TCPL forays into South India with a high growth strategy — The Noel D’Cunha Sunday Column

Saket Kanoria, managing director of TCPL, reflects on the company’s journey, tracing back to 1989 when the family transitioned from textiles to packaging.

“Since our inception, TCPL has been on an extraordinary path,” Kanoria says. “We began operations in 1990 after being approached by Godfrey Phillips, who were seeking a packaging supplier. Despite initial challenges, we persevered, and our first invoice was issued to Unilever — a milestone that marked the start of our journey.”  

Over the decades, TCPL has built strong relationships with major clients and suppliers, including ITC, which has been instrumental in its growth.  

One defining moment in TCPL’s journey came in 2015, during the setup of its Guwahati plant. “Just before Christmas, as we were unloading a 12-ton KBA (now K&B) machine, one of the printing units fell and was damaged. This could have delayed our plant opening significantly,” Kanoria recounts. “But the K&B team went above and beyond, air-freighting a replacement unit over Christmas without waiting for insurance clearance. Their support ensured we stayed on track.”  

Today, TCPL’s operations span 11 states, with a presence in offices and manufacturing facilities across India. The company has diversified into sectors including tobacco, pharmaceuticals, personal care, food and beverage, mobile phones, toys, stationery, and electrical product packaging. Over the past seven years, TCPL has also ventured into flexible packaging, which now accounts for almost 20% of its revenue. “We foresee significant opportunities ahead as we continue to explore niche markets,”  Kanoria says.

That said, the global economic landscape remains fraught with uncertainty, marked by inflation, fluctuating commodity prices, and geopolitical tensions disrupting supply chains. For TCPL, mitigating these risks has been a priority.

According to Kanoria, the company’s business structure inherently shields it from significant exposure to raw material price fluctuations. “In the packaging business, we have a pass-through mechanism for price changes in key raw materials for most large customers, provided the changes exceed a certain percentage,” he explains.

Over the last two years, Kanoria has noted a reduction in price volatility, attributing this stability to the growth in production capacity across India and Southeast Asia. “This additional capacity has helped stabilise prices, ensuring that pricing hasn’t risen in line with inflation,” he adds.  

India’s economy continues to show resilience, but packaging demand growth has slowed. Kanoria notes that while there hasn’t been an absolute decline in volume, the growth rate has tapered from 8–10% to low single digits. “Our customers, particularly those exposed to agricultural commodities, are facing significant inflation, which has forced them to implement price increases,” he says. While customer revenues have risen, volume growth has been limited. Kanoria remains optimistic, linking future growth to easing inflation. “As inflation comes down, interest rates will follow, and consumption will grow faster in volume terms,” he predicts.  

Diversification: The cornerstone of stability
TCPL’s operations span across sectors, including tobacco, pharmaceuticals, personal care, food and beverage, mobile phones, toys, stationery, and electrical products. Over the past seven years, the company has also ventured into flexible packaging, which now accounts for 20% of its revenue. When asked which sectors are driving growth, Kanoria emphasises the importance of diversification. “All the sectors we operate in are growing, albeit at different rates. Some are growing slower, while others are performing better. This diversity ensures that one segment can offset any challenges faced by another,” he explains.

A case in point is the liquor sector, where cost-saving initiatives led to the removal of cartons. “This was a significant challenge initially, but other sectors stepped in to offset the impact,” Kanoria recalls. This adaptability, he believes, is crucial to TCPL’s stability. The trend of eliminating cartons in certain segments, such as liquor, has raised questions about its sustainability. Kanoria acknowledges the inconvenience this creates for customers but remains uncertain about its long-term viability. “So far, companies in the liquor industry that have removed cartons haven’t reported significant losses. However, I believe customers will reconsider their choices in the future as the removal of carton packaging represents a lost opportunity for branding and consumer engagement, which is hard to quantify but makes a difference” he says.

Sustainability and innovation: Aligning with global trends
Sustainability regulations are evolving worldwide, and TCPL is proactively aligning its operations to these developments. The company is setting up a solar plant in Chennai, which will meet 20–25% of its energy needs, with potential for expansion. “We are also treating all food waste and converting it into organic compounds,” Kanoria shares. An effluent treatment plant (ETP) is being established to manage sludge and enable water reuse. “Operationally, we aim to reduce our carbon footprint and waste. Our equipment is new and energy-efficient,” he adds.

On extended producer responsibility (EPR), Kanoria clarifies that TCPL takes full responsibility for waste generated on its end. “However, if we sell to a customer who is also part of the EPR framework, the responsibility shifts to them,” he explains.

While experts advocate for packaging designed to reduce waste, Kanoria highlights practical limitations. “There are constraints in designing cartons for packaging. For instance, you can’t always change how products are packed, especially with boxes that contribute to the gifting experience,” he says. He also refutes misconceptions about the sustainability of paper-based packaging. “Cartons are made from sustainable raw materials, free from fossil fuels, and are fully recyclable. The idea that paper isn’t sustainable is misleading,” he asserts.

Addressing concerns about paper waste ending up in landfills, Kanoria points out that most paper waste is recycled. “Even if some paper does go to landfills, it degrades quickly and harmlessly. Only a very small percentage fails to be recycled,” he explains.

Adapting to global trade tensions and domestic growth
With India increasingly positioned as a global manufacturing hub, TCPL is bullish about the country’s potential. “If India establishes itself as a significant exporter, we will certainly participate in that growth,” Kanoria states.

While TCPL’s current export business focuses on segments not intended for production in India, any shift in this dynamic would be a positive development. “Our goal is to grow our business, whether through exports or domestic sales,” he adds.

Global trade tensions and shifting tariff structures present challenges for TCPL’s international business. Kanoria acknowledges the volatility of the situation. “A month ago, tariffs were imposed on Mexico, and the very next day, they changed again. Recently, there were threats of tariffs on India too,” he says. Despite this uncertainty, he remains confident in India’s domestic market. “Our large population and significant domestic demand provide a strong foundation. Indian companies should prioritise the Indian market before considering exports,” he advises.

Kanoria also critiques high tariff policies, arguing that they have historically failed. “The US cannot produce everything it needs. Imposing tariffs on countries like India or Mexico won’t change that fundamental issue,” he says.

A promising future: Innovation and consumer potential
TCPL’s entry into niche segments such as pizza boxes reflects its commitment to innovation. “There isn’t much difference between a pizza box and a folding carton; both utilise similar technology and skills. This represents an innovation that allows us to tap into new segments,” Kanoria explains.  

With a population of 1.4-billion, India’s potential as a consumer market is immense. “When our population starts consuming more, we will become a formidable force,” Kanoria concludes. For TCPL, the focus remains on innovation, sustainability, and adaptability, ensuring its continued growth in an ever-changing global landscape.  

India’s economy is poised to reach USD four-trillion in the near future. With the new plant in Chennai, and expansion in the other locations, TCPL is strategically positioning itself to capitalise on this growth. As Kanoria puts it, “This isn’t just about expansion—it’s about people connecting to drive India’s next chapter.”