10.

The Personal Care

Industry
10.1.

Industry Overview

The market value for personal care products

is estimated at US $9.1 billion for 2006. A
large number of multinational corporations
are selling and manufacturing these
products in Mexico. In addition, there are
more than 150 local companies also
manufacturing, selling and exporting these
products.
Yearly investments in this sector are
estimated at more than US $1 billion, and
are used to expand production capacity or
to
introduce
new
manufacturing
technologies and processes.
Parallel to the growth of local production,,
imports of these products have also grown
at a very solid rate since 1996, averaging
9%. During 2006, imports of personal care
products reached US $1.34 billion.
The most important business organization in
Mexico representing the interests of the
personal care products industry is the
National Chamber for the Perfume,
Cosmetics, Personal Care and Hygiene

Products (Cmara Nacional de la Industria

de Perfumera, Cosmtica y Artculos de
Tocador e Higiene).
This organization estimates that 60% of
total sales are carried out through traditional
channels, which include supermarkets,
drugstores, and personal care products
stores. An important segment reaching 40%
is comprised by direct or door to door
sales, performed by a spare time sales
force estimated at 1.8 million people using
their free time to generating additional
income.

10.2. Company Ranking by

Size
Multinational companies operating in
Mexico dominate the Mexican market for
personal care products. These companies
manufacture a portion of their lines in
Mexico, and complement their offerings
though inter-company imports. Some local
companies have also achieved a leading
position in the market, especially those
manufacturing soaps and cosmetics, as well
as others importing diverse personal care
products.

191

10.3.

Company Profiles

Avon Cosmetics, S.A. de C.V.

Industry:
Sub Industry:
Location:
Size (sales):
Purchasing Potential:
Specific Business
Opportunities:

Personal Care
Cosmetics
Mexico City (D.F.)
More than US $618 million
US $2.2 million for 2008
Filling and capping machine,
Carton machines, palletizers

A) Company Description
Avon Cosmetics has traditionally been one of the worlds leading multi-level seller of cosmetics
and beauty products. Its products are present at third-party points of sales, but the majority of
sales are through the companys direct sales force. Products include cosmetics, fragrances,
jewelry, toiletries, and apparel and home products. The company has a presence in 136
countries, and has been in business for more than a century.
Avon Cosmetics S.A. de C.V., began operations in Mexico in 1956, offering 59 products for
women and nine for men. The company has grown to offer more than 900 products in Mexico.
The company operates two plants; the newest one began operations in 2000 in Celaya, in the
state of Guanajuato. At the time, this was considered to be the most advanced, state-of-the-art
facility for this company in the world.

B) Main Products Produced and How They Are Packed

Avon manufactures more than 900 products in Mexico, of which the highest volume items
include:
Product
Lipstick

Brand

Package

Liquid lipstick

Avon Style, Perfect Ware, Cardboard boxes, plastic packages

Beyond Color
Glazewear
Flexible plastic bottles

Eye liners
Mascara
Eye liner pencil
Liquid eye liner
Foundation
Anti-stress base
Humectant base
Makeup base
Powder
Corrector
Manicure
Nail polish
Skin cream
Masks
Anti acne
Sun block

Avon Color
Avon Color
Avon Color
Color Trend Avon Color
Beyond Color
Calming Efects
Face Lifting
Clear Finish
Avon
Avon
Avon
Avon Color
Avon
Avon
Avon
Avon Sun

Cardboard boxes
Plastic containers, cardboard boxes
Cardboard boxes, plastic bottles
Aluminum and plastic bottles
Glass bottles
Glass bottles
Glass bases, cardboard boxes
Glass bottles, cardboard boxes
Plastic bases, cardboard boxes
PVC tube, cardboard box
Glass bottles
Glass bottles
Glass bottles, plastic and glass bottles
Plastic containers, tubes
Plastic containers
Plastic bottles

192

Tan lotions
Hair treatment
Shampoo
Gel and hair fixing products
Spray

Avon Sun
Advance Techniques
Advance Techniques
Zip
Zip

Hair color

Beautiful Reflections
Far Away, Woman of
Earth, Perceive, Millenia,
Prowl,
Incandessence,
Glass bottles
Anew

