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New Delhi: Fuelled by consumption-led growth, higher investor interest and deal activity, India’s packaging industry is expected to grow at 9% compound annual growth rate (CAGR) over the next five years, reaching US$ 92 billion by financial year 2030, a report by Avendus Capital noted.The report flagged India as the world’s fastest growing packaging market, projected to outpace GDP growth by 1.3 times, driven by rising demand from end-use segments such as food and beverages, pharmaceuticals, personal care, agriculture, durables and e-commerce, along with growing penetration of organised retail and quick commerce.Also Read: Iran war unsettles India's packaged water makers as bottles, caps get priceyAccording to the report, globally, packaging is already a US $ 1 trillion industry. “In India, per-capita plastic packaging consumption remains materially underpenetrated compared to developed markets, signalling strong headroom for growth,” it said.Rigid plastic packaging stands out as the fastest-growing segment in India, set to grow at 10.3% CAGR over the next five years, while flexible plastic packaging remains the largest segment, accounting for 27% of the market. The report attributed the growth to strong demand from packaged food, FMCG, personal care, and pharma. Beyond plastics, the report sees paper packaging gaining from the shift toward recyclable, fiber-based materials, while glass and metal packaging are expected to witness growth at 7.5% and 7% CAGR respectively, it said.Koushik Bhattacharyya, managing director and head, industrials investment banking, Avendus Capital said, “The packaging industry has emerged as one of the strongest proxies to India’s consumption growth. With rising incomes, premiumisation, and formalisation of retail and supply chains, the Indian packaging industry is structurally well-positioned to cater to a broader shift towards organised and branded consumption.”Also Read: FMCG companies weigh shrinking pack sizes, hiking prices to absorb crude shockHe further said these structural tailwinds would continue to drive deal activity, consolidation, and scale building, keeping the sector firmly on the radar of both strategic and financial investors.According to the report, in India, deal activity has remained steady over the past decade within the sector, with increasing participation from private equity and strategic investors. Financial sponsors have accounted for 76% of minority transactions and 25% of majority transactions, reflecting growing investor confidence in the sector’s long-term growth potential, it said.

TVS Holdings, the promoter entity of TVS Motor Company, announced an interim dividend of Rs 86 per equity share on Wednesday. This implies a whopping 1,720% dividend payout on the smallcap company's 2.02 crore shares.In an exchange filing, TVS Holdings said that its board of directors, during its meeting today, has declared the interim dividend of Rs 86 per share with a face value of Rs 5 each for the ongoing financial year 2026, with the total dividend payout standing at Rs 174 crore.Record date for TVS Holdings dividendThe record date to determine the eligibility of the shareholders set to receive the dividend has been set on April 2. This means that only those shareholders who have the shares of the company on their demat accounts on April 2 will be eligible for the dividend. The dividend will be paid within 30 days from the declaration of the interim dividend, the company announced.This comes after the company paid an interim dividend of Rs 93 to its shareholders in March last year, and Rs 94 in April 2024.Additionally, the company also announced that it has raised Rs 650 crore by issuing non-convertible debentures (NCDs) at an 8.10% coupon rate with a 39-month term.TVS Holdings share priceThe shares of the company sharply surged nearly 3% to trade at Rs 14,125 apiece on NSE on Wednesday. The stock has gained more than 57% in the past one year, and over 265% over the past three years.The Chennai-headquartered company has undergone key transformations in recent years, including its rebranding from Sundaram-Clayton to TVS Holdings. The company acts as the holding arm of the larger TVS Group, which has been expanding its footprint across mobility solutions, electric vehicles, and global operations.Through its subsidiaries and associates, TVS Holdings has interests in two-wheeler manufacturing, electric vehicle initiatives and global operations. Earlier in January this year, TVS Holdings reported a 28% year-on-year rise in consolidated net profit to Rs 493 crore for the October-December quarter of the ongoing financial year 2026. The firm’s revenue from operations grew 34% YoY to Rs 15,276 crore during the same period.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)