Rishi FIBC Solutions Private Limited concentrates mainly on Flexible Intermediate Bulk Containers (FIBCs), which are flexible and collapsible giant-sized bags meant for carrying up to 2500 kgs of powdery or granulated material. It is made out of Polypropylene. Compared to a conventional rigid drum, FIBC is not only fully customizable and economical option but being flexible in lighter weight it also offers a significant freight cost advantage and space-saving as it can be collapsed and folded post use.
Quality of the product is very important in the international market as the product requires a safety factor of 5:1, that means a 2500 kg bag would be tested for a safety factor and it is not supposed to break at less than 12500 kgs load while applying the pressure to break the bag. Even if it is attaining 12400 kgs and is just short of 100 kgs for passing the test, the said bag is considered as rejected and the entire lot can come back to the manufacturer.
While the manufacturer is making so many containers for the customers, there is a high risk involved in this process as once a bag is rejected, the end customer will not take the risk of using the other bags also and the entire lot will be rejected. This can affect the cash flow of the company very badly and may even put them in financial crisis. Many companies in India had closed down their operations because of the huge claims they had received from the end customers because of the rejection of the consignment due to very small quality issues. So, FIBC is a very tricky product and therefore manufacturing knowledge is very much essential to keep the product always better and to survive in this business.
Rishi FIBC has exponentially grown in the last 14 years mainly because of the in-depth product knowledge of the promotors and their technical and marketing skills in the international market. Since it is a technical product, technical knowledge of the product helps in a very big way for marketing the product. Company’s turnover in the first year, i.e. 2007-08 was Rs. 4.47 Crores and for the financial year 2021-22, company is targeting a turnover of Rs. 800.00 Crores which means that company is achieving a Compound Annual Growth Rate (CAGR) of 35% over the last 14 years of operations which is extraordinarily good in the highly competitive market as India is having more than 100 manufacturers of FIBCs today.
Achieving consistent quality is one of the main criteria for this excellent achievement. This they have achieved with the excellent teamwork and a proper guidance from the promoters with their deep knowledge in the shop floor activities in this sector for the last many years. Rishi FIBC always believes in making an international standard facility, installing the best machines available in the world and engaging the best people to run the show. Promoters believe that these three combinations can provide a consistent quality product for a long run. So, they never compromise on any of the parameters to achieve a higher quality standard.
Today, Rishi FIBC is rated as one of the most modern FIBC manufacturing facility in the world by the customers from USA, Europe, Australia, New Zealand and Japan. Promoters proudly feels that this achievement was only possible with the dedication of all the employees of the company and the vision of “forward together” was percolated to the ground level employees. Times of India group recognized Rishi FIBC last year with an award for the “fast growing Agro Textile Company in the country”.
Joseph Frans is says, “We are always putting a lot of efforts and concentration on training the people and keeping that in mind, company is having a Corporate HR Department under the leadership of a Senior Vice President who is a well experienced person in the management which indicates company’s commitment to the total training of the manpower in order to achieve the high quality, efficiency, etc.” Company is targeting a turnover of Rs. 1,000 Crores by next financial year with the existing product portfolio and diversification in mind.
FIBC Market Trends And Role Of Rishi FIBC
Rapid industrialization across the globe is one of the key factors driving the growth of the market. Chemical and agriculture product manufacturers are increasingly using FIBCs to handle grains, rice, potatoes, cereals and liquid chemicals.
These bags are also used to store and transport construction materials, such as carbon black, steel, alloys, minerals, cement and sand. Furthermore, increasing environmental consciousness among the masses and the rising demand for lightweight, biodegradable and bulk packaging material for pharmaceutical products, is also stimulating the market growth. Pharma-grade FIBC bags are used for storing various medical products and preventing contamination. In line with this, product innovations, such as the development of FIBC variants as hygiene packaging solutions, is acting as another growth inducing factor. Food-grade FIBC bags are manufactured using virgin polypropylene resins that aid in preventing the spoilage of perishable goods and are suited for storing packaged products in bulk quantities.