Fragrances

Glass and plastic bottles

PVC tubes
Plastic bottles
PVC tubes
Plastic bottles
Plastic containers, aluminum tubes,
plastic bags and cardboard boxes

C) Installed Packaging Machinery

Avons Mexico City plant has the following machinery:
Current Machinery Used
Labeling machines
Screw capping machines
Bottle feeder and orienting
Filling machine
Filling machine
Capping machine
Screw capping machines
Labeling machine
Filling machine
Coding machines
Labeling machine
Filling machines
Filling machines
Filling machines
Box form fill and seal machine
Filling machine
Filling machine for mascara
Filling machine
Bottle filling machine
Filling machine for lipsticks
Bottle position machines
Cellophane wrapping machine
Cellophane wrapping machine

Brand

Units

Origin

Specification

USA
USA
Italy
Italy
Germany
Germany
USA
USA
Italy
USA

Average
Age
6
7
2
15
7,4
7,4
7
9
15
3

Acroplay
Resina
Posimat
Cozzoli
Rationator
Robocap
Resina
Acroplay
Vetraco
Image and
Link
Krones
Cabala
Norden
MRM
Jones
BOSCH
Kalix
N.A.
Groninger
Wecherle
Pace
Marden
Edwards
Bergami

6
18
1
2
2
2
10
1
2
30
1
1
5
10
9
1
1
4
1
1
4
1

USA
USA
USA
Germany
France
Mxico
Germany
Germany
USA
England

10
15
10
25
18
4
4
5
4
1
1
5

80%
80%
80%
80%
80%
80%
80%
80%
30%
100%
80%
80%

Italy

80%

80%
80%
80%
80%
80%
80%
80%
80%
80%
100%

D) Last Packaging Machinery Purchase

The most recent packing machinery purchase was last December 2007, and it included a
fragrance filling machine for a cost of US $1.4 million.
Machinery

Brand

Country

Motive of
Purchase

Filling machine for fragrances and liquids

PKB

France

Replacement

193

E) Future Packaging Machinery Ordering Plans, 2008

A significant production volume increase has forced the company to replace machinery that is
turning obsolete to accommodate for larger volumes. Many packing processes were conducted
manually, and the company wants to automate the full operations at its lines.
Machines that will be replaced include:
Machinery

Units

Origin

Capping machine / Robocap

Fragrance and liquid filling machine
/ PBK
Horizontal carton machine /
Marquesini

1
1

USA
France

Italy

Motive of
purchase
Replacement
Replacement
Expansion

Estimate
Budget
US $250,000
US $1.4 million
US $600,000

The company will continue evaluating options to increase the efficiency of their lines, this in
parallel of already being considered one of the most effective operations in its industry.

F) Purchasing Policies and Financial Arrangements

Avon de Mxico is a subsidiary of Avon Inc. It must follow worldwide procedures for purchasing
equipment. The world headquarters for Avon in New York gets involved in major projects, such
as the introduction of new production lines. Machinery upgrades or equipment replacement,are
handled in Mexico.
The New York operation shares information about potential suppliers with the Mexico operation.
Acquisitions of new packaging machinery basically follow two procedures. When purchasing
machinery for major projects such as the introduction of new lines, the project and the supplier
selection is made jointly by Avon Mexico and Avon in New York. When projects are
replacements or additions of small equipment, those are managed directly by Avon in Mexico.
The supplier selection is based on information exchanged between Avon in the United States
and Avon Mexico. The process to reach a final decision depends upon the importance of the
project or size of the expected investment. Avon usually adheres to the payment terms of the
suppliers.

G) Factors That Influence Purchasing Decisions

1. Technology.
2. Brand recognition and reputation.
3. Price.
4. Service.
5. Proposed delivery time of equipment and spare parts.

H) Comments on Preferred Brands and Existing Business Arrangements With

Packaging Equipment Suppliers
The company indicated that it does not have a special commitment to or preference for
particular brands or countries of origin. The company mentioned that Italian equipment offers
solid cost-effective alternatives. The U.S. headquarters has specified preferred suppliers for
each section and machine in the plants. The scope of existing agreements varies.
Origin
United States
Germany
Italy
France
Mxico

Technology
Average
Good
Good
Good
Good

Flexibility
Good
Good
Good
Good
Good

Service
Average
Average
Good
Good
Good

Price
Good
Poor
Average
Average
Good

194

I) Strengths and Weaknesses of the Installed Machinery

Brand: Bosh
Strengths:
Very good technology.
High working speed.
Precise machines.
Weaknesses:
No flexibility.
Brand: Robomat
Strengths:
Very good technology.
Good operational speed.

