Packing a punch

A biscuit is one of the few items that everyone enjoys. However, have you ever wondered how a biscuit, manufactured thousands of kilometres away, stays crispy till the very end? Its packaging plays a significant role. If you look around your kitchen, you will find food in packets of all shapes and sizes. If we extrapolate, a few figures are quite intriguing. More than 17 lakh tonnes of packaging is utilised every year to pack food items manufactured by a a single FMCG company. And our client Uma Convertor Limited has been in the thick of action at packaging, for last 22 years. ??

Let’s hear their story.

A steady performance over 2 decades

Uma Converter Limited is an Ahmedabad based company incorporated in 1999. The Company is engaged in business of manufacturing and export of flexible packaging material. It offers a wide range of customized packaging solutions for various industries such as food, beverages, pharmaceuticals, personal care among others. (Click here to know more).

A few achievements:

1. From a mere Rs 12 crores business in 1999, Uma Converter generated 186 crores in 2020, and on target to generate 250 crores in 2021.
2. The firm has doubled its printing throughput, from 200 meters to 400 metres per minute
3. It works with firms based outside India as well. So, the next time, you are relishing dry fruits from Saudi Arabia, you may have to thank Uma Converter as well… ?

Overcame a lot of obstacles on the way

In early 2000’s, Gujarat faced a number of natural and other crisis. For a young company like Uma Converter, it was a body blow. Sales struggled. However, thanks to the firm’s tenacity and unwavering focus on quality, they continued to serve their customers. As a result of all these efforts, Uma Converter has consistently enjoys a high level of loyalty among its customers. Existing customers contribute 2 out of every 3 Rs of Uma’s revenues.

Fast forward to today, Covid has spared no one. Uma has a large labour force. During lockdown, the firm took an unconventional route, and offered all medical and health facilities to its taskforce. On the business front, there was a sudden drop of sales from industries such as textiles & garments, agarbatti, mehendi cones, and many others. However, food industry compensated for this drop. Thanks to Uma’s strong relationship with its clients in FMCG and food manufacturing, it was able to increase its business by almost 3X from this industry.

How HSBC joined Uma's journey?- The 10 PM rendezvous

Good work needs finance. On 19th March 2020, Uma decided to explore financing from HSBC. Everything was all set to be executed like any other loan transaction. However national lockdown was declared on 23rd March. Mr. Sumer Lodha, MD of Uma converters became a bit wary of availing loan facilities in this tricky situation. To add, visiting a bank branch to submit physical documents was impossible. However, HSBC team assured him. The team visited Mr Lodha’s premises at 10 pm in the night, and collected his physical signatures. Over the next few days, HSBC executed all documents digitally, and sanctioned loan to Uma digitally.

This episode proved to be a great catalyst in HSBC-Uma relationship…

Says Mr Lodha ‘We generally perceive MNC bankers as corporates adhering to strict guidelines and timelines. It was refreshing to note HSBC’s informal way of banking, especially during crisis. They didn’t hesitate to travel in tough times, and visited us, even though it was very late in the evening. The team simplified the processes, and sanctioned our working capital in a short span of time. Thanks to HSBC, we were able to launch a new vertical, contributing to our expansion plans. HSBC’s polite way of dealing with SMEs like us helps us feel very special. Looking forward to working with HSBC closely in the future’

?Says, Prakash Jaiswal, Country head for SME and startup banking, ‘We don’t notice it, but all of us are indirectly Uma Converter’s clients! We consume their products daily. Their work, especially during lockdown is inspiring. Hence supporting them by going out of the way was critical for us. As far as SME financing is concerned, banks can no longer have a cookie cutter approach. We, at HSBC will continue to work with firms of all sizes, understand their business better, and offer best solutions. We hope to continue to work with Uma Converter in their journey’.

Future of packaging, and role of HSBC

Packaging has a bright future in India. More than 60% of food items such as masalas, daal, spices, wafers, etc are sold loose in our country. Proper packaging will help in better storage and distribution. There is also a scope to make the quality of packaging comparable to that in other developed countries. Banks need to play a critical role in the expansion story of packaging and other industries. If you are looking to expand in domestic and international markets, and want to work with a bank that can help with finance, we are keen to discuss synergies.

Let’s grow together…

(With inputs from Shekhar Lele, Business Innovation Lead, Khagen Ravaliya- Uma Converter’s relationship manager, and Pallavi Pandole- VP, SME Banking, HSBC India)

Visit https://www.business.hsbc.co.in/??