Bulk bags have been used for a range of granular and powdery industrial, agricultural, pharmaceutical, food and other products. However, there is a sharp surge in demand for bulk bags due to the spurring rise in sectors such as chemicals & fertilizers, food, construction, pharmaceuticals, mining, etc.. Besides, rising numbers of businesses and manufacturing sectors add to the bulk bags market growth. This is because the market calls for reusable, recyclable, and contamination-free packaging solutions to replace wood and cardboard. The need to prevent damage and contamination to the products loaded in FIBCs (Flexible Intermediate Bulk Container), which customers stress as a great need, encourages bulk bag manufacturers to develop new solutions in large part. These solutions meet the demands of FIBC users who require their cargo to arrive undamaged at destination, whether transporting domestically or internationally. Therefore, the rising focus of FIBC manufacturers on practical and highly protective solutions for international and domestic bulk bag shipments is a critical driving force behind the increased market demand.
"My expectation is that Indian FIBC market will continue to grow at 20 percent YOY, but in absolute numbers, it is at the bottom of the ladder in industrialized nations, and in next 10 years, it will be at an average of this matrix. Major factors expected to feed this growth are increasing labour costs making use of FIBCs cost effective, stricter pollution control norms as currently lot of building materials are shipped in open state and cement is shipped in uncoated bags where they pollute environment, increase in production of RMC and flours, so business transition from B2C to B2B, and increasing demand for use in export", stated Jitesh Agarwal, CEO & President, SafeFlex International.
Founded in 2006, SafeFlex International was established by pioneers of FIBC development who started the first plant in SEZ Pithampur, near Indore. Company’s ISO 9001:2015, ISO 22000:2005 and BRCGS approved plants are backed by commitment, quality, and foresight. SafeFlex showcases its fair business practices and social responsibility through Sedex compliance and TFS approval, generation and use of solar energy, an abundance of greenery in and around plants. And because of this, the company has grown to four plants today spread across the country with a total processing capacity of 3000 MT/month or 19.6 million FIBCs per year and 50 million sqm of Nets, Tarpaulins, and Geotextiles. These four plants, housed in modern buildings totalling 6,00,000 sq ft, are vertically integrated units- three for FIBCs and one for knitted and poly woven products including Geotextiles, Argo Nets, Environment Protection systems, and Lumber covers. SafeFlex started with a turnover of USD 1.1 million in 2008; it did more than USD 42 million worth of business in 2020 and is expected to reach USD 60 million by 2022. "We believe we are in top 10 manufacturers of the world with respect to quality and delivery. Our objective is to become, in these parameters, one of the top three in the world in next five years", said Jitesh.
Challenges Faced By FIBC Industry
Even after such increasing demand in the market, FIBC bag manufactures are facing lots of challenges. The four significant challenges are volatility in raw material prices, higher raw material prices in India than China and Vietnam, retaining human resources, and zero government support. At SafeFlex, 50 percent of the company's sales are made on long-term contracts, allowing them to pass on the price variation, both ways, to customers. For other 50 percent contracts, SafeFlex buys the material every week as they get the orders. And in this way, they mitigate volatility in RM prices.
Along with this, India being a hub of the FIBC manufacturing world, the demand for skilled workers and good managers is always there, leading to as much as 10-12 percent rise in wages every year. However, SafeFlex, to retain human resources, offers their people long-term advantages like providing them assistance in getting houses under PMAY, provide excellent working conditions, build comradery through various functions and team games, provide financial aid on special occasions for employees of 5+ years of service, and an open-door policy.
An open-door policy allows anyone to travel three tiers up to discuss any grievance and find a solution. This has built confidence in people, and the company's attrition had reduced from 15 percent in 2010 to less than 5 percent last year. Lastly, since the government has withdrawn all financial support under the GATT agreement, SafeFlex fights with other cost centres like lenders and material suppliers to provide them with better terms and reduced costs. And, the company has been able to reduce its financial cost by more than 60 percent in last two years.
Furthermore, along with the challenges, the company meets all the clients' expectations, which are consistency in product quality, consistency in delivery, and consistency in pricing. For consistent product quality and delivery, besides formal training and quality assurance systems, the company is very open to admitted mistakes from people. "We encourage people to let their superiors know if they have erred anywhere. We do not count that as a mistake. No one in our organization has ever been reprimanded for any mistake – including sending goods to an incorrect destination - if that mistake is brought to the notice of superiors as soon as he or she realizes it", added Jitesh.
This reduces their repair cost drastically – a wound does not turn into gangrene, which allows SafeFlex to take care of issues soonest possible and maintain quality and promised delivery. Moreover, for consistent pricing, the company has very open formulae with the client, and 50 percent of the time, clients do the changes of RM prices, currency fluctuation, sea freight, etc. and send the order!!
Safeflex claims nothing but passion in technical textiles. Passion for quality, passion for service, passion for innovations
Specialization And Achievements
SafeFlex was awarded ISO:9000 and ISO:22000 within nine months of inception. Afterwards the company was also certified by BRCGS, Sedex and TFS.
Unlike other providers, SafeFlex specializes in Innovations (flood control barriers, super stable bags, cube bags), Pharma Grade and Food Grade FIBCs and special products (BOPP FIBCs etc). Other than this, the company is specialized in customer service. Except in 3 months of onset of pandemic (April-june 2020), SafeFlex delivered 96 percent of containers on time. Also, 94 percent customer retention against a world average of 67 percent for a manufacturing industry is SafeFlex's most significant achievement.
“Triwater bag for flood protection, cube FIBC for maximum usage of transport space, super stable bag for maximum use of godown height etc are neat innovative solutions”
What's Next –
SafeFlex targets employment of 4000 people and an annual turnover of 600 crores in the next five years by becoming one of the top three companies in the world for quality and service for FIBCs. Needless to say, this will generate substantial business for which three new plants to augment the capacity to 6000 MT per month are planned, out of which land for two plants has already been purchased. Additionally, gearing itself up for a boom in the domestic FIBC market, Safeflex wishes to educate both the packer and user, install training equipment for the same and impart training to operatives, especially endusers. The company is also planning to expand in a big way in fabric options – lumber wraps, pond liners, house wraps, etc., from a new plant – pond liners to make water available to every village in India, and lumber wraps and house wraps for exports.
FIBC (Flexible intermediate bulk container) is the most cost-effective industrial packaging solution compared to any other traditional method. In a constantly evolving market, FIBC jumbo bags are irreplaceable due to the neutral property of the material and can be produced as per the needs of users while being light weight. SafeFlex offers a variety of these industrial packaging-friendly big bags listed as below: -
1. Cube Bulk Bag
2. Tubo Baffle Bag
3. Super Stable Bulk Bag
4. Food Grade Bulk Bag
5. BOPP Bulk Bag
6. Type C Bulk Bag
7. Type D Bulk Bag
8. UN Bulk Bag
9. Chemical Bulk Bag
10. Seed Bulk Bag
11. Fertilizer Bulk Bag
12. Mineral Bulk Bag
13. Builders Bulk Bag
14. Peanut Bulk Bag
15. Asbestos Bulk Bag
16. Ventilated Bulk Bag
17. Net Bulk Bag
18. Grow Bagmonths
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