Tetra Pak is investing US$130m in India to set up a second facility at Chakan, near Pune, western India, to manufacture carton packaging for dairy beverages and fruit-based drinks for south Asia and the Middle East.

Construction has begun, with the aim of starting operations by December 2012. The plant will have an initial annual production capacity of 8.5bn packages, with the potential to expand to 16bn.

The company expects demand for dairy and fruit beverages in India, Bangladesh and Sri Lanka to increase from 757m litres in 2010 to 1.3bn litres by 2013.

“With strong economic growth, a dynamic consumer base and modernisation of distribution and retailing, there is a high demand across all categories,” Kandarp Singh, managing director of Tetra Pak India said.

The company’s annual sales in India stand at $190m, which it expects to double by 2013. Tetra Pak’s existing Chakan plant makes up to 5bn packages annually.