Conver: its strategy to lead the production of balloons
Convertidora Industrial (Conver) disseminated its strategy for the coming years in the purchase, sale, commission, maquila, deposit, manufacture, conversion, transformation and elaboration of balloons and flexible plastic containers.
Incorporated in Etzatlán, Jalisco, the company is vertically integrated with two large business areas: the Packaging Division, in which it participates in the market for flexible printed polyethylene and polypropylene packaging, and the Balloons Division, with which it competes in the metallic globe market worldwide.
Conver’s vocation is basically manufacturing and marketing and that is where it has its main strengths.
Since its founding in 1979, the company has specialized in the production, conversion and sale of plastic and metallized films to be used in the production of flexible packaging for industrial, food, medical and consumer goods applications and in the manufacture of metallized balloons. , advertising and party items.
Conver: business and operational strategies
The company is focusing on higher value-added products such as balloons, laminations, bags, pouches, special barrier films, manufacture of oxo-biodegradable packaging and packaging for sausages called «Casing»
For the next five years, the company’s operating strategy will consist of:
- Support the level of exports, including flexible packaging.
- Increase installed capacity to meet the unattended demand of both business divisions.
- Maintain the high level of customer service as a priority activity.
- Enter new distribution channels
- Participate in specialty niches and high-margin business segments.
- Maintain a competitive cost structure.
- Acquisition of more efficient machinery, reinforcing economy of scale
- Maintain a solid financial structure
- Rationalize the use of working capital and reduce the cash conversion cycle
- Improve the debt profile and maintain the reinvestment of profits
Operational Strategies
Conver has great flexibility in production processes, thanks to the fact that the two main lines are manufactured in a similar way.
The company is vertically integrated, which frees it from dependence on third parties in its manufacturing processes. In addition, it has an online processor connected to one of the few photocomposition equipment with an exposure area greater than 40 «available in Mexico.
These technological advances position Conver with a competitive advantage since, according to the company itself, it gives it greater quality and speed of response and lower cost in the production of engravings.
Financial results of the company
The company has the resources to extrude and coextrude plastic films, as well as laminate, print, bag, balloon and rewind them, as well as manufacture its own engravings for printing and designs.
Likewise, it has the necessary equipment for the manufacture of «Casing».
Each equipment that is added adds not only a greater installed capacity, but also seeks improvements in productivity, quality and costs. Markets and Marketing Strategies.
