Mondi to divest its personal care components business

Mondi’s strategic focus to grow in packaging

209
Mondi
Mondi to divest its Personal Care Components business. Photo Mondi

Mondi plc is pleased to announce that it has agreed to sell its personal care components business (‘PCC’) to Nitto Denko Corporation (‘Nitto’). For an enterprise value of €615 million (approximately Rs 5246 crore), the approximate cash consideration is payable to Mondi at completion (the ‘Transaction’).

Mondi’s strategic focus to grow in packaging and the limited overlap of PCC with the rest of its business has led Mondi to conclude that the next phase of PCC’s development will be better undertaken outside of the Group.

PCC, part of the Group’s Engineered Materials business unit, manufactures a range of components for personal and home care products needed in everyday life such as diapers, feminine care, adult incontinence and wipes. For the financial year to 31 December 2020, PCC generated an underlying EBITDA of €42 million (approximately Rs 358 crore).

Nitto is a leading global manufacturer of high functional materials for electronics, mobilities and human life applications following its ‘Global Niche Top Strategy’, headquartered in Japan and listed on the Tokyo Stock Exchange. Nitto’s acquisition of PCC is aligned with its stated mid-term management plan, ‘Nitto Beyond 2023’, targeting growth in the field of human life.

Following the planned completion of the transaction, the remaining portion of Engineered Materials, namely functional papers and films, will be merged into the flexible packaging business unit. This will strengthen the kraft paper value chain and foster innovation to continue developing functional papers with the necessary barriers to meet increasing customer demand for sustainable packaging.

“We are pleased to have agreed to the sale of PCC to Nitto, knowing they will be great owners of the business. By simplifying our portfolio, the transaction will enable us to focus on our core packaging and paper businesses and enhance our ability to pursue our strategic priority to grow in sustainable packaging. We remain excited by our opportunity to further serve our customers with innovative solutions that are sustainable by design,” Mondi Group chief executive officer, Andrew King.

The Transaction is subject to competition clearance and other customary closing conditions, with completion expected in the second half of 2022. The proceeds received from the Transaction will be used for general corporate purposes in line with the Group’s capital allocation policy.

Packaging South Asia — resilient, growing and impactful — daily, monthly — always responsive

The multi-channel B2B in print and digital 17-year-old platform matches the industry’s growth trajectory. The Indian, South Asian, Southeast Asian, and Middle East packaging industries are looking beyond the resilience of the past three years. They are resuming capacity expansion and diversification, with high technology and automation in new plants and projects.

As we present our 2024 publishing plan, India’s real GDP growth for the financial year ending 31 March 2024 will exceed 6%. The packaging industry growth will match the GDP growth in volume terms and surpass it by at least 3% in terms of nominal growth allowing for price inflation in energy, raw materials, consumables, and capital equipment.

The capacity for flexible film manufacturing in India increased by 45% over the past four years. With orders in place, we expect another 20% capacity addition in 2024 and 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels are growing similarly. As the consumption story returns over the next six months, we expect demand to return and exceed the growth trajectory of previous years. The numbers are positive for most of the economies in the region – and as shown by our analytics, our platform increasingly reaches and influences these.

For responsible and sustainable packaging, with its attendant regulations and compliances, there is significant headroom to grow in India and the region. Our coverage includes the entire packaging supply chain – from concept to shelf and to waste collection, sorting, and recycling.

We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers. This is a large and complex canvas – the only thing that can work is your agile thinking and innovation together with our continuous learning and persistence.

The coming year looks to be an up year in this region, and this is the right time to plan your participation and marketing communication – in our rich and highly targeted business platform with human resources on the ground. Share your thoughts and plans to inspire and mobilize our editorial and advertising teams!

For editorial info@ippgroup.in — for advertisement ads1@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna (25 October 2023)

Subscribe Now
unnamed 1

NEWSLETTER

Subscribe to our Newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here