KARACHI: With over 250 million population which is rising each year, the largest flexible packaging films manufacturer group, International Packaging Films Limited (IPAK) expects a 5.0 percent to 7.0 percent growth in usage of flexible packaging films in FMCG and food products.
“We are one of the fastest growing populations in the world and the demand for packaged items, be it FMCG or food, is destined to rise each year. The growing middle class is further creating the room for rise in the food items despite inflation and economic difficulties,” these views were shared by Naveed Godil, CEO, International Packaging Films Limited (IPAK), while talking to Business Recorder.
He informed that flexible packaging films come in various grades and thicknesses and are used by a big number of end users.
Since its inception, International Packaging Films Limited has invested a total of Rs 13.5 billion in its three plants. The company has a KIBOR based financing of Rs. 4 billion and plans to pay it back through the proceeds of IPO which is scheduled on 8th and 9th May 2024.
The company’s total assets value stands at Rs 36.7 billion while it recorded Rs 19.9 billion sales in 2023 and Rs 1.6 billion net profit.
The CEO said that apart from creating direct and indirect employment opportunities for thousands of people, our group of companies is also paying billions of rupees of taxes to the government every year.
Naveed said that International Packaging Films Limited (IPAK) is undoubtedly the largest flexible film manufacturer in the country with a total share of 38 percent.
Two of our plants are located at Raiwind Road while two plants are located in Quaid-e-Azam Industrial Park in Sheikhupura, he added.
“When our group entered the flexible packaging films industry, it used to be a monopolized sector with just a few players. One of the market players had 85 percent of the market share. We started setting up our first plant in 2015 and made it operational in 2017. Within two years, we achieved 38 percent market share with 98 percent capacity utilization,” he said.
“Our most recent production capacity expansion became operational on 23rd April 2024, making our group the single-largest flexible packaging films manufacturer with a name plate capacity of 152,660 tons per year,” he said.
Two of the plants were 100 percent Greenfield plants, which were financed 100 percent by the shareholders and had no debt at all.
Godil said that the company has witnessed strong cash generation in the past, which is likely to continue in the future as well because of robust growth in FMCG and food sectors.
The company has emerged as the largest flexible film manufacturer in a very short period, which shows the growth potential, strength of the leadership, and talented manpower.
CEO claimed that IPAK has a very strong and loyal customer base, while flexible film packaging usage has witnessed 8 to 10 percent annual growth in the last 3 years. This growth is likely to continue at the rate of 5 to 7 percent.
He said that a big number of products are moving to flexible packaging, and we believe the growth of FMCG and food products will lead to the growth of flexible packaging films in Pakistan.
“We can very confidently say that our group is providing approximately 7 billion worth of import substitution to the country, and we also expect to achieve 25 million dollars of foreign exchange for the country by exporting our products to North America, Europe, Far East Africa and Middle East.”
Company is Pioneer of introducing 5 layers BOPP packaging films for Pakistani users. The Cast Packaging Films project was set up in 2019, a 100 percent shareholders’ funded green field project and 100 percent subsidiary of IPAK. This specialized product facility became operational in 2021 and gained 18 percent market share with 100 percent capacity utilization.
“As we expanded further, 2 new lines 1 is a BOPP line with 59,660 tons capacity, a 100 percent subsidiary called Global Packaging Films was established at Quaid e Azam Industrial Park, Sheikhupura. The second project was Petpak Films, which is a 52 percent subsidiary of the group.”
The group collectively offers a diverse portfolio of packaging solutions, producing BOPP, CPP, and BOPET films, making it the first-ever group in Pakistan to provide one-window flexible packaging solutions, located at three strategically important locations in the country.
IPAK, along with its subsidiaries - Cast Packaging Films (CPAK), Petpak Films (PETPAK), and Global Packaging Films (GPAK) - collectively forms the largest manufacturing group of flexible packaging films in Pakistan.
Copyright Business Recorder, 2024