Essel Propack – the tubes manufacturing and packaging company is looking to boost the share of its revenue from non-oral care businesses like cosmetics, consumer goods and pharmaceuticals.
These segments are 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% of Baba Ramdev backed consumer goods maker’s non-oral care packaging.
Realizations from the segment are 2.5 times the assets, improving the return on capital employed and the return on equity. Even customer footfall is concentrated in the oral care segment, so there is a scope for growth.
The company gets 48% of India revenue from oral care, including toothpaste packaging, while the global average is 60% – Essel Propack targets to get an equal share of its revenue from both the segments. He said the company is expected to grow at an annualized rate of 15%. It is a realistic target given the demonetization and Goods & Services Tax related disruptions in India and challenges in its other markets.
BloombergQuint held an interview with Mr. Ashok after the quarterly financial results were announced. Watch the full interview here: https://www.youtube.com/watch?v=BvZ0k3XH8fw&feature=youtu.be