plastic packaging market in india 2014 -sample

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Plastic Packaging Market – India

March 2014

2

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PLASTIC PACKAGING MARKET IN INDIA 2014.PPT

Executive Summary

Market

Drivers & Challenges

Competitive Landscape

India’s plastic packaging industry has exhibited rapid growth and development in recent years The market for packaging plastics in India is expected to grow at a CAGR of x% during the forecast period of 20-- -

20-- In terms of volume it is expected to grow at a CAGR of x1% during the period 20-- - 20--

Drivers: - Retail Growth and Increased Consumerism

- High Demand from Food and Beverage Industry

- Rise in FMCG sector

- Growth in Pharmaceutical Market

- Growing Paint and Lubricant Industry

- Untapped Market Potential

- Changing Lifestyle

- Increasing Demand from Rural Sector

- Logistics Advantage

Key Trends

Flexible Packaging is Gaining Preference Use of In-Mold Label Plastic Packaging of Beer Multi-layer Plastic for Longer Shelf Life of Milk Avant-garde Use of Bioplastics in Packaging Other Trends

Challenges:

- Ban on Plastic Packaging

- Rise in Price of Raw Materials

- Lack of Packaging Machinery

Major Players

Player A Player B Player C Player D Player E Player F

3 PLASTIC PACKAGING MARKET IN INDIA 2014.PPT

•Economic Indicators

•Introduction

•Market Overview

•Drivers & Challenges

•Key Trends

•Competitive Landscape

•Strategic Recommendations

•Appendix

4

SAMPLE Economic Indicators (1/3)

14.71

11

12

13

14

15

Q4

n4 m4

Q3

o3 n3

m3

Q2

p2 o2 n2

m2

Q1

p1 o1 n1

m1

INR tn

20-- - -- 20-- - -- 20-- - -- 20-- - --

GDP at Factor Cost: Quarterly

Inflation Rate: Monthly

0.0

0.5

1.0

1.5

2.0

%

Oct 2013 - Nov 2013

b

Sep 2013 - Oct 2013

a

Aug 2013 - Sep 2013

z

Jul 2013 - Aug 2013

y

Jun 2013 - Jul 2013

x

MEDICAL DEVICES MARKET IN INDIA 2014.PPT

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Packaging of a product is done due to numerous reasons that include

Types of Packaging (By Function)

Protective Function Convenience Function Environmental Function Psychological Function

• Packaging helps the

product from being

damaged due to

various reasons such as

A1

A2

A3

A4

•Packaging plays an important role in allowing products to respond to the demands and needs of modern consumers Examples include

B1 B2 B3

•Packaging reduces the amount of waste going to landfill

•Without the benefit of packaging to preserve food, a higher proportion of food would become spoiled and consequently consigned to garbage collection for land disposal

•Marketing trends are placing increasing emphasis on the look, sales appeal and quality of retail packaging

•Packaging helps sell products by providing product differentiation and presentation, greater brand awareness and convenience


Indian packaging industry is expected to grow at a rapid rate to accommodate the country’s economic growth

Market Overview Packaging Market Size (By Value)

Market Segmentation

• India is one of the fastest expanding packaging markets in the world, growing at a CAGR of X

• It is the sixth largest packaging market in the world

• This growth trend is expected to continue in the future, owing to greater demand due to economic growth

• It is expected to become the world’s fourth largest packaging market by 20-- 0

500

1,000

1,500

2,000

2,500

3,000

INR --

X

20--e

x7

20--e

x6

20--e

x5

20--e

x4

20--e

x3

2---e

x2

20--

x1

a2

a1

b8 b7 b6

b5

b4

b3 b2

b1

b8

b7

b6

b5

b4

b3

b2

b1

Organised

Unorganised


Plastics have a dominant share of the Indian packaging market

Market Overview Plastic Packaging Market Size (By Value)

Plastic Packaging Market Size (By Volume)

