Mold-Tek Packaging Limited, a BSE-listed company, will set up a 50,000 sq ft plant with an investment of Rs 50 crore to tap the injection blow moulding (IBM) packaging products market.
Addressing a press conference, Mold-Tek Packaging Limited Chairman and Managing Director Laxman J Rao, has pegged the addressable market for IBM packaging products at Rs 5,000 crore, with half of it coming from the FDA-approved pharma companies for the containers to package the tablets.
“Of the remaining Rs 2,500 crore, about Rs 2,000 crore comes from the FMCG (fast-moving consumer goods) and nutraceutical companies. About Rs 500 crore pie comes from the domestic pharma industry,” he said.
He said the number of FDA-approved companies in the country has gone up to 58 now from about 15 a few months ago. This was expected to go up still further, indicating a huge demand for the IBM packaging products
Mold-Tek launched a pilot project with an investment of Rs 10 crore near Hyderabad to test the technology. "We are going to invest the remaining Rs 40 crore in the next two years to expand the capacity," he said.
"We are looking at investing Rs 200 crore in the next three years on expanding our capacities. We will fund the expansion plan mostly from internal accruals," he said.
He said the company was also introducing the In-Mold labelling (IML) production process for embedding the stickers with complex designs on the containers.
"The robots that are used in the IML process are being developed by us," he said.
The firm, which registered a turnover of Rs 480 crore last year, is eyeing a turnover of Rs 600 crore in the current financial year.