Essel Propack's Q2 net up 27%

Essel Propack Ltd, a global leader in laminated plastic tubes, has posted 27% increase in its net profit at Rs 70.8 crore for the quarter ended September 2016 as compared to Rs 55.6 crore profit reported in the corresponding quarter last year.

Total income from operations of the company was reported at Rs 596.1 crore for the second quarter of the current financial year, an increase of 10.5% from the same period last year.

"The quarter certainly has shown a recovery over the previous year on the revenue front with growth of 10.5%, although Europe did not fire to expectations.

The profitability was impacted by one-off costs in India and Colombia where new facility are being stabilised to support business growth. Adjusted for this, underlying profit growth for the quarter is 18.4%.

Customer engagement continues to be strong. New products like Mystik (Hair Colorant Tubes) and GML (100% recyclable tubes) are being received with huge interest by the customers, which should strengthen the growth pipeline for the next financial year," said Ashok Goel, Vice Chairman and Managing Director, Essel Propack Ltd.

EDG acquisition will help unlock synergies such as cross selling opportunity in the German markets, sourcing flexibility and better capacity utilisation at all of Europe plants. The acquisition will further enhance the position in the non-oral care category. Overall, the strategy and the mission 20:20:20, we believe is well secured, Goel said.

Essel Propack, part of the $2.4 billion Essel Group, with FY16 turnover of over $322 million, is the largest specialty packaging global company, manufacturing laminated plastic tubes catering to the FMCG and Pharma space.

Employing over 2852 people representing 25 different nationalities, Essel Propack functions through 21 state of the art facilities and in eleven countries, selling more than 6 billion tubes and continuing to grow every year.

Holding Oral Care market share of 36% in volume terms globally, Essel Propack is the world's largest manufacturer with units operating across countries such as USA, Mexico, Colombia, Poland, Germany, Egypt, Russia, China, Philippines and India. These facilities cater to diverse categories that include brands in Beauty & Cosmetics, Pharma & Health, Food, Oral and Home, offering customized solutions through continuously pioneering first-in-class innovations in materials, technology and processes.