This report is published by Research Dynamics, an independent research boutique


Airopack a game changer in the packaging industry as a planet friendly alternative to traditional aerosol dispensers

A better and effective product for consumers and manufacturers

Airopack offers various benefits over aerosol dispensers. These include a consistent dispensing throughout the use of the product unlike aerosol dispensers, which experience a pressure-drop problem once the propellant has been used up. Also, since there are no propellents, the consumers spray (or dispense) only the product. The technology allows for dispensing at all angles, while the transparent packaging enables users to see exactly how much formulation is left in the container.

Airopack is cost-effective for manufacturers as it benefits from using low-cost PET materials for the Airopack containers, and the open-neck filling process eliminates the need for using expensive machinery to fill the formulation using valves. We think that the technology presents a win-win situation for both manufacturers and consumers.

Addressing the rising environmental concerns

The aerosol industry has long been under the watch of environment protection organisations for using harmful chemicals as propellants, resulting in a ban on use of Chlorofluorocarbons (CFCs) in various countries. The CFCs have since then been replaced by butane and propane, which are considered less hazardous, but companies have always been on a lookout for better alternatives. Airopack bridges this gap by providing a more environment friendly product which has a significantly lower carbon foot-print (-26%) and total environmental footprint (-32%) as compared to aluminium Bag on Valve (BOV) cans. This is mainly because of the use of recyclable PET material in Airopack dispensers besides the application of compressed air instead of chemical-based propellants. These characteristics start to be perceived well by producers and consumers, illustrated by the fact that P&G recently launched a new range of Gillette shave gels exclusively in Airopack dispensers.

Financing backed by Apollo

The company has a strong financial backing from Apollo Global Management which has an extensive experience of investing in companies in the packaging industry. We believe the strategic partnership with Apollo, which has committed to support Airopack in its long-term growth plans, will assist the company to meet its targets.

Valuation

Although the company is currently in a ramp-up phase and the planned targets are challenging, we remain optimistic about the growth prospects of Airopack. The company has promising plans and aggressive strategies in place to achieve the specified targets, along with a global financing partner to back it up. Based on a Discounted Cash Flow (DCF) approach, we have arrived at a valuation of CHF14.3 per share.