rexam is a wellplaced global manufacturing company for finding innovative solutions. it can make use of the knowledge and experience acquired from different cultures and environments while working and make certain that the needs of its customers are met. in the growing market of india, rexam has tackled these challenges directly, while investing time and money in the region to make sure it works in sync with the local market, and the right beverage packaging is given to the endconsumer. market recognition india has strengthened in the recent years as a major global manufacturing player, while producing goods for several global brands. the packaging industry of india is presently worth about 18.8 billion, which is around £11.7 billion. about 75 per cent of the packaging is accounted as rigid packaging that includes beverage cans, bottles, and uneven boxes. rexam beverage can recognised the importance of the asian market, and recently introduced the formation of a new division from january 2013 that will concentrate on the region. the existing plant of rexam in india, turkey and egypt will be included in beverage can asia, middleeast, and africa amea. rexam will be permitted by the new sector to pay attention to resources more tactically and acquire its share of growth opportunities in this booming region. in 2011, rexam declared that it will build a new highspeed two per cent aluminium beverage can manufacturing line in collaboration with a leading indian can producer, hindustan tin works ltd, at its existing site in taloja, which is near mumbai. a capital investment of £30 million was represented by the new line for more than two years. at first, the plant will produce 33cl and 50cl cans. thereafter, it will produce sleek cans, while increasing total capacity from less than 400 million cans to about 950 million per year, with production starting in the final quarter of 2012. changing demand twofold is the reason for continued investment. global companies view asia as an attractive market to operate. new consumer segments are rising in the country due to regional economies growing, as seen in india. the rising incomes, a growing economy, a larger youthful population, relatively easy availability of credit, and expansion in the availability of products and services in india have resulted in this. the demand has shifted its focus and rexam has increased its requirement for meeting the needs of consumers in the region with the growth in the regional economies. for beverage packaging formats, rexam knows that each country, region and demographic has their own preferences. in the asian market, the demands of each country vary. it is important to meet them, if consumers have to be constantly happy and satisfied with their purchases, regardless of the challenges produced. the new consumer india is not a market for canned carbonated soft drinks, culturally. it has a preference for tea, milk and fresh juice through history. many view the can as a premium product that is not available to a majority of the population. however, there is a change in this perception. three new major consumer segments, according to an industry research, have developed in india, namely children, youth, including the young working singles, and the urban woman. these consumers have greatly increased the influence and purchasing decisions that are barely driven by necessity any more. however, it is for satisfying individual needs. therefore, the way a beverage can is viewed has changed. it is available for normal consumption, and not an aspirational packaging format for premium consumption. with the indian middleclass population increasing rapidly fast and practically, consisting of a younger generation, who has more disposable income, there is an expansion in the indian retail sector that provides the catalyst for growth of the packaging industry. in 2011, more than 60 per cent of india&39s population was below the age of 30 and influenced a huge demand for branded products that are naturally and distinctively designed. in the beverage can market, rexam identified this need and has led the offering of the 2piece beverage can in india. particularly, the can is perceived as the &39cool&39 packaging for the younger generations to enjoy their beverage. pushing new markets in the indian market for beverage can producers, a cultural challenge that is present is the attitude towards alcohol, specifically beer. according to history, alcohol consumption had a social taboo. however, exposure to western lifestyles and attitudes are changing the mindset of urban consumers. several international brewers are attempting to gain a share of the market with this relaxation. beer sales have increased in india and rexam is now capable of working with international brewers for provide a packaging solution in the indian market. manufacturers have to be capable of responding to different levels of demand because of the size of the country. consumers are demanding different qualities, particularly sizes, for their packaging. rexam is well equipped for this demand as its portfolio shows many sizes. moreover, the plant in mumbai presently provides 330ml and 500ml standard aluminum cans, which is expected to increase after the completion of the new canning line installation. after this size demand has been overcome, the popularity of the beverage can will be driven and new beverage categories will be chosen that would include the increasingly popular energy drinks. overcoming challenges through people for any business, entry into new markets will always produce challenges. when rexam is confident about delivering innovative solutions to its customers&39 needs being met, it will enter markets. since it is essential for strong working relationships to be built in local communities, time, money and energy are invested by rexam to ensure its regional operating models fit the purpose. regional business knowledge is not required, while entering the market. it is particularly important in a country like india, wherein there are 29 countries with 325 languages and 1,652 dialects. local understanding should be certain by companies to confirm that the packaging produced meets the demands of the local consumers and the global ones. by using local employees, just like rexam, a firm can adapt the culture and ways of the local markets it operates in. it is important to find the best talent for running the business successfully in any organization, which can be challenging in a new country. however, the right individuals are found while understanding the culture and working etiquette of india, and having a detailed brief on who is required and what they will bring to the organisation in terms of immense knowledge of the indian business world and the economy with vital local information. it is necessary for any global company operating locally to perform constructively in local communities. rexam and its employees contribute to the local communities it works with at the mumbai plant by participating in charitable and community events on a regular basis. for instance, in the beginning of 2012, rexam donated many working tables to a struggling local school, post a restoration of the plant office. moreover, in august, one of rexam&39s employees headed a fundraising mission to purchase new equipment for her former school in the local village of wai. money was raised to purchase new benches and support other schools in the local area, as well. making and moving goods more brands are turning to india for manufacturing products packaging for them. the demand has increased tremendously for advanced and exclusive designs. the challenge of limited manufacturing infrastructure is significant for manufacturers, and investment is expected raise the standards as per the international level. manufacturers can offer the same products and design capabilities to the asian market, as there is heavy investment made by companies in the region. the most essential requirement that customers request from any canmaker is that the brand is displayed in the best light. innovation and design is important for this, as india has moved swiftly in this area, which is considerably assisted by professionals of quality and number, who presently work in the industry. manufacturers can face difficulties with the process of manufacturing beverage cans. the availability of water should be considered, despite most countries in asia being selfsufficient in water supply. it will not last forever as may be presumed and precautions must be taken to preserve it, specifically when a majority of the countries experience high temperatures, the entire year, for long periods. for making certain the supply of water is maintained, many sustainable water solutions are being developed for letting manufacturing companies, like rexam, to save water and reuse it when possible. transportation of the finished products between manufacturer and filler, and evetually, the endconsumer, can also be a challenge. in the asian market, the transport system is still developing, except for countries like china, south korea, and singapore. unlike europe, where it is relatively easy to travel, asia has a wide geographical area with different levels of development, unlike europe, where travelling is easier. the logistics of serving asian customers can prove to be a challenge. it is not required to work with local transport and logistics companies, and gain knowledge of local employees for maintaining a high standard of service. majority of the asian countries have transport as the performer in the overall economic and social growth, and this area is developing at a quick pace, regardless of the substantial investment required. . httpwww.fnbnews.comarticledetnews.asparticleid32576§ionid1