• Plastic is the most important packaging material

• In the Indian packaging industry, roughly X-Y% of the industry’s revenues are from plastic based materials Plastics have increasingly replaced traditional materials in this

sector due to their light weight and superior functionality

Hence, it is expected that share of plastic packaging in the overall packaging industry will increase in the coming years

• The market for packaging plastics in India is expected to grow at a CAGR of A% during the forecast period of 20-- - 20-- Growth in various sectors in India such as FMCG, food &

beverage , pharmaceutical etc are the drivers for the increased usage of plastics in packaging

• The plastic packaging industry consists of rigid and flexible plastics

• Consumer preference for the use of convenient packaging and affordable quantities is driving the market towards flexible packaging in India One of the main reasons for the ongoing success of flexible

packaging in India is the smaller quantity of a product that can be packed in these packages as compared to traditional packaging

0

2

4

6

8

10

mn MT

B

20--e

b2

20--

b1

0

500

1,000

1,500

2,000

2,500

INR bn

A

20--e

a7

20--e

a6

20--e

a5

20--e

a4

20--e

a3

20--e

a2

20--

a1

Note: MT refers to Metric tonnes

8

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Drivers & Challenges – Summary

Drivers

Retail Growth and Increased Consumerism

High Demand from Food and Beverage Industry

Rise in FMCG sector

Growth in Pharmaceutical Market

Growing Paint and Lubricant Industry

Untapped Market Potential

Changing Lifestyle

Increasing Demand from Rural Sector

Logistics Advantage

Challenges

Ban on Plastic Packaging

Rise in Price of Raw Materials

Lack of Packaging Machinery


Impact

Demand for plastic packaging will expand with the growth of retail sector and increased consumerism

Retail Growth and Increased Consumerism

•Growth in Indian retail and increased consumption of consumer products provide a boost to the packaging sector, which further stimulates the demand for plastic packaging materials

• Indian retail market has experienced high growth over the past decade with a gradual shift towards modern retailing formats Low organized retail penetration at x-y% indicates huge growth potential for this market

• India is one of the most lucrative consumer markets in the world with about one sixth of the global population Per capita income is expected to grow by X% to INR Y in 20-- - 20-- which will translate into increasing

expenditure along with rising purchasing power – More than -00 mn shoppers are expected to shop at organized retail chains by 20--

Rising income levels is stimulating the growth of organized retail which is also increasing the demand for innovative and attractive packaging concepts

Major Retail Segments (2012) Retail Market Size & Growth

40

20

0

60 B

20--e

B2

20--

B1

INR tr

A5

A1

A3 A4

A6

A2

A7

A8

A2

A3

A4

A6

A8

A7

A5 A1

10

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Accelerating growth in the food industry supports the sustainable development of plastic packaging sector

High Demand from Food and Beverage Industry (2/3)

•Processed food industry represents ~X% of the overall food market in India These products need good packaging for maintaining their taste

and quality

• The industry is segmented into sectors namely, milk and allied products (dairy), meat and poultry, seafood, bakery and confectionery, fruit and vegetables, grain, pulses and oilseeds (staple) products, alcoholic and non-alcoholic products (beverages) and packaged foods All these segments are catalyzing growth in the plastic

packaging sector

Processed Food Industry

• Increased usage of newer plastic containers replacing the traditional glass bottles for savoring the unique taste, color and aroma of the different types of beverages while in storage or transportation, favors the growth of plastic packaging industry Further, flexible plastic packaging containers are more

economical than the conventional glass and metal containers

•Use of PET bottles for packing carbonated soft drinks and also some alcoholic beverages have acted as a massive demand generator for the plastic packaging industry

15

10

5

0

INR tr

A

20--e

A2

20--

A1

PET Bottle Market

0.0

0.5

1.0

1.5B

20--e

B2

20--

B1

mn MT

Note: MT refers to metric tonnes

0

20

40

60

80

100

120

INR bn C

20--e

C2

20--

C1

11

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Wide range of applications of plastic packaging in the food and beverage industry

High Demand from Food and Beverage Industry (3/3)

Polyethylene terephthalate (PET,PETE)

High-density polyethylene (HDPE)

Point A

Milk, water, juice, groceries, retail shopping, cereal box liners, etc.

