Financial Times

Tripack Films in $8.5 m investment

Tripack Films Limited recently established a Board of Investment (BOI) approved company, following the completion of a feasibility survey. The quantum of initial investment is in the region of $ 8.5 million, most of which is likely to come from investment sources outside Sri Lanka. It is the largest Pakistani investment to-date in Sri Lanka, the BOI said in a statement.

Tripack Films is a joint venture between Packages Limited of Pakistan and Mitsubishi Corporation of Japan, and is Pakistan's largest producer of Biaxially Oriented Polypropylene Film ( BOPP ) with a market share of over 65%. The company's annual sales are presently $ 26 million with a pre-tax profit of $ 4.5 million.

"The local manufacture of BOPP film shall provide flexibility to the local users to react very quickly to the needs of the local market and exporters. The lead times will be reduced, less inventory will need to be stocked and this should enable the users to sell more, more profitably." Mr. Khalid Yacob, Director, Tripack Films and Director Packages Limited said.

Tripack's core product BOPP and its derivatives, are used widely in the flexible packaging industry for garments, hosiery, tea, biscuits, cigarettes, confectionery, soap and detergents. Meanwhile, Mr. Aslam Omar - Director, Phoenix Ventures Ltd, added that BOPP being a packaging related product, will complement the Phoenix Ventures products laterally.

Founded in 1993 Tripack Films went into commercial operation in June 1995. Their first manufacturing plant was installed, at a capacity of 5,400 metric tones per annum and the second, established in May 2001, was also of the same capacity. The latter's production capacity was fully utilized by February 2002 and an order was made for a third plant, of 15,000 metric tonne capacity, with targeted operation for end 2004.

Whilst currently catering to Sri Lanka's market demand of 3,500 metric tonnes and exporting the balance, the company will continue to meet the increasing demands of expansion within the next three years, at an expected growth rate of 15%.

Tripack Films is quoted on the Karachi, Lahore and Islamabad stock exchanges and employs 200 people presently.