March 10, 2008
Healthcare packaging market is niche and is the longterm business
Analysis of:
Rexam: Growth in plastic packaging as overall profits fall | www.plasteurope.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: - Big packaging player moving into specilised healthcare business shows the importance of the specilised business and the opportunities.
Analysis: Healthcare packaging business is highly specialised and profitable but is the long term. Once the customers decide on the vendor then it takes them longtime for them to move to alternate vendors due to long validation protocols and the high costs involved. This also makes the Rexam stronger in the specilaised business than the more commoditised business of cans
Analysis: Healthcare packaging business is highly specialised and profitable but is the long term. Once the customers decide on the vendor then it takes them longtime for them to move to alternate vendors due to long validation protocols and the high costs involved. This also makes the Rexam stronger in the specilaised business than the more commoditised business of cans
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