Essel Propack, the global specialty packaging company from the house of Zee, made its foray into the United States market.

The company on Tuesday inaugurated its plant in Danville, Virginia to manufacture laminated tubes for American healthcare and toiletries giant Procter & Gamble's flagship product - Crest toothpaste - and a range of beauty and hair care products.

The plant with a current capacity to churn out 450 million tubes annually will, at the moment, supply 100 per cent of P&G's requirements in the US and Canada.

There are plans to rope in other clients as well. By this year end, the capacity will be ramped up to 550 million tubes.

"Our vision is to be the world's most admired specialty company by 2005 with a 50 per cent global share in laminated tubes," said Ashok Goel, vice chairman and director of Essel Propack.

The company currently has a 30 per cent share. The $25 million plant is being funded through a 1:1 debt equity ratio.

It will pump in an additional $10 million in the next 14 months to ramp up capacity. This is Essel Propack's 17th manufacturing facility globally.

"We are the first capital intensive Indian manufacturing company to invest in the US," added Goel.

Today, according to company managers, Essel is a leading vendor for P&G while it accounts for 40 per cent of Unilever's requirements globally and has a dedicated plant for Colgate Palmolive.

Said Cyrus Bagwadia, managing director and CEO of Essel Propack, "This may be our first investment here but certainly not the lat. Our philosophy is simple: go and grow with customers."