What Brand Owners Want

PAM 2016Technical Conference

8th to 9th December, 2016 Hotel Leela, Mumbai, India

Dr. Surendra AgarwalCreative Group of Industrieswww.creativeplasticindia.comsurendra@creativeplasticindia.com

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Background

• Established in 1986 • Latest IM, EBM, IBM & ISBM technology – Rigid Packaging• 144 cavity molds at 6 seconds cycle time• Stack molding of caps and jars• Cube Molds • Growing at a CAGR of 24% last 10 years• Exports of Closures and Caps globally from SEZ • All plants are SMETA, FSSC22000/ISO22000/PAS 223 compliant• Plants in North, East, South & West India• Complete Package: Bottles + Closures• Creative’s CDP score is 99 vs. Global industry avg. of 63

CONFIDENTIAL

What Brand Owners Want

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• Cost Reduction

• Growth

• Sustainability

• Innovation

Cost Reduction

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Cost Reduction across supply-chain

• Material Cost Reduction – Resin, MB, Additives• Light Weighting

• Waste Reduction

• Conversion Cost Reduction• Machine Cost

• Higher Production• Energy Reduction

• Specifications

Business Growth

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• Package Design • Consumer Convenience

• Easy to open/Close• Easy to use

• Easy to dispose-off

• Easy to Recycle• Shelf IMPACT – MB could play a major role

• Design to Cost• Affordable Packaging

• Product Quality

• Cost vs. Value

DESIGN TO COST

• Consumer Convenience

• One hand held

• Lower Cost

• Sustainability

• GROWTH

“Affordable Packing”6

Sustainability

Sustainability means meeting the needs of the present w/o compromising the ability of future generations to meet their own needs

- 1987 World Commission on Environment & Development

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What Consumers Want in Sustainability

• Global consumers have clear and specific expectations for the role, companies should play in addressing Social and Environmental Issues

• Nine out of ten consumers – Want to purchase products that they think are socially and

environmentally responsible – for most consumers, purchasing is their point-of-entry for engaging in the CSR (Corporate Social Responsibility)

– Would boycott if they learned of irresponsible behavior by the companies

– Want companies to go beyond the minimum standards required by law

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What Consumers Want in Sustainability

• Today CSR is a "Business Requirement, Not an Option”

– CSR is emphatically and indisputably a "MUST-DO”

• CSR influences both consumer behavior and corporate reputation

• CSR is a differentiator from competition– 91% of global consumers are likely to switch brands

to one that is associated with good cause, given comparable quality and price

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Role of Business in Society

Business for Making Money

Business has Limited CSR Liability

Business should Support CSR

Business should Support & Advocate CSRBusiness Responsible for CSR

Source: 2013 CONE COMMUNICATIONS/ECHO GLOBAL CSR STUDY10

Why Patanjali is Growing so fast?

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• Consumers’ perception is that

• Patanjali products are Natural

• Patanjali products are with Herb• Patanjali products are socially and environmentally responsible

• Patatnjali is a Socially Responsible Company

• Patanjali products Lower in Cost vs. competition

• Bombardment with ads

• Advertisements by Baba Ramdev (Saint figure) himself

• Advertisements stress the use of Ayurvedic and Natural Ingredients in all of the Patanjali products

Consumers want "Green Packaging " but most of them do not want to pay higher cost

Brand owners want "Cost-Effective” Sustainability Solutions

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What Consumers and Brand Owners want

Challenges in Packaging• Consumers want and demand Sustainable packaging

but most of them do not want to pay higher cost• Biopolymers are more expensive and hurt the profit

margins of Companies• Brand Owners are struggling to achieve their

Sustainability goals• The best way to achieve this is by Innovation and

New Technology • Everyone in the supply-chain must work together and

contribute to Sustainability

Sustainability in Packaging

In Plastics Packaging, sources of Green House Gas (GHG) emission/Carbon foot-prints:

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• Materials

• Energy consumed to convert materials into packaging

• Transportation

Cost-Effective Sustainability

• Reduction in Materials usage by– Innovation– New Technology development e.g. for down-gauging, simplification– Smarter package design– Headspace Reduction– Recycled content usage

• Reduction in Energy Consumption– More efficient use of resources during manufacturing– Any action to reduce carbon footprint/ GHG emission will reduce energy

costs improving profitability– Use of energy-efficient machines e.g. all-electric machines– Improve Process Efficiency

• Reduction in Transportation and Travel cost

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Creative has developed Innovations & Technology for

§ Bottle Weight Reduction

§ Reduction in Energy Consumption/bottle

Greener, Sustainable & Better Quality bottles @ Lower Cost

“Cost-Effective Sustainability”

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RESIN TECHNOLOGY - ISBM• PET to PP

• Neck = 83 mm

• Lower Weight (20%)

• Lower Cost

• Better Hoop Strength

• Higher Wall Thickness

• Better Heat Resistance

• Better Moisture Barrier

• Largest wide mouth PP ISBM clear jars

• Better Quality @ Lower Cost2 Liter Clear PP jar

“Cost Effective Sustainability” 17

RESIN TEHNOLOGY - IBM

• Source Reduction (9 gm vs. 7 gm)

• Lower Cost

• Better Heat Resistance

• Better Moisture Barrier

• BETTER QUALITY @ LOWER COST

PET PP

“Cost Effective Sustainability”18

GLASS TO PLASTIC CONVERSION

v PET low-weight jar with PET Shrink Sleevev Mayonnaise: Leak-Proof Packaging

v Re-sealable: Induction sealing v 90% weight Reduction

v Consumer Conveniencev No breakage v Safer to Use

v Reduction in Transportation cost

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“Cost Effective Sustainability”

PACKAGE DESIGN INNOVATION

With Inner Plug

One Piece Cap

“Cost-Effective Sustainability” 20

DISCLOSURE SCORE 99 PERFORMANCE BAND BThe Disclosure Score - Disclosure Score (0-100) measures the level of transparency your companyhassharedthroughit’sresponse.

The Performance Band - Performance Band (A, B, C, D OR E) measures how effectively yourcompany is addressing climate risk. (Performance bands are only calculated for disclosure scoresabove50)

INDUSTRY GROUP COMPARISON

27%[75-100]

41%[50-74]

19%[25-49]

Disclosure Score

13%[0-24]

Performance Band

B 3%

C 5%

D 21%

E 39%

NoBand32%

Yourscoregroup

COMPANYPROFILECOMPANY NAMECreative Group of Industries

REGIONIndia

COUNTRYIndia

CDP PROGRAMSupply Chain

SECTORMaterials

Creative Group of Industries

Innovations

• Weight Reduction– Technology – IBM & ISBM vs. EBM– Reducing the tolerance band by better quality control and better processes– Further reducing weight by using bimodal grade polymers

• Master batch reduction– Reduction in let down ratio – Use Liquid Master batches

• Use of Additives to reduce cycle times

• Use foaming technology to reduce weight

• Move to Substantially Higher Cavitation

• Moving from film PS labels to Laminated Paper PS labels

• Stack Molds / Cube Molds for higher output

• Use of Returnable CLDs

Innovation leads to

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• Cost Reduction

• Growth Opportunity

• Sustainability

INNOVATION is the KEY TO SUCCESS

Innovations• Innovative jar design for weight reduction

• Light-weighting of Jar by 22%

• Light-weighting of Cap by 33%

• Patented Lowest weight jar in India with the highest Top load for the given volume

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