Essel Propack 's Q2 Results

Essel Propack 's Global Sales record a growth of 18% in the Second Quarter ended June 30, 2006

EBIDT Growth - 11% Net Profit growth - 13%

Mumbai, April 26, 2006 : Essel Propack, the global leader in laminated tubes, recorded an encouraging growth of 18% in Net Sales, 11% in EBIDT and 13% in Net Profit during the Second Quarter of 2006 over the corresponding quarter of 2005. The Net Sales during the quarter under consideration touched Rs. 2,316 Million with an EBIDT of Rs. 568 Million and PAT of Rs. 230 Million. The consolidated PAT of Q2 2006 when compared with the previous sequential quarter ended March 31, 2006, reflect a growth of 23%.

While announcing the Second Quarter results in Mumbai, Ashok Goel, the Vice Chairman & Managing Director said, "We have registered a consistent growth. The performance of Q2 2006 reflect an improvement over the performance of Q1 2006. With more of new product offerings and renewed focus on sectors such as Cosmetics and Pharma, we expect enhanced performance in the time to come."

In the laminated tube plant at Danville, USA, the capacity expansion is completed. Development of new customers is in process. This will be stabilized soon and will start yielding results during the Q4 of 2006. Caps & Closures Division in Danville is ably supporting the laminated tubes operations. The recently initiated Plastic Tubes manufacturing unit of Arista Tubes at Danville is in the process of being set up. This plant will become operational during the Q4 of 2006 and will begin to contribute to the top line of the Company during in 2007. The operations in Mexico and Colombia have ramped up volumes and reported improved profitability.

The operations at Arista Tubes, UK, has achieved break-even in June 2006. Essel Propack (UK), formerly Telcon Packaging, is expected to achieve break-even in July 2006. The capacity expansion at Arista Tubes, UK, has been completed during the Q2 of 2006. These units are expected to contribute to the profitability and margin improvement of the Company from Q3 2006. German operation is steadily contributing to the revenues of the Company.

The unit at Egypt has performed as per the expectations. The Indian operations are also reflecting consistent performance. The performance of Indian market is directly proportional to the performance of the Indian FMCG market, which is showing a recovery. The Company has focused on pharmaceuticals market with Mini-tubes to enhance its performance in Indian market. Mini-tubes is steadily penetrating pharma market and gaining ground. Significant performance output is expected to be evident from the Q1 of 2007.

To accelerate growth in China, the Company is rolling out Mini-tubes technology into China. The capacities are in place to tap the pharma market of China. Significant results will be seen during the Q2 of 2007.

The recently acquired Medical Devices companies namely Tacpro Inc., USA, and Avalon Medical Services, Singapore, have performed as per the expectations.

Essel Propack, the largest speciality packaging company in the world, is promoted by Essel Group. Essel Propack, head quartered in India, manufacturers laminated and plastic tubes. The Company provides packaging solutions to toothpaste, pharmaceuticals, cosmetics, food and Industrial sectors all over the world. Recently, the Company forayed into Medical Devices business. The Company has state-of-the-art manufacturing facilities in 14 countries with 24 plants across the globe. Essel Propack's stock is listed on the Bombay Stock Exchange and the National Stock Exchange.