Essel Propack plans units in US, Europe

The Subhash Chandra-controlled Essel Propack, the world's largest laminated tubes manufacturer, is planning to set up greenfield manufacturing facilities in the US and Europe.

Sources said the investment could run into a few hundred crores. The packaging major is also exploring the option of going for an overseas listing. However, a decision on this is yet to be taken.

The company, with 17 manufacturing units spanning 11 countries, commands a global market of around 30 per cent. The size of the laminated tubes market globally is estimated to be around 11 bn tubes.

Ashok Goel, vice-chairman and managing director, said: "Our expansion plan includes proposals for setting up laminated tubes manufacturing facilities in North and South America as well as in Europe. We are in a position to fund the projects through internal accruals. We are yet to take a final call on these projects."

"We have explored the option of going for an overseas listing. It will, however, take sometime," he added. Goel, however, refused to divulge details on investment envisaged for the proposed projects.

In 2003, the company had set up its 500 million tubes plant in the US at an investment of $20 million to cater solely to Procter & Gamble's laminated tube needs in the US and Mexico. It is in the process of setting up a laminated tubes plant in Russia.

The company has a presence in China, Egypt, Colombia, Venezuela, Mexico, Germany, Nepal and SE Asia.