PIM CELEBRATES 40 YEARS
September 27 2009

Packaging Industries (Malawi) Limited as it is known today was established by a South African Company, H.M. Holdings (60%), DEFINCO Investment Trust (30%) and Portland Cement Company Limited (Now Lafarge 10%). The company was incorporated on September 1969 as Amalgamated Packaging Industries Limited.

The company was established as a sole supplier of paper cement sacks to one of its shareholders, Portland Cement Company.

The company has over the years diversified its operations from the supply of paper sacks to the conversion of liquid packaging cartons whose operations commenced by the importation of sleeve from the then Rhodesia now Zimbabwe.

In addition to this simple operation, the company was also importing from its sister company in Zimbabwe corrugated board for conversation into corrugated cartons.

Through many acquisitions and mergers that took place in the 70’s in the   South African packaging sector, the shareholding in PIM changed hands from HM Holdings to Nampak.

The importation of partly finished liquid packaging cartons stopped in 1971 when the company acquired a Flexo Major Printer for the production of sleeves from Polyethylene coated board that is imported from the Scandinavian countries. During the same year, Malawi Development Corporation (MDC) acquired 44% of the shares in the company and become the second largest shareholder to Nampak in Amalgamated Packaging Industries.

In 1972 the company changed name from Amalgamated Packaging Industries t Packaging Industries (Malawi) Limited, when Malawi Development Corporation acquired a controlling shareholding in the company.

The importation of corrugated board continued up to 1978, when the company embarked on an expansion programme which included the extension of the factory, the installation of a board making machine (corrugators) and its ancillary equipment.

This installation of the board making machine resulted in the company being able to supply the Malawi tobacco industry with heavy duty cartons for the packaging export tobacco in addition to the supply of cartons to the other local manufacturers.

In 1985, Definco Investment Trust and Portland Cement Company (1974) Limited transferred their shares in the company to MDC making the corporation the largest shareholder with 85% stake in the company.

In a bid to improve productivity the company has been involved in various improvement initiatives including the installation of a two  colour Flexo graphic printer slotter capable of producing one piece tobacco cartons to replace an outdated letter printer that was  acquired the seventies.

In order to adopt to the changing market conditions in 1987 PIM replaced the old paper sack machine which was limited to the production of cement and other small sacks to more versatile machine which was also capable of producing tea sacks.

As a company’s business steadily grew and the market required quality products the company embarked on a rehabilitation and modernization programme in 1992.

This was undertaken in order to enhance capacity and improve the company’s products quality so as to enable it compete favourably with imported corrugated and liquid packaging cartons.

This programme which about three years to complete involved the replacement of all critical sections of the board making plant in the corrugated cartons division, the acquisition of a flexo folder gluer and the replacement  with relatively modern technology of a flexo printer and a flame sealer in a liquid packaging division.

The company acquired small- saw machine in early 1995 for the conversion of toilet tissue from toilet tissue logs which was later on in 2008 replaced with a rewinder and full conversion plant for Jumbo reels into tissue rolls. In the same year through a rights issue in which MDC did not participate, Nampak increased its shareholding in PIM from 15 to 60%.

Within this period the company also embarked on continuous productivity improvement initiatives as part of its drive towards world class manufacturing and service status. The initiative included the implementation of a Total Productive Maintenance (TPM), a non-financial performance measurement and Quality management systems for purposes of cost reduction through the production of quality products and empowering of employees in their day to day operations.

In 1998 as part of the privatization programme, the company adopted new articles of association, amended its memorandum and converted to a public company through listing on the local stock exchange. Through the listing MDC reduced its shareholding investors, putting a final end to MDC’s involvement in PIM.

In 2000, a warehouse and distribution branch for the company was opened in Lilongwe with the view to locate itself nearer to customers based in the central and northern region of the country and in order to facilitate fast delivery of tobacco cartons to its customers based in Kanengo.

Two years later, flat and satchel bag plant was acquired for the production of small bags for tea and fast food packaging.                                         

As part of the company’s continuous productivity improvement initiatives, the company embarked on ISO certification and in March 2008 PIM obtained a quality management system certification by South African bureau of Standards under ISO 9001: 2000. This was the first time that a company in Malawi had been certified by South African Bureau of Standards. In addition to ISO the company has also embarked on implementation of Hazard Analysis and Critical Control Point system (HACCP) is food safety management programme that requires organizations in the food hazards likely to exist in their production system). This process is progressing well and certification should be obtained soon.

The company has over the years developed local export markets in Tanzania, Zimbabwe, Zambia and Mozambique. Exports especially in the neighbouring countries have a lot of potential for packaging products and its market remains one of the major growth focus areas for the company.      

Operations of the company have over the past 40 years been diversified to include the conversion and production of liquid packaging cartons, corrugated cartons, paper sacks, toilet tissues and satchel and flat bags. Various stakeholders including the government have played their role in ensuring the sustainability of its business.

Major constraints a for the company remain the unsatisfactory supply of power by Electricity Supply Corporation of Malawi (ESCOM) and water by Blantyre water board.

Transport costs yes; because the country’s proximity to suppliers and markets and readily availability of foreign currency are also factors that have impacted on operations and growth of the Packaging Industries (Malawi) Limited.

As the company goes forward the board and management will continue seriously assess the environment in which it operates in order to take advantage and invest in potential and existing opportunities in packaging sector.

With technical assistance from Nampak, the majority shareholder, the company intends to diversify its operations and markets and position itself as packaging solution supplier to its existing and potential customers.

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