Canpac aims for Rs 700 crore in 2026

Lean operation, productivity and cost control

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Preeti Todi, director and Nilesh Todi, managing director of Canpac with Aditya Surana of K&B distributor, Indo- Polygraph Machinery. Photo PSA
Preeti Todi, director and Nilesh Todi, managing director of Canpac with Aditya Surana of K&B distributor, Indo- Polygraph Machinery. Photo PSA

When we visited Canpac in April 2018, it was in the course of significant expansion in several areas in its Ahmedabad mother plant and buying its second K&B multicolour carton press to be installed there. The expansion was in several areas –– the plant itself that was to have a new packaging design area, while the flexible packaging with a new Bobst gravure press, a Nordmeccanica laminator, Kalpravux slitter-rewinders, and fully equipped infrastructure for luxury cartons (rigid box) manufacturing were already installed.

The owner and driver of the expansion, Nilesh Todi, talked about the soon to be installed K&B 7-color coater UV press on order, and paper bag making machines lines from Italy and China that had already arrived in the plant and were awaiting installation. The first K&B 7-color coater UV press was already running in its just established Tirupur plant. In addition, he mentioned the purchase of several trucks that the company would use to deliver the various packaging products produced under one roof for each brand owner customer to its doorstep.

Todi’s ideas sound workable, except that most expansion plans in India are serial at best – one thing after another. It is almost impossible to execute or realize several ideas or plans in parallel, which he took on successfully. The compression of time is every Indian’s dream and even with the appropriate resources, the complexity of executing any plan on time is beyond most industrialists – when an expansion or Greenfield project is completed on time it is something that they rightfully boast about.

Canpac’s ambition of reaching a turnover of Rs 400 crore on the back of five multicolour carton presses in two locations has not really arrived on its estimated schedule of three years – because of the unforeseen Covid-19 pandemic, it will be delayed by a year. But the execution has been relatively neat considering the competitive influx of carton presses and converting equipment, the flattening of the economy and finally, the pandemic lockdowns.
The completion of the Ahmedabad building, the expansion of the carton, flexible packaging, paper carry bag, rigid box, design and trucking solutions have more or less happened. Moreover, there has been an infusion of capital by JM Financial, a private investment firm, and growth fund to the tune of Rs 60 crore for a minority stake in the company. This was primarily to establish certain SOPs, induct professional management and leverage quality human resources.

“The Rs 400 crore target is now postponed to 2022-23 – 70% in folding cartons but at the right time we will grow the other businesses,” according to Canpac’s managing director, Nilesh Todi. He explains, “Every new carton line should produce about Rs. 45 to 50 crores, ideally.” He adds that the higher numbers include some of the nominal inflation in the industry – particularly in raw material prices. “Last year’s growth and business development was disrupted by the Covid 19 pandemic and its lockdowns. The Rs 700 crore turnover target is for 2026 now.”

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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– Naresh Khanna

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Editor of Indian Printer and Publisher since 1979 and Packaging South Asia since 2007. Trained as an offset printer and IBM 360 computer programmer. Active in the movement to implement Indian scripts for computer-aided typesetting. Worked as a consultant and trainer to the Indian print and newspaper industry. Visiting faculty of IDC at IIT Powai in the 1990s. Also founder of IPP Services, Training and Research and has worked as its principal industry researcher since 1999. Author of book: Miracle of Indian Democracy.

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