India based Essel Propack sets sights beyond oral care

By Michelle Yeomans contact

- Last updated on GMT

India based Essel Propack sets sights beyond oral care

Related tags: Colgate-palmolive

The speciality packaging supplier to Hindustan Unilever, P&G and Colgate Palmolive, is adjusting its focus to accommodate more cosmetics segments.   

In the oral care packaging industry, Essel currently controls 33% market share globally. In Asia, it is present in China, Philippines, Indonesia and India, while it has 6 other locations across Europe and the US.

According to managing director, Ashok Goel, the company is now targeting at least 50% of revenue from the non-oral segment over the next two years.

Towards achieving the 50:50 revenue ratio (from oral and non oral care segment), we have put in three building blocks successfully​,” said Goel in a press release.

We brought in new machines with advanced technology, we added factories in various geographies and brought in a new team in the front end​,” he added.

Back in December, the company inaugurated its fifth plant in China, with the commissioning of EPSL in Suzhou (East China), the main purpose Essel says is to be solely on cosmetics.

More packaging for China

Essel’s new tube manufacturing facility in China has the capacity to produce 160 million tubes each year. There are plans to eventually increase that capacity; so the site will be able to make 380 million tubes per year.

This will help Essel Propack Suzhou meet its fiscal year 2015-16 goal of a 5.1% market share in China’s tube market (for products that are outside the oral care industry). Currently the company has a 3.2% market share in that space. 

Re-enforcing manufacturing capacities

Essel’s reputation as a leading soft squeeze, laminated tube company came from making toothpaste tubes for Chinese companies. And that market continues to do well for the manufacturer today: the “oral care segment comprises 85% of Essel’s total revenue in China as per the last fiscal,” ​reports​.

“Cosmetic products have much better revenues, asset turn and value addition compared to the other products in our portfolio,”​ adds Goel.

The brand has also invested in a new machine in Egypt that makes laminated tubes specifically for hair care and personal care products in Africa and the Middle East. 

Related topics: Business & Financial, South Asia

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