M&As: Constantia Flexibles and SB Packagings kick off packaging jv; Alpla acquires UK closure firm

Austrian flexible packaging firm Constantia Flexibles, Indian private investment company Premji Invest, and Indian packaging supplier SB Packagings, have finalised the joint venture to create one of the largest packaging platforms in India and South Asia, following the regulatory approval from the Competition Commission of India. Terms were not disclosed.

The joint venture (SB-Constantia Flexibles), between two flexible packaging industry leaders and Premji Invest as a shareholder, will leverage each company’s unique strengths and resources to achieve further success in the Indian market.

It will bring together the mono-material capabilities of both Constantia Flexibles India and SB Packagings and offer medium to high-barrier packaging solutions to food and hygiene markets.

SB-Constantia Flexibles will operate in the food and hygiene markets, offering medium to high-barrier packaging solutions. It will have close to 2,700 employees across nine plants spread across the country.

Deepak Ganjoo, ex-president of AMESA region, Essel Propack Limited, has been appointed as the CEO of the joint venture and will spearhead the business. Deepak and the management team will be focused on delivering sustainable and innovative solutions to customers in India and South Asia under the guidance and mentorship of the Board of Directors. Pim Vervaat, Amit Banga and Rajesh Ramaiah from Premji Invest, the key shareholder representatives on the board shall be focused on driving the strategic imperatives and inorganic growth of the JV.

The jv will pursue both organic and inorganic growth opportunities in higher value-added market segments, continuing its strong growth trajectory in the hygiene, food, and HPC segment even as it further develops the sustainable mono-material EcoLam product range.

Pim Vervaat, Global CEO of Constantia Flexibles, expresses, “I have full confidence in the partnership’s ability to be an effective solution provider to its customers in India through innovation and excellence. We will drive growth and profitability for all stakeholders.”

Amit Banga, Managing Director of SB Packagings, adds, “The joint venture positions us as a clear leader to drive the sustainable packaging agenda in India and beyond with a unique product offering.”

In other news, packaging firm Alpla Group says it has strengthened its commitment to the UK market with the acquisition of the packaging business iTEC Packaging (Mansfield). The plant specialises in the production of closures mainly for dairy, but also food and beverage sectors.

With the acquisition of the iTEC, Alpla says it is expanding its expertise as a packaging system provider on the UK market.

"With our global know-how, with this acquisition we can increasingly offer the UK dairy industry sustainable, efficient and innovative packaging solutions." says UK Managing Director Jens Seifried on the significance of the acquisition.

With the takeover, Alpla is also pushing the use of post-consumer recycled material (PCR) in the closure sector and offers complete solutions with high recycling content. In doing so, the company is building on its pioneering work in the processing of recycled HDPE (rHDPE) in the ultra-light bottle "Eco-Bottle". The packaging can be made of up to 40% food-grade rHDPE. With further developments, the inclusion could be increased in the coming years.

The incorporation of the former iTEC Packaging plant (Mansfield) provides further capacity and product range and at the same time secures jobs at the site. The staff will be taken over in their entirety.

The takeover was contractually agreed on 26 May 2023. The parties have agreed not to disclose the terms and conditions.

(PRA)

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