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INDIAN PACKAGING COMPANY ESTABLISHES OPERATIONS IN THE UK
Tinplate, as a food packaging medium, has existed for over 200 years – and its sustainability in the next few decades will ultimately depend on its cost-effectiveness and environmental friendliness. Steel and tin constitute approximately 75% of its cost of production and there has been an increased global focus on ecofriendly or green packaging, necessitating a renewed focus on the conservation of natural resources.
MAYURA International is a packaging material manufacturing company out of India that deals with tinplate, aluminum, and steel packaging solutions. They decided to procure the excessive scrap from steel and Iron manufacturing companies to developing countries – where the use of plastic is excessive. Their production plant had an annual capacity of over 10,000 Metric tons, yet, they were now looking to expand operations to the UK – the sixth largest economy in the world with a GDP of $2.83 trillion.
After fully establishing operations in the UK market, a fully functioning manufacturing unit will also be built there, where they can produce customized cans using the same commodity and supply other regions with the finished product from the UK.
Their goal was to be established in the UK within 2 years and be in a position to satisfy orders from various countries including India, Bangladesh, Pakistan, Vietnam, and Thailand.
A NEW MARKET TO EXPLORE
From the UK, their primary target audience will initially be India, where they already have a parent company and extensive knowledge of the market
The Indian packaging market was valued at USD 50.5 bn in 2019, expected to reach USD 204.81 by 2025 – They will now have the capacity to supply more to the market and capture a considerable market share
As operations continue to expand, there are plans to expand exports to Bangladesh, Pakistan, Vietnam, Brazil, and Nigeria – where the product and price point are regarded as ‘good quality’ due to relatively lower income levels
They will target those who manufacture cans used in the packaging of food and paints. Also, companies that traditionally use plastic for packaging – giving them a cheaper and more eco-friendly option.
WHY THE UK WAS THE NEXT STEP FOR MAYURA INTERNATIONAL
They already had a successful business model in their parent country, with a yearly output of over 10,000 metric tons. However, the ambition of their management team made them look for the next region to conquer. They knew that establishing a presence in the UK would contribute significantly towards their target of supplying their product to many more countries, making the practice greener and more eco-friendly.
This business idea is a masterstroke because its acceptability rate is very high. People are generally more willing to support sustainable and eco-friendly products that contribute towards saving the environment. Furthermore, in the UK market, Mayura International would add value by gathering scrap out of the industries, contributing towards waste management, and allowing companies to reduce their scrap management costs.
The company was confined to a market with limited growth opportunity – which could have led to business stagnation. The plan was to expand the already successful operation from Iran to the UK. Now they would have access to a new pool of demand, a new currency, a new economic environment, a diversified workforce, and most importantly, enhance their worldwide credibility and reputation.
HORIZON IMMIGRATIONS LENDS A HELPING HAND
Mayura International was already a well-oiled machine in India, but they wanted a soft landing in the new market – where there would undoubtedly be more competition. The business analysts at Horizon immigrations worked tirelessly to cover all fronts, setting the company up for success. We developed a strategic plan, detailing exactly how they could penetrate the UK market and start maximizing revenue with immediate effect.
Included in the business plan was:
Proposed service offerings
Industry and market analysis
Proposed management structure
Feasibility studies
Economic rationale and demographics
Competition analysis
Growth potential analysis
Financial projections
A senior executive at their New Delhi branch was appointed to be the sole representative in the UK. She has an illustrious career in the manufacturing and trading industry and was selected to see through the set-up process and be responsible for the operational and managerial activities of the new UK branch. An additional benefit for the sole representative and Her family is that they get UK residency immediately, with eligibility to apply for citizenship in 5 years.
THE BENEFITS OF INTERNATIONAL EXPANSION FOR PSS SHIPPING SERVICES
Considerably higher potential for revenue maximization
Access to new clientele
Reduced exposure to one currency, market, and political environment
Revenue generation in another stable currency
