Piramal Glass, (PGL) (NSE: PIRGLASS,BSE: 532949), a Piramal Group company and a leading manufacturer of flacon age (glass containers) for Cosmetics & Perfumery (C&P), Specialty Foods & Beverages (F&B) and Pharmaceuticals industry, is planning to invest Rs 260 crore over next 2 years including Rs 100 crore for expansion of capacities at its plant in Jambusar, Gujarat.
The company has planned to add 160 tonne per day capacity at its Jambusar plant, through a Greenfield project, which is likely to be completed by FY12. Further, the company has proposed to transfer 75 tonne of its current capacity in the pharmaceutical segment to the C&P business.
Commenting on the expansion, Vijay Shah, Managing Director, Piramal Glass said, “We are concentrating our focus on high margin premium segment of Cosmetic & perfumery, which will better overall margins for Piramal Glass. Our unique product-mix with a focus on Cosmetics & 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”.
“The C&P business has grown to 51% of the total sales in Q3FY11, and with the additional capacities coming in we expect the same to touch 60% of the total sales over next 2 years. The C&P business is likely to grow by 26% CAGR till FY13 making it fastest growing C&P packaging company globally," added Shah.
