The Paper Products Ltd

Q1 Net sales up by 21.5% and

Net Profit up by 21.7%

Mumbai, April 23, 2008: The Paper Products Limited (HUHTAMAKI-PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the quarter ended March 31, 2008. The company achieved sales of Rs.158.24 crores during Q1-2008, growth of 21.5% over sales of Rs.130.25 crores in Q1-2007. The profit before tax is Rs.11.78 crores compared to Rs.9.35 crores in Q1-2007 showing growth of 26%. The basic and diluted earnings per share is Rs.1.50 as compared to Rs.1.23 in Q1-2007.

The new Rudrapur plant is operating at capacity levels.

A book loss of Rs.1.16 crores has been taken in above Q1-2008 results, for mark to market valuation of forex contracts which have been entered into to hedge the forecast transactions, consequent to the ICAI announcement of 29th March 2008 on Accounting for Derivatives..

Reconstruction of Thane Plant is on going & relocation of operations in a phased manner is scheduled to commence from mid 2008.

High raw material prices and appreciation of Rupee vis a vis US $ have lead to margin pressure. The company is implementing strategies to counter margin deterioration , & with the growth in the consumer economy believes the medium term outlook to be positive.

 

About The Paper Products Limited (HUHTAMAKI-PPL):

PPL is India's leading manufacturer of primary consumer packaging with 2007 gross sales of Rs.640 crores, and net capital employed of about Rs.310 crores.

Since 1999, PPL is a joint venture with the global packaging major, Huhtamaki Oyj, Finland who hold about 59% of the equity capital. Huhtamaki is one of the world's top ten consumer packaging multinationals.

PPL is a pioneer and the technology and market leader in flexible packaging in India with manufacturing facilities at Thane, Silvassa, Hyderabad and Rudrapur. 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 and also for seeds, specialized chemicals, electronics and many other specific specialized uses including anti-spurious packaging.

The Package Protection and Decoration products range includes latest leading edge technologies - shrink sleeves, wrap-arounds, heat transfers, pressure sensitives and metallised paper 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 Britannia, Cadbury, Castrol, Coca Cola, Dabur, Emami, Eveready, GSK, Godrej, Hindustan Latex, Hindustan Unilever, HPCL, ITC, Marico, MICO, Nestle, Pepsi, Perfetti, P&G, Tata Tea, TTK-LIG, Wipro and may more.

More at our website : www.pplpack.com

Mr. Ravi Chidambaram Controller - Finance & Joint CFO The Paper Products Limited Tel: +91 - 22 - 2534 5024 (D) Board: +91 - 22 - 2534 3691- Ext. 172 Mobile +91 - 98216 04825