sa55_@@_Mexico2008_PersonalCareIndustry

7/21/2019 sa55_@@_Mexico2008_PersonalCareIndustry

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10. The Personal CareIndustry

10.1. Industry Overview

The market value for personal care productsis estimated at US $9.1 billion for 2006. Alarge number of multinational corporationsare selling and manufacturing theseproducts in Mexico. In addition, there aremore than 150 local companies alsomanufacturing, selling and exporting theseproducts.

Yearly investments in this sector areestimated at more than US $1 billion, andare used to expand production capacity or

to introduce new manufacturingtechnologies and processes.

Parallel to the growth of local production,,imports of these products have also grownat a very solid rate since 1996, averaging9%. During 2006, imports of personal careproducts reached US $1.34 billion.

The most important business organization inMexico representing the interests of thepersonal care products industry is theNational Chamber for the Perfume,Cosmetics, Personal Care and Hygiene

Products (Cámara Nacional de la Industriade Perfumería, Cosmética y Artículos deTocador e Higiene).

This organization estimates that 60% oftotal sales are carried out through traditional

channels, which include supermarkets,drugstores, and personal care productsstores. An important segment reaching 40%is comprised by direct or “door to door”sales, performed by a “spare time” salesforce estimated at 1.8 million people usingtheir free time to generating additionalincome.

10.2. Company Ranking bySize

Multinational companies operating inMexico dominate the Mexican market forpersonal care products. These companiesmanufacture a portion of their lines inMexico, and complement their offeringsthough inter-company imports. Some localcompanies have also achieved a leadingposition in the market, especially thosemanufacturing soaps and cosmetics, as wellas others importing diverse personal careproducts.



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Tan lotions Avon Sun Glass and plastic bottles

Hair treatment Advance Techniques PVC tubes

Shampoo Advance Techniques Plastic bottles

Gel and hair fixing products Zip PVC tubes

Spray Zip Plastic bottles

Hair color Beautiful Reflections Plastic containers, aluminum tubes,plastic bags and cardboard boxes

Fragrances

Far Away, Woman ofEarth, Perceive, Millenia,Prowl, Incandessence, Anew Glass bottles

C) Installed Packaging Machinery

Avon’s Mexico City plant has the following machinery:

Current Machinery Used Brand Units Origin Average Age

Specification

Labeling machines Acroplay 6 USA 6 80%Screw capping machines Resina 18 USA 7 80%

Bottle feeder and orienting Posimat 1 Italy 2 80%

Filling machine Cozzoli 2 Italy 15 80%

Filling machine Rationator 2 Germany 7,4 80%

Capping machine Robocap 2 Germany 7,4 80%

Screw capping machines Resina 10 USA 7 80%

Labeling machine Acroplay 1 USA 9 80%

Filling machine Vetraco 2 Italy 15 80%

Coding machines Image andLink

30 USA 3 100%

Labeling machine Krones 1 10 80%Filling machines Cabala 1 15 80%

Filling machines Norden 5 USA 10 80%

Filling machines MRM 10 USA 25 80%

Box form fill and seal machine Jones 9 USA 18 80%

Filling machine BOSCH 1 Germany 4 80%

Filling machine for mascara Kalix 1 France 4 80%

Filling machine N.A. 4 México 5 80%

Bottle filling machine Groninger 1 Germany 4 30%

Filling machine for lipsticks Wecherle 1 Germany 1 100%

Bottle position machines Pace 4 USA 1 80%

Cellophane wrapping machine MardenEdwards

1 England 5 80%

Cellophane wrapping machine Bergami 1 Italy 3 80%

D) Last Packaging Machinery Purchase

The most recent packing machinery purchase was last December 2007, and it included afragrance filling machine for a cost of US $1.4 million.

Machinery Brand Country Motive ofPurchase

Filling machine for fragrances and liquids PKB France Replacement



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E) Future Packaging Machinery Ordering Plans, 2008

A significant production volume increase has forced the company to replace machinery that isturning obsolete to accommodate for larger volumes. Many packing processes were conductedmanually, and the company wants to automate the full operations at its lines.

