Sector: Packaging FMCG & Pharma
Client: World's largest producer of non-metallic tubes, manufacturing in eleven countries, sales of $400 million. Growth has slowed and profits are down.
Promoter's Dream: To be a highly profitable $500 million company within 18 months, with a $1 billion market cap, ensuring a future of sustained, profitable, growth.
The Avenues of Opportunity Recommended by OPENMIND
Become a Truly Multinational Company: With 76% of sales outside India, the client struggles to profitably manage its far-flung operations. OPENMIND MD, Mr. Richard Rothman recommended that it hire a new CEO, create a MNC management structure, and move its headquarters to a global city. OPENMIND's recommendations will help the client to recover an opportunity for sustained, profitable growth by moving closer to its foreign customers, attracting better talent and cutting borrowing costs.
Uncover Caps and Closures: OPENMIND recommended that the client focus management resources on the fast growing market for caps and closures, projected to reach $46 billion by 2016. Through this recommendation, Mr. Rothman helped the client to uncover an opportunity that he had missed for sustained, profitable growth.
Recognize and Leverage Core Benefits: The client’s packaging is used daily by a billion consumers worldwide. Yet consumers are not aware of the tremendous benefits it provides. OPENMIND recommended that the client put its brand mark on all packaging it produces, and educate consumers about the crucial role it plays in ensuring their physical well-being. Through this recommendation Mr. Rothman helped the client to discover a new opportunity for sustained, profitable growth.
Actions Taken: The client appreciated and accepted the OPENMIND recommendations and is working at brand recovery. There has been promoter and top management participation throughout the process.
The OPENMIND Advantage
Industry: The packaging industry is projected to grow at a Compounded Annual Growth Rate of 5-7% over the next five years.