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AGI Greenpac Ltd.
MCap : ₹ 4,140 Cr.
AGI Greenpac was incorporated as Hindustan Twyfords in 1960 by the Somany family (promoter group) in collaboration with Twyfords, UK, to introduce vitreous china ceramic sanitaryware in India. The Company changed its name to Hindustan Sanitaryware & Industries in 1969 and has since been popularly known as ‘HSIL’. In March 2009, the company name changed to HSIL. On May 11, 2022, the company’s name was changed to AGI Greenpac.
The company’s pioneering zeal and its pursuit of excellence have been the defining traits of its journey over the years. It has been its steadfast ambition to deliver only the best, and this holds true when it comes to the Packaging Products business.
The company entered the venture in 1981, with the acquisition of ‘The Associated Glass Industries Limited’ (AGI), and diversified into the manufacturing of PET bottles with the acquisition of Garden Polymers Private Limited (GPPL) in 2011.
The company commenced the production of security caps and closures under the brand ‘AGI Clozures’ in 2018, further bolstering its portfolio with patented and technologically superior products that prevent counterfeiting of packaged products in liquor and edible oil industries. It has relied on its deep industry knowledge, top engineering caliber, design excellence and technology adoption to deliver products which are world class and cater to consumer needs across industries.
INVESTMENT THESIS
Diversified product portfolio with long standing reputed client base
Long track record with strong market position
Experienced promoters
•Diversified product portfolio with long standing reputed client base
The company has over the years built a wide-ranging portfolio of packaging products for both glass and PET, along with a synergic product business of security caps and closures. The company is positioned as one of the significant glass container manufacturers in the country, offering packaging solutions to multiple sectors. The company’s products cater to a large reputed diversified customer base (which includes names like Abott, Coca Cola, Bacardi, Carlsberg etc.) with a product range covering flint, amber and green containers. The company’s plants are equipped to manufacture 5 ml to 4,000 ml of glass bottles and 10 ml to 10 liters of PET bottles in various shapes, sizes and colors. The company is selling packaging products as a brand portfolio; under AGI Brand for Glass Containers, GP Brand for PET bottles and plastic products and AGI Closures for security Caps and Closures.
•Long track record with strong market position
AGI Greenpac, incorporated in February 1960 to introduce vitreous China ceramic sanitaryware in India later diversified into the manufacture of glass containers through the acquisition of Associated Glass Industries Limited (AGI) in 1981. AGI Greenpac holds a leading market share in all the business verticals of its presence. Post Demerger in 2019, AGI Greenpac was housing the entire packaging products division (PPD) and was also engaged in the manufacturing of building products for its group company; Hindware Ltd on a cost-plus basis. With the slump sale the building products division’s entire operating facilities of AGI Greenpac was transferred to Hindware Ltd, leaving apart some land parcels on which Hindware Ltd. Continues to pay lease rentals to AGI Greenpac.
AGI Greenpac is one of the leading manufacturers of glass containers in India in the organized liquid packa
•Experienced promoters
AGI Greenpac is promoted by Dr. R K Somany who had an extensive experience of around 65 years in the industry. With the after the death of Dr. R K Somany, his son Sandip Somany was appointed as the Chairman and Managing Director of the company.
Sandip Somany actively manages the overall operations of the company and has around 35 years of experience in the ceramics and the container glass industry. The extensive experience of the promoter in the business has helped in developing the AGI brandand also establish relationships with their customers and suppliers. The board of the company is broad-based and has several independent professional members having vast industry experience in diverse backgrounds. The operations of the company are managed by a well-qualified and experienced senior management team.
INDUSTRY OVERVIEW
Packaging Industry Review
The past decade has witnessed significant changes in the packaging industry driven by a host of factors such as new market penetration, the emergence of contactless delivery, and the changing ownership dynamics across the world. The global packaging market is estimated at US$1,002.48 billion in 2021. Glass packaging is a premium and one of the most trusted forms of packaging for health, taste, and environmental safety. This ensures its continuous usage worldwide, across a range of end-user industries, despite the heavy competition from other packaging materials. Increased focus on sustainability.
