With the export sales rise that is taking place now, Piramal Glass hopes to become profitable by the third quarter of this year, according to senior company officials. “As we utilize the high value, niche-market bottle making expertise, we are more confident of developing our exports further,” Sanjay Tiwari, CEO of the company told the Sunday Times FT.
Chairman Piramal Glass, Vijay Shah, said that the company reported sales amounting to Rs 2,936 million as against last year’s sales of Rs 2,014 million, reflecting a growth of 46%. “As against the profit before tax of Rs 49 million in the previous year, a loss of Rs 261 million has been reported during the year under review, however the company has succeeded in maintaining a 20% gross profit margin as against 22% of the previous year,” Mr. Shah noted.
He also said that the company saw a growth of over 110% in export sales as against that of the previous year, with total export sales increasing to around 15% of total revenue, as against the figure of 10% of the previous year. During the year under review, Piramal Glass exported a total volume of almost 7000 tonnes , consisting of over 25 million bottles, to markets as diverse as India, Australia, Europe and South Africa.
“The product portfolio of our exports too has widened, with the company having made inroads into the food & beverages sectors during the year under review,” Mr. Tiwari noted, adding that the present portfolio for exports consists of liquor, beer, food and soft drinks in varying shades and sizes. Mr Shah also noted that this is Piramal’s first full year of operation of its new plant at Horana.
“We were able to run at full capacity only after November 2008, yet despite this the company is now on a very firm footing. The facility is now fully geared with all five lines in operation and is drawing on the full capacity of its furnace”.