Essel Propack adds cosmetic tube capabilities in Egypt and China

LUCKNOW: Essel Propack Limited one of the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space has set-up new manufacturing capabilities in Egypt and China to cater to FMCG and cosmetic brands in Middle East, Africa and China markets.

The company inaugurated its fifth plant in China, with the commissioning of EPSL (Essel Propack Suzhou Ltd) in Suzhou (East China) for the non-oral care category. The plant is strategically located in the hub of all multinational and domestic cosmetic brands. The primary focus of the new plant would be beauty and cosmetic products like facial cleanser, hand cream, BB cream, shampoo and hair conditioner.

This is the first phase of investment in EPSL, which has an annual tube supply capacity of 160 million tubes, which will subsequently be more than doubled to reach 380 million annual tube supply capacity. EPSL eyes a market share of 5.1 percent in China’s non-oral care tube market in 2015-16, from current 3.2 percent.

Additionally, the company installed a new machine in Egypt with the capability to produce laminated tubes for cosmetic brands, on witnessing a fast-emerging conversion from jars to tubes in personal care products like hair gels. The major customers are changing preferences from jars and plastic tubes to laminated tubes.

Essel said it sees huge growth potential in the hair care markets of Middle East and Africa. To cater to this demand, the company has introduced the latest plastic barrier laminate tube with ‘Inviseam’ technology, and high decor using its own elite printing platform.

Ashok Goel, Vice Chairman and Managing Director, Essel Propack Limited said, “Cosmetic products have much better revenues, asset turn and value addition compared to the other products in our portfolio. Oral care segment comprises 85 percent of Essel’s total revenue in China as per the last fiscal. The new plant which is our 5th site in China 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.”

Also in AMESA region, company claims to be witnessing a very high consumption of skin care, hair care and male grooming products. “With two decades of experience in Egypt, this new business is certainly set to complement our growth and help us achieve our target of 50% revenue share from Non-oral care business.” Goel added.

Essel Propack, part of the USD 2.4 billion Essel Group, with turnover of over USD 350 million functions through 25 state of the art facilities in eleven countries at present, selling more than 6 billion tubes every year. Holding oral care market share of 33 percent in volume terms globally, Essel Propack claims to be the world’s largest manufacturer with units operating across USA, Mexico, Colombia, Poland, Germany, Egypt, Russia, China, Philippines, Indonesia and India.