Point B

Low-density polyethylene (LDPE)

Polypropylene (PP)

Containers for yogurt, margarine, takeaway meals, caps, closures, etc.

Application of Plastic Packaging in Food and Beverage Industry

Various applications of plastic packaging signifies the high usage of plastic packaging in the overall food and beverage industry

Packaged Juice Market Packaged Milk Market

0

10

20

INR bn A

20--e

A2

20--

A1

0

500

1,000B2

INR bn

20--e 20--

B

B1

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Wide range of applications of plastic packaging in the FMCG sector

FMCG – Major Segments (20--e)

Rise in FMCG sector(2/2)

Major Segments Plastic Packaged Products

Personal Care

X X1

Y Y1

Z Z1

M M1

N N1

O O1

Boost the demand for

plastic packaging industry

B1

E1 D1

C1 A1

E

D

C

B

A

13

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Plastic packaging will benefit from being an ancillary of the growing paint and lubricant industry

Rising paint and lubricant industry will fuel growth in plastic packaging market

Growing Paint and Lubricant Industry

• Indian paints industry is estimated to touch INR B bn by 20-- - 20-- This sector has continuously recorded a growth of X times the GDP growth rate of India

Despite global economic recession, this sector has been able to overcome downturns due to high domestic demand and decreasing dependence on exports

Low per capita consumption , in comparison to other developing nations, creates strong opportunity for the players in the market

Impact

Shift in Packaging Material Used in the Paint Industry

Glass jars, metal pails steel drum and boxes Plastic

Paint Market Size & Growth

0

200

400

600

20-- - 20--e

B

20-- -20--

INR bn

M

A

14

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Under penetrated market provides significant opportunity for further growth

Untapped Market Potential

• Plastic packaging industry holds huge untapped potential since the per capita consumption of packaged goods is very low in India compared to the other developing nations

Impact

Per Capita Consumption of Packaged Goods (20--)

Opportunity for the players to capitalize upon

the under penetrated market

Polymer Consumption (20-- - 20--) Annual Flexible Packaging Consumption PET Bottle Consumption (20-- - 20--)

Note: Per Capita figures have been considered

Low per capita polymer consumption along with low per capita flexible packaging and PET bottle consumption, offers mammoth business opportunity to Indian Packaging Industry

0

50

100

150

Kg

Country D

D1

Country C

C1

Country B

B1

Country A

A1

0

500

1,000

1,500

2,000

2,500

INR

C7

A7

C6

A6

C5

A5

C4

A4

C3

A3

C2

A2

C1

A1

0

20

40

60

Kg

Country D

D1

Country C

C1

Country B

B1

Country A

A1

0

2

4

6

8

E

E1

D

D1

Kg

F

F1

15

SAMPLE PLASTIC PACKAGING MARKET IN INDIA 2014.PPT

Increasing crude oil prices affect polymer, which becomes a cost disadvantage for the plastic packaging segment

Rise in Price of Raw Materials

• The primary raw material for plastic packaging is polymers which is directly linked with the prices of crude oil

•Hence, rising price of crude oil leads to rising cost of polymers, which in turn affects the production costs of the plastic packaging industry

• Further, crude oil imports have been on a northward trend over the past few years owing to increased domestic demand in terms of consumption Presently, A% of crude oil demand is met through imports and it is expected that imports will rise further

•Volatility in crude oil prices lead to fluctuations in polymer prices which in turn affect the profitability margins of plastic packaging companies

Rise in Crude Oil Prices

Impact

0

2,000

4,000

6,000

8,000

INR/barrel

Dec 20--

x8

Jul 20--

x7

Dec 20--

x6

Jul 20--

x5

Dec 20--

x4

Jul 20--

x3

Dec 20--

x2

Jul 20--

x1

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`

Flexible Packaging is Gaining Preference

Use of In-Mold Label

Other Trends

Avant-garde Use of Bioplastics in Packaging

Emerging Trends in PET Packaging

Trends – Summary

Key Trends

Nanoparticle Concept to Develop Plastic Films

17 MEDICAL DEVICES MARKET IN INDIA 2014.PPT

Key Ratios of 3 Major Companies – Operational Basis (FY 20-----) (1/4)