Machines that will be replaced include:

Machinery Uni ts Or igin Mot ive ofpurchase

Estimate

Budget

Capping machine / Robocap 1 USA Replacement US $250,000

Fragrance and liquid filling machine/ PBK

1 France Replacement US $1.4 million

Horizontal carton machine /Marquesini

2 Italy Expansion US $600,000

The company will continue evaluating options to increase the efficiency of their lines, this inparallel of already being considered one of the most effective operations in its industry.

F) Purchasing Policies and Financial Arrangements

Avon de México is a subsidiary of Avon Inc. It must follow worldwide procedures for purchasingequipment. The world headquarters for Avon in New York gets involved in major projects, suchas the introduction of new production lines. Machinery upgrades or equipment replacement,arehandled in Mexico.

The New York operation shares information about potential suppliers with the Mexico operation. Acquisitions of new packaging machinery basically follow two procedures. When purchasingmachinery for major projects such as the introduction of new lines, the project and the supplierselection is made jointly by Avon Mexico and Avon in New York. When projects arereplacements or additions of small equipment, those are managed directly by Avon in Mexico.

The supplier selection is based on information exchanged between Avon in the United Statesand Avon Mexico. The process to reach a final decision depends upon the importance of theproject or size of the expected investment. Avon usually adheres to the payment terms of thesuppliers.

G) Factors That Influence Purchasing Decisions

1. Technology.2. Brand recognition and reputation.3. Price.4. Service.5. Proposed delivery time of equipment and spare parts.

H) Comments on Preferred Brands and Existing Business Arrangements WithPackaging Equipment Suppliers

The company indicated that it does not have a special commitment to or preference forparticular brands or countries of origin. The company mentioned that Italian equipment offerssolid cost-effective alternatives. The U.S. headquarters has specified preferred suppliers foreach section and machine in the plants. The scope of existing agreements varies.

Origin Technology Flexibilit y Service PriceUnited States Average Good Average GoodGermany Good Good Average PoorItaly Good Good Good Average

France Good Good Good AverageMéxico Good Good Good Good



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I) Strengths and Weaknesses of the Installed Machinery

Brand: Bosh

Strengths:

• Very good technology.• High working speed.• Precise machines.

Weaknesses:• No flexibility.

Brand: Robomat

Strengths:• Very good technology.• Good operational speed.

J) Comments Related to Asian Packaging Machinery

Avon believes that Asian machinery for the personal care industry does not employ very goodtechnology. Because the industry has high requirements for their products, this company is notinterested in being contacted by Asian suppliers.

K) Trade Show Attendance / Trade Publication Information

Avon attends all trade events for the personal care industry, as well as ExpoPack in Mexico andInter Pack.

L) Specific Interest

The company is interested in receiving information about new technical developments inpacking for the personal care industry. It is especifically interested in packaging machinery forperfumes and liquids, and horizontal cartoning machines.

M) Contact Information

Company Name: Avon Cosmetics, S.A. de C.V.Contact: Ing. German HuertaPosition: Project Manager Address: 5 de Mayo # 75,

Col. Tepepan Xochimilco,16020, México, D.F.

Telephone: (52-55) 5420-2216Fax: (52-55) 5420-2205Mail: [email protected]: pr.avon.com.m



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Grisi Hermanos, S.A. de C.V.

Industry: Personal care andpharmaceutical

Sub Industry: Soaps, shampoos andconditioners, body lotions,dental care, baby careproducts, pet products andpharmaceutical products.

Location: Mexico CitySize (sales): More than US $100 millionPurchasing Potential: US $750,000Specific BusinessOpportunities:

Filling, Cartoning, Blister andClosing Machines

A) Company Descript ion

The company was established in Mexico in 1863, making it the leading traditional personal carecompany in Mexico. It has a broad line of products based upon natural ingredients, whichinclude personal care, health care and nutrition.

The company began an internationalization process in the early 1990s, signing an agreementwith Helene Curtis in 1993, and a second agreement to produce cosmetics in 1998 with P&G.The firm also signed agreements with Combe International in 1999 and with Sara LeeCorporation in 2001.

