ACG's AI-Powered Factory Lights Up Pharma Packaging's Future

DAVOS, Switzerland & MUMBAI, India – February 06, 2026 – In a move that signals a tectonic shift for the global pharmaceutical supply chain, ACG Packaging Materials has become the world's first pharmaceutical packaging company to be inducted into the World Economic Forum's prestigious Global Lighthouse Network (GLN). The recognition, awarded to its facility in Shirwal, India, marks a significant milestone in the application of smart manufacturing to an industry critical to global health and safety.

This is the second such honor for the Indian multinational, whose Pithampur capsule manufacturing facility joined the elite network in 2023. The dual recognition cements ACG's position as a leader in leveraging Fourth Industrial Revolution (4IR) technologies to redefine efficiency, quality, and sustainability in pharmaceutical production.

The New Benchmark for Manufacturing Excellence

The Global Lighthouse Network, a collaboration between the World Economic Forum and McKinsey & Company, is more than an award; it is a curated community of the world's most advanced manufacturing sites. To be named a Lighthouse, a facility must demonstrate unprecedented operational and financial gains by scaling digital technologies like artificial intelligence, the Industrial Internet of Things (IIoT), and advanced analytics. These sites serve as beacons, illuminating the path for other industries to follow.

The network, which now comprises 223 sites, includes manufacturing giants like Johnson & Johnson, Bayer, and AstraZeneca. However, ACG's Shirwal facility carves out a unique niche, proving that this level of innovation is not limited to drug formulation but is equally critical in the packaging that protects and delivers medicine. As noted by the World Economic Forum, the network showcases how intelligence-led operations are becoming central to industrial performance.

Kiva Allgood, Head of the Centre for Advanced Manufacturing and Supply Chains at the World Economic Forum, commented on the network's purpose, stating, "Competitiveness today is no longer defined by efficiency alone, but by the ability to sense, adapt and respond at speed." The induction of the Shirwal plant underscores its success in meeting this modern definition of industrial leadership.

Inside the Smart Factory: From AI to Tangible Results

Operating in what it describes as a "highly competitive and increasingly commoditized" market, the Shirwal facility embarked on a comprehensive digital transformation. The program was not a series of isolated pilot projects but an end-to-end overhaul powered by a suite of cutting-edge technologies, including generative AI, machine learning, deep learning, and digital twins.

These are not just buzzwords; they are the engines behind staggering performance improvements. The facility has achieved:

• A 71% reduction in product defects, a critical metric when packaging integrity is directly tied to patient safety.
• A 40% reduction in lead times, enhancing agility and responsiveness for its pharmaceutical clients.
• A 34% improvement in on-time delivery in full, bolstering supply chain reliability.

These advancements are enabled by systems that provide unprecedented visibility into operations. Generative AI and machine learning algorithms analyze vast datasets from IIoT sensors across the production line, predicting potential quality issues before they occur and optimizing process parameters in real-time. Digital twin technology creates a virtual replica of the entire facility, allowing for simulations that identify bottlenecks and test improvements without disrupting physical operations. This proactive, data-driven approach strengthens decision-making and ensures a faster, more consistent response to manufacturing variations.

For ACG's customers across 138 countries, these internal metrics translate into tangible business advantages: shorter production timelines, higher-quality packaging, and a more dependable supply chain at scale.

"ACG has always believed that true leadership in the packaging sector comes from building smarter – not competing harder," said Karan Singh, Managing Director of ACG. "Our Shirwal facility is now our second site to be recognised by the World Economic Forum's Global Lighthouse Network, making ACG the world's first pharmaceutical packaging company to receive this honour."

A Beacon for Indian Manufacturing and Global Sustainability

ACG's back-to-back Lighthouse recognitions represent a significant achievement for India's manufacturing sector. It highlights a clear shift from being the world's pharmacy in terms of volume to becoming a global hub for advanced, high-tech industrial innovation. Alongside other Indian Lighthouses like Cipla and Dr. Reddy's Laboratories, ACG is helping to redefine the 'Make in India' initiative as one centered on cutting-edge technology and world-class quality.

The impact extends beyond operational efficiency to environmental stewardship. The Shirwal facility's transformation has resulted in a 31% reduction in energy consumption and associated greenhouse gas emissions. This achievement is particularly noteworthy in a traditionally energy-intensive industry and aligns with the GLN's growing emphasis on sustainability. The network increasingly recognizes 'Sustainability Lighthouses' that leverage technology for significant environmental gains, and research shows that companies with ambitious science-based climate targets are over three times more likely to be part of the network.

Singh elaborated on this vision, adding, "Repetition is the test of proof – in line with our 'Make it Better' commitment, we are replicating this Lighthouse excellence across our facilities and pioneering Sustainability Lighthouses for responsible, resilient manufacturing from India." This commitment signals an ambition to not only lead in smart manufacturing but also to set new benchmarks for green industrial practices globally.

The Shirwal facility's journey demonstrates that the path to greater productivity and a healthier planet are one and the same, driven by intelligent technology. "This recognition reflects the commitment of our teams at Shirwal and their ability to integrate advanced digital technologies into everyday manufacturing operations," said S R Shivshankar, CEO of ACG Packaging Materials.

As ACG continues to implement its 'Build the Future' program, this latest accolade serves as powerful inspiration. "Through our Build the Future programme, ACG is driving technology-led transformation across the manufacturing value chain, enabling smart manufacturing, connected products and services, and new business models," said Balajikasiram Sundararajan, Chief Digital Officer of ACG Group. "This prestigious Global Lighthouse recognition inspires us to continue scaling innovation across our businesses."