The third quarter ended September 2003 recorded a growth of 7 per cent in net profit compared to the second quarter of this year.

The increase in net profit was achieved not withstanding the marginal decline of 3.4 per cent in the net sales. This was due to a slow down in the Chinese local customers' off-take and the planned relocation of a key customer's manufacturing plant from Shanghai to Hefei during Q3 of 2003.

Essel Propack is confident of regaining the lost volumes in fourth quarter, the company said, adding the results need to be viewed in the light of the "continued low growth of the FMCG sector in India and the unsustainable low prices offered by the competition."

The growth in the overseas revenues denominated in US$ gets translated into lower rupee growth due to the strengthening of Indian rupee.

The statement said the company has strengthened its relationships with the key customers in India. The volumes in China will continue to be on the growth path in the future.

Essel Propack's new laminate manufacturing unit in China has reached stabilisation phase in its quality, the company has already rolled out the laminate from China to the USA, and Latin markets. The full effect of this will be felt in the year 2004, the company said.

Essel Propack, the largest specialty packaging company, is promoted by Essel Group, which also has some other companies under its fold like Zee Telefilms and ASC Enterprises.

Essel Propack, headquartered in India, provides packaging solutions to toothpaste, pharmaceuticals, cosmetics, and Industrial sectors all over the world.

The company has manufacturing operations in 11countries across the globe. Essel Propack Limited's stock is listed on the stock exchanges of Mumbai, Ahmedabad, Delhi and the National Stock Exchange.