UAE-based food packaging products firm Hotpack Global is embarking on a major expansion spree in the Middle East and beyond.
The company, which has invested AED250 million ($68mln) in a 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 its CEO.
“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.
Last week, Hotpack opened its first manufacturing plant in Doha, Qatar, to produce Hotpack paper products. The Jabel Ali plant is the 15th Hotpack owned and operated factory globally.
It has several sales centres in Oman, Saudi Arabia and Bahrain to support its manufacturing and logistics operations.
“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.
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.
(Writing by Bhaskar Raj; editing by Seban Scaria firstname.lastname@example.org )