Premium Beauty News - If this goes on, you will be one of the few European companies with a global vocation, specialized in plastic injection for the beauty sector, to be able to claim the status of family owned company! Obviously, this autonomy is one of the keys to your reactivity and flexibility, and this is not incompatible with the necessary financial resources needed to develop one’s business.
Andy Gatesy - That’s true! You are right to say it’s one of the keys. It is not the only one, but the 868 people that make up the Toly Group today are to me the expression of a real family. It is very important! This is also included in the first paragraph of what we call "Toly’s Core Values". We are a people company and Toly is a way of life. We have a strong corporate spirit and teamwork is an integral part of our everydays activities. We believe that people will make the difference and create a unique experience for our customers, the « Toly experience ».
Whilst we are a small company by international standards, we are dynamic and are not frightened of going out to the four corners of the world to seek opportunities and develop a global business. We encourage people to take initiative and we are prepared to take the necessary risks for the company’s development.
Premium Beauty News - And you have made a demonstration of this almost constant risk-taking strategy over the last five years.
Andy Gatesy - Risk-taking is primarily the desire to take full advantage of opportunities. In a word, to not watch the train go by! This was the case with my father, Dr. Zoli Gatesy in 1956 when he left Hungary for England with a refugee status to create ten years later his first company for the manufacturing of moulds and plastic injected parts for the toy industry. It’s with this in mind that he decided to outsource the manufacturing to Malta in 1971 and in 1975 to specialize in the manufacture of make-up cases, blushers and eyeshadows. There has been a lot of risk-taking decisions in Toly’s story. It has almost become a second nature.
When I joined the company in 1986, my vision was clearly to develop its activities abroad. The following year, I decided to set foot in the United States. Two years later, we created Toly France. At the time the Toly Group already had a staff of 400 including 300 for Malta alone. In 1990 we commissioned our first lacquering line and we started our diversification in closures and packaging for the perfume industry. Then years succeed to one another at an impressive rate with as key points, the commercial partnership with Geka in 1996 and the first incursions in Asia as of 2000 with a equity participation taken in Metapack, not to mention the partnership in 2001 with the Japanese firm Sinwa for the opening, on a joint venture basis, in 2005 of a production plant in Shenzhen, China, immediately followed by the opening of offices in Hong Kong (Toly Asia), Seoul (Toly Korea) and New Delhi (Toly India).
Premium Beauty News - The year 2005 is definitely a pivotal year for Toly as regards its desire to produce overseas.
Andy Gatesy - It is indeed! It was obviously a requirement for us to be industrially present in countries like China and India. This doesn’t mean however we neglected the site of Malta, where human and industrial investments have always been constant. In 2002 we installed a second lacquering line and in 2007 all of Toly’s "development" activities were concentrated over there. The plant in Malta now also hosts some 46 injection presses ranging from 25 tons to 400 tons of thrust. It is becoming increasingly automated and has all the equipments one can dream of in terms of decoration processes (hot foil stamping, transfer printing, tampo printing, silk screen printing, laser engraving, mirror cutting, U.V. lacquering & painting). Today, Malta is truly the Group’s nerve centre be it in terms of marketing, logistics, operational and finance activities, quality, design and development. But to go back to your question, it’s true that 2005 really represents Toly’s industrial leap in other parts of the globe with the launch of our first joint venture factory in China. Today this plant has 19 injection machines ranging from 55 tons to 300 tons and also ensures all the decorative phases of tampo printing and hot stamping type. Then comes the year 2008 with another big leap when, in quick succession, we opened a new factory in India at Dehradun (160 persons, 15 injection machines, an air-conditioned assembly workshop with a cleanroom section), and then in South Korea with the creation of a joint venture, Toly Airless Packaging in Bucheon City.
Premium Beauty News - A global industrial strategy, which actually reflects your determination to diversify!
Andy Gatesy - Absolutely! Our portfolio at the time, that is to say in 2005, needed to be broadened. The perfume and cosmetic market is a fast moving market with demands for always more innovation. Not only must we follow this movement, but we must precede it. This is the whole challenge! At the same time our partners are changing and it is only natural. We must therefore diversify and reinforce ourselves in all segments related to beauty packaging, whatever the technique or material it takes. So much so that we now offer lipstick tubes (manufactured in India), cardboard-based cases and a range of aluminium or zarmac-based accessories. Our vision is clear: we want to be the world leader in luxury packaging for the cosmetics, fragrance and skin care industries.
Premium Beauty News - And your entry in the very closed circle of producers of airless systems has been an important component of this strategy!
Andy Gatesy - An entry that we wanted at the top level. And with no compromises! That is why we chose to join forces in 2008, with probably, one of the best Korean engineers operating in this field. This choice proved to be the right one. At a 40% growth rate each year, the airless concept is growing strongly. To such a point that we have built a brand new factory on the outskirts of Seoul in 2010 and that we will again double in size next year with in addition, the installation of two lacquering/metallization lines and several new injection machines. Toly Airless Packaging this year will exceed 12 million euros in turnover and growth prospects are huge.
Premium Beauty News - You are mentioning innovation and creativity! They have both become the core of your strategy!
Andy Gatesy - Well, it’s always been in our genes! And it is also part of our charter. We recognise that we need to differentiate ourselves from our competitors and also move away from being positioned as a commodity supplier. We are constantly designing and developing new products and we try to develop unique processes and differentiate our approach to manufacturing. We also strive to be technically excellent in producing the highest quality in luxury packaging. And we are quite proud to be able to present each year some 100 new packagings to our customers! Yes, it seems incredible, but you did hear 100! And this in all areas, whether in terms of make-up cases, closure systems, applicators of all types of airless bottle and jar of course, tubes of lipstick etc. And, year after year, we keep on the same pace. Given the conditions, it is not surprising then that the meetings we organize during trade shows, or during private gatherings are always full! Our customers always demand more and more innovations. And we believe it is our duty to satisfy them.
Premium Beauty News - A diversification and a progression expressed in figures!
Andy Gatesy - And believe me, they are good! They even exceed our expectations and show that we have adopted the right strategy. We posted a little over 34 million euros in turnover in 2005. We will achieve this year 55 million euros, 20 million thanks to the diversifying our product portfolio!
Another important figure... Just for the factory in Malta, we invested in five years nearly 11 million euros! And the investment cost for the two Korean factories one of which is already operational and with the construction of the other one being completed next year will amount to a total of nearly 9 million. You must know how to invest appropriately! And this is one of the other keys.
