Local beverage players double import of cans, facing regulatory compliance

India is running short of aluminium cans due to regulatory compliance. This sees the local beverage players doubling their imports of canned beverages from West Asia and Sri Lanka due to high demand.

There are three folds to this fiasco. The can manufacturers in India have to be registered under the BIS to supply cans to the local market. If they don't register, then the consignments will get stuck up in customs. Even the global suppliers importing cans to India have to be registered under the BIS.

BIS requires these companies to meet standards based on material composition, dimensions, shapes and lids, chemical stability, pressure resistance, and internal and external coatings.

The second fold, explained by Venu Ayyar of the Metal Containers Manufacturers Association (MCMA), is that the BIS department is finding it hard to evaluate and register these foreign companies. That explains the sudden drop in the supply of beverage cans.

The third part of this story involves issues faced by beverage companies such as Coca-Cola India, PepsiCo, CampaCola, and beer companies like Heineken. Beer manufacturers have requested the government to postpone the compliance requirements for imported cans for a year, as the consumer demand for metallic cans is expected to rise.

The beverage companies, according to Venu Ayyar, also want to have increased manufacturing capacities, cutting down the costs. He said, “The evaluation process of a manufacturing setup involves five to ten people, and at different levels.”