Packaging material maker Essel Propack Ltd today said it has expanded manufacturing capabilities in Egypt and China to cater to FMCG and cosmetic brands in West Asian, African and Chinese markets.
Essel Propack claims to be the world's largest specialty packaging company manufacturing laminated plastic tubes catering to FMCG and pharma sectors. The company recently inaugurated its fifth plant in China.
Essel Propack Suzhou Ltd (EPSL) at Suzhou in East China will cater to the needs of non-oral care category. The plant is strategically located in the hub of multinational and domestic cosmetic brands, according to a release.
The primary focus of the new plant would be beauty and cosmetic products like facial cleanser, hand cream, shampoo and hair conditioner. This is the first phase of investment in EPSL, which has an annual supply capacity of 160 million tubes, which will subsequently be more than doubled to 380 million tubes, it said.
Additionally, the company has installed a new machine in Egypt with the capability to produce laminated tubes for cosmetic brands. Major customers are changing preferences from jars and plastic tubes to laminated tubes.
Essel sees huge growth potential in the hair care markets of West Asia and Africa. To cater to this demand, the company has introduced the latest plastic barrier laminate tube with "inviseam" technology.
"Cosmetic products have much better revenues, asset turn and value addition compared to other products in our portfolio. Oral care segment comprises 85 per cent of Essel's total revenue in China as per the last fiscal.
"The new plant 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," Essel Propack Vice-Chairman & Managing Director Ashok Goel said.
"With two decades of experience in Egypt, this new business (hair care) is set to complement our growth and help us achieve our target of 50 per cent revenue share from non- oral care business," he added.
