The Making of a Titan
Flex won the Best Exporter Of The Year award from the Plastics Export Promotion Council for BOPET and BOPP Films in Oct 2006. It also won the prestigious DuPont Accolade for Excellence In Packaging Engineering in the Food and Beverage Category at Philadelphia in the U.s. in August 2006. S Chidambar interviews Senior President of Flex Industries Pradeep Tyle.
The growth of Flex Industries Ltd. — the flagship of the Flex Group – has been nothing short of phenomenal. Within xviii years of inception, it has evolved into beingness not just India'due south largest actor in the burgeoning flexible packaging business only also a global role player to reckon with. The process has seen the concept and execution of a dedicated and focused game-plan that has made it the state'due south only really vertically integrated packaging company whose value-chain extends from raw material and hardware inputs like PET fries, oriented films, inks, adhesives and conversion machinery to terminate-user solutions like packaging materials, stop-user equipment/systems, holograms and even "commodity" zip-lock pouches.
During 2005-06, Flex Industries notched up sales of INR12.08 billion (Euro 207 million), profit earlier revenue enhancement of INR 439 one thousand thousand (Euro seven.5 million) and a net profit of INR 331 1000000 (Euro five.7 million) while maintaining the double-digit annual charge per unit of growth they have so regularly clocked every year. Their subsidiary companies Flex Engineering, FCL Technologies & Products, Flex America, Flex Europe and Flex Middle East have besides all done well. Their film found at Dubai has been a great success and has accomplished over 100% utilisation, prompting them to go in for farther expansion and more production plants overseas.
Flex has won the "Best Exporter Of The Twelvemonth" accolade from the Plastics Export Promotion Council for BOPET and BOPP Films in Oct, 2006. It also won the prestigious 19th DuPont Laurels for Excellence In Packaging Engineering in the Food & Beverage Category at Philadelphia, USA in Baronial, 2006. Information technology had won this award in the same category in 2005 as well. Flex won the laurels in 2006 for applied science excellence in developing a special pouch for ANKUR table salt constructed from 5 unlike input laminate webs.
While the group has been the brain-child of Chairman Mr. Ashok Chaturvedi, one of the people spearheading this spectacular track record is Mr. Pradeep Tyle, the Senior President of Flex Industries. A role of the summit management team correct from the concept stage, Mr. Tyle is a very well-known manufacture professional person. He recently presented a paper at the prestigious BOPP 2006 Briefing organised by AMI at Frankfurt on the 23 May 2006, where his presentation was adjudged the best at the meet.
In this interview, Mr. Tyle (PT) talks to our Editor Due south. Chidambar (SC) virtually his experiences with Flex and the Packaging manufacture.
SC: Yous have been one of the people spearheading Flex's thrust right from the outset — I recall you lot were on the original Projection Team in 1987 operating out of your M-Block GK-I office in New Delhi. What made y'all choose the Packaging business organization?
PT: To tell you the truth, I was planning to become to the US for farther studies in chemic applied science in 1983. At that betoken of fourth dimension, I was working for a cement company, J.K. Cement. However, my family, especially my mother, was not too keen on my going to the US, and, meanwhile, I got the opportunity to work for Rollatainers, which was my gateway into the Packaging Industry. I had no regrets, since that was an upcoming industry.
SC: Your large growth came when y'all created a revolutionary new concept — the "affordable" Price Point Pack (sachets) for pan masala/ gutka/ tobacco, which you later extended to shampoo. How did y'all actually get started on this concept?
PT: Our Chairman always used to piece of work on the concept of purchasing power of the consumers and nosotros realised that, unless and until the production reaches the mass consumers, the sales of whatever production of mass consumption cannot abound. This was also based on the fact that most of the Indian population consists of middle class and lower middle class, who cannot beget to purchase a large pack in one go. Despite their hesitation, many years down the line, companies like Procter and Gamble had to follow this strategy for detergent Ariel and shampoo.
SC: You were the get-go convertor to go in for both forrad integration (holograms, machines, systems, commodity ziplock pouches) and astern integration (oriented films, PET chips, metallised films, inks, adhesives) — in fact, you are still the only fully integrated Indian visitor in the flexible packaging business. Was this part of your original program or was it as a result of the volumes you accomplished?
PT: Actually, at that point of time, it was non piece of cake to get the correct machines or raw materials and also considering of the complexity in imports by way of licence and high duty, it was difficult to import, but the company had a big vision of flexible packaging and, therefore, we decided that nosotros have to be self-sufficient in terms of raw materials as well as equipment. This decision made u.s. a totally vertically integrated group and, every bit you tin can see, nosotros did not do it one-half-heartedly; we established earth course capacities in each of the segments and, therefore, it was a planned action and non otherwise.
SC: You were also ane of the first Indian packaging companies to gear up up facilities overseas. Your Dubai operation has been an overwhelming success. Would you like to tell us something about your experience in this venture?
PT: The successes of our Dubai facilities have been very satisfying. It was tough initially to set up a unit outside India every bit, at every stage, you have to face the local law of the land. Withal, we are very happy with the mode things have turned out in this respect. We are at present closer to our customers, thereby extending them the facility of supplying expert quality cloth at a brusk notice. This has made our customers a happy lot!
SC: Has the Dubai venture given you lot a competitive reward?
PT: In terms of service, yes, but in terms of manufacturing, it is more than expensive than what is available in Bharat. But it is very satisfying to know that when it comes to service today, we are globally recognized. This has farther increased the level of confidence our customers have in Flex.
SC: Practise you plan to extend your overseas manufacturing activities to other countries?
PT: Yeah. Today, Flex is exporting to over 81 countries and, in pursuit of our philosophy of being near to the customer where they want us, we are looking into the possibility of opening more units outside Republic of india. We are planning these facilities to be close to the emerging markets.
SC: What exercise you meet as the potential for packaging in the Indian domestic market?
PT: In 1 give-and-take, "GREAT" and, if one discussion is non enough, and then "SUPER Dandy"!
SC: What will be the Indian packaging indusry's major challenges to fully capitalise on this potential? Tin can nosotros also reach dominance in international markets?
PT: To exist honest, Republic of india can spearhead the international markets. The only thing is our lack of respect for consequent quality and commitments in terms of service and delivery. As long as these are in that location, aught can concord united states back. The local manufacturers have to realise the importance of supplying consistent quality products and a expert service network. There is no country in the world where the flexible packaging manufacture is not growing. With growth rates of iii% to 25%, depending on state to country and the impending ascension in consumerism, there is no reason why this industry should non attain dominance over other industries.
SC: To what would you aspect Flex'southward remarkable success in this business?
PT: I think vision and acting at the right fourth dimension. Also, the experience and expertise in all spheres of packaging has given Flex the insights of all the latest developments and innovations that are taking identify around the world and this certainly helps to exist in sync with our customer requirements and quality concerns.
SC: Personally, what has been your most satisfying accomplishment in Flex'southward formidable road to success?
PT: For me today, Flex's proper noun condign a respectable household make in Flexible Packaging in 81 countries is the near satisfying achievement.
SC: Thanks very much for talking to us. Here's wishing yous and Flex lots more success in the future.
Source: https://packagingsouthasia.com/zarchive/the-making-of-a-titan/
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