J) Comments Related to Asian Packaging Machinery

Avon believes that Asian machinery for the personal care industry does not employ very good
technology. Because the industry has high requirements for their products, this company is not
interested in being contacted by Asian suppliers.

K) Trade Show Attendance / Trade Publication Information

Avon attends all trade events for the personal care industry, as well as ExpoPack in Mexico and
Inter Pack.

L) Specific Interest
The company is interested in receiving information about new technical developments in
packing for the personal care industry. It is especifically interested in packaging machinery for
perfumes and liquids, and horizontal cartoning machines.

M) Contact Information
Company Name:
Contact:
Position:
Address:

Telephone:
Fax:
Mail:
Web:

Avon Cosmetics, S.A. de C.V.

Ing. German Huerta
Project Manager
5 de Mayo # 75,
Col. Tepepan Xochimilco,
16020, Mxico, D.F.
(52-55) 5420-2216
(52-55) 5420-2205
german.huerta@avon.com
pr.avon.com.m

195

Grisi Hermanos, S.A. de C.V.

Industry:

Personal care and

pharmaceutical
Soaps, shampoos and
conditioners, body lotions,
dental care, baby care
products, pet products and
pharmaceutical products.
Mexico City
More than US $100 million
US $750,000
Filling, Cartoning, Blister and
Closing Machines

Sub Industry:

Location:
Size (sales):
Purchasing Potential:
Specific Business
Opportunities:

A) Company Description
The company was established in Mexico in 1863, making it the leading traditional personal care
company in Mexico. It has a broad line of products based upon natural ingredients, which
include personal care, health care and nutrition.
The company began an internationalization process in the early 1990s, signing an agreement
with Helene Curtis in 1993, and a second agreement to produce cosmetics in 1998 with P&G.
The firm also signed agreements with Combe International in 1999 and with Sara Lee
Corporation in 2001.
Today, Laboratorios Grisi has one manufacturing plant in Mexico City and six distribution offices
in the country.

B) Main Products Produced and How They Are Packed

The following table presents some of the leading product types for the company and its packing
presentations.
Product
Shampoos, Conditioners,
Gel, Body lotions

Soap

Liquid Soap
Tooth paste
Tablets and
Pharmaceuticals
Pet Shampoos

Brand
BioTanics, Organogal,
Ricitos de Oro, Vitta
Naturals, Renace,
Manzanilla Grisi Kids
and Manzanilla Grisi
Grisi

Package
PET bottles
PVC bottles
Low and high density polyethylene

PVC permeable stretch (exported

products), carton boxes or plastic cases

Grisi
PET bottles
ArniDent
Plastic tubes and boxes
Axel, BacNutri, Garde B Blister pack, carton boxes
Blister pack, carton boxes
Del Perro Consentido PET bottles

C) Installed Packaging Machinery

The following table provides information on the most significant packing machinery used in the
operations of this company:
Current Machinery Used
Soap cutting machines

Brand

Units

Weaver Sea
Lander

Origin

Average
Age
Germany
NA

196

Soap cutting machines

Leman Gloum
Mono block
Mazzoni
Cartoning machine
CAM
Cartoning machine
Marchesini
Soap wrapping machine
Guerze
Monoblock for viscous
Ronchi
product (filling, camping and
labeling)
Monoblock for viscous
Mar
product
Labeling machine
Termostabile
Labeling machine
Etipack
Palletizer / Brumen
Brumen
Blister fill and seal machine
Famar
Carton coder
Marsh
Finished product line
Mazzonni
(several machines)
Viscous material tube fillers
CO.MA.DI.S
Monoblock for viscous
N.A.
products (paste)
Monoblock for liquid products
N.A.
(alcohol)
Monoblock for viscous
N.A.
products

1
10
4
2
2
2

Germany
Italy
Italy
Italy
Italy
Italy

NA
7
7
4
5
7

Italy

12

8
3
1
1
2
1

Italy
Italy
USA
Italy
USA
Italy

7
8
4
13
7
3

1
1

Italy
N.A.

