Moglix – a packaging aggregator brings procurement efficiency

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

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.”

Packaging South Asia — resilient, growing and impactful — daily, monthly — always responsive

The multi-channel B2B in print and digital 17-year-old platform matches the industry’s growth trajectory. The Indian, South Asian, Southeast Asian, and Middle East packaging industries are looking beyond the resilience of the past three years. They are resuming capacity expansion and diversification, with high technology and automation in new plants and projects.

As we present our 2024 publishing plan, India’s real GDP growth for the financial year ending 31 March 2024 will exceed 6%. The packaging industry growth will match the GDP growth in volume terms and surpass it by at least 3% in terms of nominal growth allowing for price inflation in energy, raw materials, consumables, and capital equipment.

The capacity for flexible film manufacturing in India increased by 45% over the past four years. With orders in place, we expect another 20% capacity addition in 2024 and 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels are grown similarly. As the consumption story returns over the next six months, we expect demand to return and exceed the growth trajectory of previous years. The numbers are positive for most of the economies in the region – and as shown by our analytics, our platform increasingly reaches and influences these.

For responsible and sustainable packaging, with its attendant regulations and compliances, there is significant headroom to grow in India and the region. Our coverage includes the entire packaging supply chain – from concept to shelf and to waste collection, sorting, and recycling.

We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers. This is a large and complex canvas – the only thing that can work is your agile thinking and innovation together with our continuous learning and persistence.

The coming year looks to be an up year in this region, and this is the right time to plan your participation and marketing communication – in our rich and highly targeted business platform with human resources on the ground. Share your thoughts and plans and to inspire and mobilize our editorial and advertising teams!

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