Announces Rs 65 crore investment in new plant in North India

Mumbai, August 3, 2005 : The Paper Products Ltd (HUHTAMAKI-PPL) the leader in flexible packaging industry, today announced plans to build a new production facility for consumer packaging in North India. Building of the new plant will start by the end of this year, and commercial production of the initial phase will commence around mid 2006. The project will be implemented in a phased manner over two years at an estimated total investment of Rs.65 crores.

Commenting on the plan, Mr. Suresh Gupta, Managing Director said, "Our investment plans are in tune with our long term strategy to improve our packaging product portfolio and service for our customers. The company has three main plants at Silvassa, Thane and Hyderabad and a small plant at Nagpur. The new plant in North India will be well positioned to service fast growing customers in North, including customers' factories in the new tax incentive zones".

On the subject of heavy rains and flooding in Mumbai/ Thane on 26th July 2005, which affected operations at Thane plant, determined efforts are on to restore the plant operations to normalcy. As on today some machines are back in production. The plants at Silvassa, Hyderabad and Nagpur are unaffected and in normal operation.

For the Full Year 2004 ending 31 Dec.'04, the company achieved Net Sales of Rs.394 crores with Profit Before Tax (PBT) of Rs.33.65 crores and Earnings per share (EPS) of Rs.19.23. For the Half Year ending 30th June 2005, Net Sales were Rs.214 crores with PBT of Rs.17.16 crores and EPS of Rs.10.03 (not annualized).