NewsDownstreamBackward integration boosts Ess Dee
13 JUNE 2011www.dnaindia.com

Backward integration boosts Ess Dee

Edited by : AL CIRCLE
2 min read
Backward integration boosts Ess Dee
Ess Dee Aluminium, India’s largest manufacturer of aluminium foil and foil products, is well poised to benefit from its backward integration exercises along with rising demand for packaging products from pharmaceutical and FMCG sectors.

Business: Ess Dee Aluminium engages in the manufacturing and supply of primary packaging materials for the pharmaceutical, food, and FMCG industries in India and abroad.

The company specialises in providing aluminum foil based flexible packaging laminates and coatings for pharmaceutical products in strip or blister packs. Ess Dee also manufactures thermoforming poly vinyl chloride (PVC) films and PVdC coated PVC films for packaging high-moisture and oxygen-sensitive products.

The company sources aluminium foil stock from outside and converts it to packaging foils using cold rolling processes at its hubs in Daman and Kolkata. After cold rolling process, the packaging foils are sent to its printing units or ‘spokes’ which are located in close proximity to manufacturing plants of end users.

The company has current installed packaging capacity of 370,000 million tonnes per annum (mtpa). Also this acquisition helped Ess Dee to have its own caster plant with installed capacity of 11,000 mtpa. The caster plant provides backward integration as it converts aluminium ingots into aluminium foil sheets — the key raw material for packaging.

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