Mold-TEK Packaging: The eye-catching label of your favorite beverage and the sturdy box protecting a new appliance seems ordinary, but they share a hidden secret. They all bear the mark of innovation from Mold-Tek Packaging Ltd. For decades Mold-Tek has been the silent sculptor behind the scenes, shaping the world of molding, labeling and packaging.
Their dominance isn’t just about numbers, it’s about the trust they‘ve earned from Industry leaders. From household brands to Big giants, companies rely on Mold-Tek Packaging Ltd’s expertise to create solutions. But Mold Tek’s impact goes beyond brand aesthetics. Their focus on sustainable practices ensures packaging that protects not just the product, but even the environment as well.
By empowering businesses with cutting-edge technology and fostering responsible manufacturing practices the company is quietly contributing to the nation’s economic growth. Come let’s delve deeper into the world of Mold-Tek and discover how their innovations are creating an impression on every item we hold in our hands.
Mold-Tek Packaging
Mold-Tek Packaging is a prominent player in the Indian packaging industry. Established in 1986, the company introduced In-Molding Labeling (IML) technology to India for the first time. This innovative technique allows for high-quality labeling and branding directly onto plastic containers during the manufacturing process. Mold-Tek’s early adoption of this advanced technology paved the way for its growth and leadership in the plastic packaging sector.
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Today, Mold-Tek is India’s largest producer of plastic packaging pails. The company operates in four business segments which include Food and FMCG, Lube-Pack, Paint-Pack and Industrial Packaging. The Food and FMCG segment approximately accounts for 50% of the company’s revenue followed by the Lube pack and Paint pack which holds 20% each and Industrial packaging occupies 10%. With a strong focus on Research and Development, Mold-Tek has an advanced R&D center in Hyderabad. This commitment to innovation enabled it to stay ahead of the curve and cater to the evolving needs of its customers.
The products offered by the company are being used in various industries such as food, beverages and pharmaceuticals. The company has a strong presence in the Indian market and exports its product to several countries around the world, which includes Europe, United States and Asia. Some of their customers in various segments include ITC, P&G, Cadbury, Castrol, Pepsi, Nestle and Milky mist.
Mold-Tek Packaging competitive edge
Product diversification
Mold-Tek has a wide range of packaging solutions which include Food, FMCG, Paint and industrial packaging. This diversification helped the company to reduce dependence on a single segment and increased its resilience to market fluctuations.
Innovative Packaging Solutions
The company has been at the forefront of introducing innovative packaging solutions, including the use of recycled materials in new pack designs. This focus on eco-friendliness and sustainability sets the company apart from its competitors and appeals to environmentally conscious consumers.
Strong Presence in Key Markets
Mold-Tek Limited has a significant presence in key markets such as FMCG and food which are the growing segments. The company’s ability to adapt to changing consumer preferences and trends in these markets gives it a competitive edge.
Strategic Partnerships
Mold-Tek has formed strategic partnerships with major companies like Aditya Birla Group, which help the company expand its manufacturing capacity and reach new markets. This collaboration enables Mold-Tek to leverage the strengths of both parties and increase its competitiveness.
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Mold-Tek Packaging Financial Performance (Standalone)
In Q3 FY 24, the volume of the company grew by 14% year-on-year, but revenues declined by 4% due to an 18-20% increase in raw material prices. Net profit of the company declined by 12.97% in Q3 FY 24 due to a 26% increase in interest cost and a 50% increase in finance costs.
Mold-Tek Packaging Future Expectations and Plans
Mold-Tek Packaging expects to get a double-digit volume growth in the Paint segment next year, driven by new supplies to Aditya Birla Group (ABG) from their Cheyyar and Panipat plants and new products. In the F&F (Food and FMCG) segment, the company is targeting a 20% growth by next year, aided by the commissioning of their North plant in Panipat. Mold-Tek also plans to introduce 10 new F&F products in FY 24-25 across Panipat and other plants.
The company’s square packs segment is expected to grow by around 40% next year, driven by adoption from major brands like Patanjali and Gemini Oil. The pharma packaging segment is expected to contribute significantly to revenue and profitability from FY 25-26 onwards, as Mold-Tek plans to cater to export markets. For export-oriented products like canisters and tablet packs commercial production is expected to start from Q2 FY 24-25.
Mold-Tek company plans to add balancing equipment across Panipat, Cheyyar and other existing plants in FY 24-25 to improve capacity utilization, with a capex of around INR 50-60 crores. By doing this it would take their overall installed capacity to around 57,000-60,000 tons by the end of FY 24-25 from 47,290 tons.
Conclusion
Mold-Tek Ltd has carved a prominent niche in the rigid plastic packaging industry in India. Their dedication to quality, diverse product range and established presence have solidified their position as a dominant player in the market. However, the future of packaging demands agility and a commitment to sustainability.
Their planned capex investments further demonstrate a proactive approach towards technological advancements. This commitment to stay ahead of the curve is crucial in maintaining its competitive edge. Growing concerns about plastic waste necessitate a shift towards sustainable packaging solutions. Mold-Tek’s ability to integrate recycled materials and eco-friendly packaging options will be a key differentiating factor.
Along with that, the Indian packaging industry is also witnessing increased competition. To maintain its market share, Mold-Tek needs to continuously invest in product design and explore advanced decoration services to offer customers greater design flexibility and brand differentiation. Managing fluctuations in raw material costs will be another crucial factor. Implementing crucial strategies to navigate these problems ensures Mold-Tek remains competitive in the long run.
Written by Pavunkumar V M
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