Poonam Essel propack
study on SWOT analysis about essel propack
Published on: Mar 4, 2016
Transcripts - Poonam Essel propack
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
Products• EPL- divided into• Tubes- (laminated tubes &co extruded palstic tubes)• Specialty packaging
Revenue from customers
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.
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, soci al 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.
SWOT AnalysisS• Global presence and relationship with large MNC customers.• Market leadership in laminated tubes• Technology know howW• Dependence on oral care business• Strong customer buying powerO• Economic growth in developing countries like India and other target industries like cosmetics• High market demandT• Raw materials prices• Uncertain future of key competitors
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 .
Global Scope of EPLEssel Propack operates in four geographical zones:the Americas, Europe,AMESA (Africa, Middle Eastand South Asia, including India) and EAP (East AsiaPacific).
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.
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.
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 strategyTo work very closely with their clients and therefore, once theyhave established themselves as preferred suppliers, it is very easyto work as original equipment manufacturer (OEM) suppliers inother markets where their client has business.They are already doing this for several clients and they want topursue this more aggressively emphasized by Mr AshokGoel, Vice Chairman and Managing Director.
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 .
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.
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
• 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’
Future plans of EPLForaying 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.
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.
Exploring New Business Models• Currently, Essel Propack offers empty packagingmaterial to its clients. It now plans to implement noveldelivery models, wherein the client would only focuson product development, brand building anddistribution, and entrust Essel Propack with the entireresponsibility of the packaging process till the finishedproducts are ready.