Glass Containers
Increasing hygiene and living standards among consumers living in urban areas across the globe is driving the consumption of glass containers including bottles, jars, and tableware. Consumers are increasingly using glass containers to hold food and drinks. Besides, the reusability and recyclability of glass are driving its consumption to help protect the environment against single-use plastic containers. According to Grand View Research estimates, the global container glass market size will reach US$ 82.2 billion by 2028. The market is expected to grow at a CAGR of 3.7% from 2021 to 2028, driven by the increasing demand for fast-moving consumer goods (FMCG) and alcoholic beverages across the globe.
BUSINESS OVERVIEW
The company is engaged in the production of various packaging products including glass containers, speciality glass products, polyethylene terephthalate (PET) bottles and products, and security caps and closures. Over the years, its state-of-the-art manufacturing capabilities and its concerted efforts to deliver a wide range of best in-class products have enabled it to consolidate its position among the top packaging products companies in the country and as a leader in glass container packaging.
COMPANY BUSINESS SEGMENT
1. AGI Glaspac
2. AGI Plastek
3. AGI Clozures
AGI Glaspac
The company manufactures glass containers and specialty glass under the brand AGI Glaspac to meet the stringent and demanding quality standards for the packaging needs of food, pharmaceuticals, soft drinks, spirits, beer, wine and other industries. Over the years, companies' consistent investments in R&D and technology have resulted in superior quality and increased operational efficiencies, which have enabled them to secure a significant market share. The company continues to focus on improving capabilities across manufacturing plants by upgrading manufacturing processes.
The product range varies from a small 5 ml Pharma bottle to a 4000 ml chemical and food jars.
With the recent addition of coloring forehearth technology at the Bhongir plant, AGI is in a position to provide glass containers in various colors which can offer great marketing advantages from a branding point of view.
Leading Container Glass Manufacturers
AGI glaspac has been designing and manufacturing glass bottles and jars for over 49 years, and still leading the way when it comes to quality, flexibility, and innovation. Companies have a wide range of general sale glass containers for the food, pharmaceutical, and beverage markets, many available from stock.
The company also has its own in-house design team offering a complete service for bespoke glass packaging, from initial concept to manufacture and decoration; and because of pride on flexible approach feel at home working with niche products as well as with big brands worldwide.
Product Segments :
Beer Bottles
A glass bottle preserves the freshness and taste of its contents, while offering that celebratory clink, so it’s perfect for beer. An AGI glaspac glass beer bottle provides 99.9% protection from UV rays, and glass is a great insulator, so it keeps beer colder longer than any other type of single-serve packaging.
AGI glaspac provides bottles to some of India’s best known brewers and supplies many brewers with quality glass beer bottles throughout India. Using professional design capabilities, companies are able to progress a basic idea or concept through a step by step process of product development to realise the final packaging product. The company focus is not only on quality but being able to quickly introduce new products to market.
The company Beer Range comprises mainly 330 ml as well as 650 ml AIBA bottles along with other patented designs which are meant for select customers. The company makes beer bottles in 500 ml size, as per select international customer requirement.
Beer bottles are available in Amber, Flint as well as Green glass throughout the year.
Chemical Bottles
The company is indulged in offering the highest quality gamut of Bottle to respected customers. Trading in conformity with set international quality standards by using quality assured products by vendors trained professionals, the offered bottles are examined against diverse parameters of quality to ensure their superb quality. Furthermore, The company provides the whole range of these bottles at competitive rates.
The range starts from 250 ml up to 4000 ml in Amber glass to pack specialty chemicals which require stringent quality standards.
They offer a wide gamut of chemicals and Pesticides Packaging that are available in several dimensions and sizes as per the requirements of clients the products are manufactured in accordance with the industry set norms.
Food Jars
Food & Beverages Bottles that patrons are widely appreciated owing to their premium quality, sturdiness, and longevity. These bottles are basically used in the food and beverage industries for the packaging of different types of food items. The company have made available a wide range of the bottles including Soda or Cold Drink Glass Bottles, Squash or Juice Glass Bottle, Flavored Milk Glass Bottles, Black Shine & Mat Finish Coated Bottles, and much more. These bottles are made of the optimum quality food grade material that is why the bottles are ideal for the food and beverage packaging and provide different types of Food & Beverages Bottles based on sizes, colors, and finishes.
