According to the agreement, the two partner companies have set up the Tecnocap Oriental based in Mumbai, controlled at 75% of the share capital by the Tecnocap Group through the acquisition of the Metal Lug business of the Indian partner Oricon, which will hold the remaining 25% of the company.
“This joint venture marks our full entry into the Indian and far Eastern markets and represents a key stage in our international growth strategy, achieved through business diversification and expansion towards high growth markets,” says Michelangelo Morlicchio chief executive, shareholder and founder of Tecnocap. “Beyond seizing the great opportunities for market growth, this alliance gives us the chance to exploit mutual synergies to operate successfully thanks to the highest quality products, services and logistics.”
Founded in Italy in 1993, Tecnocap operates in the industrial production of metal closures for glass and plastic containers, aluminium aerosol cans and bottles as well as capping machines with over 75% of its sales volume generated abroad between Europe and North America. The group expects to achieve a turnover of around €180m in the current year through eight production sites (Italy, Spain, Czech Republic, Ukraine and the US), three R&D centres and over 900 employees. Moreover, a significant increase in operating margins is expected as an effect of ongoing investments and the launch of several industrial projects for the recovery of production efficiency.
Tecnocap said it is absolutely focused on sustainability, social responsibility and digital transformation and in 2019 the company published its first integrated report for the year 2018. The joint venture in India is part of the group’s international growth strategy through a consolidated M&A policy. The company management is also evaluating further opportunities in innovative businesses and emerging market areas.