Competitive Benchmarking (2/5)

0

20

40

60

c3 b3

Player B Player C

a3

%

c2

b2

a2

Player A

c1 b1

a1

Net Margin Operating Margin Gross Margin (%)

• Player A recorded gross margin of a1% higher than both Player B and Player C which recorded gross margins of b1% and c1% respectively

• Player A recorded operating margin of a2%, higher than both Player B and Player C which recorded operating margins of b2% and c2% respectively

• Player A recorded net margin of a3% higher than both Player B and Player C which recorded net margin, of b3% and c3% respectively

Note: Calculation on basis of figures for latest available financial years

18

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Public: Domestic Company – Player A (1/5)

Key People

Company Information Offices and Centres – India

Corporate Address Xx

Tel No. Xx

Fax No. Xx

Website Xx

Year of Incorporation Xx

Ticker Symbol Xx

Stock Exchange xx

Name Designation

Mumbai Head Office

Category Products Agricultural Solution Agrochemicals, Agricultural Solution

Performance Products

Tanning agents, Leather Chemicals, Textile Chemicals, Dispersion Chemicals, Specialty Chemicals and high-value fine chemicals for the food, pharmaceuticals, animal feed and cosmetics industries

Plastics Expandable Polystyrene (EPS), Engineering Plastics and Polyurethanes

Chemicals Inorganic chemicals, intermediates and petrochemicals

Functional Solution Catalysts, coatings and construction chemicals

Others Technical and service charges

Products and Services

19

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Financial Snapshot Key Ratios

Financial Summary • The company earned a net profit of INR x mn in FY 20--, as compared to

net profit of INR y mn in FY 20--

• The company reported total income of INR a mn in FY 20--, registering an increase of x% over FY 20--

• The company earned an operating margin of a% in FY 20--, an increase of y percentage points over FY 20--

• The company reported debt to equity ratio of m in FY 20--, an increase of n% over FY 20--

Key Financial Performance Indicators

Indicators Value (04/03/20--) Market Capitalization (INR mn) a Total Enterprise Value (INR mn) b EPS (INR) c PE Ratio (Absolute) d

Particulars y-o-y change

(20-----) 20-- 20-- 20-- 20--

Profitability Ratios Operating Margin 0.61 5.77% 5.16% 5.34% 9.10%

Net Margin 0.03 2.89% 2.86% 3.81% 5.89%

Profit Before Tax Margin 0.03 4.28% 4.25% 4.87% 9.23%

Return on Equity 0.37 9.98% 9.62% 12.17% 11.40%

Return on Capital Employed -0.58 15.38% 15.96% 15.49% 17.62%

Return on Working Capital 13.55 47.27% 33.72% 27.35% 26.05%

Return on Assets -0.17 8.12% 8.28% 9.20% 11.36%

Return on Fixed Assets -7.41 31.15% 38.56% 43.99% 56.23%

Cost Ratios Operating costs (% of Sales) -0.61 94.22% 94.83% 94.62% 90.87%

Administration costs (% of Sales)

0.60 17.54% 16.94% 15.62% 16.75%

Interest costs (% of Sales) 0.05 0.43% 0.39% 0.30% 0.10%

Liquidity Ratios Current Ratio -9.72% 1.36 1.51 1.83 2.23

Cash Ratio -63.47% 0.01 0.03 0.03 0.37

Leverage Ratios Debt to Equity Ratio 88.65% 0.31 0.17 0.13 N.A.

Debt to Capital Ratio 67.44% 0.24 0.14 0.11 N.A.

