Leading packaging manufacturer Essel Propack has opened a new plant in Suzhou, eastern China to target the fast-moving consumer goods and cosmetics markets in Middle East, Africa and China.
Essel Propack, part of the Essel Group, valued at US$2.4 billion, specialises in manufacturing laminated plastic tubes for the oral care market. The opening of its latest plant reflects the company’s plans to extend its product line beyond oral care packaging.
The new Suzhou-based plant is Essel Propack’s fifth factory in China. It will manufacture packaging for cosmetics products such as facial cleanser, hand cream, BB cream, shampoo and hair conditioner.
Over the next two years, Essel Propack, aims to achieve at least 50% of its global revenue from the non-oral segment, said Ashok Goel, Managing Director. Currently, around 12% of the company’s revenue comes from from the non-oral care segment.
Goel commented, “Cosmetic products have much better revenues, asset turn and value addition compared to the other products in our portfolio. Oral care segment comprises 85 percent of Essel’s total revenue in China as per the last fiscal. The new plant which is our 5th site in China creates a new opportunity for Essel to mitigate any risk with current oral care customer group and could become a strong impetus for EP China’s top line growth in 2015 and beyond.”