Northern Technologies International declared that it has inked a memorandum of understanding with India-based ITC to collaboratively produce and market biopolymer-paper products for the growing Indian consumer goods packaging industry.
Northern Technologies International produces certified compostable and renewable bio-based plastic materials. The company’s Indian joint venture, Harita-NTI, will produce the biopolymer materials for integration with paper produced by Paperboards and Specialty Papers Division (PSPD) of ITC. Both firms will also produce and market joint messaging and branding for the products.
The current Indian flexible packaging market is valued at nearly $2.8 billion and is anticipated to increase by 14% to 15% per year as there is a huge demand from the Indian middle class for consumer-packaged goods. However, due to waste-disposal and environmental problems, the politicians are raising concerns against the utilization of polypropylene and polyethylene in flexible packaging.
Recently, the utilization of non-biodegradable plastics was banned by Indian authorities. Due to these reasons, the market for paperboard and paper-based flexible packaging is anticipated to expand quickly.
According to Vineet Dalal, who serves as Vice President and Director of Global Market Development for Northern Technologies International, ITC specializes in the paperboards and paper business, while Northern Technologies has proven patented technologies and expertise in the bioplastics field. The cooperation of both the companies would enable the production of novel biopolymer-paper hybrid technology, he added.