GGGL: New furnace to increase tube manufacturing by 50%

January 20, 2022 (MLN): To keep the growth trajectory upward while tapping new avenues of diversification, Ghani Global Glass Ltd. (PSX: GGGL) is all set to commission a new furnace in the coming months which will enhance tube manufacturing capacity by 50%, the management of the company informed while holding a corporate briefing session yesterday.

Furthermore, old furnace's repair and refurbishment are also scheduled. This would not only help the company to produce clear and amber tubes at the same time on two separate lines but also provide cost synergies on change over from clear tube to amber tube, briefing takeaways covered by Taurus Securities noted.

Apprising investors of the financial performance of the company during FY21, the management underlined that profitability of the company surged by 2.3x to clock in at Rs133 million compared to FY20. Meanwhile, the financial results of the 1QFY22 posted a notable increase of 47% in the bottom line of the company.

During FY21, sales increased to Rs1.65 billion, up 9% from Rs1.51bn during the same period last year by achieving sizeable business from MNCs, middle and large-scale national companies.

The management also informed that GGGL managed to achieve approval of tube exports to Uruguay during FY21.

The company’s value added business, manufacturing of ampoules and vials using glass tubes produced in-house has grown significantly with 22 ampoules and 2 vial manufacturing machines currently operating. Ampoules production capacity has been increased to 70mn units per month.

To note, GGGL is a group company of Ghani Global Group. It is a subsidiary of Ghani Global Holdings Ltd. with a shareholding of 50.10%. The Company is in the business of manufacturing and sale of glass tubing, ampoules and vials.

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