In an exclusive interview with the Managing Director of Tetra Pak, we discussed with him in detail about the potential of the local packaging industry and what role Tetra Pak is playing to inculcate awareness about important issues like recycling and evolving environment friendly practices.
Realising opportunities
“Pakistan is a volatile country, but the image of Pakistan is worse than what it really is. Tetra Pak is investing in Pakistan because it realises that there are huge opportunities in the country along with an environment conducive for growth. It has a market of 180 million people along with 30 million consumers in Afghanistan, who are largely dependant on Pakistan.”
Tetra Pak Managing Director Azhar Ali Syed made these remarks while speaking to Profit in an exclusive interview here on Tuesday. He pointed out that Tetra Pak had recently invested euro 92 million in Pakistan setting up state-of-the-art packaging facility at Sundar Industrial Estate, Lahore, which was formally inaugurated on March 16. “It signifies a high level of trust in the country’s economy, people and institutions, which has faced more than its fair share of problems in recent times,” he explained.
Azhar said that the new factory would not only enhance the productivity of domestic packaging industry, but would also generate new employment opportunities. He underscored that it would strengthen the national economy by paying taxes and assist the development of the dairy and fruit farming industries through modernisation, expansion and skills development.
Matter of pride
He indicated that it was a matter of pride for Pakistan that it had a World Class Manufacturing (WCM) certified packing facility. “WCM signifies a high level of manufacturing excellence, which means continuous improvement in quality, cost, lead time, flexibility and customer service. It certifies that Tetra Pak’s new facility shall manufacture superior quality products at lower cost, with minimal waste and great efficiency,” Tetra Pak MD outlined.
Speaking about the product line, Azhar stated that Tetra Pak was offering a complete range of food processing, packaging and distribution solutions. “Consumer convenience, easy handling, optimal shelf life and maximum brand exposure are the few salient features of Tetra Pak packing. All packaging products are meant to protect flavours, brand and environment,” he added.
Assuring safety for food
Tetra Pak aseptic cartons are developed to assure maximum safety for food, while providing good pouring and exceptional presentation. The six-layer poly-coated container is extremely lightweight and has excellent performance characteristics, he pointed out. He said that his company was always looking for ways to enhance the features of every existing package in its portfolio, while at the same time working on the development of new packages for an expanding food industry.
Being a premium packaging solution provider, Tetra Pak not only produces and installs food processing, filling and distribution equipment, but also offers technical services to its customers through the lifetime of their operations. Tetra Pak’s complete product range includes Tetra Brik, Tetra Rex and Tetra Top models in chilled package solutions, while in the aseptic product rage it offers Tetra Fino Aseptic, Tetra Classic Aseptic, Tetra Wedge Aseptic, Tetra Brik Aseptic, Tetra Gemina Aseptic, Tetra Prisma Aseptic models. In addition, Tetra Re-cart is an innovation solution for food packaging, which is successfully replacing tin packaging, he maintained.
Significant export potential
Highlighting the export potential, Azhar told Profit that the recently established Rs10 billion packaging factory in Sundar Industrial Estate had a planned capacity of eight billion packages per annum, with the potential to double its production to 16 billion packages. Being the largest in the Middle East region, it would help in meeting the growing demand in many countries around the world, particularly in South East Asia.
He underlined that Pakistan had a good potential of exports and Tetra Pak was committed to increase its production capacity as soon as possible in order to export the excess of domestic needs. It has been estimated that 10 per cent of the total production in 2011 would be available for export and it would be doubled by 2013. However, he pointed out that it would all depend on the growth in the local market. Currently, Tetra Pak was exporting to a few markets, i.e. Egypt and Yemen and more markets would be targeted gradually, he disclosed.
The recycling challenge
Responding to a query, Tetra Pak MD said that as recycling had become a major challenge for all stakeholders after rapid urbanisation, Tetra Pak had been setting ongoing targets to continue increased recycling worldwide. A number of initiatives had taken place in almost every country where Tetra Pak exists. He said that his company was supporting activities to increase recycling by cooperating with civil society, industry and governments. In addition, it was assisting paper manufacturing mills around the world with technical expertise to carry out trials and verify the feasibility of recycling cartons at their sites.
