The Bengaluru-headquartered rigid plastics packaging manufacturer Manjushree Technopack Limited has entered into definitive agreements to acquire the plastics packaging business of the Mumbai-based Oricon Enterprises Limited.
Oriental Containers is the packaging division of Oricon Enterprises and one of the largest manufacturers of plastic caps & closures and preforms, used in beverages in India.
This deal, for an enterprise value of Rs 520 crore, is expected to double Manjushree’s current market share in the caps and closures segment, making it the market leader, with an installed capacity of nearly 15 billion pieces per annum, Moneycontrol reported.
The acquisition includes two manufacturing plants in Goa & Odisha, which will augment MTL’s existing production capacity.
The combined business will have a wider array of molds, machines and SKUs, and will strengthen unit economics due to operational synergies as well as deepening key customer relationships. The acquisition will help augment capacity in the preforms segment, where MTL is a market leader.
The acquisition is subject to completion of customary conditions, including corporate approvals of Oricon Enterprises Limited.
Moneycontrol quoted Thimmaiah Napanda, MD and CEO of Manjushree Technopack Limited, as saying that the company is excited to bring Oriental Containers under its ownership.
“While we are already the market leaders in three out of the five segments we operate in (preforms, containers, caps and closures, pumps and dispensers, and recycling), this transaction will make us the clear leader in four segments. This strategic move underscores our dedication to delivering unparalleled quality and value to our customers and supporting them as a fully integrated partner for both growth and business continuity planning. I am thrilled at the prospect of successfully integrating the business and the significant growth opportunities this opens up for us as we look to expand further over the coming period,” Napanda said.
Adarsh Somani, MD and promoter of Oricon Enterprises, said, “Oriental Containers was nurtured by my father late Rajendra Somani, who pioneered the manufacturing of plastic closures for beverages industries through compression molding technology for the first time in India. Under the vision of my father and a committed professional team, we have moved strength to strength and created a leadership position backed by our impeccable quality, innovation, services and state-of-the-art infrastructure. Our business will complement MTL’s existing portfolio and help MTL achieve market leadership in the closures space as well as get a strong foothold in eastern India.”
