Essel Propack is the largest specialty packaging company globally, manufacturing laminated and plastic tubes. It has a 60% market share in India and presence in 12 countries. The company generates most revenue from laminated tubes for oral care and is looking to diversify. Essel Propack has a global strategy of following major customers internationally and plans to expand in medical devices and plastic tubes.

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2. Essel Propack Limited
A Quick Look
• About
• Is the largest specialty packaging company –
manufacturing laminated and seamless or extruded
plastic tubes.
• Chairman – Subash Chandra Goyal
• Current market share – 60 % in India and 33% globally
• Sales volume -4.5 billion tubes per year
• Sales revenue-1694 cores
• Employees – 750 in India and 2200 globally
• Presence in 12 countries
• Production facilities - 23

3. Products
• EPL- divided into
• Tubes- (laminated tubes &co extruded palstic
tubes)
• Specialty packaging

4. Customers

5. Revenue from customers

6. Laminated Tubes
• Laminated tubes are used for packaging across the
globe in varied sectors such as oral care, food,
cosmetics, pharma and industrial applications. The oral
care industry in itself contributes to almost 70% of the
total production of laminated tubes. These tubes are
increasingly being used in the cosmetics sector for their
cost-effectiveness.
• Essel Propack manufactures laminated tubes to cater to
various products and businesses. These tubes offer
products a competitive edge in the market. With their
high stability, laminated tubes are suitable for packaging
a variety of products.

7. Essel Group
• The Essel Group, with an annual turnover of over
USD 2.4 billion, is among India’s leading business
houses, with presence in technology, interactive,
media, entertainment, social services and
packaging sectors. The group’s renowned brands
include Essel Propack, DishTV, Zee Entertainment
Enterprise Limited, DNA - a daily newspaper and
Asian Sky Shop – a tele shopping network. The Essel
Group was established in 1976 and today the
institution has over 8000 people working across its
various businesses, spread across the globe.

8. SWOT Analysis
S
• Global presence and relationship with large MNC customers.
• Market leadership in laminated tubes
• Technology know how
W
• Dependence on oral care business
• Strong customer buying power
O
• Economic growth in developing countries like India and other
target industries like cosmetics
• High market demand
T
• Raw materials prices
• Uncertain future of key competitors

9. Corporate Timeline
• 1984- set up manufacturing plant in India
• 1993-set up manufacturing plant in Egypt,
• 1997-opens subsidiary in Guangzhou china
• 1999- JV in Dresden in Germany
• 2000-acquisition of Propack worldwide ltd
• 2003 – entry into us with manufacturing facility in
Danville
• 2004-acquisition of Arista tubes .

10. Global Scope of EPL
Essel Propack operates in four geographical zones:
the Americas, Europe,AMESA (Africa, Middle East
and South Asia, including India) and EAP (East Asia
Pacific).

11. EPL- Globally
• Essel Propack Ltd-165 regions. Each of these regions is
headed by a Regional director who is assigned the
responsibility of business development in that region.
• The company has its headquarters at Mumbai.
• The details are discussed below.
Americas
• The operating units in this region include tube business
and medical devices business.
• There are three units in USA, one in Mexico and one in
Colombia. The erstwhile unit at Venezuelan is closed and
the capacities are in process of relocation to other units
in the region.

12. East Asia Pacific
• The operating units in this region include tube
business and medical devices. There are three units
in China, one in Philippines, one in Indonesia and
one in Singapore.
Africa, Middle East and South Asia
• The operating units in this region include tube
business and specialty packaging materials. There
are seven units in India and two in Egypt. The unit in
Nepal is closed down due to concerns for law and
order.
Europe
• The operating units in this region consist of tube
business. There are two units in UK,one unit in
Germany and one in Russia. One of units is being
shifted from UK to Poland to arbitrage cost
advantage.

13. EPL’S Global Strategy
• EPL has used a wide range of approaches to reach
international markets – ranging from exports to Greenfield
subsidiary.
• EPL has established strong relationships with clients and as the
clients move to different markets, they follow the client or if the
client has operations in different places they go to those
places.
Global strategy
To work very closely with their clients and therefore, once they
have established themselves as preferred suppliers, it is very easy
to work as original equipment manufacturer (OEM) suppliers in
other markets where their client has business.
They are already doing this for several clients and they want to
pursue this more aggressively emphasized by Mr Ashok Goel,
Vice Chairman and Managing Director.

14. Benefits of operating in
Global Markets
• EPL had the Potential for growth due to ever
increasing demand in global markets
• Diversification options into other products.
• Through diversification it could focus more on R&D
and Innovation
• It availed the opportunity of vertical integration .

15. EPL biggest Foreign
Market
• By 2007, the overseas revenues contribute >70 per
cent to the total revenues.
• The company commands 65 per cent market share
in India, 60 per cent market share in China, 50 per
cent in Mexico and Germany each and 30 per cent
in USA.

16. Motivation of employees
at EPL
• Exposure to a diverse mix of people from different
educational, cultural and geographic
backgrounds.
• By working on the latest technologies these
professionals are continually trained on new and
upcoming processes.
• A fun work environment which offers the best
learning experience.
• Flexible work timings & a caring environment

17. • The company complements thier efforts with a
supportive environment where teamwork, learning and
development, and community services are highly
valued.
• Essel Propack fosters creativity and innovation at the
workplace, and their technologically advanced
research centers across the globe, augment this cause.
• The company adopts various management techniques
like Brainstorming, Kaizen, Knowledge Community, Idea
Box and Open House for continuous upgrade of its
manufacturing processes.
• They strongly believe that ‘their people are their
greatest asset’

18. Future plans of EPL
Foraying into the Medical Devices Business
• With the global medical devices market valued at EUR
144 billion and growing at a rate of 7 to 10 per cent per
annum , Essel Propack has availed of the opportunity
and forayed into the medical devices business.
• The company plans to leverage its expertise in polymers
and polymer processing in this field. It expects that its
medical equipment business will evolve into its major
business line over the next two to three years.This
business is expected to account for a 5 per cent growth
in its revenues in 2006. After acquiring Tacpro Inc.,
USA,and Avalon Medical Services, Singapore, Essel
Propack is looking for new acquisitions in the medical
devices business in the EU.

19. Focus on the Plastic Tubes Market
• With the European plastic tubes market estimated
at 2.5 to 3 billion tubes (in terms of volume), and
plastic tubes earning nearly 1.5 to 2 times more
profit than laminated tubes, Essel Propack is now
focusing on the plastic tubes market in Europe.
• It expects greater profits from its subsidiary, Arista
Tubes, in the UK. It looks forward to garnering a 20
per cent market share in the global market by 2010,
thereby evolving into a leading manufacturer of
plastic tubes.

20. Exploring New Business Models
• Currently, Essel Propack offers empty packaging
material to its clients. It now plans to implement novel
delivery models, wherein the client would only focus
on product development, brand building and
distribution, and entrust Essel Propack with the entire
responsibility of the packaging process till the finished
products are ready.