Established in 1963, Tropic Plastic and Packaging has evolved from a family-run business into a major player in the flexible packaging industry. The company’s integration of extrusion, printing, bag making, slitting and lamination processes has cemented its position as a key supplier in South Africa and beyond.
Commenting on the acquisition, Tropic CEO Ismail Simjee expresses enthusiasm for the partnership, emphasising the strategic advantages it brings. ‘We are thrilled to conclude this transaction with Nedbank Private Equity and MIC. They share our vision of innovation, sustainability and growth,’ he states. ‘This investment marks a significant milestone for Tropic and holds the potential for us to expand our capabilities, product offering and footprint.’
Ismail notes that the transition from a family-owned business to one backed by private equity shareholders allows Tropic to scale and grow its product offering and market position. ‘Leveraging their relationships, networks and expertise enables us to further expand strategically.’
While there has been an introduction of new strategic shareholders to the business, Tropic’s executive management team remains in place, ensuring continuity in leadership and with strong support from shareholders.
Sustainable institution
Ismail is confident that Tropic will maintain its core values. ‘It’s crucial that we do not forget the roots and culture upon which Tropic was built. Our emphasis on employee wellbeing, quality and service will remain unchanged, supported by our board and shareholders,’ he asserts.
He further highlights that the founding family shareholders continue their investment in the business. Notably, Fazel Bhabha, a pioneer and industry stalwart, remains on Tropic’s board, emphasising the ongoing support for the transaction and the business.
As the packaging industry increasingly prioritises sustainability, Tropic is aligning itself with global ESG (environmental, social and governance) initiatives while adapting them to the South African market. ‘We’re implementing a robust ESG framework within the short term,’ Ismail enthuses. ‘We want to be at the forefront of sustainability in the South African flexible packaging sector.’ Investments have been made in further recycling capabilities and Tropic is looking to expand in this space.
This investment marks a significant milestone for Tropic and holds the potential for us to expand our capabilities.”
Investment in new technology and infrastructure is a key part of this commitment. Since 2020, Tropic has invested heavily in new equipment, including five additional extruders, three Comexi printing presses and two Hudson & Sharp wicketers (bag making machines) as well as a Erema recycling machine. ‘We’ve expanded our facility and machinery scope significantly. Tropic is also evaluating further expansion through acquisitions, particularly in the flexographic segment,’ Ismail remarks.
According to Ismail, the transaction and investment from Nedbank Private Equity and MIC received overwhelming support and approval from Tropic customers.
Looking ahead, Tropic Plastic and Packaging is poised for substantial growth, leveraging its new strategic partnerships to enhance its market position in the flexible packaging space.