3
1

N.A.

N.A.

D) Last Packaging Machinery Purchase

The dynamic nature of the product mix offered by this company creates a constant need to
purchase packing machinery, as product presentations are constantly updated.
The last packing machinery purchase was in 2007, when the company acquired three labeling
lines to be used for three different personal care lines, including toothpaste, cosmetics and
alcohol.

E) Future Packaging Machinery Ordering Plans

The company has a packing machinery budget for 2008 estimated at more than US $750,000.
The company is planning to purchase the following:
Machinery
Filling machine for cream
Blister machine
Cartoning machine
Closing machine

Units
1
1
1
1

Origin
Italy
Italy
Italy, Brazil or
Denmark
Denmark

Motive of purchase
Expansion
Expansion
Expansion
Expansion

The company has not reached a decision on the cartoning machine, as it continues evaluating
the advantages of the various machine alternatives as well as financing options being offered by
interested suppliers.

F) Purchasing Policies and Financial Arrangements

The company develops budgets to purchase additional packing machinery based on expected
growth in product demand and marketing decisions impacting final product presentation.
Grisi purchases the machines from its suppliers representatives in Mxico.
The company is used to working with equipment suppliers. It has had ositive experiences with
these suppliers with regard to the efficiency of the machinery, and timely support and service.

197

The company considers equipment price to be an important factor during the equipment
selection process. The company has requested financing from banks for the purchase of the
machinery. In the case of Italian suppliers, it requests vendor financing, especially from Punto
Italia.

G) Factors That Influence Purchasing Decisions

1.
2.
3.
4.

Capacity and efficiency of the machine.

Experience with the brand and supplier.
Technical support.
Price.

H) Comments on Preferred Brands and Existing Business Arrangements With

Packaging Equipment Suppliers
Grisi Hermanos believes that European packing machinery suppliers offer several advantages
over U.S. suppliers. It believes that their technology is more advanced and that the operation is
more friendly because these machines can be programmed by any person capable of using a
computer. While the exchange rate has increased the price of European machines significantly,
the company still considers these machines as a viable option, especially because of the quality
of service when it comes to selecting the machines and after-sales service.
The company indicated that is perception of packing machinery suppliers based on origin is as
follows:
Origin
United States
Germany
Italy
Spain
France

Technology
Very Good
Very Good
Very Good
Very Good
Very Good

Flexibility
Average
Poor
Very Good
Very Good
Very Good

Service
Very Poor
Poor
Very Good
Very Good
Very Good

Price
Poor
Poor
Average
Average
Poor

I) Strengths and Weaknesses of the Installed Machinery

Brand: Marchesini
Strenghts
Part of Punto Italia.
Very good technology.
Good client service, before and after the purchase.
Weaknesses
Plastic components.
Brand: CAM
Strenghts
Part of Punto Italia.
Flexibility,
Weaknesses
None,

198

J) Comments Related to Asian Packaging Machinery

Hermanos Grisi has been approached by Indian suppliers. It has had a few conversations with
them, but has not purchased equipment from these suppliers.

K) Trade Show Attendance / Trade Publication Information

Hermanos Grisi regularly visits InterPack in Dusseldorf, PackExpo in Chicago and Las Vegas,
and Cosmo Pack in Paris. The company receives information on packing machinery trends from
its existing suppliers and searches for information on-line.

L) Specific Interest
The company in interested in receiving information on packing machinery for the personal care
and pharmaceutical industries.

M) Contact Information
Company Name:
Contact:
Position:
Address:

Telephone:
Fax:
E-mail:
Web page:

Grisi Hermanos, S.A. de C.V.

Ing. Jos Romero
Technical Resources and Normalization Manager
Amores # 1746
Col. Del Valle
Mxico, D.F.
(5255) 56 29 99 02
(5255) 55 34 43 14
jromero@grisi.com
www.grisi.com

199

Kimberly Clark de Mxico, S.A. de C.V.

