Pack-Man’s weekly update
Pack-Man presents to you six news headlines - New pharma bill soon to release, Mother Dairy aims 14-15% growth, FMCG targets spice market, Xiaomi to cater the 10,000-15,000 range 5G smartphones, Apple to record 8-9 million sales in 2023.
25 Jul 2023 | By WhatPackaging? Team
New pharma bill to be considered
Pack-Man has learnt that Union health minister Mansukh Mandaviya has proposed a discussion for the draft of the new drugs, medical devices and cosmetics bill with the stakeholders. This law will replace the Drugs & Cosmetics Act of 1940.
The draft will establish a scientific research board to support the regulatory authority. And it offers medical device testing centres on both state and central levels.
Pack-Man hopes healthcare will be much more patient oriented.
FMCG companies boost growth in the spices market
According to Avendus Capital report, last year the companies including Dabur, Wipro, Tata witnessed around 36% of the overall INR 70,000 crores spices market in India. The rest 64% is for loose sales to the consumers.
Pack-Man found out that by 2027, the organised sector will scale up to 71% at CAGR of 25%.
The crux of the matter is the Indian food processing market which was USD 307.2T in 2022 is expected to notch up USD 547.3T by 2028 (9.5% CAGR).
Pack-Man hopes there is rural demand revival, increase in income, farm allocation, boosting of infrastructure, and mobility for long-term jobs
Mother Dairy to grow by 14-15% this fiscal
Since March the milk supply has increased for Mother Dairy with an annual turnover of INR 14,500 crores last year. Its milk and dairy segment accounts for 70% in the overall chain. Pack-Man finds the current sales rate 14-15% similar to that of last year 16%.
Pack-Man read a report in a leading business daily which says, "Retail inflation in milk was reported at 8.85% in May 2023. The milk inflation has remained elevated at over 6% since August 2022.
Milk has the second highest weight in the food and beverages basket of the consumer price index at 6.61%, a notch lower than cereals and products with a 9.67% weight. Organised players, including Mother Dairy and Amul, hiked prices multiple times in the last one year citing higher fodder cost, robust demand and some impact due to reports of lumpy skin disease.
On 1 August, Karnataka government announced a Rs 3 per litre hike of Nandini milk and curd prices.
Xiaomi to target the 10,000-15,000 range 5G smartphones
Xiaomi India will focus on current generation smartphones within the budget INR 10,000 - INR 15,000. This move is to repurpose profitability in the first quarter of 2023 with decline in India’s smartphone market. The objective is to target the said segment, which consumers are likely to purchase. Resulting in huge sales, will boost packaging productions says Pack-Man.
Apple to record 8-9 million sales in 2023
Despite slow demand for smartphones, Pack-Man caught sight of the iPhone 15. The flagship brand will achieve sales of 8-9 million iPhones, with a market share of 6-7% by the end of 2023 as per Counterpoint Research and IDC.
Good news for rigid boxes in India. Pack-Man has an out of the box idea. A policy boost for setting up services for smartphone units in government-designated clusters, cutting plant setup costs and investments in rigid box manufacturing.