Today, Laboratorios Grisi has one manufacturing plant in Mexico City and six distribution officesin the country.

B) Main Products Produced and How They Are Packed

The following table presents some of the leading product types for the company and its packingpresentations.

Product Brand Package

Shampoos, Conditioners,Gel, Body lotions

BioTanics, Organogal,Ricitos de Oro, VittaNaturals, Renace,

Manzanilla Grisi Kidsand Manzanilla Grisi

PET bottlesPVC bottlesLow and high density polyethylene

Soap Grisi PVC permeable stretch (exportedproducts), carton boxes or plastic cases

Liquid Soap Grisi PET bottlesTooth paste ArniDent Plastic tubes and boxesTablets andPharmaceuticals

Axel, BacNutri, Garde B Blister pack, carton boxesBlister pack, carton boxes

Pet Shampoos Del Perro Consentido PET bottles


The following table provides information on the most significant packing machinery used in theoperations of this company:

Current Machinery Used Brand Units Origin Average

AgeSoap cutting machines Weaver Sea

Lander1 Germany NA



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Soap cutting machines Leman Gloum 1 Germany NAMono block Mazzoni 10 Italy 7Cartoning machine CAM 4 Italy 7Cartoning machine Marchesini 2 Italy 4Soap wrapping machine Guerze 2 Italy 5Monoblock for viscous

product (filling, camping andlabeling)

Ronchi 2 Italy 7

Monoblock for viscousproduct

Mar 2 Italy 12

Labeling machine Termostabile 8 Italy 7Labeling machine Etipack 3 Italy 8Palletizer / Brumen Brumen 1 USA 4Blister fill and seal machine Famar 1 Italy 13Carton coder Marsh 2 USA 7Finished product line(several machines)

Mazzonni 1 Italy 3

Viscous material tube fillers CO.MA.DI.S 1 Italy 3Monoblock for viscousproducts (paste)

N.A. 1 N.A. 1

Monoblock for liquid products(alcohol)

N.A. 1 N.A. 1

Monoblock for viscousproducts

N.A. 1 N.A. 1


The dynamic nature of the product mix offered by this company creates a constant need topurchase packing machinery, as product presentations are constantly updated.

The last packing machinery purchase was in 2007, when the company acquired three labeling

lines to be used for three different personal care lines, including toothpaste, cosmetics andalcohol.

E) Future Packaging Machinery Ordering Plans

The company has a packing machinery budget for 2008 estimated at more than US $750,000.The company is planning to purchase the following:

Machinery Unit s Origin Mot ive of purchase

Filling machine for cream 1 Italy Expansion

Blister machine 1 Italy Expansion

Cartoning machine 1 Italy, Brazil orDenmark

Expansion

Closing machine 1 Denmark Expansion

The company has not reached a decision on the cartoning machine, as it continues evaluatingthe advantages of the various machine alternatives as well as financing options being offered byinterested suppliers.


The company develops budgets to purchase additional packing machinery based on expectedgrowth in product demand and marketing decisions impacting final product presentation.

Grisi purchases the machines from its suppliers’ representatives in México.

The company is used to working with equipment suppliers. It has had ositive experiences withthese suppliers with regard to the efficiency of the machinery, and timely support and service.



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The company considers equipment price to be an important factor during the equipmentselection process. The company has requested financing from banks for the purchase of themachinery. In the case of Italian suppliers, it requests vendor financing, especially from PuntoItalia.


1. Capacity and efficiency of the machine.2. Experience with the brand and supplier.3. Technical support.4. Price.


Grisi Hermanos believes that European packing machinery suppliers offer several advantagesover U.S. suppliers. It believes that their technology is more advanced and that the operation ismore friendly because these machines can be programmed by any person capable of using a

computer. While the exchange rate has increased the price of European machines significantly,the company still considers these machines as a viable option, especially because of the qualityof service when it comes to selecting the machines and after-sales service.

