In conversation with Rajeev Goenka, Chairman, Cool Caps Industries Ltd

Our vision & mission is to provide a one-stop solution to our customers with our different range of products; expresses Rajeev Goenka, Chairman, Cool Caps Industries Ltd

What does Cool Caps Industries do? Also, brief us about your products. 

We would like to inform you that we had started in 1994 as a marketing & distribution company dealing in various plastics and packaging raw materials. Cool Caps Industries Ltd was incorporated in 2015 and started commercial production at its first unit at Howrah in the year 2017. We installed the Compression Moulding (Patented Technology) Machine of Sacmi Imola in 2017. The CCM line is fully-automated with zero intervention. There is a camera vision system (CVS), which detects the defective products then & there and reduces the risk of complaints from the customer end. We have a state-of-the-art laboratory, wherein, we maintain stringent quality norms. 

The company set up its second unit at Kotdwar (Uttarakhand) in the year 2020 to cater to its customers in North India. After successfully running its second unit, the company set up its third unit also at Kotdwar in the year 2022. The total installed capacity is 20 crore caps per month. The commercial production of the third unit was started on June 1, 2022.  

At present, we are producing the following products:- 

-Plastic caps for beverage industries i.e. water, carbonated soft drinks (CSD), and juices.  

-PET preforms  

-Plastic handles for PET bottles  

-Shrink films for packing PET bottles to replace the corrugated boxes. 

Tell us about your company’s subsidiaries. 

The company has formed the following 100 per cent subsidiaries in 2021:-  

-Purv Packaging Pvt Ltd: It started its commercial production of sterilised films at its factory situated at Howrah in December 2021. 

-Purv Ecoplast Pvt Ltd: It started its commercial production of Shrink Film (LD film) in February 2022.  

-Purv Technoplast Pvt Ltd: The third subsidiary company, Purv Technoplast Pvt Ltd, acquired five acres of land at Jabjabkuchi, Nalbari in Assam (near Guwahati) to set up a post-consumer PET bottle washing & crushing line to produce B2B grade PET flakes.  

As per the latest guidelines of PWM (Amendment) Rules 2022 issued by the Ministry of Environment, Forest & Climate Change, the use of recycled plastic will be compulsory from FY 2024-25 onwards. FSSAI has also allowed the use of recycled PET in food grade applications vide its direction dated January 18, 2022. The demand for recycled PET and plastics will be increased accordingly. At present, the total PET bottle scrap of the NE region is being sold to North India, where transportation cost is much more.  

What is the vision and mission of your company? 

Our vision & mission is to provide a one-stop solution to our customers with our different range of products. 

What is the core competency of your company? 

Our core competencies include the following: 

(1) Low-cost producer.  

(2) Plan should be multilocational.  

(3) State-of-the-art technology.  

(4) Working with top brands like Bisleri, Kingfisher, IRCTC, Divya Jal, Foster, CLEAR, and other local brands.  

What are your growth triggers? 

Our growth triggers are: 

 (1) Expanding capacity.  

(2) Diversifying product range.  

(3) Presence in a high-growth industry. 

What are your internal growth targets? What is your revenue growth expected for the next three to five years? 

Although our target is high; however, we will grow at a minimum CAGR of 25 per cent. We are expecting our EBIDTA margin in the range of 15-18 per cent along with a PAT margin of 7-8 per cent. 

What are the key risks to your business growth? 

Since our industry is a high-growth industry, hence, there’s no foreseen risk in the future. However, the change in government regulation may impact our business.