EPL says it is committed to delivering digit revenue growth for the second straight year

Q1 FY 2021-22 revenue grew 7.7% year on year

115
EPL's Platina Pro 250 tube
EPL's Platina Pro 250 tube

Tube-packaging company Essel Propack (EPL), in its Q1 21-22 investor presentation, said that it is committed to delivering double-digit revenue growth for the second consecutive year. Its revenue from operation in Q1 FY 2021-22 was Rs 799 crores, up 7.8% year on year. 

The company has posted a net profit of Rs 57.9 crores in Q1FY2021-22, up 30.4% yearly. The net profit increased 2% quarter on quarter. 

Essel Propack said it achieved robust EBITDA margin quarterly through judicious price increases, cost productivity initiatives, and improving the mix.

“We are committed to delivering market-leading revenue growth and capital-efficient, consistent earnings growth,” the company said. Sustainability will be a key driver, and Essel Propack is leading the way for the industry, it added.

Personal care contribution to tube revenue stood at 46% in Q1FY22. “Personal care shares held in Q1 FY22 and will continue to grow in FY22,” it said. 

According to the company, the severe third wave of the COVID and volatile raw material prices remain a concern.

EPL’s Platina success story with Germany’s Hela

Essel Propack Europe and German FMCG company Hela Gewürzwerk Hermann Laue GmbH agreed to focus more strongly on sustainability.

In search of a sustainable product solution for the new products Fruit Up and Würz Wunder and the classics from the Spice Ketchup range, Hela has chosen the Platina Pro 250 tube from EPL. The Platina material used is a development of EPL and is fully recyclable. The tube has a diameter of 40 mm.

Essel Propack said that there were challenges such as Hela’s customer requirements on sustainability and the requirement of an extremely high oxygen barrier close to that of aluminum barrier laminates. EPL’s Platina Pro solution allows Hela to pack challenging material like Ketchup in an optimal, safe, and odorless way. It ensured necessary barrier properties are maintained throughout the entire life cycle of the product.

EPL was able to leverage the Platina Pro 250, which ticked all boxes in terms of stability, bulk protection, etc. Furthermore, EPL’s expertise in printing was also a key differentiator as customer artworks are very challenging. EPL’s capability to manufacture cutting-edge sustainable tubes combined with its expertise in printing enabled the firm to convert the opportunity successfully,” the company said.

The Platina Pro laminate tube was one of the first tubes in the world to receive the coveted RecyClass award. The independent certificate applies to Europe in the ‘Code 2’ HDPE material stream (recycling) sector and impressively confirms the sustainability of Platina tubes. For a packaging solution, this recognition is a decisive breakthrough because EPL convinced the demanding requirements of customers like Hela with the 100% recyclable product. 

Shortly before the European approval of RecyClass, the Platina Pro laminate tube was also certified by the US industry association ‘APR’ (APR = Association of Postconsumer Plastic Recyclers) for the American market. 

 

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

It is the right time to support our high-impact reporting and authoritative and technical information with some of the best correspondents in the industry. Readers can power Packaging South Asia’s balanced industry journalism and help sustain us by subscribing.

– Naresh Khanna

Subscribe Now

LEAVE A REPLY

Please enter your comment!
Please enter your name here