Manjushree Technopack plans diversification to tap growing packaging market

Vimal Kedia has witnessed many ups and downs in his entrepreneur journey that started in Assam for manufacturing umbrellas to ultimately setting up Manjushree Technopack, one of the leading players in India’s PET (polyethylene terephthalate) packaging segment, in Bangalore – the IT hub of the country. Throughout this journey, he has constantly evolved and has seized available opportunities. “Possessing big aspirations is very important as it acts as a driving factor in achieving goals. Manjushree was started in a small place in Assam but the vision for the company has led to its current position,” says the proud Vimal Kedia, managing director, Manjushree Technopack.

Born in a traditional Marwari joint family in Assam, it was inevitable for Vimal Kedia to join the family business of flour and rice mills. But business losses and circumstances led him to start his first venture - manufacturing umbrellas, which met with instant success. A few years down the line, a chance visit to a prominent plastics manufacturing company in Delhi made him see the opportunity in the business and he went on to launch his second venture - Manjushree Plastics Limited - in 1984 along with his younger brother, Surendra Kedia. Ten years later, armed with more industry knowledge expertise and tonnes of confidence Kedia founded Manjushree Technopack Limited, focusing on PET bottle manufacturing. 

While the company came out with an IPO in 1995, it delisted from the stock exchange in 2015 and raised private equity funding from Kedara Capital. Today, it is the largest PET bottles and preforms manufacturer in South Asia with a capacity of over 80,000 metric tonnes and revenue of over Rs 546 cores with a consistent growth rate of over 30 percent year on year (YoY). The company is one of the top 500 mid-size companies in India and works with leading brands like Pepsi, Coca Cola, Cadbury, Diageo, HUL, Nestle and Himalaya to name a few.

“We believe the key to success is speed to market, therefore possessing superior technology and machinery becomes highly essential for smooth production process. The mould, which is considered the heart of any plastic machine, is procured only from OEMs (original equipment manufacturers). This gives us edge over our competitors as it ensures cavity-to-cavity and shot-to-shot repeatability and reduces variability. Brands trust us for the consistent quality that we retain in every delivery of goods,” opines Vimal Kedia.

Professionalising the family business

The role played by Surendera Kedia and Vimal Kedia’s sons (Rajat &Ankit) in the rise of Manjushree Technopack cannot be understated. Surendra Kedia’s in-depth knowledge of processing and planning has helped the company to grow phenomenally in technical, commercial and operational areas. 

After his return from Cardiff Business School in 2003, Rajat, Vimal Kedia’s elder son, joined Manjushree and implemented best practices that were critical for the business. He put in place an MIS system, brought in ERP system and set up Manjushree’s very own in-house packaging design arm - Mphinite. 

In 2007, Vimal Kedia’s younger son Ankit, a business management graduate from Michigan University, followed his brother’s footsteps and joined the business. With both sons venturing into the business, Manjushree saw the need in creating two clear divisions for them to steer the business ahead. Therefore, Rajat took charge of the preform business of Manjushree and Ankit led blow moulding division. Ankit is also responsible for spearheading marketing communication at the company. 

During the 90s and early 2000s, Manjushree primarily focused on food segment and, however, with the involvement of the second generation, the company entrenched into pharmaceuticals, home care, personal care, liquor, dairy and edible oil packaging. 

In spite of being a family enterprise, the company has been professionalising the business. “We recognised the importance of people for sustainable growth - identifying professionals from the plastic industry, grooming young talent, defining clear roles, mapping their career growth and empowering senior management to run various business divisions as independent units. We also took on board external consultants to streamline and strategise communications for Manjushree,” says Vimal Kedia.

On a diversification drive 

Manjushree, which clocked Rs 546 crores in the FY 2015-2016, has set a target to reach Rs 600 cores in 2017. “The company is continually at the forefront of new product development for its customers through investment in machinery. The preform facility was built keeping in mind Manjushree’s future expansion. The plant is fully operational and has been built in a modular way so that the company can easily expand and scale up the plant and the machinery as & when required, without disturbing the existing operations,” says Vimal Kedia. 

As part of its diversification plan, the company recently forayed into production of shrink film packaging, and supplies it to the beverage partners as a secondary packaging material. “With the foray into shrink film packaging, Manjushree aims to be a 360 degree packaging solution provider to its beverage partners. The shrink film plant at Bidadi (Bangalore) boasts of technologically superior Reifenhauser machines from Germany. The fully automated, multi-layered extrusion machine can produce up to 15 tonnes of high quality shrink film on a daily basis,” says Vimal Kedia.

Manjushree has also ventured into manufacturing LED diffuser. The company, which is working on its pan India presence and expansion in the northern & north-eastern states, is setting up plants in Haridwar and Guwahati.

Sustainable growth

It is not just about profitability, but the sustainable approach adopted by the company is unique in itself. For example, its PET preforms manufacturing facility in Bangalore is one of the very few LEED Gold Certified Green factories in the country. 

In addition, Manjushree Technopack has been active in harnessing renewable sources to fulfil its energy requirement. The company has tapped into the renewable energy sector by installing a 3 MW plant in Karnataka and has also roped in a company, which is the global leader in wind energy, for the construction & maintenance of the project. Today, 25 percent of its power requirement comes from green energy. “Being a part of an industry that is power-intensive, it becomes important to contribute and support the quest of green energy,” opines Vimal Kedia.

According to him, the packaging requirement is expected to double in the next 4-5years and it is important to start preparations from today.

The outlook towards packaging has drastically changed from what is used to be in the last 10 years. PET is one of the most commonly used material for packaging goods ranging from food & beverages to pharmaceuticals. With the advent of modern trade and supermarkets, it has become increasingly important for industries to invest and tailor-make their packaging, in order to align itself with supermarket merchandising formats. The PET market in India has grown exponentially over the years and is expected to reach of production of 10 million tonnes by the year 2020. 

“The packaging industry is constantly adapting to the changing needs of its consumers. Better research in this sector will help in path-breaking innovations both for domestic and international markets,” Vimal Kedia adds.