PETpla.net Insider 05 / 2016

TRADE SHOW PREVIEW 34 PET planet insider Vol. 17 No. 05/16 www.petpla.net Interview with Chemco Plastic Industries We met: Mr Vaibhav Ram Saraogi, Director PET from the heart of Bollywood By Kay Barton Mumbai, the home of the Bollywood movie empire, plays host once again to this year’s dti drink technology India exhibition. Just a short distance down the Western Express Highway from the Bombay Exhibition Centre was the location for our meeting with Chemco Plastic Industries Pvt. Ltd., a multinational plastics manufacturing firm whose PET packaging seg- ment accounts for around 75% of its total output. As well as its Mumbai facility, the family- owned business has production sites in the Indian cities of Silvassa, Daman and Vadodara, and in Bahrain and the United Arab Emirates. With an estimated market share of 17.5%, it is one of the leading manufacturers of preforms and bottles in India. The company is cur- rently pursuing a range of different expansion projects as it responds to increasing demand in the packaging sector. At the same time as meeting local challenges it is seeking to maxi- mise its international potential. There was, therefore, much in the way of both historic data and recent developments to discuss with company director, Vaibhav Ram Saraogi (29). “Although we’re one of the biggest converters in India our media presence hasn’t been so strong. That’s some- thing we want to change,” says Vaibhav Saraogi, making clear that we definitely approached him at the right time. “My father, Ram Saraogi, my brother Gaurav Saraogi and I currently represent the company,” he explains. The Chemco story began in 1980, in Mumbai, with a few injection and single stage mould- ing machines for manufacture of baby feeding bottles (a product that contin- ues today in the form of its own “Small Wonder” brand) along with contract manufacture for various international brands. “Our second plant, constructed in Daman in 1982, is focused primarily on storage and product containers for food, non-food and healthcare packag- ing. Our customers there include ITC, Parle Agro, Johnson & Johnson, Nestlé, Dabur, Reckitt Benckiser and many more. Our third factory was opened in Silvassa and is equipped with a high- speed preform machines from Krauss Maffei, Husky and ASB. Our manufac- turing operations there consist of 80 systems and around 600 employees. The facility in Vadodara is our largest in terms of output and serves the packag- ing requirements of various beverage and water brands locally and interna- tionally. It has won various awards. We have also recently added machines to manufacture multilayer shrink films.” Chemco’s India turnover in 2015 amounted to US$33.6 million and is forecast to be US$52.3 million in 2016. The forecast increase, of more than 50%, will be as a result of further expansion. The momentum for growth will continue to be maintained, with the planned opening in 2018 of an enor- mous new plant, which will be focused on beverages and household items. It will use many Husky preform systems and will primarily supply to major bever- age brands alongside some local private labels. It will also produce shrink film. “Right now, PET manufacturing accounts for 80% of our plastic busi- ness in India,” Saraogi continues. “We currently have production space total- ling more than 200,000m 2 globally, and offer a four-figure choice of products. We are one of the biggest manufactur- ers in the country, in terms of output.” He explains that the company pro- cesses 200-220t of material per day, 340 days per year. In addition to PET, supplied by firms including Reliance and JBF, 15% of Chemco’s manufac- turing is accounted for by PP and 5% by HDPE. The factories operate three shifts a day, 24/7. The expansion momentum is being maintained with new, Husky- equipped factories already planned for 2017/2018. The investment will total almost US$30 million over two years; they are planned to increase output by 35%. “Among the reasons why Gujarat is a good location is the constant supply of clean energy that’s available there,” explains Saraogi. “We have also made a point of looking for locations that are near our major customers so that we are able to respond to possible require- ments at short notice, and control logistics costs.” Coca-Cola accounts for approximately 35% of Chemco’s PET business; it has won the Coca- Cola Gold Award for three years in a row. The new plants are planned to see the launch of the company’s in-house production of closures, safe guard envelopes, insulation roofing material and bubble film for packaging. Chemco is now opting to branch out to every segment of packaging, protection and some segments of construction. “With the growing potential and high movement in the e-marketing trade we feel it is important that we reach out into all segments of protection packaging”, says Saraogi. Chemco’s international operations have been no less busy. Its first inter- national factory was opened in 2000, in United Arab Emirates (UAE), where the