Essel Propack Looking To Boost Growth In Consumer Goods, Pharma Packaging
Patanjali is among major customers of Essel Propack, says MD.
Tube packaging company Essel Propack Ltd. is looking to boost the share of its revenue from non-oral care businesses like cosmetics, consumer goods and pharmaceuticals.
The segment is pushing up growth and margins for the company, Ashok Goel, vice-chairman and managing director at Essel Propack, told BloombergQuint in an interview. Patanjali Ayurved Ltd. is among its 300 active customers in India and it does almost 100 percent of Baba Ramdev-backed consumer goods maker’s non-oral care packaging, he said.
Realisations from the segment are 2.5 times the assets, improving the return on capital employed and the return on equity, he said. Even customer footfall is concentrated in the oral care segment, so there is a scope for growth.
The company gets 48 percent of India revenue from oral care, including toothpaste packaging, while the global average is 60 percent. Essel Propack targets to get an equal share of its revenue from both the segments, Goel said.
He said the company is expected grow at an annualised rate of 15 percent. It’s a realistic target given the demonetisation and Goods and Services Tax-related disruptions in India and challenges in its other markets, Goel said.
While the disruption caused by the GST did slow down its India business, he said there is growth potential. The oral care segment has bounced back, Goel said.
Watch the full interview here: