MN Co. Inks Deal to Make Green Packaging in India
A Minnesota company that makes biodegradable plastics has forged a partnership to develop hybrid biopolymer-paper products for the growing consumer goods market in India.
Circle Pines-based Northern Technologies International Corporation (NTIC) on Tuesday said that it has signed a deal with India-based ITC Limited to jointly develop and commercialize biodegradable products in India.
The companies will create hybrid biopolymer-paper products for consumer goods packaging and other biogradable plastic materials such as food service ware.
“This alliance promises to bring significant benefits to both parties,” Vineet Dalal, NTIC's vice president and director of global market development, said in a statement. “NTIC has internationally recognized expertise and patented technologies in the bioplastics space, while ITC is a technology leader in the paper and paperboards business with a dominant position in the Indian packaging market.”
NTIC, a public company, did not disclose the financial terms of the deal, but said that there is a $2.8 billion market for flexible packaging in India, a market that is growing quickly with increased demand for consumer packaged goods.
And increasing environmental concerns surrounding traditional plastics-which have even prompted the Indian government to ban non-biodegradable plastics in the packaging of some mass-produced items-will increase demand for the companies' green products, NTIC said.