As Hubergroup, an international printing inks and chemicals specialist, reorganizes its top-level management in Germany, its Indian subsidiary Hubergroup India is actively negotiating with lenders for funds to consolidate its base.
According to a report in The Economic Times (ET), Hubergroup India is negotiating with ICICI Bank, HDFC Bank, Axis Bank, Tata Capital, Axis Finance, and ICICI Prudential Credit Fund, to secure Rs 1,500 crore in working capital, amortizing funds, and bullet loans, with expected interest rates ranging from 9-14%.
A significant portion of the funds is earmarked for acquiring businesses from its German parent, with the goal of establishing Hubergroup India as the flagship entity for the entire group. In 2005, Hubergroup had acquired Micro Inks, solidifying its position as a market leader in the Indian print market with a 30% share, the report says.
At the time, compensatory growth in packaging ink was anticipated due to the rise in FMCG and eCommerce industries. This offset volume loss in the printing ink segment after consumers shifted toward digital sources for newspapers.
The journey of Micro Inks began with Hindustan Inks and Resins in the 1980, in a small plant in Vapi. After Micro Inks was acquired by Hubergroup in 2005, it continued to be known by its old name. On 29 May 2015, Micro Inks’ name was changed to Hubergroup India.
Management reshuffle
Meanwhile, the previous CEO, Heiner Klokkers, has left the company while two long-standing top managers are moving up to the management of the holding company – MHM Holding GmbH.
Taner Bicer, responsible for the group’s chemicals division, and Carsten Zölzer, head of the offset division, are joining the management board of MHM Holding GmbH. They will both remain managing directors of hubergroup Deutschland GmbH and retain their current responsibilities.
Together with Britta Hübner, responsible for the transformation of the group, they will form the management board of MHM Holding GmbH.
“Heiner Klokkers has played a key role in shaping the company in recent years and initiated the reorganization of the group. Now it is time to take the next step, to strengthen the group’s financial power and to drive it forward operationally. Taner Bicer and Carsten Zölzer, two long-standing Hubergroup managers who have rendered outstanding services to the company over many years, are taking over,” Britta Hübner says.
In the context of the Group’s transformation, the management is focusing intensively on the forthcoming refinancing. In order to achieve this goal, extensive preparatory work has already been successfully carried out. The management looks to the future with confidence and continues to build on the successes achieved so far.
In its two divisions, the company develops innovative, sustainable products and services to enable its customers to achieve first-class results. The print solutions division produces inks, varnishes and printing auxiliaries for packaging, commercial and newspaper printing.
The chemicals division produces specialty chemicals such as resins, laminating adhesives, pigments and additives at its plants in India.
Hubergroup employs around 3,300 people in almost 30 countries and generated annual sales of around 813 million Euros in 2022.
