Edelmann: Specialists in pharma and premium packaging — The Noel D’Cunha Sunday Column

PrintWeek (PW): Welcome to India. How often do you visit India as Edelmann’s CEO?
Frank Hornung (FH): In the early days of my tenure as CEO at Edelmann, we had to sort out a few things in India. So, initially, I visited more frequently—two, three, even four times a year—to manage transitions and changes. But for the past three years, we’ve had a clear path forward. We know what needs to be done, and we have a strong professional team here, led by BS Jolly, who manages things exceptionally well. Because of Jolly and his India team, my presence isn’t required as often. So, I visit India once a year.

PW: What is your mandate during these meetings?
FH: During these visits, we conduct a business review, assess our progress, and set new milestones. While we review our plans virtually through team conferences, having a face-to-face discussion with the management team once a year is invaluable. That’s exactly what I’ll be doing—I’ll visit our facility, review our progress, look ahead at our next steps, and continue our usual strategic discussions.

PW: For the benefit of our readers, could you elaborate on what Edelmann does?
FH: When asked to describe Edelmann, I always start with our 112-year history. We’ve been a family-owned business since the beginning, and we remain independent today. That family ownership has a major influence on our strategy. One of my key responsibilities as CEO is to ensure the company stays financially strong so that we never have to consider selling. If you’re not in financial trouble, there’s no reason to sell. So, our business strategy is built around stability—we take risks, but only calculated ones. We always ask ourselves: “Will this move threaten our legacy?” and “What are the odds of success?” The second thing to understand about Edelmann is that we’ve expanded globally through acquisitions. We have a strong presence in Brazil, Mexico, and across Europe. However, we’re still building our presence in India.

PW: What should they know about the company's strategy?
FH: In terms of long-term strategy, we aim for a balanced business across three key regions: the Americas (US, Mexico, Brazil, etc.); in Europe, where we are strong; and Asia/India, which is our next major growth focus.

PW: Global companies who operate in India have had mixed fortunes. In this sense—where does Edelmann fit?
FH: We’ve made great strides in the Americas, where we’ve opened a third plant. Europe remains solid. But India and Asia are our next big opportunities. For now, we’re still in learning mode, understanding the nuances of doing business here before making any bold moves. Finally, Edelmann is not trying to be everything for everyone.

PW: What is the Edelmann focus?
FH: We focus on what we do best, which boils down to two core areas: pharmaceutical packaging—this sector has specific demands like compliance, data security, and rapid changeovers, along with small lot sizes and high precision; and premium packaging for top brands—we specialise in high-quality packaging for premium products, often for well-known global brands.

PW: What is happening on the pharma front? In the Trump era, there are two concerns: tariffs and iterations in US regulations. Will this require a reboot of processes, or is it a wait-and-watch situation?
FH: It's a wait-and-watch scenario.

PW: So, no concrete idea at the moment?
FH: Yes. Typically, we do not export our products, as what we produce remains mostly within India or Europe. The first response would need to come from our customers—if they decide to produce elsewhere, we would assess whether we have a packaging plant in that territory or not. For now, we are in a wait-and-see mode. Historically, we've seen tariffs being used as negotiation tactics—imposed to exert pressure and then dropped once negotiations progress. So far, there hasn't been a permanent tariff, but that could change, given the political landscape.

PW: Looking at Edelmann's operations in India, just to rewind a bit—first, there was the acquisition of Janus and then the integration of the Edelmann system. Would you say it’s now time to reinvigorate the engine and drive forward?
FH: Yes. To start with, Janus Packaging was a great company with a great owner. However, we completely underestimated the differences in how we run companies versus how an Indian promoter runs a company. There’s no right or wrong—it’s just different methodologies. We didn’t expect it would take so long and be such a challenging process to gradually transform our business in India. The challenge is that if you change things too quickly, you risk damaging or ruining the business. You have to move at a pace that people can adapt to, yet we were also impatient. After an acquisition, you naturally expect results quickly. Phase one was painful, but we eventually overcame those challenges.

