Ashok Goel, VC and MD of Essel Propack, in an interview with CNBC-TV18's Latha Venkatesh and Gautam Broker, spoke about the recent happenings in his company and the road ahead.
Below is the verbatim transcript of the interview. Also watch the accompanying video. Q: With your Mexican plant that is onstream, can you tell us what that will mean in terms of gains to revenues? A: The Mexico plant - the new relocated plant is much more modern. Essel Propack cateres broadly to two target segment. One is oral care which is kind of a mass product and mass capacity that takes care of it. It is the non-oral care, which is typically, cosmetics, hair care, pharmaceutical, those are the products, which give us better revenues and profits. So, for the new plant that is set up in Mexico we have increased the capacity and that increased capacity mostly will go for the non-oral care segment. Q: You are consolidating your operations in the US, can you highlight that and what kind of cost savings are we looking at and hence improvement in margins going forward? A: In US we had two plants 4.5-5 miles apart. In one of the plants we have expanded the building and all our printing facility i.e. for the existing plant i.e. the first plant where we have moved in and also the plastic facility has already moved into one consolidated location. This way we expect atleast couple of million dollars operating cost saving between the two plants. Apart from that, it gives us much better control, other efficiencies and also gives scope for further expansion in US. Q: One of your officials last spoke to us, was speaking about a possible price hike, I think you did take a price hike in end February or early March, are you able to spot any demand resistance to your price rise or demand is not faltering? A: You should see this in the context that plastic is directly linked to oil so it is much more visible. But when you see the energy price is going up, almost every other alternative commodity price also goes up. In our case, other than plastic the other alternatives are the paper, metal and glass even those commodity prices are going up. So, I donDiscover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
