Through the looking glass with AGI Glaspac

The WhatPackaging? team explores the company’s approach in the glass packaging industry, and what is the recipe that drives it’s performance. Rajesh Khosla, CEO of AGI Glaspac shares insights

20 Feb 2024 | By Abhay Avadhani

Glass is classy. Also it makes money. At the recent Cosmoprof show, we picked three data points. That glass packaging is expected to grow at 3.7% globally between 2021-28 - and it is driven by the alco-bev segment. And finally the Indian market saw a CAGR of 5.5% last year; primarily driven by glass cosmetic bottles.

This brings us to AGI Glaspac where glass drives more than 65% of its revenue. A year ago, the company launched commercial operations at its Bhongir plant, specialising in high-quality glass premium segment with a special focus on perfumery and cosmetic industries.

So, what binds AGI Glaspac to more than five hundred marquee customers. Find out more...

AGI Glaspac leverages automation technology and quality management processes. It's certified products, created with precision through CAD systems and moulding, guarantee high quality. From tamper-evident closures to tailored solutions, AGI ensures packaging integrity throughout the supply chain.

The moulding systems, employing HDPE, PP, PET, or various resins, ensure high-quality production. Security caps and closures are designed to resist unauthorised access. This process, combined with a fusion of design and technology, allows AGI to consistently surpass customer requirements and expectations.

Recent innovations in sustainable materials

The company's new experience centre and design centre serve as hubs for innovation, equipped with professionals dedicated to patent registration and design excellence.

It's waste management strategies include treatment plants and a cullet sorting machine, aimed at boosting cullet usage and enhancing recycling efforts, resulting in an annual reduction of 20,000 tonnes in carbon emissions.

AGI's commitment to sustainability also extends to efficient water management, including achieving zero liquid discharge and usage of 35% to 40 % recycled glass. Furthermore, rainwater harvesting contributes to it's comprehensive water conservation initiatives. The company strives to minimise packaging material or utilise materials that are recyclable or biodegradable.

Premium wine bottles for Indian brands

Crafting high-quality wine bottles, similar to those used for premium wines like Chianti, involves tackling a few technical challenges. It starts with getting the glass mix right - maintaining the wine's flavour while ensuring the bottle is sturdy. The shape of the bottle matters for both practicality and appearance.

Balancing the weight is crucial; it should feel solid without being heavy, enhancing the overall experience. Proper sealing is essential to preserve the wine's taste. Labels need to fit well without compromising looks or durability.

Additionally, AGI caters to specific requests from some of the Indian clients, producing bottles similar to the iconic Chianti bottles tailored to their preferences. The bottle should handle different temperatures smoothly to maintain the wine's quality.

AGI Glaspac produces beer containers in amber, green and flint colours throughout the year in (narrow neck press and blow) and blowblow (BB) technologies, for major customers in India and some European customers.

The company has integrated electrostatic precipitators (ESPs) in most of its plants. This integration mitigates air pollution, ensuring that emissions align with standards. Solar power installations are operational at the manufacturing facilities, anticipated to yield an annual reduction of 16,000 tonnes per annum in CO2 emissions.

AGI Glaspac’s Q3 results, ending 31 December, 2023

In Q3 FY24, AGI Greenpac posted an EBITDA of Rs 153-crore up by 36% year-on-year (YoY) and Profit After Tax (PAT) of Rs 67-crore up by 26%.

EBITDA margin was 25% as compared to 20% in the December 2022 quarter. Earnings per share rose to Rs 10.37 in the Q3 FY24 as compared to Rs 8.23 in the December 2022 quarter.

In 9M FY24, revenue from operations was Rs 1,796-crore, registering a growth of 12% Y-o-Y. The EBITDA stood at Rs 432-crore, marking a 48% YoY growth, and PAT was Rs 187-crore, demonstrating a 22% YoY growth.

Latest Poll

Which is the sustainable packaging product among MSMEs that is most popular?

Results

Which is the sustainable packaging product among MSMEs that is most popular?

Bagasse and biodegradable boxes

 

23.53%

Corrugated boxes

 

47.06%

Paper bags

 

29.41%

Recyclable plastic (bubble wraps, bio-plastic)

 

0%

Total Votes : 17