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Disposable Food Packaging: Sound Investment Opportunity

Disposable Food Packaging: Sound Investment OpportunityDisposable Food Packaging: Sound Investment Opportunity

Production of disposable food containers is a rather young business in Iran, as it started nearly 30 years ago with a small number of production facilities.

Following the rise in urban population and the consequent change in Iranian lifestyle, demand for these products increased considerably, leading to the establishment of more than 1,500 factories in the country.

“Nearly every food company is somehow reliant on disposable food containers,” Hamid Samadi, the head of Disposable Food Container Producers Union, told the Persian daily Forsat-e Emrooz.

Samadi said fast food restaurants, dairy and confectionary industries are the main consumers.

The industry provides direct employment to over 30,000 people, producing more than 400 tons of disposable products every month.

Samadi noted that the 2,000-ton monthly demand for raw materials is completely met by domestic petrochemical producers and that virtually no imports take place.

The industry exports about 40% of its products to Central Asian countries and Afghanistan, and is just stepping into the markets of Russia, several African and European countries.

According to Samadi, about $300,000 of initial capital are required for setting up a factory, 60% of which must be allocated for purchasing the machinery and setting up a production line.

A 5,000-square-meter plot of land is needed to accommodate a warehouse, laboratory and the workshop.

The required permits are to be obtained from the Ministry of Industries, Mining and Trade, Food and Drug Administration, Iran National Standards Organization and the Department of Environment.

 

Financialtribune.com