Piramal Glass Ceylon PLC (PGC) being a natural monopoly is expected to gain from the demand for glass containers which is expected to be driven through the growth in consumer industries such as liquor, pharmaceuticals, food & beverages, cosmetic and perfumery, analysts say.
PGC, a manufacturer and distributor of glass containers to the local and foreign markets fulfills 90% of the local glass requirement in the country. "Their liquor sector account for more than 50% of the total sales of the company and the pharmaceutical industry contributes 6% to the total sales,” Thakshila Hulangamuwa, Vice President Asha Phillip Securities told the Business Times.
He said that while the remainder is shared amongst the food and beverage sector and cosmetic sector, analysts say that with expected growth in the liquor sector together with the economic rise and the opening up of the North and East regional markets in the country will increase the company's sales volume and will create a derived demand for glass bottles.
He added that the expected increase in tourist arrivals will increase the alcohol consumption, prompting the sales volumes to grow further. “With the increase in the per capita income levels, the consumption of liquor will increase as alcohol will be more affordable to a greater part of the population,” Mr. Hulangamwa noted. He added that the food and beverage sector, which will be a major beneficiary of the anticipated economic boom and the economic revival will lead to the increase in disposable incomes of the people - which will lead to increase in overall consumption levels. “The key customers such as Cargills, Coca-Cola, and CW Mackie will drive the demand for glass containers due to the increase in consumption levels.”
Analysts also said that the growth in the pharmaceutical industry, especially with the opening up of new markets coupled with the ever growing healthcare requirements of the population will boost GLAS's sales.
| Piramal sales grew by 18% to Rs. 13 bln in last quarter |
Piramal Glass Ceylon PLC (PGC), a manufacturer of specialty glass containers for food & beverages, pharmaceuticals, and cosmetics & perfumery, has reported a turnover of Rs. 1.3 billion and Net Profit of Rs. 205 million for the 3rd quarter ended 31st December 2011 of FY 2011/12.
A company statement said sales during this quarter grew by 18% to Rs. 1.3 billion from Rs. 1.1 billion. This was mainly due to the strong growth of 18% in the domestic sector and 17% in export sector during this quarter when compared to the same quarter of the previous year.
The domestic market growth during the quarter was mainly contributed by the exceptional growth in the Liquor bottles (dominated by beer bottles) and Aerated Water bottles sector, it said.
Piramal surpassed its previous year (12 months -FY10/11) net profit of Rs. 579 million within nine months during the current financial year, reporting a net profit of Rs. 588 Million in the nine months period in the current year. |
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