Moglix – a packaging aggregator brings procurement efficiency

Taking the pain out of designing, buying and distributing packaging materials

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Moglix
Shobhit Goel, senior vice-president of Packaging and CapEx at Moglix showcasing some of their packaging material. Photo PSA

Rahul Garg founded Moglix in 2015 to bring ease, speed, convenience and services to the b2b industrial segments. The Noida-based organization is a b2b eCommerce startup for providing services for procurement of industrial products such as MRO (maintenance, repair, and operations). Backed by equity investors such as Ratan Tata, Tiger Global, IFC, Sequoia, and Accel. The company has raised US$ 470 million (approximately Rs 3,562 crore) and became a ‘unicorn’ in 2020. With more than 1,000 employees, the company claims its current valuation is US$ 2.6 billion (approximately Rs 19,577 crore). Although Moglix began as an industrial product material procurement and MRO company, in 2019 it diversified to the packaging materials vertical.

As a contract aggregator and supplier of packaging materials since 2019, the company works for brands such as Lenskart, Comesum, Zomato, Swiggy, Rebel Foods, and several others. In packaging supply chain procurement its profitability comes from its expertise in leveraging its volume purchasing with the use of digitalization, vendor consolidation, product and pricing uniformity, benchmarking, and new product development.

The company brokers and consolidates almost every type of packaging used in segments such as food and beverages, pharmaceuticals, automotive, eCommerce, electronics, home furnishing and textile, logistics and personal care. It offers primary, secondary and tertiary packaging made of all materials – paper, plastics and films, metal or glass. Packaging types and formats include food trays, pet bottles and jars, laminates, sachets, pouches, kraft sealable bags, lamitubes, VCI bags, labels and stickers, blister, thermoform trays, glass bottles, shrink sleeves, corrugated sheets and boxes, monocartons, polybags, stretch films, paper bags, plastic crates, pp fluted boxes, seals, barcodes and bopp tapes.

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Moglix’s onsite delivery of sustainable SKUs such as paper bags, compostable bags, molded trays, bagasse trays, cotton carry bags, and bespoke biodegradable packaging are provided to more than 25,000 pin codes. The company inventory management stretches across its 35 warehouses across the country.

Food and beverages, eCommerce, ePharma, and logistics are the company’s main customers and it claims that its packaging materials fulfil more than 70% of the eCommerce industry’s packaging demands. It provides big manufacturers across sectors with source-to-site packaging supply chain solutions. For perishables’ and short shelf life products it is able to prevent pilferage, spoilage, and wear and tear across domestic and international trade transit routes.

With new product development and design, Moglix offers brand owners optimized sustainability solutions including sustainable packaging. The company says the critical lever is not only to identify sustainable materials but to develop a robust supply chain that can provide packaging components made from sustainable materials at the right cost and quality. This saves raw material and improves aesthetics while keeping the circular economy in mind.

The company’s USP is its ability to provide complete packaging and supply chain solutions in one place. The client does not need to go to another platform to find the component. Customers are provided with access to a buyer portal where they can track their current order along with re-ordering.

Shobhit Goel, senior vice-president of Packaging and CapEx at Moglix, sees a bright future in aggregation, “The Indian packaging industry will see a paradigm shift towards an organized aggregator business model, which will act as a tailwind for the industry and drive the next wave of operational efficiency.”

The company’s business seems scalable as Goel adds, “We operate as an entire ecosystem of packaging supplies right from raw material to the finished product. We have recently kicked off operations in the UAE and are planning to tap the global market.”

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement ads1@ippgroup.in , for editorial info@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna

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