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MUMBAI:
Essel Propack continued to grow strongly during the second quarter,
supported by a step-up in its US and European operations. The Net
Sales for the first half year at Rs. 5,812 Million is 31% higher
over sales for the corresponding period last year. Overseas operations
for Essel Propack now contribute 66% of its net sales. Adjusted
for the rupee appreciation versus the US dollar over the year, the
sales growth will be higher at 39%, while the EBIDT for the half
year at Rs. 1,172 million and the Net Profit at Rs. 401 Million
would have grown by 14% and 1.3% respectively. The EBIDT growth
during this period has been constrained by the start-up, customer
development and capacity costs attributable to the new plant and
additional capacities commissioned in USA which are in their start-up
phase. Higher interest cost has further impacted the Net Profit.
As the volumes are ramped up, the EBIDT and net profit should track
the sales growth.
While
announcing the First Half results in Mumbai, Ashok Goel, the Vice
Chairman & Managing Director said, "The building blocks
for our next phase of growth are now in place. We have entered the
Medical Devices and the Specialty Packaging arena in order to de-risk
and broad-base our business. These now already constitute 19% of
our total sales and are growing well. Our new initiatives in the
USA are ramping up and scale economies would follow. Having doubled
our business in the last four years, we are committed to the next
phase of our growth agenda. Jointly with a leading Business School,
we have recently developed a strategic plan for our flagship Tubes
business, focusing our customer-market-product portfolio to deliver
a sustained profitable and competitive growth. As part of our new
strategy, we have recently expanded our top management bandwidth
by inducting fresh talent and establishing a new matrix structure
consisting of business and functional leadership to better meet
the challenges of our multinational operations. World class systems
and processes and a robust IT platform, will be rolled out over
the next one to two years enabling empowered cross-functional teams
to exploit the market opportunities swiftly and competitively."
Essel
Propack is promoted by Essel Group. Essel Propack, head quartered
in India, manufacturers Laminated Tubes / Extruded Plastic Tubes,
Medical Devices and Specialty Packaging Material. The Company provides
tube packaging solutions to toothpaste, pharmaceuticals, cosmetics,
toiletries, food and industrial sectors all over the world. Essel
Propack has 32% global market share in Laminated Tubes. In Medical
Devices, the company manufactures cardio-vascular catheters and
delivery systems. The Specialty Packaging Materials of the company
currently caters to the Food and Pharma industry. The Company has
state-of-the-art manufacturing facilities in 12 countries with 23
plants across the globe. Essel Propack's stock is listed on the
Bombay Stock Exchange and the National Stock Exchange.
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