Aims to achieve 5.1% market share in China’s non-oral care tube market in FY’15-16
Mumbai, January xx, 2015: Essel Propack Limited (NSE: ESSELPACK, BSE: 500135), the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space has set-up new manufacturing capabilities in Egypt and China to cater to FMCG and Cosmetic brands in Middle East, Africa and China markets.
The company inaugurated its fifth plant in China, with the commissioning of EPSL (Essel Propack Suzhou Ltd) in Suzhou (East China) for the non-oral care category. The plant is strategically located in the hub of all Multinational and domestic cosmetic brands. The primary focus of the new plant would be beauty and cosmetic products like facial cleanser, hand cream, BB cream, shampoo and hair conditioner.
This is the first phase of investment in EPSL, which has an annual tube supply capacity of 160 Million tubes, which will subsequently be more than doubled to reach 380 Million annual tube supply capacity. EPSL eyes a market share of 5.1% in China’s non-oral care tube market in FY’15-16, from current 3.2%.
Additionally, the company installed a new machine in Egypt with the capability to produce laminated tubes for cosmetic brands, on witnessing a fast-emerging conversion from jars to tubes in personal care products like hair gels. The major customers are changing preferences from jars and plastic tubes to laminated tubes .
Essel sees huge growth potential in the hair care markets of Middle East and Africa. To cater to this demand, the company has introduced the latest Plastic Barrier laminate tube with Inviseam technology, and high décor using its own Elite Printing platform.
Ashok Goel, Vice Chairman & Managing Director, Essel Propack Limited:
“Cosmetic products have much better Revenues, Asset turn & value addition compared to the other products in our portfolio. Oral care segment comprises 85% of Essel’s total revenue in China as per the last fiscal. The new plant which is our 5th site in China creates a new opportunity for Essel to mitigate any risk with current oral care customer group and could become a strong impetus for EP China’s top line growth in 2015 and beyond.”
Also, in AMESA region, we are witnessing a very high consumption of skin care, hair care and male grooming products. With two decades of experience in Egypt, this new business is certainly set to complement our growth and help us achieve our target of 50% revenue share from Non-oral care business.” he added.
About Essel Propack Ltd:
Essel Propack, part of the USD 2.4 billion Essel Group, with turnover of over USD 350 million, is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space. Employing over 2600 people representing 25 different nationalities, Essel Propack functions through 25 state of the art facilities in eleven countries, selling more than 6 billion tubes and continuing to grow every year.
Holding Oral Care market share of 33% in volume terms globally, Essel Propack is the world’s largest manufacturer with units operating across countries such as USA, Mexico, Colombia, Poland, Germany, Egypt, Russia, China, Philippines, Indonesia and India. These facilities cater to diverse FMCG and Pharma brands that include cosmetics, personal care, pharmaceutical, food and oral care, offering customized solutions through continuously pioneering first-in-class innovations in materials, technology and processes.