Recently we discussed two stocks from different verticals in packaging Industry. Polyplex from Polyester film based and Mold Teck Packaging from IML packaging sector . This week let us look into another company from a related sub sector – Metal packaging .Even though plastic packaging is gaining more acceptance ,some products still need metal packaging due to special characteristic of products to be packed. Chemical reactions, keeping right nutritional / aesthetic values, requirement of extended shelf life ..etc compelling the producers of certain products to prefer metal packaging.This situation ensures enough room for metal packaging majors to grow though the chances for new entrants are bleak. At present, metal packaging commanding a 10 % market share of total consumer packaging market. In this background, let us look into Hindustan Tin Works Ltd which commanding 20 % of metal packaging market in India. HTWL manufacturing tin/metal cans and closures used in packaging of baby foods, edible oils,paints, ghee, canned food items, fruit pulp,juice,protein powder, shoe polish etc. Company mastered in Aerosol cans and Beverage Cans . Aerosol cans are mainly used to pack Deodorants, Room Fresheners,Pesticides,paints and industrial products .Beverage cans are used to pack Juices,Flavoured milk and other beverages.Longer shelf life without refrigeration and leakage is an added advantage of beverage cans .Company’s major consumers includes the who is who of FMCG and Food Industry like GSK consumer, Nestle, Britannia, Del-Monte Foods , Asian Paints,Reebok ..etc.
Link to Company Website HERE
Disc: It is safe to assume that I have vested interest in HTW