The Telegraph
Ess Dee forays into consumer segment
Edited by : AL CIRCLE
2 min read
Industrial packaging material manufacturer Ess Dee Aluminium is entering the consumer space with the launch of aluminium foils for food, taking on players such as Hindalco.
The company has inked an agreement with Walt Disney to manufacture colourful foil with cartoon characters mainly targeted at kids. “We have tied up with Walt Disney for exclusive rights of their famous comic characters, which will be used in our coloured foils,” Sudip Dutta, chairman and managing director of Ess Dee, said.
Under the pact with Disney, the company also has the rights to the cartoon character Doraemon.
The use of aluminium foil for food packaging and cooking is on the rise in urban households as consumers look for safer options to experiment with food and keep it fresh for long.
“We have signed an agreement with a German concern to introduce germ-free technology in the manufacturing of aluminium foil. This is the first time such a foil will be introduced in India,” Dutta said.
The aluminium foil market for consumer purposes is pegged at 18,000-19,000 tonnes per annum in the country and is growing over 20 per cent annually.
However, the organised sector is only one fourth of the total market. Ess Dee sees the entry into the consumer aluminium foil business, branded as Housefoil, as the first step towards building a new vertical. “We have lined up many products for the retail market,” Soumitra Maitra, president of the consumer products division of Ess Dee, said.
The firm, along with its subsidiary India Foils —which has three plants in Bengal — is one of the leading manufacturers of aluminium packaging material for the pharmaceutical and FMCG industries.
It hopes to garner 5 per cent share of the organised market for foil in the first year of operation and 12-15 per cent going forward. This will translate into additional volume with improved margin.
The foil will now be manufactured at the Daman facility, but with the growth in demand, the company may start production at Kamarhati in Bengal.
“We hope the consumer segment to be a major revenue driver from 2014,” Maitra said.
The company has inked an agreement with Walt Disney to manufacture colourful foil with cartoon characters mainly targeted at kids. “We have tied up with Walt Disney for exclusive rights of their famous comic characters, which will be used in our coloured foils,” Sudip Dutta, chairman and managing director of Ess Dee, said.
Under the pact with Disney, the company also has the rights to the cartoon character Doraemon.
The use of aluminium foil for food packaging and cooking is on the rise in urban households as consumers look for safer options to experiment with food and keep it fresh for long.
“We have signed an agreement with a German concern to introduce germ-free technology in the manufacturing of aluminium foil. This is the first time such a foil will be introduced in India,” Dutta said.
The aluminium foil market for consumer purposes is pegged at 18,000-19,000 tonnes per annum in the country and is growing over 20 per cent annually.
However, the organised sector is only one fourth of the total market. Ess Dee sees the entry into the consumer aluminium foil business, branded as Housefoil, as the first step towards building a new vertical. “We have lined up many products for the retail market,” Soumitra Maitra, president of the consumer products division of Ess Dee, said.
The firm, along with its subsidiary India Foils —which has three plants in Bengal — is one of the leading manufacturers of aluminium packaging material for the pharmaceutical and FMCG industries.
It hopes to garner 5 per cent share of the organised market for foil in the first year of operation and 12-15 per cent going forward. This will translate into additional volume with improved margin.
The foil will now be manufactured at the Daman facility, but with the growth in demand, the company may start production at Kamarhati in Bengal.
“We hope the consumer segment to be a major revenue driver from 2014,” Maitra said.
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