PGC announces H1 results

Gihan Senevirathne, Enoch Perera, Damitha Dassanayake and Sanjeewa Mahendra of Piramal Glass with the Gold Award for Industry – Large Category at the 24th NCE Award Ceremony

Piramal Glass Ceylon Plc has successfully completed the first half of F2017, recording revenue which crossed the Rs. 3 billion mark and a growth of 3% against the corresponding period of the previous year.  

This was a remarkable performance as the company had to supply the market while its factory was out of operation for two months due to an upgrade and capacity enhancement work. 

During this period the market was supplied with bottles from the limited stock the company had built up with the balance quantity being acquired through trading. Almost 50% of sales were sourced through imports. Bottles were mainly imported from the parent company, Piramal Glass Ltd, India (PGL). The company, with the help of PGL, ensured timely delivery with minimum stock holding costs for both parties.  The trade of bottles is not at all a profitable venture due to the cost differential of bottles in India and other parts of the world and the huge transportation cost. Yet a conscious decision was made by the management to import bottles even at a break-even price to ensure that customers received continuous deliveries, thereby maintaining the commitment of uninterrupted supplies to all segments. Nevertheless, this decision impacted profitability margins during the first half of the year compared with the previous year.

The Gross Profit has reduced from Rs. 643 million in the first half of F16 to Rs. 401 million in the corresponding period of F17 thus resulting in a PBT of Rs. 93 million in F17 against the Rs. 342 million recorded in the same period of F16. 

The Piramal glass plant, which commenced operations in December 2007 in Horana, was stopped in July 2016. A glass furnace has to be overhauled every 8-10 years. Similarly, PGC also planned an overhaul of its plant and took this opportunity to enhance its furnace capacity to a maximum of 300 MT per day.  Simultaneously, downstream equipment such as production lines, quality inspection machines, packing machines and other utility equipment were also upgraded and had their capacity enhanced to facilitate the increased furnace capacity.

At the half year mark, the company achieved a domestic sale of Rs. 2,586 million against Rs. 2,497 million and the export sales stood at Rs. 543 million, the same as the previous year, due to the restriction of production capacity and efforts to facilitate the domestic market. 

This year too Piramal Glass Ceylon was recognised at the 24th NCE Export Award ceremony through the presentation of a Gold Award in the Industry Sector – Large Category. 

Piramal Glass Ceylon CEO and Managing Director Sanjay Tiwari said: “We are very positive about the future of the company. With the enhanced and modernised infrastructure now in place we are confident that we will be able to keep up the same momentum of performance. We will achieve this by fully serving the domestic market and increasing the business on the specialised segments in the international market.” 

Piramal Glass Ceylon (formerly Ceylon Glass Company) is the only glass bottle manufacturing plant in Sri Lanka. It had the opportunity of coming under the umbrella of the Piramal Group in 1999.

Presently located in Horana, it has been in existence for over 55 years. The company was originally located in Ratmalana but was relocated to Horana in 2007 as a BOI venture. 

PGC at its manufacturing facility has the capability to offer glass containers in different shapes and colours to multiple industries such as those dealing with food, liquor, pharmaceuticals, agrochemicals and soft drinks. 

The Piramal Group, led by Ajay G. Piramal, is one of India’s foremost business conglomerates. Driven by the core values of knowledge, action and care, the Piramal Group has a formidable presence in the healthcare, drug research, glass, real estate and financial services industries. The Piramal Group also pursues sustained community activities in healthcare, education, emergency medical services, and heritage restoration.