TCPL Packaging Limited is one of India’s largest manufacturers of folded cartons and one of the country’s two largest converters of paperboard. TCPL manufactures folding cartons, printed blanks & outers, litho lamination, plastic cartons, blister packs, and shelf-ready packaging. The company is also an innovative player in the flexible packaging industry.
Recently, TCPL packaging announced that its board of directors had approved the acquisition of a majority stake in Creative Offset Printers Private Limited (COPPL). In an exclusive interview, Managing Director Saket Kanoria and Associate Director Vidur Kanoria speaks about their company’s recent development and future plans.
Acquisition of Creative Offset Printers
Creative Offset Printers Private Limited is a subsidiary company where TCPL has acquired 60% of its business stake. TPCL will acquire more shares in the company after doing the rights issue. “The company needs working capital for growth and expansion, for which we will be doing a rights issue. The exact amount of the issue is yet to be evaluated.” Say Saket Kanoria
He adds, “We had studied the mobile business and the mobile phone industry in India, which is proliferating. The government has announced the PLI scheme (Production Linked Incentive) to encourage companies to manufacture mobile phones in India for the export market. Of course, India’s domestic market is huge, but export is also a big area where many Chinese and other companies like Vivo, Oppo, Apple, and Samsung have come and established their operations. All these mobile companies require a particular kind of Rigid Hard Box. The mobile phone industry is very dynamic as there is frequent change in models, the mobile companies require just in time delivery of their packaging, and hence supplier needs to be very close to them, literally at their doorstep. In India, the hub for mobile phone business is in Noida and Southern India. Creative is one such company with a long relationship with Samsung and other mobile manufacturing companies. And hence we felt that with the acquisition of Creative, we could enter the mobile packaging business and cater to their requirement of the industry. The primary purpose of acquiring Creative is to add a new vertical to our portfolio.”
“Creative is in the manufacturing of Rigid Box packaging, especially for mobile box packaging; with this acquisition, our focus would be on mobile phone packaging and rigid box packaging. Besides mobile phones, we are now also a supplier of rigid box packaging to the liquor and cosmetics industries; we also supply rigid boxes to FMCG and food companies for their various packaging requirements. There is a big prospect, as we can enter all the segments where there is a requirement of rigid box packaging, and it also adds as a stepping stone for our growth arena.
Flexible packaging expansion
TPCL has been a producer of Flexible packaging for the last five years since 2016. Currently, they are doubling the plant capacity in Silvassa and expanding it in a big way. Recently the company has bought the Rotomac 10 color machine and other lamination and extrusion equipment. Currently, they have in-house capability of manufacturing Solventless and Solvent base Lamination and Pouching.
Saket Says, “A subsidiary company called TCPL Innofilms Private Limited has been formed to execute the project of the Blown Film line. The Blown Film line is bought from Reifenhauser, Germany and enables us to stretch PE film which results in a much higher stiffness as well as fantastic clarity and roto gravure printability. This will allow us to replace PET and make a mono-polymer packaging structure. Now we can produce PE/PE laminates or PE/ Metallized PE Laminates to replace PET/PE or PET/Metallized PET/PE. Sustainability is a huge factor in today’s world, and we need to create packaging which is recyclable.”
“We see the area of enormous potential in Flexible Packaging. The government also has given PLI schemes (Production Linked Incentives) for food processing industries and all the food manufacturers are a part of it, so it will give a massive boost to the food and vegetable exports that will generate the need of an enormous amount of flexible packaging. Flexible packaging is a usual growth area and with the technology and infrastructure we have, we are very well poised to cater to industry requirements. We are also planning to explore a few more segments shortly.”
Further Opportunities
In October 2021, TCPL Packaging replaced its oldest multicolor offset press at its Goa plant with a new K&B Rapida multicolor packaging press. This is the second K&B Rapida multicolor at the TCPL plant in Goa. TCPL Packaging also announced a joint venture with Maarten Halma to build a state-of-the-art paper cup factory.
Saket says, “With this joint venture, we are now getting into the manufacturing of paper cups. Our focus would be on export, but there is a large domestic market that we could ALSO EXPLORE, but our initial focus will be on export. TCPL will also be creating a new company called TCPL Halma Private Limited.”
Sustainability – The Prime Focus
In any boardroom, the world over, the biggest discussion is how to make your company more sustainable and reduce energy consumption in whichever way or form. Saket says, “Sustainability is critical, but obviously, it has to be of real benefit to society, and I think everyone should be committed to that issue.”
“The government is trying to bring a Plastic Waste Management policy very soon, but it needs to be fine-tuned and in discussion with the industry, supplier, consumer, manufacturer, and the whole supply chain. However, it will take some time to streamline, but all the progressive companies are already driving the sustainability agenda. Everyone has to prepare for it because it will come into regulation very soon. We are offering sustainable products and we believe that our customers would want such products because it is in their interest and because their consumers also demand recyclable packaging.”
“Plastic is a fabulous product, but the only thing is it needs to be collected well so that it can be recycled and reused. If there is no focus on the collection, then there is a big problem. Government and municipal bodies need to take the initiative, but it’s a societal thing, and everyone needs to be educated. The policy and regulation need to be very stiff and strong and then all things will fall in place.”
Vidur says, “During COVID, the amount of plastic used was insane. The urgent need for masks and PPE suits exacerbated the demand for plastic. Plastic also was in demand due to its convenient use for transport and for providing hygienic packaged goods. People have largely relied on it due to its barrier capability and functional properties. This has shown how vital plastic can be.”
“The Awareness of the consumer is growing for a sustainable product, it is still lower than in the western world, but it is increasing day by day. Brand-owners like Unilever, Pepsi, Nestle are shifting towards sustainable/recyclable packaging because their shareholders and consumers demand this. This industry is bound to grow, and it is a matter of time before domestic companies will follow suit. The government in India is proactive and they have enrolled EPR and taken many other steps which are ahead of its time for a developing country like ours.”
The Growth Forecast
Saket predicts the TCPL’s growth, saying, “The past determines the future. Since inception, we have always been on a growth path, our 30 year average CAGR has been 18%-19%. Only in last five years, there been a bit of slow-down because of multiple reasons like raw material price increases, GST, Demonetization, COVID. However, we have done well, and we look forward to continuing our higher growth rate with a much bigger offering base. We are expanding our offering into other forms of packaging as we wanted to be a full-service solution provider of Paper, Flexible Packaging, Rigid Packaging, Corrugation, etc.”
“TCPL is a company where we believe in top-of-the-line technology. All our factories are built as per International standards and are very well equipped. We use the best technology for production, and we pay much emphasis on new developments and innovation. Customer service is most important as we like to work with people on trust and build long-term relationships with our customers and suppliers. I think very shortly; we will outperform China’s growth. For the next 5-10 years, I think there are many prospects and opportunities for everyone. But you need to have the right amount of capital and attitude towards establishing world-class capabilities. TCPL always invests in new sectors and likes to expand our offering. We are one of the very few companies in both Cartons and Flexibles.” Saket Concludes.
