Essel Propack to review RAS Group - RAS Propack Lamipack & RAS Extrusions

Essel Propack Ltd has announced that the Company has agreed to participate with the promoters of RAS Group in filing a Rehabilitation package with BIFR for the group's two companies namely RAS Propack Lamipack Ltd (RPL) and RAS Extrusions Ltd (REL).

Announcing these developments, Ashok Goel, Vice Chairman & Managing Director said, "The Rehabilitation Proposal has already been worked out jointly with the Management of the RAS Group. This proposal is in the process of being filed with BIFR. Subject to the approval of our proposal by BIFR, we will announce the details as we go forward", Regarding Ras Propack Lamipack and RAS Extrusions, Ashok Goel added, "The Technology platform adopted by RPL and REL is the same as that adopted by Essel Propack. This will be a great advantage while integrating the organization and will further enhance our capabilities at the market place."

RPL and REL are in the same line of business as the Company manufacturing Laminated Tubes Laminates respectively. This move will give the Company access to further capacities for tubes and laminate other than consolidation of capacities in the India market in due course of time, the operation of RAS Propack Lamipack & RAS Extrusions may be integrated with the operations of the Company.

REL manufactures multilayered laminates used for the manufacturing of Laminated Tubes. REL has its manufacturing facility at Chakan in Pune District. The Company's customers include multinationals operating in India. REL has entered into long term arrangements for supply of laminates with RPL. Besides REL also exports Laminates to Iran, Srilanka etc.

RPL is engaged in manufacturing and supply of soft squeeze laminates tubes. RPL has its manufacturing facility at Chakan, in Pune District.

RPL's Laminated Tubes are used in industries such as Oral care (dentifrice tooth paste), Pharmaceutical, Cosmetics, Adhesive etc. RPL's key customers are Hindustan Lever Ltd, Dabur, Choice Laboratories, Himalaya Drug Company, Personna Cosmetics and other private labels in the Indian Market RPL's tubes are also exported to Iran, Unilever Srilanka etc.

PRL has a modern state-of-the-art production facility including the latest Laboratory & Testing facilities. Besides RPL adopts the best processes practices and systems for manufacturing, and quality standards such as:

- TPM (Total Product Maintenance) for manufacturing activity

- GMP (Good Manufacturing Practices) at the shop floor for manufacturing activity

- HACCP (Hazard Analysis and Critical Control Point) during manufacturing process

- BIS (Bureau of Indian Standard) for product testing and certification

- FIFO (First in First Out) system for raw material utilization.

Source : Equity Bulls

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