Essel Propack expanding into Speciality Packaging Materials

Essel Propack Ltd has announced that the Company is acquiring 100% stake in Packaging India Pvt Ltd (PIPL), Pondicherry Packaging India, a proven player in the manufacturing of specialty packaging materials, is a part of FMCG major Cavinkare Group, Chennai.

While announcing the acquisition in Mumbai, Ashok Goel, the Vice Chairman and Managing Director of the Company said, "This is a significant step in our product diversification strategy. With the Pharma and Retail market poised for tremendous growth, the demand for Specialty packaging Materials is slated to rise high. This is the opportune time for us to step in and leverage the opportunities". Explaining the logic of the divestment, Speaking of the acquisition R. Chandrasekhar, COO, of the Company said, "Packaging India and Essel Propack has great many synergies which make this a perfect buy. The two organizations have many similarities, foremost being the organizational ethics, culture, the approach to business, Knowledge base, market reputation and the burning desire to grow".

PIPL was established in 1990 as a part of Chennai based CavinKare group. Today, it is the third largest producer of specialty packaging materials in India offering innovative packaging solutions. PIPL enjoys a leading market position in the southern part of the country With Substantial breadth, state-of-the-art technology, unmatched product development expertise, and strong relationship with a highly diversified, blue chip customer base. The present team at the Company headed by T D Mohan, the Managing Director, will continue to manage the operations of the Company, under the guidance of the Company.

The core synergies between PIPL and the Company can be broadly termed as:

- High-end lamination technology for specialty materials

- Knowledge of requirement of Barrier Properties

- OEM business model

- Highest standards of quality and manufacturing systems

- Expanded product portfolio to enable better service to a common customer profile

- Leveraging medical relationship to service each other´s customers

- Tapping the global customer base of the Company to expand PIPL’s customer base.

Creativity & Innovation is poised to take the centre stage in the field of Packaging. The market demands are poised towards new trends, sophistication and user-friendliness. These needs can only be met by superior manufacturing environment, high profile features and finer processes. The Company and PIPL are focused on creating such a discipline in the manufacture of Specialty Packaging Materials.

Source : Equity Bulls

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