InterGroup Explores Expansion in India

Ohio-based plastics recycler visits India to look at establishing permanent presence in the country.

January 10, 2011

Euclid, Ohio-based InterGroup International Ltd., a recycler of post-industrial plastic scrap, will embark on an investigative mission to India beginning Jan. 12, 2011.

“The mission purpose is two-fold,” says Neil Gloger, InterGroup CEO. “First and foremost, we are sending a high-level delegation consisting of our Senior Buyer Gus Gatanas and our Sales Manager Zach Durant to investigate a reported security breach in our supply chain. Secondly, we are taking the first step to set up a permanent presence to have ‘eyes on the ground’ to further ensure our security commitments with our vendors.”

Gloger adds that InterGroup has extensive relationships with Indian converters. “Much of the laminated film scrap we work with is shipped to India for up-cycling or reconversion,” he says.

InterGroup has developed an extensive market for re-use of these films, Gloger says, including the manufacture of rope and twine, furniture padding, scratch guards, insulation, shipping dunnage and industrial packaging wrap.

According to Gloger, most flexible packaging producers, printers and converters seek recycling and re-use solutions, as long as it does not negatively affect their brand images. “This means that our vendors need verifiable assurance that their brand image printed on film will not be used to re-package similar products (counterfeiting) or that the material will not end up showing their brand in a bad light,” he adds.

The security breach as reported by InterGroup’s vendor, a flexo printer/laminator, consisted of a “C level” executive observing a street vendor selling laminated film by the yard from a master roll of printed film bearing the companys’ logo at a train station in Mumbai.

“This is a serious breach of our agreements both with our vendor as well as our trading partners in India. We are taking it seriously and will be vigorous in our pursuit of our commitments,” Gloger says.

InterGroup trades more than 2.5 million pounds per month with its export partners in India. This represents about 30 percent of InterGroups volume, according to Gloger.

“While this incident is unfortunate, we are taking every measure possible to ensure the high degree of brand security that our vendors have come to expect when dealing with InterGroup,” he adds.
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