UAE-based food packaging products firm Hotpack Global is embarking on a major expansion spree in the Middle East and beyond.
The company, which officially opened new AED250 million ($68million) PET (polyethylene terephthalate) packaging products factory at National Industries Park (NIP) at Jabel Ali, Dubai, is in talks to set up manufacturing facilities in Europe, Asia and North America, according to reports.
The new facility, spread over 500,000 sq ft, is Hotpack Global’s largest plant and is a strategic expansion for the company, which is working on fulfilling its vision to be a global premier food packaging manufacturer by 2030.
“We aim to reach the top through a mix of strategies including more manufacturing plants across the world, backward integration, acquisitions, geographical expansion, product diversification, and creating value for all stakeholders and prospective shareholders,” Abdul Jebbar PB, group managing director of Hotpack Global, said.
Hotpack exports its products to over 100 countries and has direct operations in 15 countries and serves 25,000 international and local brands with 3,500 employees.
“The new purpose-built plant will manufacture high-performance, sustainable PET (polyethylene terephthalate) packaging products. The new plant premise will also function as a hub of Hotpack manufacturing, e-commerce, logistics, and marketing. The facility will also function as Hotpack’s export hub and contribute to the UAE government’s focus on promoting local manufacturing with an eye on global market and competiveness as well as quality,” said Zainudeen PB, Group Executive Director at Hotpack Global.
“The plant is automated and is enabled by cutting edge technology across functions like extrusion, thermoforming, and printing machines. High-level automation will also lead to reduced human intervention and thereby contribute to hygiene and efficiency,” said Anvar PB, Group Technical Director at Hotpack Global.
Hotpack Global was recently certified as a ‘verified exporter’ by Dubai Industries and Exports, the trade promotion entity of the Department of Economy and Tourism (DET). The company has been on an expansion drive and recently opened its first manufacturing plant in Doha, Qatar to produce Hotpack paper products. Its e-commerce stores are spread across all GCC countries, while the company has sales centres in Oman, Saudi Arabia, and Bahrain.
“We will continue to expand in the Middle East with a focus on supply chain optimisation and will be launching new manufacturing plants in Saudi Arabia, India, Malaysia, and Serbia in the coming months. In Africa, we have presence in Nigeria, Ivory Coast and Morocco,” Jebbar said.
Though Hotpack started its business in trade, its adoption of an agile backward-integration strategy paved the way for setting up manufacturing units. The company, which has several paper-based products in its portfolio is now setting up a paper mill, according to a Zawya report.
The company is also keen to raise capital through an IPO to fund its extensive expansion plans, Jaber said without revealing any further details about the possible IPO.
The public issue will be through the holding company Hotpack Holding, a family-owned business, of which Abdul Jebbar is the founder and Zainudeen PB, group executive director of Hotpack Holding, co-founder.
Inroads into Qatar
Its Doha plant is the 15th Hotpack owned and operated factory worldwide and reflects the company’s global vision – to become a global food packaging brand leader by 2030, it said.
The state-of-the-art manufacturing plant, located in Doha’s new industrial area, is a specialised factory that will produce a wide variety of Hotpack’s paper products ranging from folding and corrugated cartons; and paper bags and cups.
“We are happy to foray into the Qatar market with our new manufacturing facility, significantly contributing towards our vision 2030 to become the largest packaging manufacturer in the world. This launch of new factory will strategically support us in terms of offering sustainable food packaging solutions in the Qatar market and meeting the global requirements.
“We have completed the first phase of the factory with the capacity for production of folding and corrugated cartons. Development of the next phases of the factory is currently in progress for the production of paper bags and cups,” Jebbar said.
“Qatar Hotpack is a state-of-the-art facility that is one of the most technically advanced machines in packaging plants in Qatar and the Middle East. It is designed to ensure efficient and reliable manufacturing of paper products and will enhance our packaging operations. Qatar offers an attractive environment for industrial investment and is the ideal location for Hotpack’s new plant as the country previously did not have specialized factories in sustainable food packaging products. The Qatari government also provides significant support to its industrial sector,” Zainudheen said.
Regarding the manufacturing capabilities and technology deployed in the new plant, he added: “At Hotpack, we believe in meeting the highest standards for our products that we have set for ourselves with decades worth of experience and knowledge in food packaging manufacturing. We want that philosophy to be reflected in our manufacturing process. Thus, we have installed a fleet of high-end German equipment at the facility, and it will be operated by a dedicated team of professionals in management, production, and logistics who will ensure smooth sailing operations at the factory.”
Additionally, as part of Hotpack’s commitment towards sustainability and its pledge to spearhead the eco-friendly disposables initiatives to decrease pollution, the factory will use food-approved and environmentally friendly raw materials and consumables, said the company.
Hotpack Global has planned an aggressive expansion strategy across the GCC as part of its global vision. Most recently the company acquired Al Huraiz Packaging to diversify its product portfolio. The company has also launched new sales centres in Oman, Saudi Arabia and Bahrain to augment the expansion of its manufacturing and logistics operations.
Hotpack Global celebrated its 27th anniversary this year and currently is the largest manufacturer of packaging products in the Middle East. It has over 3,500 products in its portfolio and specialises in products from paper, plastic, aluminium, wood, and biodegradable materials. The company exports its products to over 100 countries around the world and has direct operations in 14 countries and serves 25,000 international and local brands with 3,300 employees.
Founded in 1995, Hotpack Global has operations in 14 countries which include GCC countries, India, UK, USA, Morocco, Ivory Coast, Nigeria, Spain and Australia. Within a limited span of time, the company has grown to become one of the leading players in the packaging sector catering to HORECA, Retail and Industrial Packaging sectors.
As a food packaging company Hotpack has been certified with BRCGS, FDA, SEDEX, ESMA, PEFC, FSC, ISO 9001: 2015, ISO 22000: 2018, ISO 14001: 2015, ISO 45001: 2018 which ensures the top quality of its products. Hotpack was adjudged winner of the coveted Dubai Quality Award under the category of Dubai Smart Industry Award 2020 for the manufacturing sector.