Greater Noida-based Packman Packaging manufactures eco-friendly corrugated boxes, air bubble wraps, stand-up pouches, courier bags, and customized eCommerce boxes to pack food, safety products, electronics, clothes, etc. Founded by Gaurav Jalan in 2002, the company was among the first companies that started the eCommerce store. It makes a turnover of Rs 20 crore annually.
According to Jalan, the company's name originated from fictional characters such as Batman, Superman, and Ironman, who in comic books save the earth from imaginary threats. Packman is also on a mission to protect the environment/earth from the everyday threat of plastic packaging.
In its manufacturing facility located in Greater Noida, Packman manufactures corrugated boxes of various sizes and shapes and serves them to over 300 plus happy clients located across India, South Asia, and Middle East countries. Apart from this, the company also offers customized packaging solutions to its clients. Jalan adds, "Packman combines its technical expertise with market insights to deliver customized solutions that exceed customer expectations. We engage with the brand early in the development phase to understand their special requirements and partner with them to develop packages that stand out on the shelves and shape their consumers' experiences."
During last year's lockdown, Packman's manufacturing plant was shut for a while. Later, when things began to normalize, the company's manufacturing unit gradually resumed and ran at full capacity. Speaking of the Covid-19 and its impact on the business, Jalan explains, "During the lockdowns, manufacturers faced issues like shortage in raw materials. As a result, the prices were spiked. Moreover, it affected the overall production and gradually hit the revenues badly."
Franchise model
The Covid-19 pandemic and subsequent lockdowns have caused a significant economic shock in the country as it brought many disruptions among businesses. Many small businesses, due to their financial fragility, were forced to shut, and others who had capacity chose to either diversify or opted for a new business strategy.
Like many, the Covid-19 pandemic threw up both challenges and opportunities for Packman that included changing business modus operandi. As a result, the company has now entered to B2C segment as well. Recently it has developed and started a franchise model in India, reaching five cities, including Hyderabad, Chennai, Tirupati, Erode (Tamil Nadu) Kolkata.
Commenting on the franchise model, Jalan explains, "It is the need of the hour. Of course, B2B will always be there, but we realized that many people found it difficult to buy packaging products for their home-based needs. So we grabbed this opportunity, associated with more people and allowed them to be part of the business through franchise to connect directly with the B2C segment. Through this franchise model, Packman is trying to help entrepreneurs establish their identity by offering them funds to grow more in the packaging industry."
Packman's customized products such as wedding bags, gift packaging, book packaging, and corrugated boxes have been in huge demand among B2C customers. The company supplies products irrespective of the quantity to its B2B clients and plans to do the same for B2C clients.
According to Jalan, Packman is witnessing growth in various segments – The company has witnessed 70% growth in covid-related safety products with sales at 15%; Food packaging has seen significant growth of 50% with sales at 15%; Electrical goods growth at 10% with sales at 15%; and eCommerce packaging growth at 20% with sales at 45%. However, the fashion and lifestyle packaging witnessed a 10% dip in growth, with sales at 10%.
However, Jalan states that the company does not have immediate expansion plans regarding manufacturing units since it has recently started this franchise business and would expand it further to different parts of India.