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Hyderabad-based Mold-Tek Packaging signed an MoU with Vibe Generation earlier this month to commercialise its patented, safety-enhanced closures used in specialty chemicals, lubricants and other industrial applications.
Under the arrangement, Mold-Tek will develop moulds and manufacture the components, while Vibe will drive global marketing across Europe, the US and other key industrial markets.
In an interview with CNBC-TV18, Chairman and Managing Director Laxman J Rao said the new vertical has the potential to deliver 2–3 times the company’s current EBITDA margins, driven by the technical complexity and high value-add nature of Vibe’s IP-backed products.
“Our current EBITDA is around ₹40 for the overall basket of products. This could be at least between ₹80 and ₹120,” Rao said.
The addressable market for such high-precision closures is upwards of $1 billion. Even a 2–3% share, he said, could translate into meaningful value for the company over the next few years.
“Vibe’s projections indicate about ₹250 crore in revenue over five years. The EBITDA contribution will be significant because the value addition in these products is much higher than our regular portfolio,” he added.
Mold-Tek expects the first commercial products to roll out between June and July 2026, with two designs already under development. The segment will ramp up gradually, with about ₹10–15 crore in turnover expected in the first year of operations, doubling annually thereafter.
Rao said the company does not anticipate major capital expenditure for the new vertical. Existing machinery is compatible with the specialised components, and the products require significantly less space compared with Mold-Tek’s large container lines. “This will also help us utilise idle capacities across plants, which is a positive,” he added.
While the Vibe-linked business is not expected to materially influence volumes in FY26 or FY27, management expects visibility to improve from FY27–28 as more patented products are tooled, commercialised and adopted by global clients.
The new vertical follows Mold-Tek’s push into pharma packaging—a segment that, according to Rao, now contributes strongly to the company’s financials. He said the strategy remains consistent: building high-value, high-margin portfolios while maintaining strength in its established paints and lubricants business.
“We are always looking at high value-add segments. Opportunities like pharma, food and FMCG, and now specialty closures are key to strengthening our top line and bottom line,” Rao said.
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The company is betting that Vibe’s experienced sales team—comprising veterans with three decades of experience in the high-end closures market—will accelerate traction in international markets. Mold-Tek will also explore domestic demand through its own sales channels.
With margin accretion expected to outpace volume growth in the initial years, Mold-Tek is positioning the Vibe partnership as a long-term profitability driver rather than a near-term volume story.
Below is the verbatim transcript of the interview.
Q: This MoU with Vibe Generation Holdings — if you can tell us, what is the total addressable market? What are the sectors you will be looking at, and what is the revenue potential that you have targeted from this MoU?
Rao: Vibe Generation Holdings deals in industrial specialty closures meant for high-end chemicals and lubricants. These are industrial products made using injection-moulded components and, in some cases, metal parts, which enable complete safety for high-value packaging.
The team has worked earlier with one of the world’s largest companies in this space, Rieke, and has built strong technical and marketing capabilities. They have signed an exclusive MoU with Mold-Tek to produce these components, for which they also hold a few patents.
These products will be developed by Mold-Tek in its tool room, and multi-cavity moulds will be made once commercial orders are procured by Vibe. Vibe brings more than 100 years of combined international experience among its partners in high-end closures, and will primarily market the products in Europe and the US for specialty chemicals, lubricants and other industrial applications.
Product development is based on their IP. The patent rights will be shared with Mold-Tek for development, and once the moulds are made, Vibe will take care of marketing and sales. The market size we are addressing is over $1 billion, and even if we aim for a 2–3% share, we can create considerable value as a new segment for Mold-Tek over the next four to five years.
Q: You spoke about this being a new segment and about the IP being shared. Can we assume that you will be the sole supplier for this segment? Also, will you work with other Vibe group companies such as Viah Beauty?
Rao: No, we are tied up only with Vibe, which focuses on industrial caps and closures. This company owns the IP in that segment, and those products will be produced exclusively by Mold-Tek India for export to various countries.
The Indian market will also be open for us to explore, and domestic marketing efforts will be handled by our own team.
Q: You mentioned $1 billion as the total addressable market. What is the revenue potential from this MoU?
Rao: The projections shared by Vibe are around ₹250 crore over five years. The ramp-up will happen gradually over the next few quarters.
Two products are under development and are expected to be commercialised around June–July 2026. Based on this, additional patented products will be developed over the following years. This will add to our portfolio in the same way pharma did, which we entered a couple of years ago and which is now contributing meaningfully.
This segment should start contributing from FY27–28 onwards and will carry high EBITDA margins because the value addition is much higher than our regular products.
Q: How will the EBITDA margins compare with your existing portfolio?
Rao: Our current EBITDA is around ₹40 for the overall basket of products. This could be at least between ₹80 and ₹120.
Q: When will this start reflecting in your financials? Can you outline the revenue trajectory?
Rao: In the first year, we could achieve turnover of about ₹10–15 crore. Thereafter, it should progressively double as we expand our product range and reach more clients.
Vibe has a very experienced sales team with 30–35 years in this space, and they are confident of doubling revenues annually to reach ₹250 crore by the fifth year.
Q: Earlier, you had guided for capex of ₹50–60 crore, largely in FMCG and pharma. Does this partnership increase your capex requirement?
Rao: The positive here is that our existing machinery is fully compatible with these products. These are caps, which are mostly flat and assembled from a few components, so they do not require large spaces like containers.
There is no major additional capex requirement for this segment. In fact, it will help utilise idle capacities at our plants, which is a positive for us.
Q: What does this mean for volume growth in FY27 once contributions begin?
Rao: I do not expect a major contribution in FY26–27. Pharma will continue to contribute more than ₹50–55 crore to the top line.
This will begin much like pharma did a year or so ago. FY27 will be the first year of operations for the Vibe product range, but meaningful scaling will likely happen from the second year onwards, as new product development and moulding typically takes three to six months.
Numbers should become more visible from FY27–28. That said, Mold-Tek consistently looks at high value-add segments. While we continue to strengthen our paints and lubricants base, we keep pursuing opportunities in food and FMCG, pharma, and now specialty closures, to enhance both revenues and margins.
