Constantia Flexibles Group will acquire a majority shareholding in the Indian film-based laminates producer Creative Polypack.
Constantia Flexibles is already a supplier of film-based flexible packaging for the Indian market since acquiring Parikh Packaging in 2013, which is based in Ahmedabad, western India.
Parikh is investing a double-digit million euro amount in a new greenfield site, which host a polyethylene blown film extruder, high-definition Flexo printing press and laminators that produce fully recyclable high barrier laminates. The extra capacity will come on stream in 2019.
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“Through this acquisition, we will become the third largest flexible packaging company in India - the fastest growing packaging market globally, with double-digit growth rates driven by the megatrend urbanisation and the expansion of the retail sector,” said Alexander Baumgartner, CEO at Constantia Flexibles.
“In addition, we gain a stronger footprint in the HPC market, which complements our existing customer portfolio, while we are now able to cover the whole of the Indian subcontinent with our extensive production footprint.”
Creative Polypack Limited is expected to achieve sales of about €75 million (approx. £65m GBP) in the business year 2017/2018 and currently has 850 employees at eight production sites in Baddi, Kanpur, Kolkata, Assam and Puducherry, in northern, eastern and southern India.
Financial details of the transaction were not disclosed and the transaction is expected to be completed in the coming weeks, pending regulatory approvals.
