Essel Propack Updates on International Operations

Essel Propack Ltd has announced about the following: During the quarter, the extruded tubes plant of Arista Tubes in Danville, USA, has streamlined its production and is in a ramp-up mode. In the coming months this plant will be servicing and increasing customer profile. The laminated tube operations in the UK and Mexican operations have stabilized and has begun to contribute to this bottom line.

The loss making unit of Arista, UK, has stabilized and is expected to further add to the bottom line in the coming quarters.

Arista Tubes plant in Poland which is in the process of being set up will be commissioned in August 2007. This plant will cater the needs of European market during the time to come.

Avalon Medical Services, Singapore, manufacturing medical devices, has completed its expansion program and is in a capacity stabilization and ramp-up mode.

Packaging India Pvt Ltd manufacturing Specialty Packaging Material has performed steadily. The plans for a green-field unit to manufacture Specialty Packaging focussed on pharmaceuticals industry is on the anvil.

In near term, the Company's focus is on improving the efficiency of operations to realize higher output while controlling the costs. At the same time, the impetus is on shuffle products and customer base to improve margins. The efforts are also along the direction to increase penetration of tubes into pharmaceuticals sector.

In medium term, the efforts are along the expansion of tube business into higher value segments. At the same time the business is being broad by adding higher value segments into the current portfolio. Simultaneously, the impetus is on reducing the capital intensity of the business.

Source : Equity Bulls

Keywords