Mumbai-based packaging major Huhtamaki PPL has strengthened its labelling business by entering a business transfer agreement for acquisition of the business of Ajanta Packaging as a slump sale, at an enterprise valuation of Rs 100.3 crore, on a cash-free, debt-free basis.
Ajanta Packaging, promoted by Sudhir and Chandan Khanna, is one of the pioneers and largest privately-owned pressure-sensitive label manufacturers in India, having state-of-the-art manufacturing facilities in Daman and Baddi. The transaction is expected to be closed at the end of April 2018. The business will become part of the flexible packaging business segment.
This is HPPL’s second major acquisition in the labelling segment after Webtech, which it acquired in 2012. In the five years since HPPL acquired Webtech, the labelling division has seen a robust growth. HPPL is now very strong in pressure-sensitive label for the pharmaceutical industry. Currently, HPPL’s labelling division has five plants across India at Hyderabad, Sikkim, Bengaluru, Parvanu and Mahape. It now has a capacity of 3 million square meters per month. HPPL’s labelling business has also been working on new offering such as multilayer labels, braille, tactile, security and anti-counterfeiting solutions, among others.
HPPL is always open to taking the inorganic route for growth, HPPL chairman Suresh Gupta told Packaging South Asia late last year. Gupta said that the speed at which the industry is changing, one needs to always keep up. “If that can be done by acquiring a company, it achieves the purpose,” Gupta said.