Essel Propack envisages Rs 145-cr investment this year

Company plans to raise production capacity in India and abroad

Leading FMCG and pharma packaging firm Essel Propack has envisaged out Rs 145 crore investment during the current financial year to raise production capacity of various units including India and abroad.

"We estimate depreciation to our plant and machinery to the tune of Rs 140 crore which we plan to bring in through internal accruals. That has been our strategy which we want to continue for future as well," said Ashok Goel, Vice Chairman and Managing Director.

To raise production capacity of its local units, the company is planning to spend Rs 70 crore for domestic operations while the remaining Rs 75 crore investment is envisaged for overseas operations.

"We are expanding capacities all around anticipating renewed demand from our existing and new dedicated customers. In all the three sectors we are present in i.e. beauty & cosmetics, pharma & health and food, have tremendous growth potential which we want to cash in on through fresh investment," said Goel.

The company plans to shift focus on oral to non-oral segment to get a topline share 50:50 in the next few years from the existing 58 per cent and 42 per cent respectively in the first quarter ended June 30, 2014.

Promoters have increased their stake by 2.19 per cent to 61.1 per cent in the April-June quarter.