Industry:
Sub Industry:
Location:
Size (sales):
Purchasing potential:
Specific Business
Opportunities:

Personal care
Toilet paper, tissues, diapers,
wipes
Mexico City
US $2 billion.
N.A.
The firm doesnt have
purchasing plans for this year

A) Company Description
Kimberly-Clark de Mxico S.A.B. de C.V. (KCM) is dedicated to the production and sale of a
wide variety of personal care products, including diapers, feminine napkins, toilet paper,
Kleenex, kitchen towels, hand towels and other hygienic products.
Its main brands in Mexico include: Kleenex, Ptalo, Kotex, Kleen-Beb, Huggies and Sanitas.
KCM is a leader in all the markets in which the company participates.
The company is public, trading in the Mexican Stock Market (Bolsa de Valores) under the
KIMBER ticker. It exports more than US $130 million per year to 14 countries, mostly in Central
and South America and has more than 8,000 employees.

B) Main Products Produced and How They Are Packed

KCMs main products include diapers, napkins, toilet paper, Kleenex and feminine napkins.
Product
Toilet paper

Main Brand
Kleenex, Ptalo, Suavel,
Vogue, Lys,
Diapers
Huggies, Kleen Bebe,
Pull Ups, Good Nites,
Little Swimmers, Depend
Napkins and
Sani-Fresh, Kleenex,
kitchen products
Lys,
Kleenex
Kleenex
Feminine
Kotex
napkins
Aluminum foil
Alupak
Plastic wrap foil
Kleen Pack

Package
Individually wrapped in low-weight paper,
plastic wrap in different presentations
Plastic bags

Plastic bags, carton boxes, institutional

presentations in paper wrap
Plastic bags, carton boxes.
Plastic bags
Roll in cardboard boxes
Roll in cardboard boxes

C) Installed Packaging Machinery:

Current Machinery Used

Brand

Wrapping machines for hygienic products (toilet Perinic,

paper)
Casmatic,
Hyssen and
TMC
Film wrapping machina for Kleenex
Senning
Wrapping machines for aluminum foil
Tau
Plastic bag filling machines for diapers
Optima
Own technology
Kimberly
Cartoning machines for Kleenex boxes
Kimberly

Units

Origin

34

Italy

1
1
26
40
36

Germany
Japan
Germany
USA
USA

Average
Age
-

32
2

200

D) Last Packaging Machinery Purchase

Its last packaging machinery purchase took place in mid 2007 and included the following
machinery:
Machinery
1 hygienic wrapping machine
3 bag filling machines for diapers
1 wrapping hygienic machine

Brand
Casmatic
Optima
TMC

Country
Italy
Germany
Italy

E) Future Packaging Machinery Ordering Plans, 2008-2009

In the short term (2008), Kimberly Clark doesnt have plans to acquire new packaging
machinery because it closed some operations in the United States and some of the machinery
from those operations was moved to Mexico. Currently, all of the machinery to be installed in
Kimberly Clark in Mexico is being sourced internally from plants that are downsizing or moving
operations.
In 2009, the company could begin purchasing new packaging machinery again as its growth
plans in Mexico continue to be aggressive. Despite this, the company could not tell us what type
of machinery it would be sourcing. First, it will finish with the production relocation projects.

F) Purchasing Policies and Financial Arrangements

Purchasing decisions are made at the local level and authorized by Kimbely Clark in the United
States. In any case, Kimberly Clark already has machinery in some other plants that fits with the
purchasing plants of other Kimberly plants worldwide. The company prefers to move old
machinery that has been in efficient operation rather than acquiring new machinery.
In Mexico, purchasing decisions are made at the corporate level and the decision makers
include the engineering, product development and packaging projects areas. The responsible
parties from these departments usually travel to see the packaging machinery they are planning
to acquire directly at the manufacturers locations. Kimberly Clark strongly prefers to purchase
directly from the manufacturers, and in many cases, the negotiations are made on a global
scale.
Budgets for packaging machinery purchases are developed between June and July of the
previous year, and then they are submitted to the U.S. corporate office. Once approved,
Kimberly Clark Mexico begins sourcing the machinery (first to other Kimberly Clark suppliers),
but only when it is launching new products or presentations and searching for new suppliers.
When acquiring a new packaging machine, the company asks the manufacturer to install the
machinery and provide training to the maintenance, research and development, and operations
departments. Kimberly Clark provides maintenance to the machinery internally and stocks the
most commonly used spare parts. When it needs additional plants, it purchases directly from
the original manufacturer.

