By Daniel Hunter
Diamond Box, a Midlands-based packaging manufacturer which supplies a host of high street and online brands, has moved its banking facilities to HSBC’s Midlands Commercial team as it gears up for growth.
As part of the new relationship, HSBC is providing a combination of invoice and asset-based finance to enable Diamond Box to widen its product range, increase capacity and boost orders.
Diamond Box is based in West Bromwich and employs 100 people at its Shaw Street premises. The company was founded in November 2007 by husband and wife team Kavi and Rani Jundu and has grown turnover from £7.5 million in its first year of operation to over £20 million 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 HSBC asset-based finance to enable it 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.
Diamond Box 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.
“Online is a huge growth market and increasing numbers of people are purchasing items such as books and CDs over the internet now," he said.
"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.”
The new banking partnership is lead by HSBC’s Midlands International Commercial Manager Jerry Green.
“Our partnership with Diamond Box will support this rapidly growing and forward-thinking company," Green said. 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.”
Jundu added that this is only the first phase of growth for his company.
“Although we have enjoyed strong development since forming, we are only in phase one of our growth plan as we want to operate multiple factories, with sites in the north and south of the UK," he said.
"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.
"We felt that that it was the right time for a company with our vision to align itself with a bank of the stature of HSBC - a banking partner which will be able to work with us as we move forward and to achieve the ambitions Diamond Box has for the next five to 10 years.”
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