India Pvt. Ltd is set to acquire Essel Propack’s Packaging India Pvt. Ltd. While the former is a subsidiary of Amcor Flexibles – a multinational packaging company based in Australia (PIPL), the latter is Essel Propack’s 100% owned subsidiary business.
The deal involved full cash consideration.
The Vice Chairman of Essel Propack, Mr. Ashok Goel said that this divestment of Packaging India Pvt. Ltd was triggered by greater interests.
He commented that such a decision will help them focus on their core tube packaging business better, which has a greater potential across the globe in numerous sectors like health and pharma, finance, beauty and cosmetics, food categories etc.
It’s interesting to note that the enterprise value of the divested business stands at Rs 165 crores.
Amcor Flexibles Set to Benefit From its Acquisition of PIPL’s Flexible Packaging Business
PIPL mainly caters to the personal care and food markets. It is known to offer economical and value added specialty packaging solutions to all its customers.
This is made possible by its high-tech infrastructure with ink kitchen and in-house cylinder plant, laminating, blown film extrusion, printing, pouch making and slitting facilities.
Besides India, it also offers packaging solutions to countries like Africa and Sri Lanka.
PIPL has manufacturing facilities in Tamil Nadu’s Cuddalore, Pondicherry and Sitarganj in Uttarakhand. The annual sales of PIPL stand at approximately US $40.0m.
All these factors make PIPL’s acquisition by Amcor Flexibles a prudent decision. Experts say that with this acquisition, Amcor will expand its client base, especially in Southern India.
This move will encourage and enhance the local talent pool while adding to the company’s present cylinder making and blown film capabilities. The same sentiment was echoed by Amcor’s top brass.
The Chief Executive and M.D of Amcor, Mr. Ron Delia said that India will prove to be a lucrative market for Amcor in terms of flexible packaging business.
He attributed this to the nation’s strong economic growth, fast-changing retail formats and favourable demographics.
In his statement, he said that this acquisition will help the company increase its customer base and improve its unique value proposition in this important market pegged for high growth.
For similar and other packaging business news, keep visiting the corporate site.