The company indicated that is perception of packing machinery suppliers based on origin is asfollows:

Origin Technology Flexibilit y Service PriceUnited States Very Good Average Very Poor PoorGermany Very Good Poor Poor PoorItaly Very Good Very Good Very Good AverageSpain Very Good Very Good Very Good AverageFrance Very Good Very Good Very Good Poor


Brand: Marchesini

Strenghts• Part of Punto Italia.• Very good technology.• Good client service, before and after the purchase.

Weaknesses•

Plastic components.

Brand: CAM

Strenghts• Part of Punto Italia.• Flexibility,

Weaknesses• None,



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Kimberly Clark de México, S.A. de C.V.

Industry: Personal care

Sub Industry: Toilet paper, tissues, diapers,wipesLocation: Mexico City

Size (sales): US $2 billion.

Purchasing potential: N.A.

Specific BusinessOpportunities:

The firm doesn’t havepurchasing plans for this year


Kimberly-Clark de México S.A.B. de C.V. (KCM) is dedicated to the production and sale of awide variety of personal care products, including diapers, feminine napkins, toilet paper,Kleenex, kitchen towels, hand towels and other hygienic products.

Its main brands in Mexico include: Kleenex, Pétalo, Kotex, Kleen-Bebé, Huggies and Sanitas.KCM is a leader in all the markets in which the company participates.

The company is public, trading in the Mexican Stock Market (Bolsa de Valores) under theKIMBER ticker. It exports more than US $130 million per year to 14 countries, mostly in Centraland South America and has more than 8,000 employees.


KCM’s main products include diapers, napkins, toilet paper, Kleenex and feminine napkins.

Product Main Brand PackageToilet paper Kleenex, Pétalo, Suavel,

Vogue, Lys,Individually wrapped in low-weight paper,plastic wrap in different presentations

Diapers Huggies, Kleen Bebe,Pull Ups, Good Nites,

Little Swimmers, Depend

Plastic bags

Napkins andkitchen products

Sani-Fresh, Kleenex,Lys,

Plastic bags, carton boxes, institutionalpresentations in paper wrap

Kleenex Kleenex Plastic bags, carton boxes.

Femininenapkins

Kotex Plastic bags

Aluminum foil Alupak Roll in cardboard boxes

Plastic wrap foil Kleen Pack Roll in cardboard boxes

C) Installed Packaging Machinery:


Wrapping machines for hygienic products (toiletpaper)

Perinic,Casmatic,

Hyssen andTMC

34 Italy -

Film wrapping machina for Kleenex Senning 1 Germany 32

Wrapping machines for aluminum foil Tau 1 Japan 2

Plastic bag filling machines for diapers Optima 26 Germany

Own technology Kimberly 40 USA

Cartoning machines for Kleenex boxes Kimberly 36 USA



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Its last packaging machinery purchase took place in mid 2007 and included the followingmachinery:

Machinery Brand Country1 hygienic wrapping machine Casmatic Italy

3 bag filling machines for diapers Optima Germany

1 wrapping hygienic machine TMC Italy

E) Future Packaging Machinery Ordering Plans, 2008-2009

In the short term (2008), Kimberly Clark doesn’t have plans to acquire new packagingmachinery because it closed some operations in the United States and some of the machineryfrom those operations was moved to Mexico. Currently, all of the machinery to be installed inKimberly Clark in Mexico is being sourced internally from plants that are downsizing or movingoperations.

In 2009, the company could begin purchasing new packaging machinery again as its growthplans in Mexico continue to be aggressive. Despite this, the company could not tell us what typeof machinery it would be sourcing. First, it will finish with the production relocation projects.


Purchasing decisions are made at the local level and authorized by Kimbely Clark in the UnitedStates. In any case, Kimberly Clark already has machinery in some other plants that fits with thepurchasing plants of other Kimberly plants worldwide. The company prefers to move oldmachinery that has been in efficient operation rather than acquiring new machinery.

In Mexico, purchasing decisions are made at the corporate level and the decision makersinclude the engineering, product development and packaging projects areas. The responsibleparties from these departments usually travel to see the packaging machinery they are planningto acquire directly at the manufacturer’s locations. Kimberly Clark strongly prefers to purchasedirectly from the manufacturers, and in many cases, the negotiations are made on a globalscale.

