Packaging firms witnessed a higher volume growth rate as well as better earnings since the April-June quarter, helped by a rise in consumption of packaged products amid during Coronavirus lockdown.
Major players such as Uflex, Cosmo Films, and Essel propack benefitted an increase in demand for products like sanitizers, handwash, and food items.
Uflex last week reported over two-fold jump in mass firm profit at Rs.196.54 crore in the quarter of the end of June 2020.
The pandemic hazard trend witnessed growth in the consumption of packaged products, which gained much importance due to the terrific and drastic rise in cases throughout the world.
This resulted in higher production and sales volume.
According to Uflex president of finance and accounts head Rajesh Bhatia, the pandemic triggered a multifold increase in demand for personal hygiene products such as sanitizers, hand wash as well as essential food items.
From staff and flexible packaging perspective, the demand was seen huge for single-use pack sanitizers. The liquid handwash category seems doubled and has seen a spurt in usage of large 750 ml refill packs packed in pouches.
For food products and essential commodities such as Rice, Flour, Edible Oils, Sugar, Salt, experience a swell of increase in demand.
Cosmo films CEO Pankaj Poddar intimated peak demand from the previous quarter, and improved supply helped in refining margins.
Last week where Cosmo Films reported a hike of 69.15% jump in consolidated profit of Rs 46.99 crore for three months.
There are several reasons, and one among them is the high demand because of the shutdown as there was short supply and specialty sales have gone up.
Packaged food packs distributed among needy and marginalized over major affected areas showed a high jump in comprising the demand and supply.