Packaging technology solutions for emerging markets

BOSCH Group celebrates two milestones this year: the 125th anniversary of its establishment, and the 150th birthday of founder, Robert Bosch. This year also marks the 150th year for Bosch Packaging Technology, which originated in 1861 as Hesser company which Bosch later acquired. As today's leading global supplier of processing and packaging technology for the pharmaceutical, food and confectionery industries, Bosch Packaging's strong position in the emerging markets of Asia and Latin America enabled the company to make up for the negative economic impact of the European and North American markets, and allowed it to post sales of €770 million in 2010.
 International Plastics News for Asia (IRNA) got the latest developments on the company from Mr. Friedbert Klefenz, President of Bosch Packaging Technology, at interpack 2011 in Germany.

IRNA: Many companies in your industry have floundered due to the global economic crisis, and some have not even fully recovered. Bosch acquired a bigger market share during the troubled period after 2008. What accounts for this strength?
Klefenz: We have a worldwide set-up. We have 24 locations where we manufacture packaging and processing technology, and we can more easily strike a balance. We are globally active, and we are in a better position to put our people in regions that are moving.
 For example, we have many facilities in Asia that are doing well and we could use the same sales channel this region to move the products produced in Europe to the Asian markets.
 In Asia, Bosch continues to expand with a new factory in its site in Goa to serve markets not only in India, but also elsewhere in Southeast Asia, the Middle East and Africa. We are also doubling the size of our Hangzhou facility in China, where the company is already the largest provider of packaging machines.

IRNA: From the point of view of your customers, did anything change in terms of their requirements as a result of the global economic crisis?
Klefenz: I would say that for our customers, the recession has no impact because everyone has to eat. Our customers were also careful because they didn't know in which direction the economy was going, so they stopped some of their investments. On the other hand, this was one reason our competitors were going down – their customers holding down on investments – but for our customers, even during the crisis they were doing well.

IRNA: Since the last interpack three years ago, have you seen any changes in the pharmaceut ical industry in Asia?
Klefenz: Yes, for instance in China , small firms found themselves unable to comply with the latest SFDA packaging regulations. They have been absorbed by the large pharmaceutical firms in China, which are buying more smaller companies.
 So we have seen a lot of consolidation of the pharmaceutical environment in China. Similar things are happening in India. In the rest of Asia, in the ASEAN countries like the Philippines, Thailand, Malaysia and Viet Nam, the pharmaceutical industry is rather small.

IRNA: Have there been any changes in the requirements of your customers in the food industry?
Klefenz: We're seeing our customers switching to smaller packages, because you have more single households. These consumers also would like to change, say, from one flavour to another, so they prefer smaller portions.
 In China, you have a very good structure by the government on how to move the industry, so they now have regulations that the retailers all must have packed goods, no more loose goods. It starts with the mega supermarkets – you have Metro, WaNike Tiempo Legend