Rexam to build two Indian beverage can plants

By Rachel Arthur contact

- Last updated on GMT

Rexam predicts beer & soft drink growth - and increased demand for cans - in India
Rexam predicts beer & soft drink growth - and increased demand for cans - in India

Related tags: Soft drink, Alcoholic beverage

Rexam will build two beverage can plants in India, starting with an initial investment of £50m ($77m) in Sri City.  

The company has obtained land in Sri City (southern India) and Mahindra World City, Jaipur (in the north of the country), as beer and soft drinks drive beverage can growth.

Rexam currently has one plant in Mumbai, which has a capacity of 950m cans. The Sri City plant will add a production capacity of 880m cans and is expected to open by H2 2016.

Rexam says the plant represents an initial investment of around £50m ($77m), and will create 150 jobs in the community.

A similar plant in Jaipur will follow in due course.

Craig Jones, Sector Director AMEA, Rexam, said the investments come during a period of "continued exciting growth"​ for the beverage can sector in India. He added it was important to have facilities at different locations to meet the needs of customers in each region.

Headquartered in London, Rexam entered India in 2007 with partner Hindustan Tin Works. In 2013 it established a new sector based in Dubai to target India, Turkey and Egypt.

The company says the beverage can remains a novel form of packaging in India, but adds this is likely to change as consumers seek more premium beer and soft drink choices. Consequently, demand for cans is expected to increase from a low base, thanks also to rising incomes and better retail infrastructure in the country.

More than 30% of Rexam’s global sales come from emerging markets.

* This article was amended on February 17 to clarify that the full details of the Jaipur plant will follow in due course, after Rexam provided revised information. 

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