Performance of The Paper Products Ltd for the Year
2004.
Shows Sales up by 3%
Capacity Expansion completed as per plan

Mumbai, January 25, 2005: The Paper Products Limited (PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the fourth quarter and audited results for the year ended December 31, 2004. The company achieved sales of Rs.394 crores during the year representing a growth of 3%, over sales of Rs.383 crores in the year 2003. The profit before tax is Rs.33.65 crores as compared to Rs.37.93 crores during the last year. The basic and diluted earnings per share for the year is Rs.19.23 as compared to Rs.22.27 of last year. On comparison between quarters, the company achieved sales of Rs.103.14 crores during  the fourth quarter showing an increase of 5%, over sales of Rs.97.88 crores in the corresponding fourth quarter of 2003. The profit before tax is Rs.6.50 crores as compared to Rs.10.22 crores in Q4 last year. The basic and diluted earnings per share for the quarter is Rs.4.08 as compared to Rs.6.92 in the corresponding period last year. The Board of Directors have recommended a dividend of Rs.6/- per Equity Shares.

As informed in Q3 results, historically unprecedented increase in raw material prices (upto 60% in polymers) & stiff resistance from customers to selling price increases has affected topline & consequently bottomline in second half. Specific strategies are being deployed to recover & improve position in coming months. Long term outlook is positive.

The Company's Capital Expenditure (CAPEX) program of Rs.45 crores was completed as per schedule. The first phase of the CAPEX plan at Silvassa has been completed and production commenced in the first quarter. Phase Two of the CAPEX plan at Silvassa, which would enable new product development commenced production in December, 2004. The expansion of capacity at Hyderabad plant commenced production in November, 2004.

About The Paper Products Limited (PPL):

PPL is India's leading manufacturer of primary consumer packaging with annual gross sales at about Rs.454 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. Ravi Chidambaram Controller - Finance The Paper Products Limited Tel: 2534 5021 (D) Board: 2534 3691- Ext. 172 Mobile: 98216 04825