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.