Interest Coverage Ratio -0.34% 13.30 13.35 17.65 88.95

Efficiency Ratios Fixed Asset Turnover -27.77% 5.39 7.46 8.18 6.16

Asset Turnover -12.37% 1.40 1.60 1.71 1.24

Current Asset Turnover -1.10% 2.18 2.21 2.30 1.57

Working Capital Turnover 25.32% 8.18 6.53 5.09 2.85

Capital Employed Turnover -8.69% 2.62 2.87 2.81 1.93

Improved Decline

Net Profit/Loss Total Income

1,140.81,008.61,178.3960.7

0

10,000

20,000

30,000

40,000

0

500

1,000

1,500

INR mn INR mn

20-- 20-- 20-- 20--

39,448.2 35,210.5 30,897.7 16,316.5


20

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Key Business Segments Key Geographic Segments

Business Highlights (1/2)

Description News

Overview • Player A is the Indian subsidiary of Company X, headquartered in Germany The company was formerly known as Company A1 and changed its name to Player A in September 19--

Plastic & Packaging

• The Plastics segment includes Expandable Polystyrene (EPS), a engineering plastics category for the automotive and electrical industries as well as for use in household appliances and sports and leisure products, polyurethanes

• Offers packaging solutions to food & beverage industry as well as cosmetics and pharmaceutical market Provide a wide range of products used in the packaging industry ranging from pigments, dyes, resins, preparations, light

stabilizers and sealants, to plasticizers, plastics used for flexible as well as rigid packaging including biodegradable plastics, and paper chemicals

• During FY2013, the Polyurethanes business registered good growth in sales and profits, while the Engineering Plastics business achieved higher capacity utilization

26.0%18.9% 20.2% 20.1%

40.8%41.4% 36.9% 36.0%

1.6%1.3%0.9%

1.2%1.1%1.4%1.6%

0%

20%

40%

60%

80%

100%22.5%

20--

20.6%

20--

1.7%

29.9%

16.7% 18.0% 17.8%

20--

23.4%

20--

0%

50%

100%

20--

8.8%

91.2%

20--

100.0%

20--

100.0% 100.0%

20--


Plastics

Others

Chemicals

Performance Products

Agricultural Solution

Functional Solutions

Foreign India

21

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Business Highlights (2/2)

Description News

Expansion Plans

• Company’s Greenfield project in Dahej is expected to commence operations in Q1 2014 involving an investment of INR 10 bn It will be an integrated hub for Polyurethanes manufacturing and will also house production facilities for Care Chemicals

and Polymer Dispersions for the Coatings and Paper businesses

• Company will develop a new facility covering 47,000 sq.m. in Chennai in order to increase its mobile emissions catalysts production capacity Construction of the plant has started in 2013 and is expected to be operational by Q1 2015


22

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•X •X

•X •X

T O

W S

Public: Domestic Company – Player A – SWOT Analysis (5/5)

23

SAMPLE PLASTIC PACKAGING MARKET IN INDIA 2014.PPT

Private: Domestic – Player B (1/5)

Key People

Products and Services

Company Information Offices and Centres – India

Category Products/Services

Plastics Offers plastics products, rigid plastics, and packaging materials

Name Designation

Mumbai

Corporate Address Xx

Tel No. Xx

Fax No. Xx

Website Xx

Year of Incorporation xx Head Office

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Shareholders of the Company as on aa/bb/20-- Ownership Structure

Name No. of Shares held

Total X

Note: Ownership structure corresponds to Date of AGM: xx/xx/20xx, yy/yy/20yy and zz/zz/20zz

100%100%100%

2013 2012 2011

Bodies corporate


25

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Financial Snapshot Key Ratios

Particulars y-o-y change

(20----- 20-- 20-- 20-- 20--

Profitability Ratios Operating Margin -2.84 23.35% 26.19% 4.87% 20.57%

Net Margin -3.37 -0.37% 3.00% 1.27% 4.19%

Profit Before Tax Margin -4.74 -0.32% 4.43% 2.47% 6.14%

Return on Equity -6.94 -0.83% 6.11% 1.94% 8.81%

Return on Capital Employed -5.64 32.35% 37.99% 4.86% 25.92%

Return on Working Capital 70.43 313.12% 242.70% 10.49% 73.89%

Return on Assets -2.80 27.37% 30.17% 4.70% 25.03%

Return on Fixed Assets -9.91 52.92% 62.83% 9.44% 39.98%

Cost Ratios Operating costs (% of Sales) 2.88 76.51% 73.63% 95.07% 79.24%

Administration costs (% of Sales)

N.A. N.A. N.A. 6.13% N.A.

