9 Months Performance of The Paper Products Ltd.
Shows Sales up by 2.2%
CAPEX plans on schedule

Mumbai, October 26, 2004: The Paper Products Limited (PPL), India's leading flexible packaging company, today announced its Unaudited Financial Results for the third quarter and the nine months ended September 30, 2004. The company achieved sales of Rs.291 crores during the nine months representing a growth of 2.2%, over sales of Rs.285 crores in the corresponding nine months of 2003. The profit before tax is Rs.27.15 crores as compared to Rs.27.71 crores in 9 months last year. The basic and diluted earnings per share for the 9 months is Rs.15.15 as compared to Rs.15.35 in the corresponding period last year. On comparison between quarters, the company achieved sales of Rs.90.97 crores during  the third quarter showing a decline of 9%, over sales of Rs.100.0 crores in the corresponding third quarter of 2003. The profit before tax is Rs.7.26 crores as compared to Rs.11.74 crores in Q3 last year. The basic and diluted earnings per share for the quarter is Rs.4.08 as compared to Rs.6.63 in the corresponding period last year. Historically unprecedented increase in raw material prices (upto 60% in polymers) & stiff resistance from customers to selling price increases has affected topline & consequently bottomline. Specific strategies are being deployed to recover & improve position in coming months. Longer term outlook is positive.

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 commence production by end November, 2004. The expansion of capacity at Hyderabad plant is also expected to commence production by end 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.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. Ravi Chidambaram Controller - Finance The Paper Products Limited Tel: 2534 5021 (D) Board: 2534 3691- Ext. 172