Tag: Industry story

Thimmiah Napanda, Managing Director & CEO, Alternicq, highlighted that the sharp rise in crude prices and supply disruptions have created a dual challenge of inflation and material availability across the packaging industry. As companies prioritize continuity over cost, procurement cycles have lengthened and inventory buffers have increased, making strong supplier relationships a key competitive advantage. Napanda emphasized that securing material has become more important than short-term margin optimization, with scale and resilience emerging as critical differentiators. He believes the current disruption is accelerating a structural shift toward larger, integrated players capable of ensuring supply continuity.

India faces plastic packaging crunch: Crude oil prices and hoarding create scarcity for F&B firms

Thimmiah Napanda, Managing Director & CEO, Alternicq, noted that crude prices above $100 per barrel are driving sharp increases in packaging material costs and fundamentally changing industry operating models. He highlighted that procurement strategies are shifting from cost efficiency to supply continuity, with companies building inventory buffers and strengthening supplier partnerships to mitigate disruptions. Napanda believes scale, resilience and long-term relationships are becoming critical competitive advantages, particularly as volatility places disproportionate pressure on smaller players. He expects the current environment to accelerate consolidation, favouring well-capitalised and integrated packaging companies.

Smaller packs, higher prices? FMCG weighs options after crude oil prices breach $100 mark amid Iran war

Thimmiah Napanda, Managing Director & CEO, Alternicq, highlighted that elevated crude prices are putting significant pressure on packaging costs and forcing a shift from cost optimisation to supply assurance. He noted that companies are prioritising material availability and building inventory buffers to ensure continuity, even at the expense of short-term margins. Strong supplier relationships and scale are emerging as critical differentiators in navigating the volatility. Napanda believes the current environment is accelerating industry consolidation and reinforcing the importance of resilience across the packaging value chain.

The surge in crude oil prices is now affecting FMCG companies, with many items like soap and snacks likely to become more expensive.

Thimmiah Napanda, Managing Director & CEO, Alternicq, highlighted that elevated crude prices are causing a sharp rise in polymer costs and creating supply-side uncertainties across the packaging industry. He noted that companies are shifting from cost-led procurement to supply continuity, with inventory buffers and long-term supplier relationships becoming increasingly critical. As volatility persists, businesses are prioritising material availability over short-term margin optimisation. Napanda believes the current environment will favour larger, integrated players with the scale and resilience to ensure uninterrupted supply and support customers through the disruption.

FMCG Companies May Raise Prices, Reduce Quantity As Crude Spike Weighs On Packaging Cost

Thimmiah Napanda, Managing Director & CEO, Alternicq, highlighted that the impact of the West Asia conflict extends far beyond fuel prices, affecting crude-linked polymers that form the backbone of the packaging industry. He noted that rising resin costs and supply uncertainties are forcing companies to shift from cost efficiency to supply continuity, with higher inventory buffers and stronger supplier relationships becoming essential. Napanda emphasized that well-capitalised and integrated players are better positioned to navigate the volatility, while smaller players face increasing pressure. He believes the current disruption is accelerating a structural shift towards scale, resilience and long-term partnerships across the packaging value chain.

West Asia conflict: Supply, price disruptions impact several commodities beyond crude oil