G) Factors That Influence Purchasing Decisions

1.
2.
3.
4.

Efficiency.
Price.
Technical support.
Brand reputation.

201

H) Comments on Preferred Brands and Existing Business Arrangements With

Packing Equipment Suppliers
Kimberly Clark prefers Italian packaging machinery because it is familiar with the technology. It
notes that overall, Italian machinery is precise, easy to use, highly efficient and has very low
down times. The company also likes German machinery; however it says that the prices are
higher and the machines are not as flexible as the Italian machines.
Kimberly Clark has developed agreements with packaging machinery manufacturers from the
United States, Italy and Germany. Some of these manufacturers develop machinery for the
exclusive use of Kimbarly Clark. The reward for the manufacturer is worldwide demand for the
type of machinery developed under an exclusive basis.
Origin
United States
Germany
Italy
Japan

Technology
Good
Very Good
Very Good
Good

Flexibility
Poor
Average
Good
Average

Service
Good
Good
Good
Average

Price
Poor
Average
Good
Very Good

I) Trade Show Attendance / Trade Publication Information

The heads of the packaging projects department and product engineering department visit
packaging machinery trade shows in Mexico, the United States and Europe.

J) Specific Interests
The company is interested in receiving information from manufacturers of bagging machinery
and paper wrapping machinery. It indicated that despite that the company doesnt have
procurement plans in the short term and that most of the machinery it needs can be supplied by
other plants in the company, it is always looking at new alternatives that offer high reliability,
quality and a good price.

K) Contact Information
Company Name:
Contact:
Position:
Address:
Telephone:
E-mail:
Pgina Web:

Kimberly Clark Mxico

Mr. Armando Maldonado
Packaging Engineering Manager
Jaime Balmes No. 8 Piso 9
(52) 5282 7300
aimaldon@kcc.com
www.kimberly-clark.com.mx

202

Kolmar de Mexico S. A. de C.V.

Industry:
Sub Industry:
Location:
Size (sales):
Purchasing Potential:
Specific Business
Opportunities:

Personal Care
Cosmetics
Tlalnepantla, state of Mexico
N/A
More than US $100,000
Case sealing , labeling and
wrapping machines

A) Company Description
Kolmar is a world-class supplier of contract manufacturing services under private labels to the
cosmetics industry. It also develops chemical formulations for cosmetics. The company provides
contract manufacturing services to cosmetics companies, taking care of the formulation,
production and packing of personal care and cosmetic products. The company also offers
marketing services.
The company operates a single manufacturing plant in Tlalnepantla in the state of Mexico,
which also is the site of the companys corporate offices. The company was established in
Mexico is 1955.

B) Main Products Produced and How They Are Packed

The company produces generic cosmetic products under private labels. The basic products
produced by the company are presented in the following table, which also indicates the packing
used for each product.
Product
Lipstick
Lip gloss
Eye shadows
Mascara
Eyelid cream
Cleaning creams and lotions
Shampoo and conditioners
Nail polish

Package
Clam Pack / Blister Pack
Clam Pack / Blister Pack
Clam Pack / Blister Pack
Clam Pack / Blister Pack
Plastic Bottles
Plastic Bottles
Plastic Bottles
Glass Bottles

C) Installed Packaging Machinery

The following list presents information on some of the most important packing machines used
by Kolmar in Mexico.

Machinery Type

Brand

Units

Origin

Case formers
Blister sealing machine

Westglund
Cencorp

1
2

Box sealing machine

Little David
3M
Empack
Mapisa
Idimsa

USA
USA and
Mexico
USA

Mexico

N/A

15

Mexico

N/A

Cartoning machine
Conveyors

Average
Age
N/A
N/A
N/A

203

Filling machines

Cream filling machines

Tablet dispenser machine
Labeling machine
Powder packing machine

Pacific
New Way
Cozolli
Flamatic
Comaris
Empacotecnic
Kenwall

1
1
2
4
1
3
1
17

USA
USA
Italy
USA
Italy
Japan
Mexico
UK

7
9
20
20
8
10
9
17

D) Last Packaging Machinery Purchase

The most recent investment in packing machinery took place in 2006, when the company
purchased the following:
Machinery
Blister packaging line

Brand
Cencorp

Country
USA

Cost
NA

The company said that it has spent approximately US $150,000 on packing machinery over the
past three years.

