Chennai, May 31 (IANS) City-based Harita NTI Ltd., a manufacturer of bio-based and certified compostable bio-plastic materials, Tuesday announced the signing of a memorandum of understanding (MOU) with ITC Ltd. to develop and commercialise bio-polymer paper products.
As per the agreement, the two companies will jointly develop solutions to provide bio-degradable or compostable products such as food serviceware, food packaging, personal care product packaging and other fast-moving consumer goods packaging.
Both companies will also develop and promote joint branding and messaging for these products.
‘This alliance promises to bring significant benefits to both parties as it creates a unique portfolio of sustainable environment friendly alternatives to conventional plastic products,’ said N. Sriram, president of Harita NTI.
The existing market for flexible packaging in India is estimated at about $2.8 billion and is expected to grow by at least 14-15 percent annually, fuelled primarily by the enormous demand for consumer packaged goods.
The development of bio-polymer paper products becomes important given the growing opposition to the use of conventional plastics such as polyethylene and polypropylene in flexible packaging due to environmental and waste-disposal concerns.
Earlier this year, India banned the use of non-biodegradable plastics in flexible packaging for certain high volume applications. As a result, the demand for paper and paperboard-based flexible packaging is expected to grow rapidly.
