Pune-based packaging machinery manufacturer Nichrome’s recent attempt to diversify from its core business of manufacturing form fill seal machines has been a success and the company will continue to strengthen these verticals in coming months, company’s executive director, Mrunal Joshi, said during Propak India 2019, which was held in October in Mumbai.
“A couple of years back we ventured into offering end to end integration projects. We provide solutions starting from product handling to primary packaging, secondary packaging, pelletizing to warehousing. We have got a very good response from the industry and are talking to three to four pharmaceutical companies to execute end to end projects,” says Joshi.
Although Nichrome is diversifying into new areas, its focus on core packaging machinery division still remains sharp. The company is working on enhancing the specifications of its form fill seal machines that it currently manufactures. Nichrome has been dominant in the manufacturing of form fill seal machinery for pouches but now offers stacking and wrapping solutions, HDPE bag filling system, bottle filling lines for liquid products, bottle filling lines for solid products and tin can filling lines. In secondary packaging segment, the company offers solutions such as case packing machines, bailing machines and crating machines.
“We have decided that instead of launching new models, we will be working on improving and enhancing the specification of the current models,” Joshi says. Nichrome has been a pioneer in manufacturing form fill seal machines in India for pouches and now offers secondary packaging solutions as well such as bottle, jar and tin filling lines.
In terms of customer base too, Nichrome has diversified beyond food to pharma and speciality products, such as seeds and other agricultural products. “We are growing in multiple segments with a highly diversified customer base and a varied product line,” shares Joshi.
About a year ago, the company entered the pharmaceutical packaging space by tying up with machine manufacturers from South Korea, Italy and Turkey. Through this tie-up, it will distribute in India packaging solutions for liquid oral dosage products, ampules, tables, solid dosage products and capsules, among others.
Second half of the year to see recovery
Slowdown in the economy has affected capital expenditure in a variety of sectors, including packaging machinery segment. Nichrome too is feeling the effects of current economic slowdown but things are not that bad. Joshi says that the company will be able to install more machines this year than it did last year, but the growth will be much below expectation.
“We will definitely grow in the 2019-2020 financial year, but the growth rate that we expected at the start of the year is not likely to materialize. However, we expect the second half of the year to be much better than the first half,” she argues. She says that the slowdown in dairy industry, especially the milk segment, is very pronounced while edible oil segment is doing okay.
“All in all, the current financial year is expected to be a mixed bag for us,” Joshi concludes.
