India's Essel Propack, the largest speciality packaging company in the world, is acquiring Packaging India Private Limited (PIPL) from the CavinKare Group, keen to capture more of the country's booming pharmaceutical packaging market.
PIPL enjoys a leading market position in the southern part of India but had found itself competing with its owner CavinKare for the same clients in many fast moving consumer goods, so a move to Essel Propack will allow the firm to focus on the drug and food industries unhindered.
As the third largest producer of speciality packaging materials in India, PIPL's capability includes gravure printing machines, lamination, slitters/rewinders, pouching machines and shrink sleeve equipment.
The two companies therefore see synergies in high-end lamination technology for speciality materials and Knowledge of requirement of barrier properties.
"With the pharma and retail market poised for tremendous growth, the demand for cpeciality packaging materials is slated to rise high," said Ashok Goel, managing director of Essel Propack.
"This is the opportune time for us to step in and leverage the opportunities."
The market demands are poised towards new trends, sophistication, and user-friendliness, and these needs can only be met by superior manufacturing environment, high profile features and finer processes, the two companies said.
Essel Propack has manufacturing facilities in 14 countries with 24 plants across the globe.