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Acquiring Packaging India, Pondicherry
Mumbai, August 30, 2006 : Essel Propack, world’s largest manufacturer
of laminated tubes, with manufacturing in 13 countries through 22
plants, is acquiring 100% stake in Packaging India Private Limited
(PIPL), Pondicherry. Packaging India, a proven player in the manufacturing
of speciality 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 Essel Propack said, “This
is a significant step in our product diversification strategy. With
the Pharma and Retail market poised for tremendous growth, the demand
for Speciality 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, C. K. Ranganathan, Chairman
& Managing Director of CavinKare Group said, “This was
a concerted move towards unshackling growth at PIPL. Considering
the heritage of PIPL, the Company was at a point of inflection in
terms of growth. Hence, it was realized that PIPL has to align itself
with another packaging company to achieve its true growth potential.
Now the company will aggressively target growth in sectors such
as Pharma, Food, Retail, Exports and others.” Speaking of the
acquisition R. Chandrasekhar, COO, Essel Propack 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 speciality 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 relationships 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 Essel Propack.
The core synergies between PIPL and Essel Propack can be broadly
termed as:
High-end lamination technology for speciality 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 Essel Propack 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. Essel Propack and PIPL are focused
on creating such a discipline in the manufacture of Speciality Packaging
Materials.
We express our sincere thanks to the legal advisors ANS Law associates,
advisors to the deal Bellwether Capital and Deloitte Haskins &
Sells who did the financial due diligence.
Essel Propack, the largest speciality packaging company in the
world, is promoted by Essel Group. Essel Propack, head quartered
in India, manufacturers laminated and plastic tubes. The Company
provides packaging solutions to toothpaste, pharmaceuticals, cosmetics,
food and Industrial sectors all over the world. Recently, the Company
forayed into Medical Devices business. The Company has state-of-the-art
manufacturing facilities in 14 countries with 24 plants across the
globe. Essel Propack’s stock is listed on the Bombay Stock
Exchange and the National Stock Exchange.
Press contacts : Mumbai : Ramdas Warrier – 98209 04179; Delhi
: Chetan Saxena @ 98113 23282
Ramdas WARRIER
Manager - Corporate Communications
Essel Propack Limited
Continental Building, 135,
Dr. Annie Besant Road,
Worli, Mumbai 400 018.
Tel. Board : +91 - 22 - 5653 5653 Ext. 5599
Tel. Direct : +91 - 22 - 2495 0501; 5653 5599
Fax : +91 - 22 - 2496 3137
Cell : +91 - (0)98209 04179
E-mail : ramdas.warrier@ep.esselgroup.com
Website : www.esselpropack.com
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