TCPL Packaging plans to establish a greenfield facility in Southern India, seizing the opportunity amid Western anti-China sentiment and boosting US exports

TCPL Packaging plans to establish a greenfield facility in Southern India, seizing the opportunity amid Western anti-China sentiment and boosting US exports

- New facility, located near Chennai, will be strategically positioned close to major industrial manufacturing hubs
The Pulp and Paper Times

TCPL Packaging is one of India’s leading producers of sustainable packaging solutions for customers across industries. TCPL partners with customers to provide paperboard-based packaging products mainly folding cartons, printed blanks and outers and litho-laminated cartons. It also provides flexible packaging products such as laminates, pouches, wrap around labels and sleeves. Headquartered in Mumbai, India, TCPL has a pan-India presence with eight state-of-the-art manufacturing facilities and marketing offices in key metro cities of India besides an international presence through an office in the UAE.

TCPL has maintained a steady growth since inception in 1990. After 18 years, Net Turnover crossed the INR 100 crores mark in FY 2007-08. In the 16 years since then, the company has grown more than ten times in size and achieved a total revenue of INR 1552 crores in FY 2023-24, with the last 10 years revenue CAGR being CAGR being 14.67%. From manufacturing only tobacco blanks and shells, the company has successfully diversified and broadened its operations to service a much wider range of packaging products, while steadily adding new customers and increasing its share of business in existing customers and markets.

TCPL is thrilled to announce the plans to establish a greenfield facility in Southern India. This strategic expansion will enhance TCPL’s Pan India presence and bolster ability to serve both new and existing customers more efficiently.

“Our new facility, located near Chennai, will be strategically positioned close to major industrial manufacturing hubs. This prime location offers significant logistical advantages and easy access to core markets. This expansion is in line with TCPL’s commitment to grow alongside our customers geographically and to strengthen our leadership position in the industry.” The Annual Report of TCPL Packaging stated for FY 23-24.

FINANCIAL PERFORMANCE
In the financial year 2023-24, TCPL has achieved a nominal revenue growth of INR 1512.78 crores on a consolidated basis, an increase of 4.89%; and INR 1458.21 crores on a standalone basis, an increase of 4.16% on year-on-year basis. The total revenue including other income for the year has been INR 1551.95 crores on a consolidated basis from INR 1484.50 crores in the previous year, and INR 1497.80 crores on a standalone basis from INR 1441.84 crores in the previous year. On a consolidated basis, the EBITDA margin stood at 17.32%, and on a standalone basis it is 17.89% over from 17.03% and 17.55% respectively in the previous year.

On the sustainability of TCPL, the report mentioned that TCPL is wholly committed to be India’s leading sustainable packaging company. In addition to the sustainable nature of its products, your Company is also investing in making the manufacturing process more sustainable and environment friendly. During the fiscal year the Company invested in rooftop solar at its Goa and Haridwar locations. At both these locations, the own production of solar power accounts for around 15 % of the total energy needs. This not only helps the Company wane off fossil fuels but also offers a very compelling return-on-investment. The solar generation from an earlier installation at Guwahati and Silvassa has also been satisfactory. The management has decided to additionally invest in more such solar capacities at its other locations in the current year and the years ahead. Additionally, in its flexible packaging unit, your company is in the process of installation of solid fired boilers which will use briquettes/biomass for energy generation as opposed to furnace oil and diesel, which will help to reduce carbon emissions in a big way while also reducing cost.

The report added, “TCPL is now recognised as a leader in its field across segments, and your Company’s management is very confident of leveraging its existing relationships with leading customers, besides entering new customer segments, to continue with high rates of growth as witnessed in the past. The ability to produce recyclable flexible packaging also gives the Company an edge over its competition. As can be seen in the market today, your Company has helped brand owners such as Unilever and Nestle launch their first mono polymer (PE) fully recyclable pouches in the past year. This market will be bound to grow in time and will propel growth of our flexible packaging division, where your Company has scope for growth through significant capacity that has been added lately.

Considering the anti-China sentiment growing across the western world, there is also a major opportunity to capitalize on this and gain market share in export markets. Significant efforts are being made to tap new client’s world over, with your Company also having commenced supplies to USA in the past year, which is a market with tremendous scope for growth.”

It is noteworthy that there has been a noticeable shift in the sentiment of the western world, favoring a move away from authoritarian nations such as Russia and China. This shift in sentiment presents a compelling opportunity for Indian exports. The “China+1” strategy, which involves diversifying supply chains away from sole dependence on China, is gaining traction. Companies and countries are actively exploring alternatives and seeking new trade partnerships.

Overall, TCPL’s proactive approach in exploring and leveraging opportunities arising from the shift in sentiment and the “China+1” policy will position the Company well for sustained growth and success in the future.
 

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