5 November 2011
Press ReleasesPolystar Plastics polythene all wrapped up
When Jai Talwar first arrived in England in the late 1970s he didn’t speak a word of English. Today he is the managing director of Polystar Plastics, a multi-million pound business and one of the UK’s most respected polythene manufacturers.
In 1978 when Jai Talwar arrived in Southampton from India, it appeared he was destined for a career on the buses. He volunteered for the unpopular shifts, regularly starting work at 4am and finishing after midnight, seven days week.
This ethos of hard work, and the rewards it brings, has stayed with Jai throughout his career, which has seen him build and dispose of a property portfolio of student accommodation and a chain of clothing shops.
It was however the recession of the 1990s that set Jai and his family in a different direction – polythene bags and wrapping.
“It was my wife who first saw the potential in the plastics business and made all the initial enquiries,” says Jai. “I knew nothing about this industry – it was a case of learning fast and on the job. There were just three of us working for the business running two machines 24 hours a day. I was working 18 hours a day, every day.”
Polystar Plastics today employs over 90 people making more than 1,000 tonnes of bespoke polythene bags and sheeting each and every week. The company has approximately 4,000 customers and its products are used around the world – from trade refuse sacks, damp proof membranes, pallet covers and heat shrink films. They have also invested heavily in development over the last five yeas and now produce a range of specialist packaging such as anti-corrosion, bio-degradable and flame retardant products. Jai has recently submitted a planning application to expand his business premises adding a further 2,000sq m of office and factory space to meet the increasing demand for recycled polythene products. The business is on track to double over the next five years.
Perhaps one of the biggest challenges facing Polystar at the moment is the enormous fluctuation in oil prices, which directly affects the price of the raw plastic pellets. When purchasing more than 1,000 tonnes of raw polythene every week increases in oil prices of just a few dollars a barrel can have serious implications. Jai and a team of buyers maintain very close relationships with brokers around the world constantly looking for the best prices.
“Spot buying is time consuming, but does ensure we get the best prices,” says Jai. “It means that we can offer our customers the very best prices in the market. We also pay all our suppliers in full within seven days, something that is uncommon in our industry.”
Rising energy prices is also an issue that Jai worries about. “Polystar is a high energy user, and our energy bills are big,” says Jai. “We have this year decided to deal directly with our energy supplier, rather than use a broker, and have made a saving of more than £250,000. There are deals to be done if you negotiate, but it is not easy.”
Being a family business, Jai has an eye on the future. His son, Suchin, a qualified accountant, joined the firm seven years ago as Sales Director and is progressively taking on more and more. His daughter, Rebecca, joined the firm’s buying team this year having recently completed her studies.
Jai says: “I am slowly reducing the hours I work, passing the reins on to Suchin and Rebecca, but I don’t intend on retiring to the golf club yet. I have been very lucky to find a career I enjoy and to work alongside my wife and now my children. They have new ideas and great energy – something that will see Polystar continue to grow.”
For more information on Polystar Plastics visit www.polystar.co.uk.
Polystar Plastics is a very successful family owned and run business which, over the years, has faced all of the challenges that are presented to this type of business. From an initial start-up with limited resources, controlling growth, managing an expanding workforce, developing a solid balanced customer base and moving to larger premises, Jai has steered the company through all these challenges.
Succession is the next major hurdle and Jai has already started working on this. His son Suchin has been working for the business for the last seven years and has the same magic touch as his father. Turnover during that period has increased from £4m to £15m and profitability has risen significantly.
Jai’s daughter, Rebecca, has also joined the business full-time and is contributing to the buying and sales and marketing teams. Responsibility for the management of the company will pass to the children in time, and ownership will transfer in a controlled and tax efficient manner.
Rightly, Jai is very proud of what has been achieved so far and it very much looks like the success story will continue under the control of the next generation.
Terry Goodsell is a partner at James Cowper Kreston. He can be reached by email: tgoodsell@jamescowper.co.uk.
