Pandemic boosting hygiene business in the world

Unlike many companies, EPL (formerly known as Essel Propack Limited), the world's largest specialty packaging company, manufacturing laminated plastic tubes catering to the FMCG and pharma segments, with operations across the globe in 11 countries and has 20 manufacturing units, has managed the Covid crisis well. In nearly 15 days the company developed a plastic tube for hand-sanitisers that were ideal to carry, which, in turn, opened up new client wins and opportunities to work on. Noticing a surge in demand in areas like sanitation, food and pharma and a few more segments, the company fast tracked approvals and kept factories running during the lockdown. It helped over 50 brands go to market with hand sanitiser products globally (earlier they were marketed in bottles).

As recently as in November 2020, it acquired Creative Stylo Packs Pvt. Ltd. in a part-cash and part-stock transaction. Subsequently, EPL received global recognition from the Association of Plastic Recyclers (APR), USA as the world's first fully sustainable and completely recyclable tube, including shoulder and cap. And the man, who has been spearheading all these as the EPL helmsman is Sudhanshu Vats. In an exclusive interview with Bizz Buzz Sudhanshu Vats, Managing Director and CEO of EPL Ltd, a B. Tech from National Institute of Technology, Kurukshetra and an alumnus of Indian Institute of Management (IIM), Ahmedabad, delves at length of the overall speciality packaging market scenario in India and the key growth drivers for EPL.

There was a temporary surge in demand for sanitiser tubes. EPL partnered with more than 50 brands globally to launch hand sanitiser tubes. The company's flexible supply chain allowed the brands to quickly launch the sanitiser tubes.The company operates through twenty State-of-the-art facilities in ten countries, selling about eight billion tubes per annum

We are constantly evaluating new opportunities and countries to bring our expertise, experience and innovations to those markets where we are not present currently. We recently did green field expansion in Assam for serving North eastern customers in India. It also allows us to export to countries such as Nepal, Bangladesh

How big is the overall speciality packaging market in India- any idea/study?

The packaging business in India and also globally is a very fragmented business with numerous regional players. Overall size was estimated to be approximately $38 billion in 2018 for India. It has grown with a CAGR of nearly four per cent. The growth is driven by changing consumer behaviour towards more convenience. Boom in e-commerce also offers huge potential for future growth of retailing in India which in turn is pushing the growth of packaging sector. Since packaged food &pharma is also the fastest growing segment, it is also expected to fuel the demand of plastic packaging.

What would be the share of laminated plastic tubes in overall speciality packaging business?

No data is available.

Who all are the key players in the field?

Key players in tube packaging business: EPL Limited (formerly known as Essel Propack Limited), ALBEA, Hoffman Neopac AG, Montebello Packaging, Viva, Tupack, Alltub, CCL, Berry

What is EPL's market share?

EPL is a global leader in laminated tubes packaging. It is one of the few global players in the tube packaging business. It has more than 20 per cent market share globally in tube packaging and leads the oral-care segment with 33 per cent global share. EPL India leads the pack in Indian market with current market share of over 50 per cent. Employing 3,158 people from 25 nationalities, the company operates through twenty state-of-the-art facilities in ten countries, selling about eight billion tubes per annum. EPL has units operating across the USA, Mexico, Colombia, Poland, Germany, Egypt, Russia, China, Philippines and India. These facilities cater to five core categories of oral care, beauty and cosmetics, pharma and health, food and nutrition and home care; offering customised solutions through constant innovations in materials, technology, design and processes

There has been a surge in demand in areas like sanitisation, food, pharma. What has been the growth rate like in the wake of the pandemic?

There was a temporary surge in demand for sanitiser tubes. EPL partnered with more than 50 brands globally to launch hand sanitiser tubes. EPL's flexible supply chain allowed the brands to quickly launch the sanitiser tubes.

Where do you have your manufacturing facilities, currently and what is the total capacity? Any plans to have more manufacturing facilities? Do you have manufacturing bases in countries that you operate outside India?

EPL Ltd is equipped with 20 state-of-the-art facilities, spread across 10 countries. EPL has an expansive global reach capable of supplying a perfectly harmonised system for all production needs. We deliver more than 8 billion tubes a year to 400 clients worldwide. EPL has units operating across the USA, Mexico, Colombia, Poland, Germany, Egypt, Russia, China, Philippines and India. These facilities cater to 5 core categories of Oral Care, Beauty and Cosmetics, Pharma and Health, Food and Nutrition and Home Care

Are you looking at new geographies/new countries?

We are constantly evaluating new opportunities and countries to bring our expertise, experience and innovations to those markets where we are not present currently. We recently did green field expansion in Assam for serving North eastern customers in India. It also allows us to export to countries such as Nepal, Bangladesh.

Has the pandemic helped you in any way to push up your top line?

The Pandemic presented EPL with a huge business opportunity. A massive opportunity had arisen in the world for hygiene and sanitisation products. But due to the lockdown these products were finding it difficult to get containers on time. One of EPL's guiding principles has been agilityin business and this was proven as the company leaped at this opportunity. A few changes to its way of working, focused prioritisation and great teamwork helped EPL deliver and capture this opportunity which would have been impossible earlier.

During the Pandemic, EPL launched 50 new product and pack innovations in a matter of few weeks and ramped up production in its core category by a 100 times. This enabled EPL to help over 50 brands globally that came to them for assistance. Agility of the company backed by nimble decision making ensured that EPL did good business during the pandemic.

What prompted the acquisition of Creative Stylo Packs Pvt Ltd?

The acquisition of Creative Stylo Packs is significant for EPL. We can now be a stronger player in the beauty and cosmetics categories that is growing rapidly. Additionally, the increased product portfolio will allow us to serve existing customers and drive better volumes and value. This acquisition improves our plastic tube capabilities, which, combined with EPL's strong equity in laminate tubes, gives the company a vibrant platform for growth. Overall, this transaction will accelerate revenue and EBITDA growth for EPL.

How do you see the laminated plastic tubes market grow in the years to come?

The laminated tubes market is poised to grow in the years to come. There is an increasing trend of conversion from aluminium tubes to laminated tubes in the pharma sector. This gives a push towards increased use of laminated tubes. Additionally, innovations and flexibility of printing and decorations in the laminated tubes allow for a premium look that most of the brands are looking for in the FMCG sector. EPL has innovated to build capability to produce 100 per cent recyclable laminated tube. This will further solve for sustainability concerns and will be a growth driver in the market.