India sales growth reported at 33 per cent in 2017-18, with total sales of over ₹ 300 crores
SCHOTT has announced a successful fiscal year 2017/2018 (October 1, 2017, to September 30, 2018), as all its key financial figures continued to develop positively or remained at the good level of the previous year. Globally, a record net profit of EUR 208 million (approximately ₹ 1687 crores) was achieved, which resulted in a return on sales of 13 per cent. Important impetus was provided to achieve future growth, with special focus on Asian markets such as India and China. (Asia represented a 25 per cent share in the group’s global market.)
“We are satisfied with the past fiscal year. Despite unfavourable currency influences, we achieved the targets we had set for ourselves, especially in terms of profitability,” emphasised Dr Frank Heinricht, Chairman of the Board of Management, at the annual results press conference.
India alone saw sales of approximately ₹ 341 crores – an increase of 32.6 per cent which converted into 26.2 per cent after currency effects. Key growth driver segments for India were SCHOTT’s tubing, pharma-packaging and flat glass for cooking.
Murali Viswanathan, Managing Director, SCHOTT India, shared his views on the growth of the tubing and pharma packaging segment and said, “According to a government owned report, the Indian pharma industry is expected to grow over 15 per cent till 2020, to outperform the global pharma industry, which is set to grow at an annual rate of 5 per cent. Responsible pharma companies as well as the end users are increasingly emphasising on the need of high-quality packaging that ensures drug safety. This, clubbed with the conducive environment for manufacturing industry enhanced via ‘Make in India’, has been a driving factor for our exemplary growth.”
Next to organic growth, SCHOTT also plans to further enhance its offerings through focused, strategic acquisitions. Seven M&A transactions took place in the past fiscal year, with a strong focus in the fields of big data and Artificial Intelligence. This expansion of the innovation pipeline also led to introduction of unprecedented 100 per cent inspection systems in SCHOTT’s plant in Jambusar, Gujarat.
The largest foreign investment was the expansion of production capacity for pharmaceutical packaging at the St Gallen site in Switzerland. One of the key offerings from this plant, the syriQ BioPure prefillable staked-needle syringe (PFS) was introduced in the Indian market last month.
Looking ahead, the company will invest around ₹ 300 million in property, plant and equipment. Apart from expanding production capacities in Europe, the investment focus will remain on expanding the existing Indian plant and the construction of a new plant in China.
One of the fastest growing division for SCHOTT Group in India is its tubing division, which completed 20 years of India operations last year. Its VP- Sales and Marketing, Sundeep Prabhu stated, “SCHOTT intends to continue its course of sustainable, profitable growth in the current fiscal year. The new tank facility being set up in Jambusar is expected to be complete by 2020 and will increase our production capacity by an additional 50 per cent. This will help us to address the expanding client demands for our high-quality offerings in India as well as other foreign markets.”
The planned growth will be achieved with both proven and new products. “SCHOTT offers key components for global megatrends such as healthcare, mobility and energy. Our broad portfolio opens up good prospects for the current fiscal year and beyond,” said Dr Heinricht, CEO, Schott
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