The company products are available in amber, clear, coloured or opal glass and in a variety of shapes. By finishing techniques such as satin-frosting, printing, acid etching, silk screen printing or glass reliefs all products can be designed based on customer’s requirements. With a wide range of specific miniatures, bottles, jars and glasses offer packaging solutions for spirits, beverages and food.
The company's food product portfolio consisted of a small 28 gm jam jar to 4000 ml wide mouth jar to pack Gherkins and other products with a variety of neck finishes (ROPP, Lug neck, Crown Beverage, Crown cork etc.)
Liquor Bottles
The liquor industry is changing at record pace , AGI have invested in creating the most beautiful bottles , which are industry appreciated. AGI is one of the leading liquor bottle manufacturers in India. Through continuous drive for new and innovative packaging, AGI offer a wide variety of bottle shapes, value-added decoration options, multiple color alternatives, and short production run capabilities.
AGI makes liquor bottles in Flint, Amber, Green as well as with different colors, using Coloring Forehearth technology offer a wide range of liquor bottles, such as vodka bottle, gin bottle, brandy bottle, rum bottle, tequila bottle, bourbon bottle, cognac bottle and whisky bottle, etc. The continuous innovation and the long standing expertise built over more than forty seven years of working in the glass container industry make AGI glaspac the ideal partner for several industry leaders.
Pharma Bottles
Pharmaceutical Glass Bottles are extensively used in the pharmaceutical industry for the packaging of medicinal drugs. AGI have made available a wide range of packaging bottles including Medicine Glass Vials, Saline Glass Bottles, 3KG Bromine Glass Bottles and various others. Made up of the high grade raw material with the incorporation of the cutting edge technology and tools, the offered bottles are the ideal product to keep the medicinal products safe and protected. Pharmaceutical Glass Bottles can be purchased from us in different sizes, and types and that too at the industry leading price range.
The bottles are an integrated part of the final medicine. AGI manufactures soda lime primary packaging glass for the pharmaceutical industry in Flint andAmber glass.
The product range includes standard products as dropper bottles, medicine and syrup bottles, injection vials and infusion bottles as well as tablet and ointment jars or wide mouth packers. A huge variety of customized products can be manufactured upon request. Volumes range from 5 ml up to 4000 ml bottles.
AGI comes to non-prescriptive drugs, the focus on design, glass color and diversification within the mass of competitive products has gained significant importance over the past years. AGI offers a variety of cost convenient in-house decoration processes in order to increase the appeal of product.
With sincerity and hard work of skilled professionals, the company has carved a niche in the domain by offering Pharmaceutical Bottles. The offered bottles are manufactured in adherence with quality norms using superior quality raw material and cutting edge technology. AGI offers these bottles in different sizes, designs and specifications, so as to meet the needs of clients. Moreover clients can avail these bottles at market leading prices.
Sand Dune
Sand Dune™ conceptualized by AGI glaspac, the Packaging Products Division of HSIL Limited, as a brand that will support the “Save Earth Campaign” while giving a niche, upmarket, and premium feel to its consumer’s homes and health for customers and their families. AGI range currently offers transparent, colored & printed glass water /milk/ juice bottles and food storage jars in various sizes to suit all customer requirements.
Sand Dune™ is committed to addressing environmental & health issues by promoting “Glass Packaging” which is an environment-friendly product as an alternative to “Single-Use Plastic” which is hazardous and hinders environmental balance. Glass, being a sustainable and 100% recyclable material, provides great environmental benefits such as contributing to mitigating climate changes, saving precious natural resources, and reducing CO2 emissions, making it environmentally friendly.
Antibacterial Food Jars
Germ Guard is a nano-technology based antimicrobial composite that inhibits and destroys the growth of deadly bacteria, fungus, and molds and is suitable for use on tableware & cookware.
