Emmbi commences manufacturing of Food and Pharma packaging products, capacity to expand

Emmbi commences manufacturing of Food and Pharma packaging products, capacity to expand

Emmbi Industries Ltd came out with a record quarterly performance in H1 of FY 2017-18 results declared today by the company.

Highlights of H1 of 2017-18 performance:

PBT grew by 17.72% vis-a-vis first half of the last financial year to Rs. 9.81 crores.

PAT and EPS grew by 16.88% vis-a-vis first half of the last financial year to Rs. 7.30 crores and Rs. 4.13 per share, respectively.

Company’s Gross Sales for the first half of FY 2017-18 has increased to Rs. 130.74 crores from Rs. 115.71 crores of FY 2016-17. This is an increase of 12.99% over same period of previous year.

The results have better profit margins due to the following reasons:

  1. Continued improvement in product mix leading to profitable products leading to higher sales and better profitability.
  2. Interest cost could have been better but for increase in working capital due to non-receipt of export incentives under the GST teething trouble which we do accept as a permanent feature.
  • Improved ability to command premium through introduction of newer products like Poultry Curtain along with pond liners and flexi tanks.

Emmbi commences Food and Pharma packaging facilities:

Emmbi Cleantech, The new contamination free product manufacturing facility with 2400 TPA capacity has commenced production as scheduled in the Q2 of FY18. This plant is expected to achieve its rated capacity during the course of the year. contributing 10% total capacity of the existing capacity of 24000 TPA.

Emmbi has commenced supply to industry leading customers in FMCG and Pharma segments. It is expected to produce incremental turnover and profits with value added product mix and higher profitability.

Emmbi strengthens its presence in B2C segment with new Products:

 

Company has started distribution of its retail products in Maharashtra and Rajasthan for the various needs of water conservation. We have already appointed many dealers for the purpose of the retail distribution. We will be completing the appointment of all the dealers during this year. Additional products like Poultry Curtain which has the market potential of Rs.20.00 crores per annum in the state of Maharashtra alone is expected to add further strength in coming year on retail distribution of products.

Emmbi industries continues to grow its presence in retail products targeted for rural areas under specific brands across its verticals namely “Emmbi Jalasanchay” for Storage, Transportation and Conservation of water with market potential of USD 2.5 bn and “Emmbi Krishirakshak” – a brand designed to focus on the concept of “crop protection at physical level” with market potential of USD 4 bn.

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