Essel Propack signs contract with P&G

Mumbai: Essel Propack Ltd (EPL), the worlds largest laminated tube manufacturer, has opened a new frontier by signing a five-year contract with the fast-moving consumer goods (FMCG) giant P&G in the US for 100 per cent of their North American requirements. Consequent to this agreement, EPL will set up a manufacturing facility, costing $20 million, in North Carolina, USA, a press release issued here said.

Says EPL managing director Cyrus Bagwadia: "In 1995 we had a vision which stated that we shall be the worlds largest laminated tube manufacturer by the year 2000. True to our word, we achieved this in the timeframe that we had given ourselves. Now we have articulated a vision that states that we shall be the worlds most admired speciality company by 2005. Entering the worlds most developed market and getting into a long-term partnership based on trust and mutual benefit with one of the worlds largest FMCG companies is a step in that direction."

A P&G Cincinnati corporate communiqu states: "P& is happy to announce that EPL has been selected to supply laminated tubes for our North American dentifrice business. The Crest brand is an important part of our oral-care business and one of our flagship brands. EPL was selected after an extensive evaluation of its global operations and innovation capabilities. We were delighted with what we saw. We look forward to building a solid long-term relationship with EPL that enables P&G to increase value to the consumer while at the same time creating benefits for our respective companies."

Essel Propack is promoted by Subhash Chandra and is today the worlds largest manufacturer of laminated tubes. Laminated tubes are the preferred packaging in toothpaste, cosmetics and pharmaceutical industries. The company, which pioneered the laminated tube revolution in India, has rapidly expanded and is today a truly global player with 15 manufacturing locations in four continents worldwide. Set up in India in 1984 with a modest capacity of around 50 million tubes, the company made its first inroads into the global arena by setting up a manufacturing facility in Egypt in 1993. A wholly owned subsidiary was set up in China in 1997, followed in quick succession with a facility in Germany in 1998 and one in Nepal in 1999. In 2000, the company acquired the tubing operations of Propack AG, a Swiss multinational, to become the worlds largest laminated tube company.

Today EPL commands a 25-per cent global market share and is a preferred global supply partner to Unilever, Colgate Palmolive, P&G, GlaxoSmithKline, among others. EPL has manufacturing operations in 10 countries all over the world. Its current annual revenues are in the tune of $125 million. The company is listed on the stock exchanges at Bombay, Delhi, Ahmedabad and the National Stock Exchange in India.