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MUMBAI: Essel Propack today announced the un-audited consolidated
global results for the year ended 31 December 2006. The Company
reported a substantial increase in its global revenues for the year
2006. The sales have crossed Rs. 10 Billion mark (Rs. 10,099 Million)
with a net profit close to Rs. 1 Billion (Rs. 985 Million). During
the year 2006, the Company’s consolidated global sales registered
a growth of 24% over the same period of 2005, while the EBIDTA and
net profit grew by 19% and 9% respectively.
The international operations of the Company have contributed 72%
(up from 69% in the year 2005) of the consolidated revenue, thus
reflecting the trend of increasing overseas growth and consolidation.
The global performance also reflects a growth in sales and net
profit of 28% and 10% respectively during Q4 of 2006 over Q4 of
2005.
Announcing the results at Mumbai, Ashok Goel, the Vice Chairman
& Managing Director of Essel Propack said, “We have grown
steadily in our tube business. Our efforts to leverage EP’s
core competencies of plastic processing has begun to pay off with
increasing contribution from Medical Devices and Speciality packaging
businesses.”
During the year 2006, many steps were undertaken to sustain consistent
growth and increase in revenues. One such significant step was to
broad-base the business with addition of new product lines. The
acquisition of medical devices and speciality packaging business
in 2006 were a move in this direction.
R. Chandrasekhar, President, Essel Propack added, “As we progress,
during the coming years, the Medical Devices and Speciality Packaging
will increasingly contribute to the top and bottom line.”
Speaking about the Speciality Packaging materials business, Ashok
Goel said, “The business is well positioned to ride on the
increasing need for packaging solutions, fuelled by factors such
as India becoming the world manufacturing hub for prescription drugs,
the retail boom and therefore the need for convenience packaging.
There are further value propositions to up the value chain in Pharma
and exports which can be easily tapped into leveraging on EP's capabilities
of extrusion lamination.”
The thrust was also on rapidly expanding the capabilities and footprint
with plastic tubes. The existing capacity of the UK plant was expanded.
A new green field plant in USA went on stream in December 2006.
The expansion and the green field are based on new state-of-the-art
technologies, which give better operational flexibilities and more
economical costs of operation.
The year 2006 saw additions of new customers from the skin and
hair care segments in US. These segments offer an increased value
proposition and are complementary to the thrust in plastic tubes.
This step has further improved the company’s margins. Further,
in certain markets, the company has exited low margin businesses.
During the year, the organisation’s another focus area had
been the turnaround of the acquired businesses in UK and the start-ups
in Mexico and Russia. By the end of 2006, EP was successful in turning
around the laminated tube business in UK and Mexico. The plastic
tube business in UK has reached the breakeven levels by end 2006.
The Russian business is still evolving and has a good potential.
The efforts will continue along the turnaround plan during the coming
year.
EP has been successful in opening up new segments in Pharma and
sampling with Minitube Technology. This technology has found wide
acceptance in Pharma and oral care. Despite continuously expanding
capacities, the capacities are fully booked by the end of 2006.
To optimize the resources, EP has been continuously evaluating
options to close down facilities with unviable capacities. Moving
in this direction, during 2006, the Nepal plant was closed down.
In 2007, the company will continue to focus on moving the revenue
platforms to higher value products, continue the turn around of
units, improving the margins further and also improving the returns.
Essel Propack is promoted by Essel Group. Essel Propack, head quartered
in India, manufacturers laminated tubes, plastic tubes, medical
devices and speciality packaging materials. The Company provides
tube packaging solutions to toothpaste, pharmaceuticals, cosmetics,
toiletries, food and industrial sectors all over the world. In Medical
Devices, the company manufactures cardio-vascular catheters and
delivery systems.
The Speciality Packaging Materials of the company currently caters
to the Food and Pharma industry. The Company has state-of-the-art
manufacturing facilities in 13 countries with 24 plants across the
globe. Essel Propack’s stock is listed on the Bombay Stock
Exchange and the National Stock Exchange.
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