PW: Then came the appointment of B.S. Jolly and the creation of a robust ecosystem.
FH: Then we brought in Mr. Jolly, who has extensive experience in international processes and is a highly trusted leader. He has built a solid foundation, but it still requires ongoing attention to ensure stability. The business is still too dependent on individuals.

PW: So, phase one and phase two are in place, and now it's time for phase three...
FH: You're right—phase three is about building on this foundation and focusing on growth. We now have modern machines, good processes, and a solid base. Phase three is about leveraging the groundwork and expanding within our existing business. If we reach our limits and gain a deeper understanding of the Indian market, then phase four might involve expanding beyond our core business.

PW: What is the challenge?
FH: Well, India is complex—not just cost-driven, but value-driven. Competition is intense, and efficiency improvements are essential for profitability. And so, infrastructure limitations can be a barrier to scaling across India. Business operations are often restricted to locations close to our facilities. Even if a customer is 1,000 kilometres away, logistical challenges can prevent seamless operations. These are all factors we need to navigate carefully moving forward.

PW: So, you're limited to operations where your facility is...
FH: That's true. And I think this was a thing that we, coming from a different world in Europe, underestimated. But the nice thing is, we're not in a panic. You know, it's a 112-year-old company. I don't need to be the biggest pharma specialist in India because we want to sell it in three years. If we become meaningful in a decade, it is fine. And if we, at one point, figure out we will never be meaningful, then we stop. We have no investor pressure behind us. We can do things at the right pace.

PW: Our industry deploys the same words: standards, quality, processes, efficiencies, et cetera. And I've visited a few factories, and you realise these things mean totally different things depending on the person who's uttering these mantras. I am curious to know, as global CEO at Edelmann who oversees factories across the globe—what are the boxes you tick?
FH: It's a two-fold story. One is, yes, we have an Edelmann Academy, which sets certain standards. We train people. We believe in a zero-defect policy. We believe in behaviour-based safety. So, it's not just a system—it’s a mindset, really. And we believe in Lean philosophies.

PW: What is Lean philosophy?
FH: Well, you mentioned efficiency, and that's why we try to bring one logic, one methodology, one system, and one type of process into our factories and offices. However, there is no one-size-fits-all policy. While we offer every facility the same education and the same expert assistance, at the end of the day, every managing director needs to determine where they need to focus. Some facilities are behind on their journey and need more attention on safety and quality. Others are ahead and already implementing total preventive maintenance and two-step processes. So, we provide a system, but we allow for individualism per plant.

PW: So, there is no rigid, one-size-fits-all policy.
FH: But when I visit a plant, I look at the basics, like cleanliness and hygiene. We call it 6S—like having your kitchen clean before you cook. You don’t want to cook in a messy kitchen.

PW: These are the things you look for?
FH: If I see something as CEO, everybody else sees it too. I go through the numbers, of course, because I want to know whether they use facts and figures. Whether the numbers are good or bad is not my main concern, I get those updates every two weeks. What I want to see is whether the local management team reviews and understands their numbers regularly, not just when I show up.

PW: But sometimes numbers are deceptive.
FH: True. If numbers were always good, you wouldn't need them daily. You often look for the things that don’t work well, and that’s where real progress happens. I'm not kidding about transparency. I ask every managing director to write plant news updates. I want them to inform the organisation about what’s happening in their business. I want them to play it very openly with their respective teams. I believe in transparency across the system.

PW: And does transparency work when you're talking to your customers?
FH: Customers like transparency. We tell them our limits—what we can do and what we cannot do. And we're very honest. Even if we have problems and we screw up things, we tell them and explain. The tricky thing is, obviously, they want to have an action plan, and they want you to deliver on it, and get things done. You cannot merely explain a problem and give promises. You’ll meet the customers in six months or in 12 months, and they’ll see whether there was a difference or not, right? But that’s when we say, "Get the things done." It’s not just about talking; it’s about delivering. And that’s the second part of transparency. If I tell them, "I’m open with you. Here’s the problem, and here’s a solution," but I’m not working on it and there’s no improvement thereafter, then I lose credibility. So, transparency can create trust, yes. But transparency should be backed by action.