Budgets for packaging machinery purchases are developed between June and July of theprevious year, and then they are submitted to the U.S. corporate office. Once approved,Kimberly Clark Mexico begins sourcing the machinery (first to other Kimberly Clark suppliers),but only when it is launching new products or presentations and searching for new suppliers.

When acquiring a new packaging machine, the company asks the manufacturer to install the

machinery and provide training to the maintenance, research and development, and operationsdepartments. Kimberly Clark provides maintenance to the machinery internally and stocks themost commonly used spare parts. When it needs additional plants, it purchases directly fromthe original manufacturer.


1. Efficiency.2. Price.3. Technical support.4. Brand reputation.



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H) Comments on Preferred Brands and Existing Business Arrangements WithPacking Equipment Suppliers

Kimberly Clark prefers Italian packaging machinery because it is familiar with the technology. Itnotes that overall, Italian machinery is precise, easy to use, highly efficient and has very low

down times. The company also likes German machinery; however it says that the prices arehigher and the machines are not as flexible as the Italian machines.

Kimberly Clark has developed agreements with packaging machinery manufacturers from theUnited States, Italy and Germany. Some of these manufacturers develop machinery for theexclusive use of Kimbarly Clark. The reward for the manufacturer is worldwide demand for thetype of machinery developed under an exclusive basis.

Origin Technology Flexibili ty Service PriceUnited States Good Poor Good PoorGermany Very Good Average Good AverageItaly Very Good Good Good GoodJapan Good Average Average Very Good

I) Trade Show At tendance / Trade Publication Information

The heads of the packaging projects department and product engineering department visitpackaging machinery trade shows in Mexico, the United States and Europe.

J) Specific Interests

The company is interested in receiving information from manufacturers of bagging machineryand paper wrapping machinery. It indicated that despite that the company doesn’t haveprocurement plans in the short term and that most of the machinery it needs can be supplied byother plants in the company, it is always looking at new alternatives that offer high reliability,quality and a good price.

K) Contact Information

Company Name: Kimberly Clark MéxicoContact: Mr. Armando MaldonadoPosition: Packaging Engineering Manager Address: Jaime Balmes No. 8 Piso 9 Telephone: (52) 5282 7300 E-mail: [email protected]

Página Web: www.kimberly-clark.com.mx

mailto:[email protected]

http://www.kimberly-clark.com.mx/

http://www.kimberly-clark.com.mx/




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Kolmar de Mexico S. A. de C.V.

Industry: Personal CareSub Industry: Cosmetics

Location: Tlalnepantla, state of MexicoSize (sales): N/APurchasing Potential: More than US $100,000Specific BusinessOpportunities:

Case sealing , labeling andwrapping machines


Kolmar is a world-class supplier of contract manufacturing services under private labels to thecosmetics industry. It also develops chemical formulations for cosmetics. The company providescontract manufacturing services to cosmetics companies, taking care of the formulation,production and packing of personal care and cosmetic products. The company also offersmarketing services.

The company operates a single manufacturing plant in Tlalnepantla in the state of Mexico,which also is the site of the company’s corporate offices. The company was established inMexico is 1955.


The company produces generic cosmetic products under private labels. The basic productsproduced by the company are presented in the following table, which also indicates the packingused for each product.

Product Package

Lipstick Clam Pack / Blister Pack

Lip gloss Clam Pack / Blister Pack

Eye shadows Clam Pack / Blister Pack

Mascara Clam Pack / Blister Pack

Eyelid cream Plastic Bottles

Cleaning creams and lotions Plastic Bottles

Shampoo and conditioners Plastic Bottles

Nail polish Glass Bottles


The following list presents information on some of the most important packing machines usedby Kolmar in Mexico.

