Mold-Tek Forays Into New Segment

Hyderabad-based Mold-Tek Packaging Limited is the leader in Injection molded plastic containers in India. Mold-tek has been the innovator and torchbearer in introducing many world-class packaging features for Lubricants, Paints, Food and FMCG products.

Mold-tek is the first Company in India to introduce the “In-Mold Labelling (IML)” concept for decorating plastic containers using ROBOTS. IML enables photographic quality decoration, maintaining complete hygiene and hands-free production. Mold-Tekis the only packaging company in the world to design and manufacture ROBOTS in-house for IML decoration at 1/3^rd the cost of imported ones apart from manufacturing IML labels in-house. Thus, Mold-Tek is a fully backward integrated packaging company, right from Product design, Mould making, Label printing& Robot manufacturing along with injection molding all under one roof. Recently, we have started manufacturing pumps for health care and personal care products as well.

IBM with IML

Entering high value-added IBM products – Pharma & Cosmetics

For the first time, Mold-Tek Packaging is entering Injection Blow Moulding (IBM) technology, which opens up vast opportunities in the Pharma, Cosmetics, and FMCG industries. Indian IBM packaging market size is more than Rs.5000 Crore, growing at a rate of 8-9% per annum. Our USP in this area would be IBM packs decorated with IML, a Novel Concept in India merging top-class hygiene and world-class decoration. We hope to achieve around 5-6% market share in the next 4-5 years.

Applications of IBM Containers

1) Pharma – HDPE tablet containers & CRC Caps

2) Containers for FMCG& Cosmetics sector

We represent CHANGE. Our plan is to bring AGILITY in the IBM space by partnering with top-class firms and innovate with them. Moldtek redefined client expectations and introduced numerous innovations to improve aesthetics, locking systems, drop resistance, sustainability and tamper-evidence across industries like paints, food, FMCG, cosmetics, etc. Now, we plan to approach the pharma and FMCG/Cosmetics space for these new IBM packs.

Pharma regulatory market, for which DMF filing & USFDA certified premises are required, is growing rapidly and Hyderabad being the hub of the Indian Pharma industry, we have a significant locational advantage. Our in-house design studio, in collaboration with cutting-edge pharmaceutical research and consulting organizations, came up with smart designs that make our packs more sustainable, user-friendly and cost-effective. Our toolroom's expertise in light-weighting packs ranging from 100 ml to 20 ltrs, while maintaining pack performance, enables us to commercialize these packs easily. While these sleek packs cater to their current needs, our main vision is to partner with these premier Pharma & Biotechnology organizations, to co-develop new packs with improved utility, tamper evidence, aesthetics; in order to help them be more competitive in the global markets.

In FMCG/Cosmetics sector, IBM products are used over a prolonged period of time resulting in wear and tear. IML ensures premium durable label decoration thus keeping the label intact even over years together. This will be a fantastic combination for potential clients, who have been using primitive labeling techniques like shrink sleeves, paper labeling, even for luxury products. As clients like HUL, P&G, Mondelez, Wipro, etc find Mold-Tek’s name synonymous with high quality, product design, and service, tapping into this market is an obvious logical extension for us. Our design studio won 3 India Star awards and many accolades for co-developing innovative packs for MNCs like Mondelez, HUL, MTR, etc., and is poised to add great value in IBM packs as well.

We plan to quickly set up cleanroom facilities to start catering to this business, which is a Rs. 5000 Cr P.A. market. Initially, we plan to set up a 10000 sqft facility by April 2022, with an investment of Rs. 10 Cr. The goal is to expand this progressively to a 50000 sqft facility at our land at IDA Sulthanpur, Ranga Reddy district, which can house 30 IBM machines and IM machines for caps, with a total outlay of another Rs50 Cr in the period 2022-2024.

New Plant at Uttar Pradesh:

We are glad to inform that Company is setting up a new plant in Uttar Pradesh to cater to the demand in North region and particular demand from KNP and Berger paints. The company has acquired 2.61 acres of land from UPSIDC in this regard. The pilot project is starting in October 2021 in leased premises at Unnao, Kanpur. We hope to establish the new plant fully functional by end of 2022, with an investment of Rs 20 Cr.

