Vimal Kedia is the Founder and Chairman of plastic packaging major Manjushree Technopack, the country's largest PET plastic bottle manufacturer. He spoke to Business Today's Anumeha Chaturvedi about the company and its expansion plans:
Tell us about the company and your expansion plans?
Manjushree Technopack is the largest PET bottle and preform manufacturer in the country, with an installed capacity of 50,000 metric tonnes. We are the major suppliers of PET preform or semi-finished bottles to companies like Coca Cola and Pepsico. We have been growing at the rate of 30-40 per cent year on year.
We clocked a turnover of Rs 215 crore last year and are targeting a turnover of Rs 300 crore this year. We have invested Rs 150 crore in a Leed platinum certified green facility in Bangalore and with the commissioning of this new facility, we are targeting 100,000 tonnes of PET processing by 2015, which would take our turnover to around Rs 600 crore.
How is business spilt up between preforms and finished bottles and FMCG and other sectors?
In terms of tonnage, preforms would constitute about 75 per cent of our business, and about 25 per cent is blown or finished bottles. We manufacture about five million performs and one million finished bottles everyday. The FMCG sector constitutes the major part of our business, followed by sectors like pharma, and liquor. In FMCG, our clients include Pepsico, Coca Cola, Cadbury for Bournvita, GlaxoSmithKline for Horlicks, Nestle, Hindustan Unilever, and P&G.
Our major business within FMCG comes from companies like Pepsico, Coca Cola and Bisleri. The business of carbonated soft drinks and juices is seasonal and requires products in large quantities. So they opt for performs or semi-finished bottles which can be blown up in their factories.
A carbonated plant requires about 1 million preforms a day. We supply finished and labeled bottles to companies like GlaxoSmithKline and Hindustan Unilver. They require around one-two million bottles a month.
How is this market expected to shape out over the coming years? Any new trends or insights that you can highlight?
The market of PET bottles is around Rs 4,000 crore and is growing at the rate of 20 per cent. Liquor and pharma companies are increasingly switching over to plastics as it is a more convenient form of packaging compared to glass. It is unbreakable, occupies less space, and is liked by consumers.
In glass, the biggest problem is breakage and metal closure and it is also more expensive now. Beverage manufacturing is growing at the rate of 20 per cent and all the global beverage makers are very bullish on India. They are investing in new facilities and will continue to drive our growth.
New techniques like flip open caps and better closures are emerging and there is a greater emphasis on packaging with the growth of modern retail and rising competition. We work closely with FMCG companies for that.
The Kissan Squeezo bottle that we manufactured for Unilever is an example in packaging innovation. Unlike other ketchup glass bottles, this is an inverted bottle with a silicon valve cap at the bottom. We realised that consumers had to really struggle with ketchup bottles once they were half finished and they had to keep pressing the bottle to bring it down. Squeezo comes with a multi layer barrier technology and the silicon valve at the bottom prevents leakage and ensures that even the last drop is sucked inside. We won the World Packaging Organization's WorldStar award for design for Kissan Squeezo last year.