Piramal Glass to invest Rs260 crore in two years, raise capacity
16 Feb 2011
Piramal glass Limited, a leading manufacturer of glass containers (falconage) for cosmetics and perfumery, specialty foods and beverages and pharmaceuticals industry, is investing around Rs260 crore over the next two years, including Rs100 crore for expansion of capacity at its plant in Jambusar, Gujarat.
The investment will expand the plant capacity at Jambusar by 160 tonnes per day through a greenfield project, which is likely to be completed by end of the financial year 20011-12.
The Ajay G Pirmal group company has also proposed to transfer 75 tonnes of its current capacity in the pharmaceutical segment to the cosmetics and perfumery (C&P) business.
"We are concentrating on high-margin premium segment of cosmetics and perfumery, which will better overall margins for Piramal Glass.
Our unique product mix with a focus on cosmetics and perfumery is driving our growth and overall profits. We will continue with this growth momentum and we are sure that the proposed expansion would help us end the year on a high," said Vijay Shah, managing director of Piramal Glass.
"The C&P business has grown to 51 per cent of the total sales in the third quarter of fiscal 2011, and with the additional capacities coming in, we expect the same to touch 60 per cent of the total sales over the next two years, he said, adding "The C&P business is likely to grow by 26 per cent CAGR till FY13, making it the fastest growing C&P packaging company globally," Shah added.
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