Hassia Packaging, announces significant expansion plans

Company Brief

Mumbai, May 13, 2009

Hassia Packaging, India’s leading Packaging Solutions Company, today announced significant expansion plans to achieve a turnover of over Rs.30 crores by 2012, a jump of 100% over 2008-09. Hassia Packaging is expecting to make sizeable gains in the domestic and global markets this year and the company continues to focus and invest on development of innovative packaging machinery solutions. Plans are also underway to set up satellite offices globally in conjunct with partner agencies in Africa, Far East and the Middle East. The expansion plan was outlined today at a press conference hosted by Mr. K. Ravi, Managing Director & CEO, Hassia Packaging Pvt. Ltd. located at Sanaswadi Pune.

Hassia Packaging Pvt. Ltd. is fully owned subsidiary of Oystar holding GmbH, Germany. Oystar is among the top five packaging machinery builders in the world. Oystar operates over 17 manufacturing companies across the world and reported a turnover of around 500 million Euros in 2008.

Oystar companies offer equipments for the packaging of food, cosmetics, HPC and pharmaceutical products. Many of the companies like Hassia Germany, Benhil, Gasti, IWK, Manesty and Huttlin are extremely well known in the Indian market. Many package forms like Sachet and stick packs were first introduced by the group.

Hassia India (Known as Hassia Packaging Pvt. Ltd.) is planning to double its Pune facility leading to additional recruitment in the areas of design, service, sales and supply chain within the next 3 years. The expansion will entail an investment of Rs.5 crores.

Expanding the work space at its Pune headquarters has become critical as Hassia rapidly grows its broad portfolio of product solutions for a wide range of sectors including Dairy, Malted food, Health drinks, Snack food, Tea, Coffee, Sugar, Salt, Detergent & Agrochemical industries.

Speaking on the occasion, Mr. K. Ravi said, “Growing demand for packaged products in both domestic and export markets has led to the realization that innovation in packaging can lead to differentiation on the shelf and added package value. Our ability to offer superior value propositions by making technology deliver speeds, better fill accuracy at a competitive price have proven to be the most compelling differentiators for Hassia Packaging in the market today.”

”During last 9 years, we have continued to excel in the domestic and global markets, winning new business, and expanding our footprint and infrastructure.” he added. Most satisfying has been our success in redefining packaging benchmarks both in terms of speed and fill accuracy.

Hassia Packaging specializes in automating packaging of food and other products in pouches, jars and cans. The company currently enjoys market leadership in the Dairy, Detergent, Dry Powder (including Atta, Health drinks like Boost, Bournvita) and Rice segments in India. The company has grown at a CAGR of over 30% in the last 5 years. Brands like Wheel, Surf, Tide, Ariel, Bournvita, Horlicks, Kohinoor, Daawat, Tata Tea, Tilda are all packed on our machines.

Hassia Packaging’s core competence of application expertise coupled with modular solutions have enabled them to redefine speeds, achieve higher scalability and filling accuracy in several applications, setting new benchmarks for the industry. A detailed study of the customer’s site and applications enables us to avoid failures at the implementation stage.

Almost all our customers are under Price and cost pressure. It is here that Hassia delivers a significant difference. Most important Hassia offering is better fill accuracy, a feature that helps its customers save lakhs of rupees. For example a reduction of 3 grams in give away of basmati rice translates into a saving of over Rs. 55 lakhs per annum per machine. Almost all leading Basmati Rice packers use Hassia machines.

In addition, Hassia offers higher packaging speeds coupled with modularity. Hassia’s equipments can be quickly upgraded for higher speeds thereby enabling project managers to buy for the present at the same time keeping the equipment future proof. Higher speeds also means higher throughput per square foot of packaging area.

Another significant win includes Hassia’s innovative solutions for packaging of milk powder. Owing to critical process requirements, the packing of milk powder was being done mainly on imported German machines costing anywhere between 1 to 1.5 crores. The same machinery is now being supplied by Hassia at a low cost of Rs.35 lacs.

The company has secured significant incremental business from clients including FMCG majors like Hindustan Unilever, Proctor and Gamble, Cadbury India Ltd. and Tata Tea.

The company is launching a cost effective high speed bagging machines that can notch up speeds in excess of 100 / minute even for dusty products like powders, thus doubling current speeds in the industry. This is a unique development and first of its kind in India. When cost is taken into account the equipment would be streets ahead of any equipment produced in the world. The supply chain director of major FMCG conglomerate visited us to specially witness this machine.

The company is now adding a new vertical, a Universal Rotary Filling system. The company can now pack Yoghurt, Ice cream in cups, Butter, margarine in tubs and also non carbonated liquids like milk, juices, oils in bottles. The new vertical is expected add 30% to the company’s top line.

For further information, please contact:

Perfect Relations

Devika Khiarnar

Mobile: +91-9892525101

Email: dkhairnar@perfectrelations.com