Plastipack sales peak at Rs 53 cr

Plastipack, Kanpur-based woven sack maker, has paid dividend for the first time, 19 years after its public issue in 1986. The dividend is 6 per cent.

The company earned a turnover of Rs 53.20 crore, the highest ever, crossing Rs 50 crore for the first time. This itself was a jump of Rs 13 crore over what it earned in 2003-04, Rs 40.29 crore.

The dividend declaration, though just 6 per cent, gives a lie to the stand of those who want the organization shut down.

The firm was referred to the Board of Industrial and Financial Reconstruction after the imposition of the Jute Packaging Order in 1988, but was nursed back to health under its supervision.

Its profit before tax this year has been Rs 1.29 crore, depreciation Rs 78.72 lakh, interest payment Rs 70.73 lakh. Net profit after tax is Rs 77.82 lakh. The company's paid-up equity stands at Rs 353.75 lakh, reserves at Rs 494 lakh. The promoters' shareholding is 43.61 per cent down from 46.77 per cent.

Managing Director M S Agarwal told Business Standard the company, in order to overcome the limitations of the Jute Control Order, started exporting woven sacks in a small way in 1987-88.

This had paid it rich dividend. The investment of the past 15 years has been in terms of strategy. Thus, in 2004-05, exports jumped from Rs 13.34 crore to Rs 29.12 crore in 12 months.

About 55-60 per cent of the turnover is exports. There is also continuous effort to upgrade machinery, he said.