Paper Products Ltd, a member of Huhtamaki Packaging Worldwide is a leading manufacture of flexible packaging materials in India. The company founded by Sardari Lal Talwar was originally started as a partnership concern at Lahore(now in Pakistan) in 1935 and was shifted to Delhi in 1947. Later in 1950 it went public. PPL became a 51% subsidiary of Huhtamaki Van Leer, a European Pakaging major, when the later acquired 51% stake in PPL through an preferential allotment of equity shares in 1999. During 1999 Huhtamaki Van Leer the packaging group with worldwide operation and having leadership positions in consumer and industrial pacakaging became the 51% shareholder of the company through preferential allotment of equity shares. The company is taking all efforts to become a debt-free in the near future. PPL which commands a 65% market share in the high end flexible packaging in India and its clientle includes some of the heavyweights of Indian FMCG players like HLL, Colgate, Nestle etc. Some of its overseas clients include subsidiaries of Unilever in Srilanka and Bangladesh. Eventhough PPL doesnot face any immediate threat from competition, the demand growth is inextricably linked to the demand growth in the FMCG and the food segment. The company has technology-transfer agreements with Dennison Manufacturing Company, US, for heat transfer of labels on plastic containers and with Fuji Seal Company, Japan, for shrink sleeve technology for labelling. PPL raised Rs.10.29 crores through an rights issue of 14% PCDs(FV of Rs.100) in the year 1995 to part finance its Rs.28 Crore Plant for packaging material at Silvasa, Maharashtra. PPL is increasing the production capacity of its Silvassa plant at a capex of Rs.18.5 crores. The commercial production of the expansion project is expected in March 2003. It has also redeemed its entire preference capital in the current year. PPL has divested its entire stake in PPL Feedback Packaging Ltd (PFL) to Brown Paper Technologies Ltd on Jan 29, 2002 and hence PFL ceases to be a subsidiary of PPL. The company was awarded the Worldstar For Packaging 1994 by the World Packaging Organisation. In 1994, it also won the Kelkar Memorial Award for Technical Research, instituted by SICOM.