Essel Propack expands capacity 150%, ties-up with Colgate

Mid-cap company Essel Propack is a player in the packaging material space. The company has been caught in the limelight for its huge capacity expansion at the Goa plant by about 150%, and part-selling this capacity to its next-door neighbour, Colgate.

R Chandrasekar, President of Essel Propack joins CNBC-TV18 to discuss what this tie-up means in terms of revenues and the plans ahead for the company. Below is the verbatim transcript. Also watch the accompanying video Q: You recently tied up with Colgate for providing packaging material for their plant in Goa. Can you take us through this tie-up and what it will mean in terms of revenues every year?
A: The so-called tie-up with Colgate is not anything which is new. It has been there for the last 14 years. What we have recently done in Goa is to expand the capacity by around 150% and a significant portion of that capacity will be sold to large multinational that is next door to us, which happens to be Colgate. Q: How much will that increase your revenues in FY12?
A: Its difficult to put a number around that. It also depends on how much is the actual offtake and how much we sell. In terms of capacity, it