Despite sloth, Essel Propack expects revenues to go up 12%

Our Corporate Bureau
26 July 2003

Chennai: In view of the fragile domestic volumes from multinational companies, Essel Propack estimates its revenues to go up by 12 per cent and its after tax profit at 11 per cent.

According to Essel Propack, growth will come from Chinese and US markets. The company gave this guidance while announcing its second-quarter results for the period ended 30 June 2003.

For the period under review, Essel Propack, the world''s largest manufacturer of lamitubes, has shown a 22.46-per cent jump in net profits at Rs 16.9 crore as compared to Rs 13.8 crore for the corresponding period last fiscal.

The net sales stood at Rs 150.8 crore as compared to Rs 112.4 crore for the same period in the previous year. The increase in numbers is attributed to the scaling up of the operations in the US and better off-take in China and also to the company''s cost-cutting efforts.

Essel Propack has started a new in-plant, partnering with a large Chinese customer, to have a large presence in that market. The company is witnessing increased off-take from P&G, China.

Essel Propack, while turning around its Colombian operations, contained its losses in Mexico and showed good performance in Venezuela. According to the company the Latin American countries continue to pose new challenges by way of political and economic instability, high inflation, currency devaluation risks and backward integration by clients.