Hyderabad-based Mold-Tek Packaging to invest Rs 200 crore in three years
Hyderabad: Hyderabad-based Mold-Tek Packaging is planning to invest Rs 200 crore over the next three years to expand capacities and tap opportunities in pharmaceuticals, cosmetics and FMCG industries. The company has been catering to sectors such as lubricants, paints, food and FMCG products. It is foraying into Injection Blow Moulding (IBM) technology, which opens opportunities […]
Hyderabad: Hyderabad-based Mold-Tek Packaging is planning to invest Rs 200 crore over the next three years to expand capacities and tap opportunities in pharmaceuticals, cosmetics and FMCG industries.
The company has been catering to sectors such as lubricants, paints, food and FMCG products. It is foraying into Injection Blow Moulding (IBM) technology, which opens opportunities in pharma, cosmetics and FMCG industries. Indian IBM packaging market size is estimated to be over Rs 5,000 crore, growing at a rate of 8-9 per cent per annum.
J Laxman Rao, CMD, Mold-Tek Group, 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.”
The company aims to partner with pharma and biotech companies to co-develop new packs with improved utility, tamper evidence and aesthetics, to help them to be more competitive in the global markets.
Mold-Tek plans to create a pilot clean room facility spread over 10,000 sq ft by April at Annavaram at an investment of Rs 10 crore, followed by 50,000 sq ft facility at IDA Sultanpur, Hyderabad, which can house 30 IBM machines and injection moulding machines for caps, with a total outlay of another Rs 50 crore during 2022-2024, in two phases.
The company is also setting up a new plant at Kanpur, Uttar Pradesh to cater to the demand in the north region and in particular demand from KNP and Berger paints. The company has acquired 2.61 acres of land from UPSIDC, and the pilot project is starting this month in leased premises at Unnao, Kanpur. The company hopes to establish a new plant fully functional by the end of 2022, with an investment of Rs 20 crore.
“Mold-Tek is planning to expand in-house recycling capacity to evaluate the possibility of using reprocessed plastic from its operations (mostly set up wastage). We also plan to increase recycled polypropylene in all packaging containers with non-edible items like paints, lubricants, etc,” he added.
The company has made overall investments of Rs 210 crore in the last five years. Going forward, with diversification into IBM products and various geographical expansions, the company hopes to invest Rs 200 crore in next three years, subject to market conditions, Rao informed.
Mold-Tek is expecting to reach a net turnover of Rs 600 crore this fiscal, with 25 per cent growth year-on-year and over Rs 1,000 crore over the next 3-4 years.
The company has launched variable printing to provide unique codes for products. This futuristic QR code technique provides complete traceability across the supply chain. Commercial trials by some of our customers will be initiated soon.
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