New Products developments for Food & FMCG:

By increasing the product range, the company expanded its footprint into new segments like – restaurants, dates, growth enhancers, seeds, cosmetics, fertilizers, etc. Some of these segments will be our growth drivers over the next 2-3 years. The company has launched a range of products for sweets, confectionery, and online food delivery. We already see an excellent response from restaurants, which understand the need for leak-proof reusable packs. These are tamper-evident and recyclable too.

Commercial supply of New & Improved dispensing pumps

Identifying the right opportunity to build India’s need gap for dispenser pumps, the company has successfully started commercial production and supplies of pumps. Mold-Tek being the market leader analyzed and developed superior quality pumps (with 100% online inspection) in terms of leak-proofness, durability, and ease-of-use. Initially, we are focusing on Sanitizers, Lotions, Shampoos and later plan to enter cosmetics and premium oils. We are already supplying pumps to esteemed clients like Wipro, Godrej Consumer Products, and many other FMCG players.

Variable Printing and QR codes: DIGITAL PACKAGING

Mold-tek is the 1^st company in India to successfully launch Variable printing to provide unique codes for products. This futuristic QR code technique provides complete traceability all across the supply chain. This smart packaging concept also revolutionizes consumer-brand interaction and promotional schemes. This is most critical for brands in this digital age where more purchases are being made online than in person. Commercial trials by some of our customers will be initiated soon.

Recycling:

The company is planning to expand its in-house recycling capacity to evaluate the possibility of using reprocessed plastic from our operations (mostly set up wastage). We also plan to increase recycled PP in all packaging containers with non-edible items like paints, lubricants, etc. 

Aggressive Capex between 2016-21 and more to follow:

Since its beginning, Mold-Tek has been investing in the innovative product range, capacity enhancement, setting up new manufacturing plants near to the client’s location to reap transport cost benefits.

While the gross investments are Rs.140 Cr till 2016 i.e 30 years from inception, the new investments in the last 5 years are Rs 210 Cr, i.e150% of 30 YEARS INVESTMENTS ARE MADE IN LAST 5 YEARS.

Going forward with the above diversification into IBM products and various geographical expansions, the company hopes to invest Rs 200 crores in the next three years, subject to market conditions.

Mr. J Laxman Rao, Chairman and Managing Director, Mold-TekGroup, said: “Our entry into IBM products for Pharma and Cosmetics is a logical extension to exploit better value addition and enhancing shareholders wealth using our immense technological/innovative skills and backward integrated IML facilities and long-standing business relations with major MNCs in India.  Our company is all set for better growth in the future as we have taken many market-friendly initiatives at a time when Indian companies started perceiving packaging as a value add to their end products”

Expected growth in FUTURE…

During the Current Financial Year in spite of the COVID second wave, Mold-Tek is expecting to reach a net turnover of Rs.600+ Cr. with a growth rate of 25% over the last financial year, subject to the control of the COVID pandemic. Introduction of QR-coded IML, expansions at Mysuru and Vizag, and a new plant in Kanpur our Pails business will grow consistently in the next few years.

Pumps and Diversification into IBM will add a further boost to growth for the next 5-6 years. The company hopes to reach Rs. 1000 Crrevenues in next 3-4 years.

EBIDTA and Dividend

Over the last 10 years, EBIDTA per KG has shot up from Rs 16.8 to Rs.36.5, with addition of high-margin products like Pumps and IBM containers this is expected to grow further in the next 4-5 years.  Mold-Tek is a continuously high dividend-paying Company; details of the same are given below.

Recent Awards and Recognitions:

• Mold-Tek has bagged SIES SOP STAR AWARD 2020 for its 5 ltr Square Packs for sanitizers
• Also received SIES SOP STAR Award 2019 in product packaging for design and development of Twist Packs ranging from 50 ml to 1000 ml.  The Catchy packs are with a Square shape at the bottom and a round shape on the top.