Mold-Tek: Building on innovation, bit by bit

When Mold-Tek got listed in November 1993 on the BSE, it had a market capitalisation of Rs. 12 crore. Today, the company is valued at over Rs. 900 crores, boasting of phenomenal growth over the years. Laxman Rao founder of Mold-Tek Packaging is to be credited for this phenomenal shareholders returns. His ability to develop plastic containers and convince the paint industry to switch to plastic pails from metal containers has helped the company to emerge as a leader in rigid plastic packaging.

Back in the past, the paint industry was using metal cans for packaging, but IIM-Bangalore educated Laxman Rao had different ideas. He thought of replacing metal cans with plastic and was able to convince the paint industry to switch to plastic pails. This shift over a decade, resulted in phenomenal growth for Mold-Tek. And now, the company is a preferred supplier for packaging material to the likes of Amul, Procter & Gamble, Hindustan Unilever, Asian Paints, Akzo Nobel, Kansai Nerolac, Shell, Castrol, Cadbury, Vadilal, London Dairy amongst others. Today, Mold-Tek rolls out over 200 million units of plastic moulded containers from its 7 facilities located in India & UAE.

Another breakthrough for Mold-Tek Packaging came in the year 2011 when the company introduced in-mould labelling (IML) technology. There were huge takers for this technology as it gave branding longer life since the artwork was printed on the container and not labelled. Apart from this the company also launched a slew of products with innovative features such as the “pull-up spout”, locking system and tamper-proof seals. All these innovations have kept the cash register ringing for the company as its top line doubled from 163 crores in FY11 to 345 crores rupees in FY17 whereas its bottom line almost quadrupled from 8 crore rupees to 27 crore rupees during the same period. Now with over 60% market share in-mould labelling and second generation joining the family business Rao is busy jotting future plans for the company.

To know more about the amazing story of success do check the webisode of The Entrepreneur - Season 2, a series brought by CNBC-TV18 in partnership with HSBC, where we talk about businesses that help resolve critical issues, only on Moneycontrol.com.