I appreciate the opportunity to report to you about the performance of Mold-TekPackaging in the financial year 2017-18 and the significant actions we have taken tostrengthen MPL for better growth in 2019 and beyond.
The major growth contributor has been Food and FMCG segment. MPL has been awarded the"Best Product & Process Quality Award" by Castrol for the year 2017"The Best Vendor award" by BPCL for the year 2017 and achieved Green ChannelRecognition by Asian Paints in July 2017.
In FY 17-18 our company showed a decent performance with a growth in revenue by 12.8%.EBIDTA is up by 21% and Net Profit after tax is up by 18%. EPS has increased from 9.71 inFY17 to 11.44 in FY18. The Company had declared an interim dividend of 40% (i.e Rs. 2/-per Equity share) and recommended a final dividend @ 40% (i.e Rs. 2/- per equity share)i.e a total dividend @ 80% i.e Rs 4/- per share) for the financial year 2017-18.
RAK sales have gone up by 75% compared to last year but still the breakeven point isnot reached yet. We identified flaws in the product mix and correcting the same to focusmore on Food and FMCG containers.
The new feathers in the hat for this year are the introduction of Ice Cream Tubsupgraded square packs for Edible Oil and Ghee and increased acceptance for our Roto-lockContainers. In terms of manufacturing capability we have added newer and latest printingmachines high end all electric moulding machinery and progressed in setting up plants atMysore and Visakhapatnam for Asian Paints Limited. We have expanded and enhanced thecapacity for our flagship food customer "M/s Mondelez" and expect increasedvolumes for export and domestic supplies in the coming years. Our launch of ice cream tubswas a great success with excellent response from major brands like Vadilal Lazza ScoopHeritage and many other brands. The overwhelming response and acceptance from the marketsin spite of our late launch has encouraged us to enhance our capacity expecting othermajor brands getting added to our client list in the coming season. Also our Edible Oil& Ghee square packs are attracting higher acceptance and demand from various clientsand the numbers are increasing at a satisfactory pace. Many new product developments withIML decoration for various MNCs are underway and may get finalized in the next few months.
The next generic container launch is in Ghee Retail Packs. These set of containersproduction will start by the end of third quarter. Our new upcoming plants for AsianPaints in Mysore will go live from October end and in Visakhapatnam by January2019. Theexisting production capacity of Moldtek in India is at 28000 TPA and will touch 35000 TPAby the beginning of FY19. The thin-wall production capacity has been doubled in the lastyear and is currently at 3000 TPA and is increasing periodically.
Moldtek is also working on IML decoration on complex curved surfaces that may lead usinto packaging for cosmetics which is a higher value adding line of business. With theincreased enquiries from big MNCs in the North India and to save logistics costs we mayhave to establish a plant in the north in the next 1-2 years.
Dreams and desire with hard-work and commitment will always lead companies to greaterheights and success will follow naturally. Mold-Tek team has been the building blocks ofsuccess based on our excellence in innovation quality and commitment.
I am confident that the team at Moldtek is strongly poised and progressively growingmaintaining Mold-Tek as the Number one packaging company in India with world classtechnology.