April 29, 2005

Ellen Qualls

Manuel Diez
Essel Propack America, LLC
(434) 822-8007
Christie Collins
(804) 371-4074
-Company’s $15 million investment announced during trade mission to India-

MUMBAI, INDIA - Governor Mark R. Warner today announced that Essel Propack America, LLC, an India-based manufacturer of laminated and plastic tubes for the oral, cosmetic and healthcare industry, will invest $15 million to expand its Danville manufacturing facility. The expansion, which will allow the company to supply laminated tubes and caps to Procter & Gamble and other toothpaste and cosmetic product companies in the United States, will result in 40 new jobs for Southside Virginians. The announcement came at the conclusion of Governor Warner’s weeklong trade mission to India – the first by a Virginia governor.

“Essel Propack’s second expansion in Danville in less than three years demonstrates the kind of success that Asian companies will find in Virginia,” said Governor Warner. “Our meeting with company management in Mumbai confirmed Essel’s confidence in Danville’s unique business environment and Southside Virginia’s productive workforce.”

Essel Propack is the largest specialty packaging company in the world, manufacturing laminated and seamless tubes that cater to the top multinational companies in the toothpaste, cosmetics, pharmaceutical, food and industrial sectors. Headquartered in Mumbai, India, the company is the flagship of Essel Group, which has a wide range of global business interests encompassing specialty packaging, media programming, broadcasting and distribution, entertainment, telecom and trading.

Essel Propack is ranked No. 1 in the world for the manufacture of laminated tubes, with manufacturing in China, the United States, the United Kingdom, Germany, Russia, Mexico, Colombia, Venezuela, Philippines, Indonesia, Egypt, and Nepal, besides India, and has 32 percent global market share. Essel Propack also has two seamless plastic tube manufacturing facilities – one at its plant at Wada, India, and the second at Arista Tubes, UK.

Announcing Essel Propack’s expansion plans for the U.S. market at Mumbai, Ashok Goel, Vice Chairman and Managing Director, said, “Our plans are in line with our declared strategic growth intent for the U.S. and Americas. With the continued all-around support from the Commonwealth of Virginia and the City of Danville, we are sure to attain leadership status in the U.S. market in the course of time.”

The Virginia Economic Development Partnership worked with the City of Danville to prepare the state’s proposal and negotiate an incentive package that secured the project for Virginia. Governor Warner approved a $70,000 grant from the Governor’s Opportunity Fund to assist Danville with the project. The Virginia Department of Business Assistance will provide training assistance through its Workforce Services Program.

“We are extremely pleased that Essel Propack has found success in our City,” said Jerry L. Gwaltney, Danville’s City Manager. “Their second expansion is proof positive that we offer a business-friendly environment for new and existing industries and that we can be successful in today’s competitive global market. We take great pride in our continuing relationship with this international leader in specialty packaging. Essel Propack’s commitment to the city of Danville with reference to investment and job creation has been ahead of schedule and beyond our expectations. Danville looks forward to its continued strong relationship with the Essel leadership and wishes them the best of success as they continue to expand their presence in our community.”


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