E) Future Packaging Machinery Ordering Plans

The company is considering making the following future packing machinery purchases:
Machinery

Units

Case sealing machine

Wrapping machine

1
1

Box sealing machine

Origin

Motive of
purchase
Mexico or Korea Expansion
France, Spain or Expansion
Korea
T.B.D.
Expansion

Estimated Budget
Up to US $50,000
Up to US $80,000
US $10,000

For the box sealing machines, the company is looking for machine options similar to 3M, but not
of that brand.

F) Purchasing Policies and Financial Arrangements

The companys Engineering Department is responsible for defining new packing machinery
needs and for selecting machinery options for final consideration. A final purchasing decision is
reached by the operations manager.
The company commonly considers three different options before reaching a purchasing
decision. Payment terms usually include a down payment of up to 50%, and the final balance
once the machine is in operation.

G) Factors That Influence Purchasing Decisions

1.
2.
3.
4.

Price.
Service and spare parts.
Flexibility to accommodate various options.
Ease of use.

H) Comments on Preferred Brands and Existing Business Arrangements With

Packaging Equipment Suppliers
The company said that it has had very positive experiences with U.S. packing machinery
suppliers, indicating adequate spare part availability and prompt delivery. It also mentioned that
it has received timely and adequate technical service in Mexico.

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Technology
Very Good
Very Good
Good
Very Good

Origin
United States
Italy
Mexico
Korea

Flexibility
Very Good
Good
Good
Very Good

Service
Very Good
Average
Average
Very Good

Price
Regular
Average
Average
Good

The company has purchased packing machinery from Korean suppliers. It says that those
manufacturers have incorporated similar technologies to the ones offered by European
machinery suppliers at much lower costs. The company indicated that the machines are very
practical and efficient, but that the machines are still lower in quality than European machines.

I) Strengths and Weaknesses of the Installed Machinery

Brand: Cencorp
Strengths:
Very good Service.
Weaknesses:
Outdated technology.
Brand: 3M
Strengths:
Solid performance.
Weaknesses:
Very poor service.
No response to technical and service inquiries from clients.

J) Comments Related to Asian Packaging Machinery

Kolmar located, contacted and purchased from packing machinery suppliers in Korea. It
believes these machines to be very cost-effective options that meet its packing needs.

K) Trade Show Attendance / Trade Publication Information

The company visits trade shows regularly, especially ExpoPack in Mexico. The company
subscribes to trade publications, including the Reportero Industrial.

L) Specific Interest
The company is interested in receiving information about packing machinery, specifically it
would like some information about casing machinery.

M) Contact Information
Company Name:
Contact:
Position:
Address:

Telephone:
Fax:
Mail:
Web page:

Kolmar de Mxico
Mr. Joel Pichardo
Maintenance and Engineering Manager
Calle Lateral No. 20
Av. Tequesquinahuac-Ceyln
54020, Tlalnepantla, Estado de Mexico
(52) 5310 1009
(52) 5310 1009
joel_pichardo@kolmar.com.mx
www.kolmar.com.mx

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Revlon de Mexico, S.A. de C.V.

Industry:
Sub Industry:
Location:
Size (sales):
Purchasing potential:
Specific Business
Opportunities:

Personal care
Cosmetics, fragrances, personal
care products
Mexico City
US $45 million
US $600,000
Tube filling and sealing; PVC
blister, capping machines

A) Company Description
Revlon is one of the leading cosmetics and personal care brands in the world. It has had an
active presence in Mexico for more than 50 years. The company sells under various brands,
including Revlon, Color Stay, Age Defying, Almay, Ultima II, and Flex.
The company has a plant in Mexico in which it packs imported products and other products
manufactured in Mexico by third-party suppliers under private label contract manufacturing
agreements.
The company has begun exporting some of the locally produced products into the United States
and a few South American markets.

B) Main Products Produced and How They Are Packed

The following table presents the highest volume product lines packed by Revlon at its plant in
Mexico.
Product
Shampoo
Body lotions
Creams
Hair coloring
Cosmetics
Nail polish
Final retail presentations

Package
Plastic bottles with polyethylene wrapping
PET bottles
PET bottles, PVC
HDPE
Transparent plastics
Glass bottles
Cardboard / blister packs.