PW: And what is it that your customers are saying? Today packaging converters are listening a lot more. Everyone wants to know which way the wind is blowing...
FH: There is a strong wind coming from the sustainability direction. And I must say, this is a very strong wind. The premium customers, especially in beauty and fragrance, are focusing on being net positive. They understand their product is not a necessity like food or medicine; it’s a luxury. So, their long-term goal is to achieve a positive environmental impact. They realise that a future generation might view fragrances as harmful to the environment and may choose not to buy them. To prevent that from happening, beauty brands are taking sustainability seriously and pushing us to innovate. This helps the industry think about what’s next.

PW: And your pharma customers?
FH: Industries like pharmaceuticals have products that are essential. They claim sustainability, but they don’t push us as hard as beauty brands because they know their products will be needed in 10, 20, or even 50 years. That’s the key difference.

PW: Any ripple effect due to Covid-19?
FH: A major shift, especially after Covid, is supply chain stability. Covid-19 caused chaos in the supply chain, and when things tried to return to normal, they became more chaotic. Some of our customers didn’t have products to sell because of supply chain interruptions. Now, there is less reliance on a single supplier, and contingency planning has become a priority. Securing the supply chain from start to finish has gained importance.

PW: Sustainability rules and regulations are quite opaque. The government speaks in one voice, the brands in another, and manufacturers seem to be speaking in a totally different, divergent voice. It’s very tricky.
FH: As you said, it’s very tricky. Obviously, we have no absolute solution. The environmental solutions that we have in Germany are difficult to apply to our business in India. But what we see, for instance, with our customers is that U.S. and European customers are reducing lamination, partly due to regulations.

PW: And India?
FH: In India, I would say as long as the customer likes to buy it, they will continue to demand lamination on the box. We all know it’s not environmentally friendly, but as long as the customer buys it, two things might happen: either customers reduce buying it, which could drive change, or regulations will kick in and forbid certain types of lamination.

PW: Many FMCG brands are working on reducing plastic or changing to normal carton printing. But I think there’s a long way to go. Most brands don’t want to shift since it increases costs. They know that shifting from plastic to another alternative isn’t necessarily viable.
FH: It is amazing when you talk to brand owners—they have an existing product on the market, and they tell you quite openly, "We don’t know why it’s selling so well." So, they don’t want to change a thing. They don’t change the packaging; they don’t change the content. Even if we offer more environmentally friendly solutions that look exactly the same, they won’t change the manufacturing process as long as the revenue and sales are stable.

PW: You mentioned getting things done. As a global CEO, what are the things that you normally do at Edelmann?
FH: Outside of drinking coffee? Well, I bring philosophies. Sounds like a silly thing, but I run the business in a simple way. I compare it to rowing a boat against the stream—when you stop rowing, you fall back. It takes a certain minimum effort just to stay where you are. That’s daily work. If you want to move forward, you need to do something different—an extra stroke, be smarter, find the best way.

PW: So the key to success is the extra effort...
FH: This extra effort is what I turn into projects. They receive specific attention and organisation. My role is to determine which things need that extra rowing stroke to advance. These projects are monitored regularly, on a weekly or at least monthly basis. Most projects in my experience run like this: there’s a problem, a project manager is assigned, and six months later in the review meeting, nothing has changed except a slide saying, "I’m on it." Every company must avoid that. We check progress monthly, expecting small steps rather than waiting six months for a breakthrough. Over time, those small steps add up. My role is to determine which projects need attention and ensure that they move forward. The more attention from the CEO, the more work gets done.

PW: Doesn’t that involve too much micromanagement? Or is it on autopilot?
FH: First, it works by training your people. We conduct project management training because it’s a skill—setting timelines, organising, and executing. We have a PMO (Project Management Office) with two people dedicated to supporting project managers from the business side. We give them tools, help them summarise progress, and guide them on project management tools. You might call it micromanagement, but I call it taking a keen interest. I don’t want to know just what they do, but also how things are progressing. If things don’t move for a month, fine. Two months, fine.

PW: If there is no progress...
FH: ...for three months, then we cross-check—do they need help, more resources, or is it not as important? We don’t wait 6–12 months to realise nothing happened. We stay close to projects. We ensure projects are successful.