Ess Dee to ramp up foil unit capacity

Ess Dee Aluminium Ltd, a Mumbai-based pharmaceutical and FMCG packaging company, is increasing its aluminium foil manufacturing capacity from 3,600 tonne to 9,100 tonne this financial year.

The expansion is being funded through an initial public offer, which is awaiting the Securities and Exchange Board of India's (SEBI) approval.

The issue proceeds will be also used to enhance the company?s product portfolio, said Sudip Dutta, chairman and managing director.

As part of the expansion, a new unit is also being set up in Daman. "The new unit will manufacture value-added products such as child-resistant foils. Such foils are prevalent in European countries but in India it is a new concept. With this, the company will become first company in the country to manufacture such products," Dutta added.

Recently, the company and its 100 per cent subsidiary Flex Art Foils received the drug master file (DMF) registration from the Food and Drug Administration, US. This is for the first time that such an approval has been given to six plants of a single entity.

The certificate will help the company enter the regulated markets of the US and Europe, besides boosting its volume in Latin American and South African markets.

"The approval is a benchmark for industries such as packaging. This is another step for us towards our mission to be the single largest fully-integrated packaging solutions provider in the world," added Dutta.

On the future of packaging industry in the country, Dutta said,"The total packaging industry is worth Rs 65,000 crore and is growing at 15-20 per cent annually. Global companies prefer India and not China for pharmaceutical packaging because of its superior quality."

Presently, the company sells about 57 per cent of its production to Flex Art Foil, which in turn prints and sells foil-based packaging products (either for strip packs or blister packs) to its customers as per their specifications.