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Manufacturer of rigid packaging material AG Poly Packs will invest around ₹42 crore in setting up a new facility in Parwanoo, Himachal Pradesh to manufacture flexible tubes used in the cosmetic and pharmaceutical industries..
The expansion will enable it to produce seven million tubes monthly and the new unit is expected to be operational by July. “It will be a dedicated facility to manufacture flexible tubes such as face wash, creams, scrubs, and more,” said Gaurav Daga, Managing Director, AG Poly Packs.
Its current manufacturing footprint includes two facilities in the National Capital Region (NCR). “At the moment, 4.200 tonnes of materials such as high-density polyethylene (HDPE), polyethylene terephthalate (PET), and polypropylene (PP) are processed annually,” Daga said.
Additionally, to scale its business in the western region, AG Poly Packs intends to put up another plant in the west.
Western region
“Today, many of our customers are in this region. As of now, we have set aside an investment budget of ₹30–35 crore for the new facility and are exploring locations, including Gujarat. We will conclude it within the next six to eight months.”
The company clocked an annual turnover of ₹158 crore in FY22, and is expecting to close FY23 at around ₹175 crore.
According to the MD, 95 per cent of its business comes from the domestic market, while 5 per cent comes from exports. “We export products to the Middle East region, including Qatar; Sri Lanka, and Nepal. Moreover, since the dollar is again on the higher side, it is the right time and opportunity to scale our exports.”
Active clients
It currently serves 1,800 active clients and supplies to major direct-to-consumer (D2C) companies such as Mama Earth, Wow Skin Science, Mcaffeine, MyGlamm, Emami, Joy, Dot & Key, Man Matters, Unilever, Dabur, Cipla, Palmolive, Patanjali, and Khadi.
Additionally, the company is also expanding its offering with nasal pumps. “We will begin producing nasal pumps at our current Ghaziabad unit plant for pharma companies such as Minoxidil, and this will be a major focus area for us this year. We aim to produce 4 million pieces per month,” said Daga.
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