Ajanta Packaging

EXECUTIVE SUMMARY:

Given the shift in market dynamics towards substitutes of glass packaging and the decreasing profitability in the glass packaging industry, the company should decide upon the required future strategic changes.

Ajanta packaging can either choose to enhance its existing product range with adding more PET varieties and other substitutes or it can continue on with the glass packaging and exploit the declining industry. The options were evaluated keeping in mind its effect on the customers and its effect on the profits.

It is recommended that Ajanta Packaging should enhance its product range with adding more PET bottle varieties and PET based substitutes.

[Word Count: 102]

TABLE OF CONTENTS:

Situational Analysis…………………………………...……….…………..…4-5

The Problem Statement………………………..…………….…………………5

The Options……………………………………...……………….…………….5

Criteria for evaluation………………………...……………….……………….5

Evaluation of options………………………………………..…...…………..5-6

The Recommendation…………………………………………...………….....7

Action Plan……………………………………………………...……..………7

SITUATION ANALYSIS:

Ajanta Packaging has maintained a major market share in a glass bottle industry from the last few years with its customers being from Pharmaceutical, Fast Moving Customer Goods (FMCG) and Liquor & wine industries. Though 95 % of its business came from the glass packaging in 2010, but the recent paradigm shifts in technology has made glass packaging less favorable in sectors like FMCG and Soft Drinks, thus these industries have started to move from traditional Glass packaging to newer substitutes like PET, PVC and Tetra Pak. It can be inferred that sooner or later, existing customers of Ajanta Packaging will start to give business to competitors offering various PET bottles.

Due to the problems like fragility, high breakage rates and high costs of manufacturing,...