The Package to success
A hot & humid summer afternoon in T.nagar ,Chennai transformed into an interesting conversation about entrepreneurship, business opportunities and technology when the budding managers team met up with Mr D.Paranthaman, the founder, master brain and Managing Director of LNP Packaging Pvt Ltd.
Though he hails from a film background with his father and brother being one of the biggest director and producer of the film fraternity, he was not afraid to choose a path that was challenging and unconventional and simply different. And as the saying goes he saw, he came and he conquered.
Extremely proud of his achievements, Mr.D.Paranthaman talks about how his first failed business venture ultimately drove him to be the one of the most successful men in the packaging business. Extremely religious and grounded to his roots, he thanks his father, mother and friend who motivated him to become a young entrepreneur.
An MBA in Finance (DG Vaishnav College, Arumbak kam), Mr.D.Paranthaman is sincere, Innovative and extremely passionate about his work. We caught him candid as he gives us an insight into the pros and cons of the packaging industry and what it takes to be a successful entrepreneur and on being the Indian Trade Representative to the Public Authority of Investment Promotion & Exports Development (PAIPED) in Oman, called as ITHRAA.
“Oman is a business friendly destination for Investment and good tourist spots. Brakes India Limited has invested in a big way in Salalah free trade zone. There is a good potential to Invest in Oman in manufacturing, service, education and other sectors too, due to the subsidy given by Oman to the investors. we are very happy to give better opportunities to Indian investors to invest in Oman.” says Mr. D. Paranthaman, the Indian Trade Representative of PAIPED.
Can you briefly describe the origin, growth and evolution of the company?
I started this venture in 2006. Initially we started a furniture company in 2004 which didn’t materialize.
My family business was running a tin box manufacturing company which gave me the idea of starting something in the packaging industry.
The motivation came from ITC. whilst producing the film “Sachein,”starring Ilaiyathala pathy Vijay. We had featured an in- film branding for ITC. The movie was a grand success and ran for over 200 days. When I went to meet and thank ITC for their support, I briefed them about my tin box manufacturing business. Since, ITC being a giant required a huge volume of carton boxes; they suggested to me to think on lines of manufacturing carton boxes. Thus, I started the present packaging industry and after toiling for several years we are now one of the leading carton box manufacturers in India.
What have been your company’s major achievements till date?
One of the Leading mobile manufacturers in India was facing a theft crisis. Many mobile phones were found missing during the transportation to African countries, as a result of which Company was unable to supply to those countries.They were not even able to claim the insurance and invested more to protect the mobile phones. Our suggestion of putting a wire inside the box prevented the theft of mobiles from the box thereby saving a few crores per month.
We are the Indian Trade Representative for PAIPED in Oman (ithraa, www.ithraa.om) and are able to guide other companies to invest and conduct their business successfully.
What Impact the technology has had on packaging industry?
Packaging industry is rapidly changing. Initially there was only tin box manufacturing. Then later it was replaced by the carton box industry. Now from carton box industry it’s changing slowly to the poly propylene boxes. From ordinary boxes, we have come a long way in utilising technology to manufacture or aid in manufacturing custom made / high end personalised boxes to cater to varying needs and segments.
What are the corporate social responsibilities your company has undertaken?
In 2011, we conducted a free medical camp on the occasion of my mother Kala Dhanu birthday celebration in association with Lions Club emphasizing on master health checkups for more than 1500 underprivileged people in a village. We are planning for the next camp this year. We also support financially a lot of poor families annually, for their various necessities.
Cost remains one of the key packaging market trends. How has the company tackled this challenge?
Normally everybody keeps their profit margin from 30-40%. But payments are not received by them in time. Right from day one, we supply only to MNCs where the profit may be 6-7%, but the payment will be always on time.
And supplying for MNCs helps me win the credibility of my suppliers, as they know that I’ll pay on time, thus allowing me to source it for a lesser cost
It’s a pretty competitive industry, what lessons have you learnt from your competitors?
Not to do the mistakes made by my competitors.
Is it feasible for an Indian based company to follow global trends?
I attend lot of China inter national fairs every year and try to adapt the latest technology that suits Indian conditions. China is number one in terms of technology in the packaging business.
What are the main challenges the industry is facing now?
There are a lot of suppliers but the demand is very less. We went through a temporary low patch. Now One of the leading farm equipment manufacturer has supported me and helped us to have become a major supplier to them. It is a matter of pride to us that we are one of their preferred vendors especially when they are exporting their products all over the world.
Your advice to the upcoming next generation entrepreneurs?
Keep yourself updated of the current market scenarios. Be innovative and confident at all times.
Your secret business mantras?
Right man for the right job and positive approach to crisis management.
Optimal handling of Men, Machine and Material.
Prudent planning of Marketing & Financials.
How Management qualification helped to your business?
MBA qualification helped me to develop practical knowledge and business insights. I never missed case studies in my college days. I still remember a case study which emphasized how during the earlier days market were developed and captured? How demand was created and markets ruled?. This helped me to optimally design for Our Customers and thus offer very competitive rates and secure their business.
Where do we see you in the next 5 years?
I want to make a comeback in the film industry as one of the most innovative & popular Producer. That apart I want to create a name and place for myself in the international arena in film making and produce exceptional quality films. Also, want to give back to the society by supporting and aiding the underprivileged.
APRIL 2015 ISSUE
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Posted On: Saturday, 30 May, 2015 - 11:10