Packaging Stock: Company with 35% Market Share and Clients Like HUL, Colgate, P&G and More

Synopsis: With a dominant 35% global market share in oral care tubes, EPL Limited has positioned itself as a key packaging partner to FMCG giants like HUL, Colgate and P&G. Backward integration, patented laminates, sustainability leadership and diversified global operations have helped it build scale, stability and long-term customer relationships.

The company has emerged as one of the world’s largest specialty packaging companies in laminated plastic tubes, serving leading FMCG and pharma brands across categories. From oral care to beauty and healthcare, the company commands a 35% share in the global oral care tubes market. Its scale, innovation capabilities and global footprint across multiple regions have enabled it to build enduring relationships with marquee clients while maintaining strong operational performance and margin stability.

With a market cap of Rs 6,952 crore, the shares of EPL Ltd have closed at Rs 217 and are trading at a PE of 16.9 compared to its industry PE of 18.6.

Global Leadership with Strong Category Focus

EPL Limited has established a strong leadership position in laminated plastic tubes, with a market share of 35% in the global oral care market and 20% in the total global tube market, as per management information. The company manufactures more than 9 billion tubes every year from 20 state-of-the-art plants in 12 countries. The company’s tube business revenue stream is diversified, with oral care accounting for 47% of the total tube business in Q3FY26, and “Personal Care & Beyond” now accounting for 53%.

The company has developed a strong leadership position in the oral care market as the No. 1 player in the global oral care market, thanks to its long-term customer relationships and innovation in products. The company’s oral care business has registered a CAGR of 4% over the long term, which indicates stable demand.

Innovation, Integration, and Sustainability Edge

One of the major differentiation points for EPL is its fully backward-integrated business model, where it produces laminate sheets in-house (in India and China) and further converts them into customised tubes before printing and capping. With 90% of laminates being patented, it provides a strong edge in terms of barrier properties, robustness, and sustainable offerings.

Innovation-driven growth has further helped it build a strong competitive barrier. The company is still innovating in the space of differentiated applicators, sustainable Platina tubes, and recyclable solutions. It is noteworthy that over a third of its product offerings fall under sustainable tubes, and the volume of recyclable products has significantly increased in the past few years. Its EcoVadis Platinum status puts it in the top 1% of companies globally on the sustainability index, further solidifying its position as a preferred supplier to global FMCG majors.

Strong Contracts and Geographic Diversification

EPL has operations in four key geographic segments: AMESA, EAP, the Americas, and Europe. These four segments account for approximately 21-28% of the company’s revenue. In Q3FY26, three of the four segments reported double-digit revenue growth. The Americas and EAP segments reported strong growth. The company’s geographic diversification strategy makes it less dependent on any one market.

Notably, about half of the company’s consolidated revenue is derived from contract customers with average tenures of about three years and raw material price pass-through arrangements. This helps the company’s revenue and margins remain less affected by polymer and aluminium prices. In addition, the company has maintained 20%+ EBITDA margins over the past few quarters and has shown improvement in ROCE.

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