How Pranav Bhalara is transforming Balaji Multiflex's packaging business

In the dynamic world of flexible packaging, one name has consistently stood out as a trailblazer — Rajkot-based Balaji Multiflex. As the packaging arm of the renowned Balaji Wafers group, the company has undergone a remarkable transformation over the past decade, cementing its position as a leading player in the industry.

At Drupa 2024, Bhalara announced that his company is making a bold move into digital printing technology and recognising it as a game-changer for the industry.

Balaji Multiflex ordered the HP Indigo 200K, a strategic digital move that Bhalara says “is aimed at revolutionising its operations and staying ahead of the curve.” As revealed at Drupa, the HP Indigo 200K is a carbon-neutral press that supports Balaji’s expansion into digitally printed flexible packaging.

The machine is scheduled to be installed in the factory by mid-September and to begin operations in October.

The impetus for this digital shift stems from Bhalara’s keen observation of evolving consumer preferences, particularly among the younger generations. “Today’s kids don't care about the nostalgia of a Parle-G biscuit with chai," he notes. “They want Balaji tomorrow, Britannia the next day — they are spoilt for choice.” This shift in consumer behaviour has prompted Balaji Multiflex to rethink its approach to packaging, recognising the need to cater to the demands of the modern, tech-savvy consumer.

Bhalara's digital journey began over a decade ago, as he closely followed the advancements in digital printing technology. His fascination with the potential of this disruptive innovation led him to explore its feasibility for the flexible packaging industry. However, a tragic incident involving a friend's untimely demise while installing a machine at his unit derailed these plans, prompting a more cautious approach.

Undeterred, Bhalara continued to study the digital landscape, observing the success of European food companies that had embraced the agility and customisation offered by technologies, such as on-machine seasoning (OMS). “In Europe, the trend is that people want to taste something new every year. They want something different,” he explains. “As you also see, for the new generation — gen-z, gen alpha, or the millennials — tastes are changing.”

Recognising the need to cater to this evolving consumer demand, Balaji Multiflex has made the strategic decision to invest in digital printing technology. Specifically, the company has opted for HP's liquid electrophotography (LEP) technology, drawn to the technology's reputation for quality and the positive feedback from HP's existing customers.

“I always believed that when you're buying a machine for the first time, you should always go for the reputed ones,” says Bhalara. 

For Bhalara, other factors, such as sustainability, also influenced his buying decision. “The inks used in HP machines are food-based, ensuring safety and environmental friendliness. It also implements a process to collect and reuse oil, enhancing resource efficiency.”

2018, the turning point
Balaji Multiflex was established in 2002 by Bhalara's father, Chandrakant Bhalara. He aimed to manufacture multi-layer flexible packaging material for his brother-in-law Chandubhai Virani's namkeen brand, Balaji Wafers. 

Balaji Multiflex commenced its operations by producing six-tonnes of packaging material every month with a mechanical line shaft gravure press, a solvent-based laminator, and a slitting machine.

Today, Bhalara works alongside his father. The company produces 110-tonnes of packaging material per day, more than three times the production output in 2018. Bhalara's cousin, Nirav Bhalara, oversees a section of the operations at Balaji Multiflex.

The installation of India's first Windmoeller & Hoelscher (W&H) Heliostar, a nine-colour gravure press with a width of 1400-mm and a maximum printing speed of 500-metres per minute, W&H Varex blown film line, and Nordmeccanica laminators like the Super Combi 5000 made Balaji Multiplex future-ready.  Before these installations, Balaji had predominantly used Pelican printing and converting equipment since its inception in 2002.

Balaji Multiflex had spent Rs 120-crore to set up its greenfield project. The entire plant was constructed in a single phase rather than in stages

Expressing his enthusiasm for the project to the PrintWeek/WhatPackaging? team, Bhalara says, “It was a dream project. We aimed to enhance our quality standards to the point where our name would be synonymous with high-quality flexible packaging. We aspired to become a guiding light for the Indian flexible packaging industry.”

Talking about the beginning of his journey, Bhalara recalled that his father advised starting with a blank slate, as unlearning is a challenge. “I began with no prior knowledge but approached it with a focussed and developed mindset. We aimed to differentiate ourselves from conventional converters and stand out in the industry.”

“As a second-generation entrant into the industry, I didn’t have everything handed to me from the start. I was expected to learn from the ground up and was assigned the task of setting up new facilities.” Observing the need for essential amenities like a canteen, toilets, and labs, Bhalara took on these responsibilities and began his journey in this field.

Drawing from his background in hotel management, Bhalara challenged the common perception that shop floors must be messy and dusty. A systematic approach was implemented to maintain a clean and organised shop floor. “My goal was to challenge this perception, and I believe we have made significant strides in achieving that.”

Embracing gravure technology
A key aspect of Balaji Multiflex's 2018 expansion strategy was its investment in gravure printing technology. It continues to do so.