Machinery Type Brand Units Origin Average Age

Case formers Westglund 1 USA N/A

Blister sealing machine Cencorp 2 USA andMexico

N/A

Box sealing machine Little David3M

2 USA N/A

Cartoning machine EmpackMapisa

2 Mexico N/A

Conveyors Idimsa 15 Mexico N/A



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Filling machines PacificNew Way

CozolliFlamatic

1124

USAUSAItalyUSA

792020

Cream filling machines Comaris 1 Italy 8

Tablet dispenser machine 3 Japan 10

Labeling machine Empacotecnic 1 Mexico 9Powder packing machine Kenwall 17 UK 17


The most recent investment in packing machinery took place in 2006, when the companypurchased the following:

The company said that it has spent approximately US $150,000 on packing machinery over the

past three years.

E) Future Packaging Machinery Ordering Plans

The company is considering making the following future packing machinery purchases:

Machinery Units Origin Motive ofpurchase

Estimated Budget

Case sealing machine 1 Mexico or Korea Expansion Up to US $50,000

Wrapping machine 1 France, Spain orKorea

Expansion Up to US $80,000

Box sealing machine 4 T.B.D. Expansion US $10,000

For the box sealing machines, the company is looking for machine options similar to 3M, but notof that brand.


The company’s Engineering Department is responsible for defining new packing machineryneeds and for selecting machinery options for final consideration. A final purchasing decision isreached by the operations manager.

The company commonly considers three different options before reaching a purchasingdecision. Payment terms usually include a down payment of up to 50%, and the final balanceonce the machine is in operation.


1. Price.2. Service and spare parts.3. Flexibility to accommodate various options.4. Ease of use.


The company said that it has had very positive experiences with U.S. packing machinerysuppliers, indicating adequate spare part availability and prompt delivery. It also mentioned that

it has received timely and adequate technical service in Mexico.

Machinery Brand Country Cost

Blister packaging line Cencorp USA NA



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Origin Technology Flexibilit y Service PriceUnited States Very Good Very Good Very Good RegularItaly Very Good Good Average Average

Mexico Good Good Average AverageKorea Very Good Very Good Very Good Good

The company has purchased packing machinery from Korean suppliers. It says that thosemanufacturers have incorporated similar technologies to the ones offered by Europeanmachinery suppliers at much lower costs. The company indicated that the machines are verypractical and efficient, but that the machines are still lower in quality than European machines.


Brand: Cencorp

Strengths:

• Very good Service.Weaknesses:

• Outdated technology.

Brand: 3M

Strengths:• Solid performance.

Weaknesses:• Very poor service.• No response to technical and service inquiries from clients.

J) Comments Related to Asian Packaging Machinery

Kolmar located, contacted and purchased from packing machinery suppliers in Korea. Itbelieves these machines to be very cost-effective options that meet its packing needs.

K) Trade Show Attendance / Trade Publication Information

The company visits trade shows regularly, especially ExpoPack in Mexico. The companysubscribes to trade publications, including the Reportero Industrial.

L) Specific Interest

The company is interested in receiving information about packing machinery, specifically it

would like some information about casing machinery.

M) Contact Information

Company Name: Kolmar de MéxicoContact: Mr. Joel PichardoPosition: Maintenance and Engineering Manager Address: Calle Lateral No. 20

Av. Tequesquinahuac-Ceylán54020, Tlalnepantla, Estado de Mexico

Telephone: (52) 5310 1009 Fax: (52) 5310 1009

Mail: [email protected] Web page: www.kolmar.com.mx





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Revlon de Mexico, S.A. de C.V.

Industry: Personal care

Sub Industry: Cosmetics, fragrances, personal

care productsLocation: Mexico City

Size (sales): US $45 million

Purchasing potential: US $600,000

Specific BusinessOpportunities:

Tube filling and sealing; PVCblister, capping machines

A) Company Descr iption

Revlon is one of the leading cosmetics and personal care brands in the world. It has had anactive presence in Mexico for more than 50 years. The company sells under various brands,including Revlon, Color Stay, Age Defying, Almay, Ultima II, and Flex.

The company has a plant in Mexico in which it packs imported products and other productsmanufactured in Mexico by third-party suppliers under private label contract manufacturingagreements.

The company has begun exporting some of the locally produced products into the United Statesand a few South American markets.


