Gutka, pan masala to come in paper-based packaging

Packaging companies are preparing paper-based packaging for gutka and pan masala following the ban on plastic packaging for tobacco products. From March 1, the new packaging was stipulated to serve as a substitute to plastic for gutka companies.

The ban had forced several gutka manufacturing units to stall production. Uflex, a  flexible packaging major that does packaging for various gutka brands, has readied a new packaging that is environment-friendly, a company source said.

“We have innovated a new packaging in the last two months that we will launch in trade now. It is a mixture of paper and aluminium and a couple of other things which is environment-friendly and recyclable, and can be used by gutka manufacturers,” the source said.

In December last calendar year, the Supreme Court ordered a ban on the use of plastic packaging in tobacco products like gutka and pan masala. On February 2, the Supreme Court refused to extend the March 1 deadline on the ban. Following this, a majority of gutka manufacturing units in the country stopped production. The halt in production is estimated to have resulted in a loss of Rs3,000 crore to the industry.

Some major gutka and pan masala brands in the country are Kothari Products’ Pan Parag, DS Group’s Rajnigandha and Manikchand Group’s RMD. Pursuant to the ban, the only recourse gutka companies had to continue with the manufacturing and selling of their products was to look for alternate eco-friendly packaging material.

However, this also means that companies will have to pay more for the new packaging material which will be more expensive than plastic. “The packaging price for gutka manufacturers will be doubled which will result in these products costing more by not less then 50%,” the Uflex source said. For instance, a sachet of gutka costing Re1 earlier will now cost Rs1.50 if companies decide to pass on the increased cost to consumers.

Till recently, when plastic material was being used, the demand for packaging material was 10,000 tonnes a month. Now, as the new packaging will weigh more, the demand is likely to go up to 30,000 tonnes, the source said. Delhi-based Jain Flexipack, that does packaging for food brands like Haldirams and Eicher, is also formulating a similar paper-based packaging for gutka players, Manoj Jain, the director of the company, said.