After the 2018 W&H investment, Balaji invested in a Pelican Ceruti gravure press, which runs at a speed of 450-mtr/min. Then, it relocated two of the gravure presses from its old plant to the new plant. One of the old presses was replaced by a new Pelican press with a speed of 450-mtr/min. "This setup allows for a W&H press and a Pelican press to run in the first printing hall, producing 750-mtr/min of packaging material. In the second printing hall, two Pelican presses produce close to 900-mtr/min of packaging material," informs Bhalara.

In addition to the gravure presses, the plant features a diverse array of equipment, including four extrusion lines (of which two come from Rajoo-Kohli), nine laminators, eight slitters, and three blown film lines.

Recently Balaji added 50,000-sqft to the 2,50,000-sqft production area. In this new space, it added a new Rajoo Engineers extrusion line. This heralded the debut of the Proex series, the latest in high-performance blown film extrusion technology with an output of 900-kg.

A customer-centric approach
Beyond the technical aspects, Bhalara emphasises the importance of a customer-centric approach in the digital era. “I firmly believe that to flourish successfully for any brand, they have to have a customer-centric approach. If they don't keep this customer-centric approach, no matter how old they are, no matter how big they are, they will be abolished.”

To that end, Balaji Multiflex is not only investing in the latest digital printing technology but also creating a dedicated digital factory that will serve as a hub for innovation and customer engagement. “I want to build an entirely new digital factory where customers come in; they get interactive.”

Bhalara says that he was impressed with ArtNext’s experience centre in Navi Mumbai. “In the coming years, I plan to establish a digital factory where customers can visit, experience the facility firsthand, and observe the machines and products in action.”

The company's digital shift is not just about technology; it is also about reshaping the perception of packaging in the industry. “Packaging is like a perception. You have to think of packaging, and you have to think of the power of packaging, which is very important. You have to dress the product well so that they can look good.”

Balancing profitability and sustainability
Bhalara has been considering setting up a solvent recovery plant since he entered the business. The exhausts at the new plant were designed to meet at one point, which would then connect to the solvent recovery plant. This has now been completed and is a feather in the company’s cap. It is perhaps the first in India at this scale for a flexible packaging plant in India.

Balaji has installed Italian-manufactured Dec Impianti’s SRU, which can recover up to six- to eight-tonnes of solvent per day, significantly reducing the company's carbon footprint. Additionally, Balaji will also use the pyrolysis technology, a process that converts plastic films into valuable resources such as carbon black, gas, and fuel.

Bhalara says, “It would not only lower tax liability and be environmentally friendly but also prove profitable, given Balaji’s substantial annual spending on solvents.” With the benefits, Balaji will be able to recover the Rs 40-crore investment in the unit in a little over two to three years.

Doing it right, collaborating
Balaji Multiflex's approach to growth involves expanding its own operations and fostering a collaborative ecosystem within the industry. The company's leadership believes in the power of strategic partnerships and knowledge-sharing rather than pure competition.

This mindset is evident in Balaji's open-door policy. The company has hosted industry events and open houses at its plant, inviting peers to learn about its latest innovations and best practices. In 2018, it was a collaborative roadshow with W&H, Janoschka, Rossini, Siegwerk, and Nordmeccanic.

Earlier this year, in July, Balaji Multiflex hosted an open house with Rajoo Engineers. “By sharing our experiences and learnings, we aim to inspire and empower other players in the flexible packaging industry to embrace sustainable and technologically advanced solutions,”Bhalara says.

At 41, Bhalara is clear about his vision: today's trends shape tomorrow's packaging. "You must innovate and lead the change to thrive in this evolving market. While others may follow, the first-mover advantage will always be yours," says Bhalara, adding, "My father started this business from scratch at the age of 44. When I reflect on that, I remind myself that I still have three years to unlearn, innovate, and grow, just as he did. Taking risks and diversifying is crucial; it drives you forward and builds your learning curve.”

Bhalara: Taking risks and diversifying is crucial

Moving forward
Bhalara’s next goal is to enter the biscuit market. “I plan to expand by establishing a biscuit factory, marking our entry into the edible products sector. As a hotelier and businessman, I am particularly pleased that this venture will also require packaging, which will be supplied by our own factory.” These biscuits will offer a unique twist, distinguishing them from the typical offerings in the market.

With these investments and plans, Balaji is positioned for significant growth, with an anticipated turnover exceeding Rs 600-crore.

Bhalara reports that Balaji Multiflex’s turnover is approximately 10% of Balaji Wafers' turnover, highlighting that “their growth is our growth.”

According to The Economic Times, Balaji Wafers achieved sales of Rs 5,010-crore for FY23, marking a 24% increase from Rs 4,034-crore the previous year. Balaji Wafers currently holds a 12% market share, making it the third-largest player in India's Rs 43,800-crore salty snacks market