Essel Propack expanding into Speciality Packaging Materials Acquiring Packaging India, Pondicherry

Mumbai, August 30, 2006 : Essel Propack, world’s largest manufacturer of laminated tubes, with manufacturing in 13 countries through 22 plants, is acquiring 100% stake in Packaging India Private Limited (PIPL), Pondicherry. Packaging India, a proven player in the manufacturing of speciality packaging materials, is a part of FMCG major CavinKare Group, Chennai.

While announcing the acquisition in Mumbai, Ashok Goel, the Vice Chairman and Managing Director of Essel Propack said, “This is a significant step in our product diversification strategy. With the Pharma and Retail market poised for tremendous growth, the demand for Speciality packaging Materials is slated to rise high. This is the opportune time for us to step in and leverage the opportunities.” Explaining the logic of the divestment, C. K. Ranganathan, Chairman & Managing Director of CavinKare Group said, “This was a concerted move towards unshackling growth at PIPL. Considering the heritage of PIPL, the Company was at a point of inflection in terms of growth. Hence, it was realized that PIPL has to align itself with another packaging company to achieve its true growth potential. Now the company will aggressively target growth in sectors such as Pharma, Food, Retail, Exports and others.” Speaking of the acquisition R. Chandrasekhar, COO, Essel Propack said, “Packaging India and Essel Propack has great many synergies which make this a perfect buy. The two organizations have many similarities, foremost being the organizational ethics, culture, the approach to business, knowledge base, market reputation and the burning desire to grow.”

PIPL was established in 1990 as a part of Chennai based CavinKare group. Today, it is the third largest producer of speciality packaging materials in India, offering innovative packaging solutions. PIPL enjoys a leading market position in the southern part of the country with substantial breadth, state-of-the-art technology, unmatched product development expertise, and strong relationships with a highly diversified, blue chip customer base. The present team at the Company, headed by T. D. Mohan, the Managing Director, will continue to manage the operations of the Company, under the guidance of Essel Propack.

The core synergies between PIPL and Essel Propack can be broadly termed as:

High-end lamination technology for speciality materials Knowledge of requirement of Barrier Properties OEM business model Highest standards of quality and manufacturing systems Expanded product portfolio to enable better service to a common customer profile Leveraging medical relationship to service each other’s customers Tapping the global customer base of Essel Propack to expand PIPL’s customer base

Creativity & Innovation is poised to take the centre stage in the field of Packaging. The market demands are poised towards new trends, sophistication, and user-friendliness. These needs can only be met by superior manufacturing environment, high profile features and finer processes. Essel Propack and PIPL are focused on creating such a discipline in the manufacture of Speciality Packaging Materials.

We express our sincere thanks to the legal advisors ANS Law associates, advisors to the deal Bellwether Capital and Deloitte Haskins & Sells who did the financial due diligence.

Essel Propack, the largest speciality packaging company in the world, is promoted by Essel Group. Essel Propack, head quartered in India, manufacturers laminated and plastic tubes. The Company provides packaging solutions to toothpaste, pharmaceuticals, cosmetics, food and Industrial sectors all over the world. Recently, the Company forayed into Medical Devices business. The Company has state-of-the-art manufacturing facilities in 14 countries with 24 plants across the globe. Essel Propack’s stock is listed on the Bombay Stock Exchange and the National Stock Exchange.

Press contacts : Mumbai : Ramdas Warrier – 98209 04179; Delhi : Chetan Saxena @ 98113 23282

Ramdas WARRIER

Manager - Corporate Communications

Essel Propack Limited

Continental Building, 135,

Dr. Annie Besant Road,

Worli, Mumbai 400 018.

Tel. Board : +91 - 22 - 5653 5653 Ext. 5599

Tel. Direct : +91 - 22 - 2495 0501; 5653 5599

Fax : +91 - 22 - 2496 3137

Cell : +91 - (0)98209 04179

E-mail : ramdas.warrier@ep.esselgroup.com

Website : www.esselpropack.com

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