ROYAL PACK FEATURE

FEATUR

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R O Y A L P A C K S O L U T I O N S

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foodpackagingsolutions

leaders in

Royal Pack Solutions offers a “one-stop

solution to the food and catering industry”.

Royal Pack Solutions FEATURE

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According to a recent study by Frost & Sullivan, increasing

demand from the emerging middle class and the growing food and beverage sectors will drive growth for plastic packaging in southern Africa. Its study - Southern African Plastics Packaging Market - says growing affl uence has “signifi cantly spurred” growth. It covers linear low-density polyethylene (LLDPE), high-density polyethylene, polystyrene,

polypropylene and PET for the period 2006-2016 in South Africa, Botswana and Zambia.

But is that true? Frost & Sullivan say the long-term outlook for the food and pharmaceutical plastic packaging sectors is “positive” but that do people in the industry think?

“I don’t see the market turning around in the near future,” says Steven Veloza, director of Royal Pack Solutions (Pty) Ltd,



With the rand the way it

is and the economy the way it is... Business is

really tight out there

a company that specialises in the sale and distribution of generic food packaging materials. “I wish I did, but I don’t,” he adds. “I think this is just the way things are now and we have to adapt to it. People are talking about a turnaround next year, but logically I can’t see that happening.” Growth opportunities in the southern African market, it seems, will only be realised in the long-term.

ONE-STOP SOLUTIONRoyal Pack Solutions specialises in the sales and distribution of generic food packaging materials, branded products, catering equipment and other allied products by

offering a “one-stop solution to the food and catering industry”. Its extensive range of generic products also includes a limited selection of perishables and protective clothing.

“With branches throughout the country we are well-positioned to supply the market nationally,” Veloza, who is also CEO of Royal Pack Solutions’ parent company J.E. Royal Group and founded the business with his father Richard in 1994, adds.

“This entrepreneurial company has evolved from humble beginnings to leading brand,” he continues.


Through Royal Catering Equipment,

a division of Royal Pack Solutions, we provide the

commercial kitchen with a

one-stop option


The rapid expansion of the company has been impressive by any measure. “Our growth has been founded upon a solid commitment to pursuing loyal relationships, striving always to provide a quality product, reliable service, and an overall value adding experience.

“We have an extensive one-stop offering,” Veloza adds. “For example, through Royal Catering Equipment, a division of Royal Pack Solutions, we provide the commercial kitchen with a one-stop option. We carry a vast selection of catering equipment, ranging from kitchen smalls to small appliances. “Royal Brand Management Solutions, another division of Royal Pack Solutions, provides nationally represented food franchises with a unique service driven product,” he continues. “We offer a complete procurement and logistics solution for the management of their branded packaging and allied products. We currently have a number of well-known franchises on board.”


fast facts

Company name: Royal Pack Solutions (Pty) Ltd

Founded: 1994

Industry: Packaging

Headquarters: Alrode

Web: www.royalpack.co.za

Parent company: J.E. Royal Group

CEO: Steven Veloza

Company at a glance: Royal Pack specialises in the sale and distribution of generic food packaging materials.


Kiarah Chemicals manufactures and supplies industrial cleaning materials to small corporations as well as large institutions:

Kiarah Chemicals has been in existence for the past 10 years. The company has grown to become a viable competitor in the chemical manufacturing industry.

INDUSTRIAL: • Hospitals • Dairies • Industrial Laundromats

COMMERCIAL: • Offi ce buildings • Hospitals • Malls • Dairies • Commercial parking lots and garages • Industrial Laundromat • Apartment complexes • Restaurants • Schools • Government contracts

Telephone: +27 (11) 865 1199Fax: +27 (11) 865 3671Email: [email protected]

www.kiarahchemicals.co.za

NATIONAL COVERAGERoyal Pack Solutions has seven branches throughout South Africa. “I believe that you need to have a clear vision of where you want to go. You also need to work hard. That’s what it boils down to,” says Veloza of his company’s expansion.

Of course, Royal Pack has felt the effects of recession - there is no doubt - and over the last two years, the business has changed, Veloza says. “At fi rst it was quite easy to expand; we could open new branches with ease and we would see results quickly. In the last two years, with the rand the way it is and the economy the way it is, that is not the case anymore. Business is really tight out there. At times like this customers are under pressure and are looking around for

better pricing. Obviously the end result of that is that margins are affected. Times are tough, make no mistake about it.”

The tougher times led Veloza to look at the business’s structure, strategy and effi ciencies again. “If I can take something good out of this it would be that it forces us to go back and look at the business to see where we have gotten careless, where we spend too much and how we can do what we do better and more effi ciently. You have got to get better. You cannot increase prices. On the contrary, you have to reduce them. It is a case of really looking at how you

work and making sure you can do things better.“In terms of national footprint, some regions and areas do better than others,” he adds. “I

I believe you need to have a clear

vision of where you

want to go

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believe that it is down to the competitiveness of that region. We have gone into some regions where for years and years they have had very little opposition and have been able to maintain a high margin. We have come in there a lot more competitively and aggressively and captured a big part of the market quickly. But in other regions there is a lot of competition, the growth is a lot slower.”

ONLY AS GOOD AS YOUR RELATIONSHIPSAs a distributor, the strength of business is based on the strength of relationships

with customers and, of course, suppliers. It stays close to both “We maintain close

relationships and we are only as strong as our relationships are,” Veloza says. “I believe maintaining that is vital. It is important because we have been working with suppliers to come through the downturn together. There isn’t a magic fi x. I think it just comes down to

better communication. It is in both our interests to tackle certain issues, looking at how we could do it and what we would do, together. “I also believe in applying and maintaining an entrepreneurial spirit


We have to adapt to it... People are talking about a turnaround next year, but logically I can’t see that happening

Tel: (011) 900-2323/4 Tel: (011) 868-3154/5 Fax: (011) 900-2648 6 Evans Road, Alrode, South Alberton, P O Box 146693, Bracken Gardens, 1452

www.marcoplastics.co.za

“sh

ift your paradigms - broaden your horizo

ns

”

For All Your Packaging

Requirements and All

Related Hygiene and

Safety Ware

Tel: (011) 900-3644Fax: (011) 868-3513Cell: 082 443 9464E-mail: [email protected]

P.O. Box 166777Brackendowns

1454

s

in the business,” he adds. “I believe that is very important in remaining competitive. These days every customer is accounted for. You have to be in touch with the business, what you are doing, customers and the market, to stay on top of things.”

Veloza says Royal Pack still has an eye for expansion, but will be “more cautious” when picking opportunities. “It is harder to expand now and it takes longer to break a business even. We will be more cautious, keep costs down, keep our eye on the ball – to survive going forward we need to be as cheap and efficient in our running as possible.

“We will keep looking for new ways to penetrate the market. We can’t become complacent. We can’t afford to not move forwards. If you aren’t moving forwards, you are falling backwards.” END

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ROYAL PACK FEATURE