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Table of Contents

TopicExplore the total market of laminated tubes and assess Essel Propacksworldwide standing vis a vis global competitors and identify reasons forthe same

Submitted By Name Roll No Group Details

Bhanu Dora 17 Group:3

Bharat Bhushan Narang 18 Batch:EPGDIB 2012-14

Geeta Cheema 23 Course:IMM

Pranav Kumar 34 Faculty:Prof. Dr. Rakesh Mohan Joshi

Rajesh Kumar Tiwary 53

Date:17thApril 2013Soniya Agnihotri 72

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Product: Laminated Tube

Laminated squeeze tubes offer a form of tube material with the

advantages of plastic but with barrier properties close to those of metal.

Laminated tubes have a good "feel" and maintain their attractiveness

throughout the life of their contents. Laminated tubes are used for manyproducts ranging from Oral care, cosmetics, toiletries, food products,

pharma, and hair care.

Market size is around Rs. 5000 Crore (US $ 1 billion.) for

Laminated tubes business

There are over 150 manufacturers in this sector of manufacturing laminated tubes

There are nearly 100-150 manufacturers in the small scale industry with capacities < 250

tons per annum and 10-15 players with capacities over 1000 tons per annum

Major players other than EP are : - Paper Products, Akar Group (Akar Laminates), SharpIndustries, Vishnu Vijay Packers, Orient Press, India Foils, Flex Industries, RT

Packaging, Mukund Flex Pack, Ess Dee Aluminum Ltd., Flex tuff International Ltd.

Players categorized as class A, B & C. - Class A caters to premium brands of MNCs

and large companies. - Class B caters to lesser known brands - cost conscious

segments.

Import duty : Basic - 35%; Surcharge - 10%; CVD - 16% and SAD - 4%

Market Size is around Rs. 750 crore. (US $ 175 mn.)

Sector is dominated by Essel Packaging. Others players are Paper Products; Akar Laminates

Source: http://economictimes.indiatimes.com/essel-propack-ltd/quotecompare/companyid-13764.cms

Source: http://www.tube.org/i4a/pages/index.cfm?pageid=3283

Revenue Annual Growth 07 - 12

$4bn - 2.7 %

Employment Business10038 210

%

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A leading manufacturer globally of multi-

layered plastic collapsible tubes andlaminates, considered as specialty

packaging.

A USD 340 million enterprise making more

than 5 Billion tubes.

24 manufacturing facilities located in 12

countries and 5 continents. Its share in

revenue in 2012 is as given in the chart

alongside.

Plan to become half a billion USD Company

in the next three years.

Holds a market share of 33% in the

laminated tubes domain

Lead as the worlds largest manufacturer with units operating across countries such as

USA, Mexico, Colombia, United Kingdom, Poland, Germany, Egypt, Russia, China,

Philippines, Indonesia and India

Cater to diverse packaging needs of industrial sectors, by offering customized solutions.

Shareholder pattern for year ending 2013

Source:

http://www.esselpropack.com/mainsite/Investor%20Reports/Yearly/Essel%20Propack%20Annual%20R

port%202011-12.pdfhttp://www.esselpropack.com/mainsite/Shareholder/Shareholder_30.pdf

http://www.esselpropack.com/resource_centre.aspx

http://en.wikipedia.org/wiki/Essel_Propack

Reasons for Success

EP is a Market Leader in this product. It has access to the global markets thanks to itsmanufacturing presence in different parts of the world.

It always provides Innovative customized offerings to its customers. It has efficient supply chain, thus can effectively cater to its customers spread at different

parts of the world. It actively promotes the use of high value laminated and plastic extruded tubes in

categories such as cosmetics, foods and pharmaceuticals. It invests heavily in R&D (INR 38 million in last year), which is driven by innovations in

material structure, product dispensing, look and feel features, and product recyclability.During 2011-12, it filed 18 patent applications. It is working on several new projectsencompassing sustainable tube design, easy recyclable tube, tube for food applicationand easy dispensing, tamper evident tube and closures and new generation interactivegraphics. They recently launched two new innovative products Etain and Egnite.

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It has invested in printing technologies which can produce high impact graphics anddecoration and can flexibly cater to varying run sizes and print customization.

It continues to do capacity extension to support the fast growing demand. It has rampedup its new plastic tube capacity at Wada/

It has higher order servicing levels and faster orders turnaround. It follows a polycentric approach. It has active manufacturing and marketing presence in

eleven other countries through its direct and step down subsidiaries, joint ventures andassociates. All these subsidiaries / joint ventures / associates offer product relevant totheir markets.

EPLs being very efficient and competitive producer of customized printed co-extrudedweb that is the main input for making laminated tubes and its efficient conversion intotubes. EPLs investment in PP 340, a high-speed machine helped it to cut costs by 30%.

Solving the Side Seam Issue - Unlike extruded tubes, laminate tubes have a sideseama deal breaker. Essel Propack is one supplier that has addressed this issue.Inviseam is a tubing parameter Essel Propack developed so that a laminate tube willresemble an extruded tube, without a noticeable seam. The suppliers productionmethod makes it possible for the overlap at the seam to be extremely thin.

EPLs integrated laminated tube manufacturing facilities provided it a technological edge International acquisitions and strategic alliances so as to have technological edge and

marketing synergy. Hiring of professionals with exposure and experience in international operations. Limited competition in international markets as there are only less than half a dozen

integrated laminated tube manufacturers worldwide like EPL. It keeps on improving material and machine productivity and runs various Cost reduction

programs across the business.

Source:

http://www.esselpropack.com/mainsite/Investor%20Reports/Yearly/Essel%20Propack%20Annual%20Re

port%202011-12.pdf

http://en.wikipedia.org/wiki/Essel_Propack