New funding is a real gem for Diamond Box
A WEST Midland packaging manufacturer which supplies a host of high street and online brands is gearing for growth after securing new banking arrangements.
Diamond Box, based in West Bromwich, has been supported by HSBC’s Midlands Commercial team, which has arranged a combination of invoice and asset-based finance to enable the firm to widen its product range, increase capacity and boost orders.
Diamond Box, which employs 100 people, was founded in November 2007 by husband and wife team Kavi and Rani Jundu, who have grown turnover from £7.5m in its first year of operation to over £20m last year.
The company manufactures packaging for the distributor, food and fast moving consumer goods markets. Clients include supermarket chain Morrisons, kitchen and cookware manufacturer Tefal, fine China manufacturer Portmerion Potteries, as well as some of the largest high street and online retailers.
Diamond Box is using the asset-based finance agreement to purchase equipment to enter the mail order and online sales markets. The equipment produces innovative ‘multi-point gluing’ boxes that can be used to package a range of products typically purchased online and posted, such as CDs, DVDs, books and items of clothing.
Chief executive Kavi Jundu expects the new equipment to lead to the creation of an additional 12 jobs over the next year as orders increase.
He said: “Online is a huge growth market and increasing numbers of people are purchasing items such as books and CDs over the internet now. This machine will allow us to deliver an expanded range of box styles and offer our customers the highest level of design innovation. We are gearing up to operate the machine at full capacity over the next 12 months and have been extremely encouraged by orders received so far.”
He said although the firm had enjoyed strong development since forming, it was only in phase one of a growth plan to operate multiple factories, with sites in the north and south of the UK.
“Each factory will have some overlap but will be known for its own USP and will cater for different market segments. This will allow us to offer the widest product range possible and, combined with our high standards of service, we can be the ideal supply partner to the one-man band or the biggest cardboard packaging buyers,” he said.
The new banking partnership is lead by HSBC’s Midlands International Commercial Manager Jerry Green.
He said: “Our partnership with Diamond Box will support this rapidly growing and forward-thinking company. They have ambitious expansion plans and were looking for a banking partner that shared their vision and tenacity; we look forward to working with Kavi and Rani to deliver continuing success.”
