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Ghana Report
Marcopolis presents the Ghana Report focused on investments, doing business, economy and other topics featuring interviews with key executives and government officials. The sectors under review are agriculture, banking, energy, industry, telecom, IT, real estate and more.
InterviewsJanuary 24, 2023
Paper and Plastic Consumables: Discussing Latest News and Future Plans with Karim Achkar of Everpack Ghana
Karim Achkar, Managing Director at Everpack
- Written by Sandra Francisco
- Published: January 24, 2023
Interview with Karim Achkar, Managing Director at Everpack
Could you give us a historical background of Everpack and where it evolved from?
Everpack was established in 1998. We have been in Ghana for a long time. We were in the textile business before and that was our family business. My senior brother started with the family business then we decided to start a separate business. Textile was not doing well because of the competition with China and the Far East. Most of the factories in Africa could not compete anymore. So this is how we got the idea to start another business in manufacturing. So we decided to go into the tissue business in 1998, and we were the first to establish a company in Ghana that does this type of products. Gradually, we started to diversify more into other food packaging products. We have two different divisions; the tissue paper division and the paper products division, and we also have the plastic division. But they go together more or less because most of our products are tableware. So far, we have been innovative. We have done a lot. We have around 600 employees and many engineers. Our aim is to do more export in the sub region because ECOWAS is an advantage for us to export with less duty and less charges, and we can be more competitive. So our aim is to always do quality products, good service with good prices. We are still leading with our big range of products and our capacity as well. It never stops because with manufacturing you have to buy new machines, more machines, follow up the technologies and so on, but we are still on top of it.
What is still making you stay afloat regardless of all the competition and the issues going on?
The competition has always been there. It comes and goes, many people have come to the same line of business, but not everybody could maintain, compete and stay in the market. It is not an easy thing. Manufacturing is not just buying a machine. It involves a lot of things: you have to buy the raw materials, the packaging, electrical, compressors and so many other things. The cost of investment is usually high, and you also need the know-how. Africa is quite challenging, since you do not always have the expertise in Africa. Many times you have to recruit people from other places and this is a big challenge as well. But we are used to this system and we know how it goes. With manufacturing you have to go through obstacles. It does not matter how much investment you put into the business, you have to understand how the market is, the mentality of the people, what they like and what they do not like. It is a whole package. So we do have a lot of competition. We were doing well during COVID so many people decided to go into that line of business, but it is not the case anymore. It was just for a short period of time. Competition is everywhere, Ghana is an open market and anybody can enter into the business, but it is also very challenging and you have to diversify because a lot of the products that we had good margin with are now products that we have, and are breaking even. We just have to complete the range of products that we have. But because the competition is so big and so aggressive, you do not really enjoy any good margin in it.
Where do you diversify into as a business?
We have the tissue range of products. We have the kitchen towel, toilet rolls. We do paper napkins, facial tissue. We have the tissues for dispensers in hotels and restaurants. We also do paper cups, paper bowls and paper containers. We do plastic cups, plastic containers, plastic plates and plastic cutleries including forks, spoons and knives. We also do straws, and lately we purchased a new machine that does straws from PLA. PLA is made from corn. It is still expensive, but it will get cheaper with time. Some of the restaurants now, like the franchises KFC, Pizza Hut and McDonald's, are going into that type of straw because it is more environmentally friendly. So we are looking at both sides, because you do not know how long plastic will be in demand.
What is the story regarding Everpack in the field of bio-degradable products, second packaging and plastics?
In this particular field, we have the means of recycling our plastic and buying recycled plastics. In Ghana, this has become more and more of a business. Currently, there are some products which we do not have any other alternatives for. We do paper cups, but paper cups are not recyclable. People think that paper cups are more environmentally friendly, but that is not the case. Even plastic cups are more recyclable than paper cups. Researchers are trying to find more and better technologies to use the paper cup as a recycled product, because we do sell our paper waste for people who do recycling in Ghana. A lot of companies came to Ghana to do recycling plants as well. They invested a lot of money because a recycling plant is between $8 million to $12 million. It is an investment and there is also money in it. It is a business because you can gather, collect bottles, recycle them, and sell them as raw materials. So the issue is not only plastic, plastic can be recycled. The main problem is how to dispose of it, create awareness for people on how they can dispose of it and how they can differentiate between glass, plastic, and paper. Those are some major and most important things that people have to know.
Has Everpack started the initiative of plastic disposal as well?
Not yet, it was in the plan, but the investment is a little bit big at the moment. In the plastic business you have a cycle, you have the recycling material that goes up and goes back into the product and so on. But we can also buy recycled material from other factories which are doing that work.
Do you have any new line of products apart from the ones that you currently have?
We have a PET line. A PET line is a line that does containers like food containers. We do not do any bottling, but as you know, in Ghana, the biggest consumption is on bottled drinks, like soft drinks, mineral drinks, etc. So all these bottles are collected, recycled and we can reuse them. Currently, in the Middle East, in Europe and everywhere in the world, they do buy this PET recycled material and use it for other products. Recycling is the future, it is a business that people are looking after and manufacturers are working on to get a better finished recycled product.
Is there a plan of opening for partnerships or join ventures?
There are opportunities to expand and grow. The doors are open and so far we are really growing. We had some discussions in the past about partnerships with other companies, but we have not decided yet.
Is there any major project that you are currently working on?
We are increasing the line of paper products because we are ISO and Yam registered. Yam is a certificate that comes from the US, it is under Americana. Most of the franchises like, KFC, Burger King, Tacos, Pizza Hut, are under the Americana umbrella, and they would not buy any product unless you are Yam registered. We are audited twice a year. They come and check everything, such as what we use as raw material, more or less like what ISO does. They give us the certification to supply KFC, for example, not necessarily only in Ghana. We do supply KFC and Pizza Hut in Ivory Coast and other countries as well. We worked very hard to get that certificate and sometimes we are on their network, if somebody wants to buy any product and they can get it at a better price rather than to buy it from South Africa or Europe they will buy it from us.
What does that certification mean to you as a business?
It comes at a cost, because you need to change a lot of things and they go into a lot of details. But with time, you can see the advantage of having it once you have people who contact you from Ghana and even different countries, as well as big companies such as Nestlé, Guinness, Unilever, and so on. And they do buy products from us.
What is your vision? What would you have loved to achieve in the next three years as a business?
I see Everpack exploring the African continent more. We were trying to spread more by maybe going to Nigeria because it is a very big market. One of our plans is to go to Mali, Niger and to most of the ECOWAS countries. This is our vision for the near future.
Would it be only export or would it be also establishing factories or facilities?
Just export at the moment, because we have the means of exporting to so many countries around us by land and not necessarily by sea. This is an advantage. But it will possibly happen after exploring different markets, see that there are opportunities, and have the know-how so there is a possibility of establishing other factories in the neighboring countries.
What is your philosophy in life? What makes you wake up every morning to want to do what you do?
The challenge and the success makes you stronger and you get more expertise with time. You see things differently. What I was 20 years ago is different from what I am today – the way I see things, the way we do our planning and so on. You also work on your brand, and it feels nice when most people appreciate what you do. You have to go through a lot of obstacles to get there. It is not an easy task, but we are there already, so we have to continue because you have to always advance. When you stop, it means you are going backwards. So you always have to work harder and move ahead.
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