Essel Propack 's Global Sales record a growth of 31% in the half year ended 30 June 2007
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.