Multiple growth triggers in place for shares of packaging firms

Any sharp rise in raw material prices or softening of FMCG demand could hurt prospects

Investors say, “A rising tide floats all boats." This is true because, when a given industry is doing well, sectors along the value chain of that industry also do well. By this logic, one potential growth area could be packaging.

There was some recovery in demand in the FMCG and Personal Care sector in the second half of FY21, and FMCG is a major consumer of packaging. Pharmaceuticals are another area of demand. Apart from this, the increasing penetration of e-commerce, of better food processing norms and more food delivery offtake, and greater penetration of organised retail, have all led