FIBC Market Overview
The global flexible intermediate bulk container market is expected to grow at a CAGR of around 5% during 2022- 2026. However, this may change, keeping in mind the uncertainties of COVID-19 and its direct and indirect influence on different end-user industries. Currently, almost all the industries are facing lot of logistic issues because of the covid uncertainties. Freight rate to Europe, USA and Australia has gone up by three times in the last one year and it is a matter of great concern for all exporters in the country. This has affected the overall sales this year, but the exporters are expecting that present situation will come to normalcy within the next six months to one year time.
Having An Edge Over Competitors
In order to supply to the international market, lot of certifications are needed in the international level, such as ISO 14001:2015, British Retail Consortium (BRC), American Institute of Baking (AIB) etc. which are some of the very much essential certifications required for a FIBC company in India. Rishi FIBC always concentrates on the highest standards and that is the reason they possess all the certificates with highest ratings in the country in the FIBC sector. It is a record that Rishi FIBC is the only company in the world to get ‘Superior’ rating (‘Superior’ rating is more than 91% marks in the AIB audit) from AIB for three consecutive years in the FIBC industry world over and company has received a special certificate from AIB on this which increases credibility of the company in the international market.
They are maintaining this highest rating since the inception of the company. British Retail Consortium (BRC) is another main certification for this industry and Rishi FIBC has been always getting highest rating which is currently ‘AA’. Rishi FIBC always ensures highest rating for this audit since the inception of the company. The fully integrated world-class facility for food and Pharma grade FIBC is provided at the factories which allow them to create a highly customized solution for the consumer to meet their needs.
Serving more than 44 countries in the world, their manufacturing facility can produce huge quantities of industrial FIBCs as per customer requirements. Joseph Fransis, “We produce 10 million high end FIBCs per annum and ensure precision and reliability in the products” states.”
The Corporate Philosophy
Several packaging strategies are applied at Rishi FIBC to encourage sustainable means. They are processing polymers and using power from the solar and the windmills of their own to completely eradicate the carbon footprint and encourage complete renewable energy sources.
Rishi FIBC contributes to society’s wider goal of sustainable development by ad opting a near by school and taking care of the educational needs of the children studying there
Research And Development
The company believes that research and development are at the core of their commitment to growth. So, emphasizing the need of R&D, CEO himself is heading this division with several experienced engineers from different fields and keep on developing new products and methods which gives the company an edge over its competitors. Many products today Rishi FIBC is making are unique in nature and company is getting an additional margin on this speciality designed products which most of the other manufactures are not making.
The Beliefs And Success
The company believes in attributing their success to in-depth technical knowledge in the production that the directors have gained over the last 32 years of their practical experience in the industry. The core value of Integrity, Collaboration, Care for Employees, Ownership, Excellence, and Customer focus is carried to date, since the day of inception.
Giving Back To Society
Corporate Social Responsibility (CSR) is about managing the business in a way that positively enhances the economic, social & environmental aspects of Society. They firmly believe that sustainable development is critical for their success & acceleration of business activities. Rishi FIBC contributes to society’s wider goal of sustainable development by adopting a nearby school and taking care of the educational needs of the children studying there. Apar from this, company is providing free medicines to hundreds of people who make their way to ‘Wayanad District Government Hospital’. They are giving funding assistance to NGOs who arrange mid-day meals for about 400 people daily at the Government Hospitals who avail medical treatments.
They take care of food expenses for the children in special schools (approximately 250) and two old age homes. Company has constructed and given 10 houses to the poor people who lost their houses in the devastating flood the country has ever witnessed three years back. They are also planning to conduct a mass marriage for the poor people (25 couple) in the next couple of months. The main purpose of conducting this mass marriage is to give a message to the general public against the dowry system still being followed in the country today. Joseph Fransis, Executive Director & CEO is an Electrical Engineer and a post-graduate in Business and Industrial Management. He has over 32 years of handson experience in the manufacture of FIBCs in India and abroad put together.
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