“We are exploring new markets and will further diversify revenue streams,” Sanjay Tiwari, CEO Piramal Glass told the Business Times. He said they expect to expand to high margin yielding coloured bottles segment.
Piramal is the only manufacturer of glass bottles in the country and caters to the food and beverages, cosmetics, perfumery and pharmaceutical industries.
The company has now reduced significant exposure to the Indian market and diversified to Australia, New Zealand, Mauritius, Maldives, East Africa and the UK.
Analysts say that Piramal Glass’s energy cost containing 50 per cent of furnace oil, 30 per cent of electricity and 20 per cent of LPG is expected to see an increase of 18 per cent on its energy bill (with effect from April 1st 2013) as a result of the 15 per cent (weighted average) increase in industry tariff.
They said the major proportion of the company’s sales consist of alcohol and beverage bottles. The rise in tourist arrivals will create more demand especially for soft liquor and result in increased sales volumes for Piramal as Lion Brewery continues to be one of its main buyers, according to analysts.
Piramal’s fourth quarter saw a net earnings growth of 11 per cent year on year at Rs. 110 million while full year earnings grew 6 per cent year on year to Rs. 724 million.