Divestments, mergers, acquisitions, joint ventures and investments Essel divests Packaging India – Amcor keeps growing in India Mumbai, 13 July 2015 – Essel Propack Limited, a global leader in laminated plastic tube production for FMCG and pharma products, announced the divestment of its wholly owned subsidiary, Packaging India Pvt. Ltd. (PIPL) to Amcor Flexibles India Pvt. with immediate effect. According to the company’s statement, the enterprise value of the divested business is Rs.165 crore and the agreement has been signed and the deal completed for full cash considerationAccording to the company’s statement, the enterprise value of the divested business is Rs.165 crore and the agreement has been signed and the deal completed for full cash consideration. However, the amount received for the divestment has not been disclosed. The divestment is part of the company’s strategy to exit non-core adhesive lamination packaging businesses and pursue growth opportunities in its core tube packaging business in new segments globally, including the beauty and cosmetics, pharma, health and food categories.
Ashok Goel, vice chairman and managing director of Essel Propack Limited, states, “The divestment of Packaging India Pvt. Ltd. is in line with our strategic decision to intensify focus on the core tube packaging business globally including India. We are noticing a significant growth in the demand of laminated tubes across categories. This decision will help us to further strengthen our expertise in tube packaging business and deleverage.”
With a turnover of over US$ 350 million Essel Propack is a part of the Mumbai-based US$ 2.4 billion (approximately Rs. 15,000 crore) Essel Group, the specialty packaging company manufacturing laminated plastic tubes for the FMCG and pharma space. Employing over 2600 people representing 25 different nationalities, Essel Propack functions through 25 state of the art facilities in eleven countries, selling more than 6 billion tubes.
Dominant in the oral care market in volume terms globally, Essel Propack is the world’s largest manufacturer with units operating in the USA, Mexico, Colombia, Poland, Germany, Egypt, Russia, China, Philippines and India. The company is increasingly moving into segments such as beauty and cosmetics and inaugurated its fifth plant in China in Suzhou in December 2014 specializing in these segments.