Good H1 Performance by PPL
	- Net Sales up by 8%
	- Profit After Tax up by 27%
	- CAPEX plans on schedule and would provide a   competitive edge

The Paper Products Limited (PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the second quarter and the first half year ended June 30, 2004.

The company achieved sales of Rs.200 crores during the half year representing a growth of 8.2%, over sales of Rs. 185 crores in the corresponding first half of 2003. The profit before tax is Rs. 19.89 crores as compared to Rs. 15.97 crores in H1 last year. The basic and diluted earnings per share for the half year is Rs. 11.08 as compared to Rs. 8.72 in the corresponding period last year.

On comparison between quarters, the company achieved sales of Rs. 103 crores during the second quarter representing a growth of 5.3%, over sales of Rs. 98 crores in the corresponding second quarter of 2003. The profit before tax is Rs. 10.55 crores as compared to Rs. 8.36 crores in Q2 last year. The basic and diluted earnings per share for the quarter is Rs. 5.71 as compared to Rs. 4.68 in the corresponding period last year. Continued focus on the company's innovation program NASP "New Applications Structures and Products & Processes" helped achieve improved margins amidst relentless selling price pressures and rising input costs.

The Company's Capital Expenditure (CAPEX) program of Rs 45 crores is progressing as per schedule. 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, which would enable new product development is expected to be completed in Q3, 2004. The expansion of capacity at Hyderabad plant is expected to commence production in the last quarter of 2004.

Commenting on the results, Mr. Suresh Gupta, Managing Director and President said, "Despite a slowdown in demand from leading FMCG Customers, and downward pressure on Selling prices, coupled with rising raw material costs; we could improve margins and bottom-line through product-mix improvements, continued success from the NASP program and effective cost control, despite inflation. Going forward , new product developement and capacity augmentation would provide a competitive edge. "

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.

More at our web site : www.pplpack.com

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