Amcor builds up Indian coverage with another acquisition

Australian packaging giant Amcor has acquired Packaging India (PIPL) from Essel Propack, a public listed specialIty packaging company, for US$ 26.4 million. PIPL has three plants located in the North and South of India and produces flexible packaging products predominately for the food and personal care markets. The business services leading multinational and local customers and generates annual sales of US$ 40 million.

Amcor currently has four flexible packaging plants across the North and West of India. The acquisition of PIPL expands Amcor’s footprint into Southern India since PIPL has facilities in Pondicherry, Sitarganj (Uttarakhand) and Cuddalore (Tamil Nadu); increases Amcor’s local talent pool and adds to the existing blown film and cylinder making capabilities. Set up in 1990, PIPL also has printing, laminating, slitting and pouch making facilities. Besides India, it also caters to overseas countries such as Sri Lanka, Africa and developed markets.

Amcor’s Managing Director and CEO, Ron Delia said: “India is a very attractive market for flexible packaging driven by strong economic growth, favourable demographics and rapidly changing retail formats. The PIPL acquisition provides an opportunity to further expand Amcor’s customer base and enhance our unique value proposition in this important, high growth market.”

The deal was part of Bombay stock exchange-listed Essel's strategy to exit non-core adhesive lamination packaging business and focus on growth opportunity in its core tube packaging business, which it says “has great potential across the globe in the beauty & cosmetics, pharma & health and food categories.”

Amcor’s other acquisitions this year include South Africa-based Nampak Holdings’s Nampak Flexibles unit, which it bought for US$22 million. Late last year, Amcor also bought Chinese company Zhongshan Tian Cai Packaging.