The following table presents the highest volume product lines packed by Revlon at its plant inMexico.

Product PackageShampoo Plastic bottles with polyethylene wrapping

Body lotions PET bottles

Creams PET bottles, PVC

Hair coloring HDPE

Cosmetics Transparent plastics

Nail polish Glass bottles

Final retail presentations Cardboard / blister packs.


The following list provides information about the packing machinery used by Revlon in its

Mexican operations.


Bar Coding Machines Sato 5 USA 4

Coding Machines Videojet,Domino,

Willet andMarkem

6 USA 4

Coding, Dating, Marking andStamping Machine

3 USA 8

Capping Machines Kalish

Resina

4 Canada

USA

5

Single Piston Filling Machines 3 Mexico 16

Tape Dispensing Machines Devek 6 USA 8



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Conveyance System 8 Mexico 9

Filling Machine Devek 6 USA 6

Filling Machine (rotation) MRM 2 USA 16

Filling Machine (volumetric) MRM 1 USA 8

Filling Machine (lineal) Equitek 1 Mexico 2.5

Filling Machine (volumetric) 2 Mexico 2Labeler Logotech 1 Israel 6

Labeler Taxa 1 Spain 4

Labeler (lineal) Equitek 2 Mexico 2.5Capping Machine Equitek 1 Mexico 2.5Label Dispenser 1 USA 7Pumps Hirsman,

Waukesha2 USA 7

Blister Packaging Line 2 Canada 4

D) Last Purchases of Packaging Machinery

The last packing machinery purchase took place in 2006 and included the equipment presentedin the following table.

Machinery Brand Country

Capping Machine Callish USA

Strapping Machine Devek Mex

E) Future Packaging Machinery Ordering Plans, 2007-2008

The company will change several product packing presentations for introduction into retail in2009. This will require the purchase of additional packing machinery with a value estimated atUS $1.5 million. The purchase will include the following machinery:

Machinery Units Origin Motive of Purchase EstimateBudget

Tube filling and sealing machine 1 TBD Presentation change TBDPVC blister machine 1 TBD Presentation change TBD


The company selects potential equipment suppliers from among leading suppliers to thecosmetics packing industry and evaluates a few equipment alternatives. For significantequipment purchases, the decision process includes involving the corporate headquarters in theUnited States.


1. Price.2. Efficiency.3. Availability of technical service and spare parts in Mexico.4. Brand reputation.

H) Comments on Preferred Brands and Existing Business Arrangements WithPacking Equipment Suppliers

Revlon does not have existing purchase agreements with specific packing machinery suppliers.

The company has an in-house technical staff responsible for providing maintenance and small

repair work for the machinery. If required, the company can rely upon technical assistance fromthe U.S. Revlon operation or from the equipment suppliers.



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The company prefers U.S. machinery and indicated that at present, these machines have asignificant pricing advantage over European options.

Origin Technology Flexibili ty Service PriceUnited States Good Good Good Good

Germany Very Good Very Good Good HighItaly Good Average Average HighSpain Good Poor Poor High

I) New Origin of Suppliers from Asia

The company has received information from Asian packing machinery suppliers, but has not yetpurchased Asian packaging machinery. It believes that Asian suppliers are improving theirequipment technology and quality, and that several have established distribution and service fortheir machines in Mexico.

J) Trade Show Attendance / Trade Publication Information

The engineering managers for the company attend ExpoPack in Mexico. Senior managers alsovisit the packing machinery Industry trade shows in Chicago and Las Vegas.

K) Specific Interests

The company is interested in receiving information about packing machinery specializing in theproduction of cosmetics, and on machine types that they are considering purchasing in the nearterm. The company also is interested in information on capping machinery.

L) Contact Information

Company Name: Revlon de México, S.A. de C.V.Contact: Mr. Daniel Romero / Eduardo TenorioPosition: Plant Manager Address: Av. División del Norte #3395

Col. Xotepingo04610, México D.F.

Telephone: (52) 5618-9125 Fax: (52) 5618-1985 E-mail: [email protected]

[email protected]





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