an extensive range of films and foils in-house. These include high- and ultra-high-barrier materials designed to protect medicines from moisture, oxygen, and light, critical factors in ensuring drug stability and potency.
According to Dr Ali, ACG evaluates two primary barrier types: moisture and oxygen (gas) barriers. Moisture is particularly critical, as it can reduce a drug’s potency or cause degradation and impurities through hydrolytic reactions. Oxygen can lead to oxidation, for instance, causing oils to turn rancid.
He says, “We measure barrier properties using instruments at varying temperatures and humidity levels, usually on flat films or foils. For new materials, we sometimes also test after forming the blister to assess real-world performance.”
ACG’s blister packs include both thermoform (PVC-based) and cold-form (aluminium laminate) options. Thermoform blisters are made by heating and shaping the film. Cold-form blisters, on the other hand, don’t use heat. Instead, an aluminium-based laminate is pressed into shape at room temperature.
Dr Ali says, “Cold form is essential for products sensitive to moisture, oxygen, and light, offering superior protection. However, they’re bulkier. For instance, a 10-blister cold-form pack is approximately 1.5 times the size of a thermoform.”
In terms of sustainability, cold-form packs can be pyrolysed to recover aluminium, avoiding harmful emissions like dioxins (unlike PVC). While not easily recyclable, they’re safer for sensitive drugs. Thermoforms could be recycled if made from single polymers, but current combinations (polymer + aluminium) hinder that.
ACG’s offerings
ACG delivers solutions for the pharmaceutical and nutraceutical industries, with a strong focus on solid dosage forms. Its capsules division produces hard-shell capsules in both gelatin and plant-based HPMC variants, suitable for complex fillings such as powders, beads, liquids, tablets, and mini-capsules. Over 10,000 colour tones, pearlescent finishes, and anti-counterfeiting print options enable extensive customisation. Certified “clean label” vegetarian capsules are available, using natural pigments and titanium dioxide-free opacifiers. ACG also provides R&D support, including compatibility testing, formulation development, and stability studies.
Packaging materials are manufactured entirely in-house and include high-barrier films and foils — PVC, PVDC, and PCTFE laminates — for moisture and oxygen protection. Specialised foils are offered for cold-forming, tropical climates, and child-resistant needs. Integrated solutions combine materials, machinery, and inspection systems, while the sustainability pipeline features recyclable, compostable, and halogen-free options.
ACG’s engineering division supplies machinery for granulation, pelletisation, capsule filling, check-weighing, tablet compression and coating, blister packaging, cartoning, as well as vision inspection and track-and-trace systems for supply chain security.
Operating in nearly 140 countries, ACG maintains a global manufacturing presence. “In packaging, we have facilities in India, Brazil, and Dubai,” says Dr Ali, “and recently opened one in Croatia to serve our European customers more closely. We're also planning more facilities in Europe within the next 18–24 months.”
Packaging under pressure
The global pharmaceutical packaging industry is experiencing rapid growth. This growth is being fuelled by several key trends: ageing populations, the rise of chronic diseases, digitisation, and the increasing complexity of medicines.
This complexity also comes with logistical and regulatory challenges. For instance, shipping gelatin capsules across varied climate zones poses risks. Dr Ali says, “The critical issue arises during shipping, especially by sea. Temperatures in containers can exceed 40 degrees Celsius, causing gelatin capsules to soften and stick.”
He adds, “Once filled, capsules are usually bottled, and the risk decreases, unless stored in hot conditions. To mitigate this, we advise storing capsules in cool, dry places, away from sunlight. Prolonged heat exposure can also reduce drug potency.”
While there is pressure to shift away from PVC due to environmental concerns, Dr Ali says the change is not imminent. “New materials must maintain drug efficacy, or regulators won’t allow their use.” Notably, global supply chains for medicinal-grade alternative materials are not in place yet.
At a glance
The global pharmaceutical packaging market is forecast to grow from USD 143.91-billion in 2024 to USD 397.71-billion by 2034, with a compound annual growth rate (CAGR) of 10.7%. North America currently leads the market, while the Asia-Pacific region is expected to experience the highest growth. Plastics and polymers dominate due to their flexibility and cost-efficiency. Primary packaging holds the largest market share and remains essential for tablets, capsules, and injectables.
Source: Towards Packaging
Personalised medicine
Pharmaceutical packaging is increasingly being shaped by precision medicine, where treatment regimens are tailored to individual patients. This has implications for production runs, especially in blister packaging.
“In the context of European healthcare systems, for instance, medicines are prescribed in a highly individualised manner. You might receive a blister pack where Monday’s dosage includes three different tablets or capsules, and Tuesday’s is different again. These are customised blisters with multiple products in a single cavity, depending on the day or the specific prescription,” Dr Ali says.
Pharmaceutical packaging is increasingly being shaped by precision medicine
Last month, ACG debuted the personalised capsule machine (PCM), a patented technology enabling on-demand manufacture of supplement capsules based on individual biomarkers, lifestyle choices, and health goals. Developed in collaboration with Art of You, PCM integrates real-time health data with automated production. This follows increasing demand for custom-made supplement solutions. Earlier this year, ACG also introduced the first fully vegan printed capsule for nutraceuticals.
On the other hand, Dr Ali says, “We have customers with dedicated lines that run the same product with the same packaging materials for 365 days a year.” ACG’s engineering division is working to accommodate these requirements with systems that include capsule-filling machines, check-weighers, and vision inspection tools.
Trends
Trends in the pharmaceutical packaging sector include smart packaging equipped with sensors and connectivity, as well as the growing use of biodegradable and recyclable materials. AI-powered inspection and packaging automation are becoming increasingly prevalent, alongside anti-counterfeiting technologies such as holography and RFID. There is also a shift towards custom, patient-centric blister formats to support personalised medicine.