Page 48 - Plastics News February 2020

Business news

Intertape buys Nortech Packaging HPCL third quarter net profit
for $36.5 million zooms to Rs 1,027 crore

ntertape Polymer Group Inc. industan Petroleum (HPCL), the country’s third-
Ihas acquired a suburban Hlargest fuel retailer, today posted a 167 per cent
Chicago-based packaging increase in consolidated net profit at Rs 1,027 crore for
machine manufacturer for $36.5 the third quarter ended December 2019.The company
million.The Canadian packaging had posted a consolidated net profit of Rs 384 crore
company, with executive during the corresponding quarter last financial year.
headquarters in Sarasota County Revenue from operation during the quarter declined
and Montreal, Quebec, entered a 3.38 per cent to Rs 74,358 crore, as compared to
definitive agreement to acquire the corresponding quarter a year ago. The refiner’s
Nortech Packaging for cash. average gross refining margin (GRM) during the nine
Nortech, in Schaumburg, Illinois, months ended December 2019 declined to $1.85 per
manufactures and services automated packaging machines barrel as against $5.17 per barrel recorded during the
under the Nortech Packaging and Tishma Technologies corresponding period a year ago. “Other Income for
brands. The acquisition will expand IPG’s product
bundle into technologies that are increasingly critical
to automation in packaging. Automation system design
and service are key capabilities in growing markets like
e-commerce. With an installed fleet of more than 400
machines, the acquisition provides IPG with opportunities
to supply consumables to the existing fleet, as well as
deploy system-selling for new customers combining
machines with ongoing consumables. Nortechs custom-
infeed and robotic solutions for packaging applications
are designed for cartoning, case-packing, case-erecting, the period April- December, 2019 includes Rs 101.38
pouch-packaging and palletizing. The privately held crore towards gain on account of foreign currency
company, with sales of about $20 million in the past year, transactions and translations. During April-December
serves such industries as food, beverage, pharmaceutical, 2018 loss of Rs 880.22 crore on account of foreign
e-commerce, confections, personal care and cosmetics. currency transactions and translations was included
Intertape said Nortech will expand its product bundle in other expenses,” the company said in a regulatory
into technologies that are “increasingly critical” to filing. HPCL’s crude throughput declined during the
automation in packaging and growing markets like December quarter to 4.16 Million Tonne, as compared
e-commerce.“Packaging automation and system design are to 4.56 MT recorded in the corresponding quarter
playing an increasingly important role in our customer’s ended December 2018.Domestic sales during the
competitive positioning, especially in the e-commerce quarter increased marginally to 9.76 MT from 9.44 MT
market,” president/CEO Greg Yull said in a statement. sold in the corresponding quarter. Pipeline throughput
“We have laid out a clear strategy to further strengthen declined to 5.09 MT during the third quarter ended
our product bundle and continue to grow with our December. HPCL refineries at Mumbai and Visakh
e-commerce customers as they expand around the globe. processed 4.16 million metric tonnes of crude during
This acquisition delivers on both fronts.” The company October – December 2019 as against 4.56 million metric
expects to complete the purchase in the first quarter. The tonnes during October - December 2018. The lower
addition of Nortech Packaging will allow IPG to combine thruput was mainly due to planned shutdowns of some
state-of-the-art packaging technologies, that integrate of the units at Visakh refinery in the third quarter for
robotics with automation. BS VI upgradation and revamp.

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