Tetra Pak Pakistan is also driving the recycling of used beverage cartons locally and by the end of 2010, already about 15 per cent of used cartons are being recycled through formal initiatives, whereas a huge quantity is also recycled in the informal sector with collection of used cartons being done by rag-pickers and others. Tetra Pak Pakistan’s recycling initiatives have been duly recognised internationally and nationally, with the company winning the ‘Environmental Excellence Award’ at the prestigious Asian CSR Awards in 2009 for its Proud Pakistanis Recycle Campaign.
Environmental preservation
A recent research, conducted by the World Wide Fund for Nature (WWF)-Pakistan, reveals that recycling of used-beverage cartons (UBCs) has grown to almost 9,400 tonnes in 2011, mainly due to the enhanced natural demand of paper content, which accounts for almost 75 per cent of the packaging in a beverage carton. Research also showed that in 2010, only 1.5 to 10 per cent of the waste paper streams being supplied to the paper mills comprised of UBCs whereas, in 2011, it was discovered that the contribution of UBCs had risen to a share of almost 12 to 20 per cent of the total waste stream, he disclosed and added that ‘Recycled Waste Bins and Turn Your Cartons into Gold’ were the few awareness raising campaigns of Tetra Pak Pakistan.
Azhar pointed out that environmental preservation was a pillar in Tetra Pak’s business globally. Care for the planet was embedded in all business operations, from raw materials procurement, to production and to supply of products. Tetra Pak’s strategy was based on the most stringent international guidelines, regulations and local laws, he stressed.
Community Dairy Development
Speaking about dairy farming, Tetra Pak MD said that dairy farming in Pakistan was fragmented – normally there were two cattle-heads per farm. Smallholders did not have farming knowledge. Market linkages were inefficient and weak. However, to bring a sustainable change Tetra Pak in collaboration with its customers (dairy processors) had launched a Community Dairy Development Program. Tetra Pak in partnership with Engro Foods Limited, Nestlé Pakistan and Haleeb Foods Limited had taken Dairy hub initiative, which was a one-herd concept covering around 800 peasant farmers from 20 villages. This program has helped farmers getting better market access and good price for their produce. Over the past couple of years, more than 200 training sessions had been conducted, benefiting more than 25,000 dairy farmers nationwide and enhancing the dairy productivity of more than 90,000 livestock and farm animals.
Inculcating Corporate Social
Responsibility the Tetra Pak way
n A comprehensive plan to undertake recycling of post-consumed cartons through local partners that include NGOs and entrepreneurs. This activity is both sustainable and scaleable and has shown a regular growth in the quantity of cartons being recycled.
n A public awareness and behaviour change recycling campaign through consumers hands-on participation.
n Institution of the Green Media Awards, the first ever awards in the country to encourage and boost environmental reporting, both by print media journalists and television programmes producers and reporters.
n Introduction of de-lamination technology and support to the installation of a PE/AL recycling plant in Lahore.
n Alif Laila Book Bus Society: Alif Laila Book Bus Society, an educational NGO, produced a music CD titled Dabloo ki Kahani with lyrics written by celebrated puppeteer Farooq Qaiser. The main idea was to raise awareness about the 4R’s – Reuse, Recycle, Responsible, Reduce.
n Green Day: An awareness raising activity held in 2000 for over 600 children from 18 schools was the celebration of Green Day with drawing and 3D model making competitions.
n Nature Carnival: Thousands of adults and children came together at Nature Carnival, organized in collaboration with WWF in Islamabad and Lahore. All entertainment, including games, displays and competitions were geared to teach visitors how to enjoy nature and raise awareness about threats to their health directly related to the poor state of natural resources.
n Jungle Melas: Tetra Pak Pakistan hosted Jungle Melas which involved over 5000 people who took part in the Spring & Fall Tree Plantation drives.
n Adventure Foundation of Pakistan: In a community and nature conservation activity to celebrate the International Year of Mountains, Tetra Pak Pakistan joined hands with the Adventure Foundation of Pakistan. Over 100 students, chaperoned by 30 group leaders and resource persons camped at Ayubia National Park and learnt about the mountain ecosystem.
n Indus Walk: A unique campaign that aimed to educate young adults about our depleting water resources, ‘Indus Walk’, was spearheaded by Pani Pakistan, an NGO committed to raising awareness about water conservation and helping communities that live alongside water courses. With Tetra Pak Pakistan’s help, Pani Pakistan chose and trained students from all over the country to sail and walk along the Indus River holding Water Melas (fairs) and educating communities living along the edge of the river on water conservation.
