Good Q1 Performance by The Paper Products Ltd
Net Sales Up by 12%, Profit After Tax up by 33%
Aggressive Growth Plans with CAPEX of Rs. 45 crores

Mumbai, April 27, 2004: The Paper Products Limited (PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the first quarter ended March 31, 2004. The company achieved sales of Rs. 96.8 crores during the quarter representing a growth of 12%, over sales of Rs. 86.8 crores in the corresponding first quarter of 2003. The profit before tax is Rs. 9.34 cores as compared to Rs. 7.6 crores in Q1 last year. The basic and diluted earnings per share for the quarter is Rs. 5.37 as compared to Rs. 4.04 in the corresponding period last year. The company's innovation program NASP "New Applications Structures and Products & Processes" contributed substantially in generating new business.

The company has ambitious growth plans for the current year with Planned Capital Expenditure (CAPEX) of Rs. 45 cores towards expansion of capacity at its Hyderabad plant and also to enable new product development at the Silvassa plant. The first phase of the CAPEX plan at Silvassa has been completed and production has commenced in the first quarter. Phase Two of the CAPEX plan at Silvassa is expected to be completed in Q3, 2004 and expansion of capacity at the Hyderabad plant is expected to be completed in the last quarter of 2004.

Commenting on the results, Mr. Suresh Gupta, Managing Director and President said, "We are targeting to maintain the robust growth in topline during the remaining quarters of 2004. The volume growth enables us to step away from business which is becoming relatively low end in terms of quality needs, and concentrate on products that need higher quality print and material construction standards as per good practice in manufacturing of food and personal packaging materials. The stabilization of input prices will help us to retain stable margins in the current year."

PPL was recently awarded the 'Best Value Creator - Small Size Companies 2003 - 04 ' by 'Outlook Money' at the hands of Honorable Finance Minister, Mr. Jaswant Singh.

About The Paper Products Limited (PPL):

PPL is India's leading manufacturer of primary consumer packaging with annual gross sales at about Rs.450 crores, and net capital employed of Rs.200 crores.

It is a joint venture with the global packaging major - Huhtamaki Oyj, Finland who hold about 59% of the equity capital. Huhtamaki is the world's sixth largest consumer packaging multinational.

PPL is the pioneer and the technology and market leader in Flexible packaging and Labelling, with manufacturing facilities at Thane, Silvassa and Hyderabad. It meets the packaging needs of almost the entire range of FMCG segments including personal products, personal wash, laundry, foods, sauces, beverages, bakery products, spices, chocolates and confectionery, dairy, etc.; and also for seeds, specialized chemicals, electronics and many other specific specialized uses including anti-spurious packaging.
The Labelling products range includes latest leading edge technologies - Shrink sleeves, Heat transfer labels, Pressure sensitive labels, Metallised labels and Wrap around labels.

Manufacturing of specialized cartons and cartoning systems, manufacture of poly films, specialized barrier metallising and high-end application extrusion coating are also part of PPL's product offerings. The company's packaging machines division offers complete packaging solutions to customers.
PPL mainly caters to the premium segment of packaging and its clients include HLL, Nestle, GSK, Cadbury, Britannia, Coca-cola, Perfetti, Marico, P&G, Amway, Emami, Dabur, Eveready, Godrej Sara Lee, etc. etc.
More at our website : www.pplpack.com

Mr. M.K. Srinivasan Senior Vice President - Finance The Paper Products Limited Tel: 2534 5024 (D) Board: 2534 3691 Mobile: 98211 35774

Carolina Bajaj Client Group Manager Madison Public Relations Tel: 2418 7074 (D) / 76 Mobile: 98201 93310