New Delhi: Manjushree Technopack Ltd, a maker of plastic packaging products, has acquired Delhi-based rival Varahi Ltd for an undisclosed sum to become one of the largest suppliers of rigid plastic packaging products in the country.
“With this acquisition, Manjushree gets a solid foothold in north India and cross-selling products between Manjushree and Varahi’s customers will give us a huge positive growth,” Vimal Kedia, managing director of Manjushree Technopack, said in a statement on Thursday.
Varahi offers rigid packaging solutions to packaged consumer goods companies, beverage and drug makers. It has manufacturing units in Noida, Baddi and Pantnagar, with a combined production capacity of 20,000 tonnes.
Its clients include Reckitt Benckiser, Dabur, Patanjali and Perfetti Van Melle.
At present, Manjushree has a total production capacity of 100,000 tonnes per annum of polyethylene terephthalate (PET), which is roughly 12.5% of the total PET demand in India.
Following the acquisition, Manjushree, India’s largest PET and preform manufacturer, will have seven manufacturing locations in the country with a total production capacity of four billion units per annum. The eighth manufacturing unit in Guwahati is slated to start commercial operations in January.
Manjushree now owns more than 100 registered designs and patents, which will allow it to produce containers from 5ml to 20 litres, in more than 1,000 different shapes, sizes and designs.
Manjushree’s client portfolio boasts of companies such as GlaxoSmithKline, Coca-Cola, Nestle, Mondelez, PepsiCo and Reckitt Benckiser.
This acquisition has swelled its client base to 100-plus with the addition of new customers like Dabur, SC Johnson, Perfetti Van Melle and Patanjali.
The acquisition is expected to take the organization’s revenue to Rs800 crore from Rs546 crore in 2015-16.
Recently, Majushree commissioned a state-of-the-art injection blow moulding and extrusion blow moulding systems for making various bottles in different polymers.
The size of the industry in India is about $32 billion, which constitutes only 4% of the global packaging industry.
Growing at 18% per annum, India’s plastic packaging industry is expected to reach $73 billion in the next four years, said a joint report by the Federation of Indian Chambers of Commerce and Industry and Tata Strategic Management Group on the plastic industry in January.