Interest costs (% of Sales) 1.20 3.77% 2.57% 3.77% 2.93%

Liquidity Ratios Current Ratio -7.56% 1.24 1.34 4.20 4.64

Cash Ratio -48.60% 0.04 0.08 0.24 0.18

Leverage Ratios Debt to Equity Ratio 51.62% 0.61 0.41 0.53 0.67

Debt to Capital Ratio 31.98% 0.38 0.29 0.35 0.40

Interest Coverage Ratio -39.24% 6.23 10.25 1.31 7.09

Efficiency Ratios Fixed Asset Turnover -5.45% 2.25 2.38 1.91 1.93

Asset Turnover 1.83% 1.17 1.14 0.95 1.21

Current Asset Turnover 9.61% 2.54 2.32 1.62 2.79

Working Capital Turnover 44.83% 13.33 9.20 2.13 3.56

Capital Employed Turnover 9.82% 2.22 2.02 1.50 2.09

Improved Decline

Financial Summary

• The company incurred a net loss of INR 5.8 mn in FY 20--, as compared to net profit of INR 42.7 mn in FY 20--

• The company reported total income of INR 1,556.7 mn in FY 20--, registering an increase of 9.3% over FY 20--

• The company earned an operating margin of 23.35% in FY 20--, a decrease of 2.84 percentage points over FY 20--

• The company reported debt to equity ratio of 0.61 in FY 20--, an increase of 51.62% over FY 20--

Net Profit/Loss Total Income

40

0

500

1,000

1,500

2,000 60

-20

20

0

10.7

INR mn

-5.8

1,424.1 843.9

20-- 20-- 20-- 20--

1,556.7

42.7

21.6

517.2

INR mn


26

SAMPLE


Business Highlights

Description News

Overview • Player B operates as a subsidiary of Company Y

• Player B was formerly known as Company z and changed its name in June, 20--

Strategic Alliance • Player B completed the acquisition of Company C from Company y and other shareholders in 20--

Network • It is headquartered in Mumbai and has a pan India footprint


27

SAMPLE


•X •X

•X •X

T O

W S

Private: Domestic Company – SWOT Analysis - Clear Mipak Packaging Solutions Ltd. (5/5)

28

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Appendix

Ratio Calculations

Operating Margin (Operating Income/Revenues)*100

Net Margin (Net Profit / Revenues) *100

Profit Before Tax Margin (Income Before Tax / Revenues *100

Return on Equity (ROE) (Net Income / Shareholders Equity)*100

Return on Capital (ROCE) EBIT / (Total Assets – Current Liabilities)*100

Return on Working Capital (Net Income / Working Capital) *100

Return on Assets (Net Income / Total Assets)*100

Return on Fixed Assets (Net Income / Fixed Assets) *100

Operating Costs (% of Sales) (Operating Expenses / Sales) *100

Administration Costs (% of Sales)

(Administrative Expenses / Sales) *100

Interest Costs (% of Sales) (Interest Expenses / Sales) *100

Ratio Calculations

Current Ratio Current Assets / Current Liabilities

Cash Ratio {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}

Debt to Equity Total Liabilities / Shareholders Equity

Debt to Capital Ratio {Total Debt / (Shareholders Equity + Total Debt)}

Interest Coverage Ratio EBIT / Interest Expense

Fixed Asset Turnover Sales / Fixed Assets

Asset Turnover Sales / Total Assets

Current Asset Turnover Sales / Current Assets

Working Capital Turnover Sales / Working Capital

Capital Employed Turnover Sales / Shareholders Equity


Thank you for the attention

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plastic packaging market in india 2014 -sample

Business

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leverage ratios

company information

plastic packaging

indian packaging

plastic packaging

recorded net