Manjushree to supply PET bottles to UB group

Manjushree Extrusions Ltd, the Bangalore-based specialty plastic packaging solutions provider, is in talks with a host of liquor manufacturers including a UB Group firm in the country to introduce liquor in their PET (Poly Ethylene Terephthalate) bottles. The company has come out with a special plastic bottle for storing liquor following a huge shortage of glass bottles in the country.

Vimal Kedia, managing director, Manushree Extrusions Limited, said his company is already supplying 180ml PET bottles to Amruth Distillery and has finalised a contract with United Spirits Limited for introducing their liquor in PET bottles. The company is also in talks with Gemini Distillery, JP Distillery, Radico Khaitan, Khodays among others to launch their liquor in PET bottles.

The company is in the process of setting up a new manufacturing plant in Bangalore to manufacture 300 million PET bottles per annum at an investment of Rs 10 crore to cater to the requirements of liquor industry. The plant will be operational by March 2010.

“After conducting a research for more than a year we have come out with special PET bottle for liquor industry and have started supplying to Amruth Distillery. We will soon start supplies to UB group to introduce their low-priced whiskies,” he said.

Recently Manjushree completed an expansion and diversification programme at an investment of Rs 54 crore. With this its capacity has gone up from 9,000 metric tonnes per annum to 24,000 metric tonnes per annum. It can now produce wide mouth containers, preforms (semi-finished bottle) and jars.

“The liquor industry has been facing a huge shortage of glass bottles, especially after the prohibition of arrack sachets by the government. Most of the liquor makers have moved over to cheap liquor in glass bottles. Packing of liquor in PET bottles will help them bring down their costs as the industry is losing around 3-5 per cent of their stocks due to breakage of glass bottles in transportation. The use of PET bottles will result in reducing this cost as well as help them store additional stocks in less space,” Kedia said.

The company has recently bagged a three year supply contract from Coca Cola and Bisleri for supplying performs and bottles for their south Indian operations. It has also tied up with Cavin Care (Maa Fruits) for supply of 60 million PET preforms and bottles per annum to pack their mango juice. For the year ending March 2009, Manjushree Extrusions is expecting a 41 per cent rise in its turnover at Rs 120 crore compared to the previous year and also double its net profit to Rs 8 crore.