C) Installed Packaging Machinery

The following list provides information about the packing machinery used by Revlon in its
Mexican operations.
Current Machinery Used
Bar Coding Machines
Coding Machines

Coding, Dating, Marking and

Stamping Machine
Capping Machines
Single Piston Filling Machines
Tape Dispensing Machines

Brand

Units

Origin

Sato
Videojet,
Domino,
Willet and
Markem

5
6

USA
USA

Average
Age
4
4

USA

Canada
USA
Mexico
USA

Kalish
Resina
Devek

3
6

16
8

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Conveyance System
Filling Machine
Filling Machine (rotation)
Filling Machine (volumetric)
Filling Machine (lineal)
Filling Machine (volumetric)
Labeler
Labeler
Labeler (lineal)
Capping Machine
Label Dispenser
Pumps

Devek
MRM
MRM
Equitek
Logotech
Taxa
Equitek
Equitek
Hirsman,
Waukesha

Blister Packaging Line

8
6
2
1
1
2
1
1
2
1
1
2

Mexico
USA
USA
USA
Mexico
Mexico
Israel
Spain
Mexico
Mexico
USA
USA

9
6
16
8
2.5
2
6
4
2.5
2.5
7
7

Canada

D) Last Purchases of Packaging Machinery

The last packing machinery purchase took place in 2006 and included the equipment presented
in the following table.
Machinery
Capping Machine
Strapping Machine

Brand
Callish
Devek

Country
USA
Mex

E) Future Packaging Machinery Ordering Plans, 2007-2008

The company will change several product packing presentations for introduction into retail in
2009. This will require the purchase of additional packing machinery with a value estimated at
US $1.5 million. The purchase will include the following machinery:
Machinery
Tube filling and sealing machine
PVC blister machine

Units

Origin

Motive of Purchase

1
1

TBD
TBD

Presentation change
Presentation change

Estimate
Budget
TBD
TBD

F) Purchasing Policies and Financial Arrangements

The company selects potential equipment suppliers from among leading suppliers to the
cosmetics packing industry and evaluates a few equipment alternatives. For significant
equipment purchases, the decision process includes involving the corporate headquarters in the
United States.

G) Factors That Influence Purchasing Decisions

1.
2.
3.
4.

Price.
Efficiency.
Availability of technical service and spare parts in Mexico.
Brand reputation.

H) Comments on Preferred Brands and Existing Business Arrangements With

Packing Equipment Suppliers
Revlon does not have existing purchase agreements with specific packing machinery suppliers.
The company has an in-house technical staff responsible for providing maintenance and small
repair work for the machinery. If required, the company can rely upon technical assistance from
the U.S. Revlon operation or from the equipment suppliers.

207

The company prefers U.S. machinery and indicated that at present, these machines have a
significant pricing advantage over European options.
Origin
United States
Germany
Italy
Spain

Technology
Good
Very Good
Good
Good

Flexibility
Good
Very Good
Average
Poor

Service
Good
Good
Average
Poor

Price
Good
High
High
High

I) New Origin of Suppliers from Asia

The company has received information from Asian packing machinery suppliers, but has not yet
purchased Asian packaging machinery. It believes that Asian suppliers are improving their
equipment technology and quality, and that several have established distribution and service for
their machines in Mexico.

J) Trade Show Attendance / Trade Publication Information

The engineering managers for the company attend ExpoPack in Mexico. Senior managers also
visit the packing machinery Industry trade shows in Chicago and Las Vegas.

K) Specific Interests
The company is interested in receiving information about packing machinery specializing in the
production of cosmetics, and on machine types that they are considering purchasing in the near
term. The company also is interested in information on capping machinery.

L) Contact Information
Company Name:
Contact:
Position:
Address:

Telephone:
Fax:
E-mail:

Revlon de Mxico, S.A. de C.V.

Mr. Daniel Romero / Eduardo Tenorio
Plant Manager
Av. Divisin del Norte #3395
Col. Xotepingo
04610, Mxico D.F.
(52) 5618-9125
(52) 5618-1985
daniel.romero@revlon.com
eduardo.tenorio@revlon.com

208