Features of Germ Guard technology:
-Inorganic in nature
-Highly safe and non-toxic
-Heat Stability upto 1300°C
-Destroys 99.99% of bacteria
-Permanent anti-microbial activity
-Non-corrosive
Soft Drink Bottles
AGI glaspac designs, manufactures and sells made in India empty glass bottles for the soft drink industry, available in various capacities, from 100 ml to 1000 ml . The soft drink range is spread in Flint, Amber and Green glass soft drink bottles are customizable according to the client’s needs and come in a variety of shapes. With their slender neck, graceful shoulders and sleek body, they are, without a doubt, very elegant packages! Not only elegant and completely customizable glass, but also, and most importantly, a material that respects the environment, being fully recyclable or reusable
At AGI glaspac the client is focus, therefore the company has structured itself to accomplish even the most complex project in order to satisfy any customer’s request.
Every service is specifically tailored in order to create a unique and therefore exclusive product, distinguishable in the marketplace.
Wine Bottles
AGI India’s leading wine glass bottle manufacturers where provide complete packaging solutions for winemakers all across the globe that proudly support any size producer, from small boutique wineries through to multinational brands and global wine distributors. AGI Offers a wide range of glass wine bottles, including flint, green, amber color and use state-of-the-art laser drawing machines to create customer specific wine bottles. This machine carves the design directly onto the bottle and then fills it with a gold or silver paint to give it an extra pop.
AGI’s custom carved wine bottles are nothing short of stunning. Start creating a custom etched wine bottle by choosing a selection from the wine list and then add the company's own text or logo to create a timeless etched gift. The company's most popular glass wine bottles are displayed below.
AGI Plastek
PET Bottles and Products business under the brand AGI Plastek enables it to cater to the demands of the alco-beverages, food and soft drinks, pharmaceuticals, personal care, agro-chemicals, and dairy industry. AGI uses state-of-the-art technology to provide innovative and customized packaging solutions.
The company designers utilize the latest CAD systems and software to develop drawings and volumetrically correct 3D computer models use the latest molding systems to ensure quality products, irrespective of whether it is made of HDPE, PP, PET, or a combination of resins.
Product:
Agro
LIQUOR
PHARMA
RETAIL
INJECTION MOLDING
AGI Closures
Company engaged in manufacturing counterfeit resistant security caps and closures, with a primary focus on the alco-bev industry that has a team of highly experienced and qualified professionals that leverage the latest technologies to deliver the best products for customers.
CUSTOMERS
500+ Diversified institutional clients across industries such as - Abbott, Coca Cola, Glenmark, Bacardi, Carlsberg, Nestle, HUL, etc.
COMPANY OUTLOOK
The company is debottlenecking its capacity in Q1 of this financial year and rebuilding a furnace to increase output by 100 tonnes.
The company has started a new plant focusing on high-end specialty glass, which is operating at 65-70% capacity utilization in Q4.
The company has given guidance for a growth target of 15-18% in the next financial year, with an incremental margin expansion of 1-1.5% due to various factors.
The company has spent ₹100 Crores in the last one and a half years in terms of expanding, and there is an inorganic acquisition under IBC, which is Hindusthan National Glass, to augment its capacity and grow revenues and margins for the next five years at least.
AGI Glaspac has commenced commercial production of its specialty glass facility in Bhongir, Telangana, and has partnered with one of the big four’s to formulate its ESG strategy.
The specialty glass market is smaller, and the capacities are low due to technical reasons, but the company has an aspiration to grow this business further.
Planned capex for FY2024 is around ₹200 Crores with maintenance capex around ₹20 to 30 Crores.
The company is debottlenecking its capex in April for 100 tonnes per day for ₹200 Crores, which will shut down the plant for a quarter and become operational in July.
During the year, the Company approved the divestment of its Building Products Division undertaking to Hindware Limited. With the proposed transaction, the Building Products Division’s entire operating facilities of AGI Greenpac will be transferred to Hindware Limited. The proceeds will be utilised towards the prepayment of existing bank borrowings which will further strengthen the Company’s balance sheet and create capital to further expand its packaging business.
Going forward, the manufacturing of the Building Products will not be a part of AGI Greenpac.
