Essel Propack to set up unit in Poland

Our Corporate Bureau
02 August 2006

With this, the company will have 25 plants worldwide and a presence in 15 countries.

Announcing the plan in Mumbai, Ashok Goel, vice chairman and managing director of the company, said: "Our strategic intent as we have expressed earlier, is to focus our energies on Europe for enhanced growth. Moreover, plastic tube is the path we have chosen for inducing this growth. I am very happy to announce the setting up of this new facility that will help us to expand and consolidate our presence in the region".

Jeremy Paul, global head of Essel Propack's plastic tubes division, who is in charge of implementation of the project, said: "Europe is the largest market for plastic tubes globally. Also, Poland is the largest market in eastern Europe exhibiting a faster growth rate than the rest of Europe. Hence, Poland is the ideal location for tapping the potential of Europe."

The plant in Poland is the company's fourth new venture during the past two years. This move is a part of the company's global vision to establish itself as a leading player in plastic tubes across all geographies by 2010, with 20 per cent market share. The plant, involving a capital cost of $23 million, will be partly funded by operating leases and partly by debt.

Subhash Chandra, who originally promoted Essel Propack in 1984 - a pioneering venture that brought laminated tubes to the Indian market - had brought in a foreign collaborator and co-promoter, Arfen Hsu Ltd. However, the Essel group later bought out the 21.91 per cent issued and paid-up share capital of the company from Arfen Hsu.

The acquisition consolidated Essel Group holding in the company and set the tone for further expansion of Essel Propack's business interests in India and abroad.