Mr. Vimal Kedia - MD Manjushree Technopack

Budget Expectations 2010

Budget wish list from the Packaging Industry: by Vimal Kedia, Managing Director, Manjushree Technopack Ltd, Bangalore based public listed packaging major.

SMEs have been most affected by credit squeeze in the market. The budget should go some way in easing the squeeze and making credit available at competitive rates to SMEs.

Packaging, especially packaging used for Food and Beverages, to be treated on par with the food processing industry.

Incentives for creating solid cold chain infrastructure have to be put in place. It will help in minimizing losses in transit, storage etc. The current losses are usually built into the customer price, making it unfair and very expensive.

Efforts to rationalize duty on imported machinery; we still have a long way to go when it comes to state-of-the-art machinery. Imports still are taxed at high rates, which are a deterrent to companies investing in the latest machinery. It will result in mediocre quality which does not help build volumes.

Government could consider subsidising the production of bio degradable plastics, thereby promoting its use for various purposes.

The Budget could provide incentives for processed food manufacturers that would in turn encourage the use of good packaging material.

Brief Profile:

Manjushree Technopack Ltd (formerly known as Manjushree Extrusions) is a Bangalore based Public Limited Company, and one of the largest providers of plastic packaging solutions in the country. The company manufactures specialty plastic packaging products for domestic / export markets and today, it caters to the needs of leading companies in FMCG, Pharma and Food Processing sectors; some of which are Coke Cola, PepsiCo, GSK, Nestle, Unilever, Pfizer and Cadbury.

Manjushree is listed on the Bombay Stock Exchange and for the third quarter ended 31st Dec 2009, the company registered a turnover of Rs 10102 Lacs (Rs 7602 Lacs) recording an increase of 33% over the same quarter last year. Operating profit before interest, depreciation, exceptional items and taxes was also higher by 60% at Rs 2121 Lacs (Rs 1322 Lacs) while the profit before tax grew to Rs 1152 Lacs (Rs 843 Lacs) recording an increase of 37%. Net profit after tax increased by 38% to Rs 760 Lacs (Rs 550 Lacs) and the fully diluted EPS stood at Rs 5.61 as against Rs. 4.06 during previous period. For the FY 2008-2009, Manjushree registered a turnover of Rs 11878 Lacs (Rs 8,500 Lacs) – Growth of 40% and PAT of Rs 749.26 Lacs (Rs 440.17 Lacs) – Increase by 70%.

Mr. Vimal Kedia - MD Manjushree Technopack