Mold-tek Packaging to target food & FMCG sectors for IML containers

In-mold labelling (IML) containers are better suitable for food & FMCG products as they are hygienic

Last Updated : May 31 2017 | 4:00 PM IST

The Hyderabad-based Mold-tek Packaging Ltd (formerly known as Moldtek Plastics Ltd), a manufacturer of injection moulded rigid plastic packaging containers, is aiming to expand its in-mold labelling (IML) containers business by focusing on fast-growth sectors such as food and FMCG, in addition to its traditional users such as lubes & paints manufacturers.

Mold-tek claims to the first company in India to introduce in-mold labelling concept for decorating plastic containers using robots. IML enables photographic quality decoration with complete hygienic and hands free production of containers suitable for food & FMCG products.

“The company is moving into high-value added IML decorated containers for not only its traditional blue chip clients in paint & lube industry, but also increasing entry into food & FMCG industries, where IML is proved to be the best option for hygienic and food safety standard packaging,” commented J Lakshmana Rao, chairman & managing director, Mold-tek Packaging.

Mold-tek has started commercial supplies of IML containers for the new brand chocolates Dairy Milk Lickables recently launched by Mondelez. The company is also developing various new IML containers for other leading food & FMCG companies.

Mold-tek expects the contribution of food & FMCG sectors to overall turnover to increase considerably from the FY2017-18. “We expect it to reach around 16-18 percent next year from 6 percent in 2016-17,” stated Rao.

The company will also set up plants at Vizag and Mysore for supplying pails (a bucket-shaped plastic containers) to the new plants of Asian Paints.

Meanwhile, Mold-tek Packaging Ltd reported 12 percent increase in revenues in FY2016-17 to Rs 345 crore compared to Rs 308 crore in 2015-16. Similarly, net profit was up 12 percent to Rs 27 crores from last year’s Rs 24 crore.