Rexam's Indian pharma packaging dreams come true

By Gregory Roumeliotis

- Last updated on GMT

Rexam, the world's largest beverage can maker, has bought Indian
pharmaceutical packaging firm Truepack for £5m (€7.3m), hungry for
a slice of the country's growing pharma market.

With the acquisition, UK-based Rexam gets one manufacturing site at Bangalore, where Truepack produces eye, ear and oral dropper bottles, nasal spray bottles as well as tamper evident closure systems.

The Indian firm claims to be a leader in the manufacture of a range of unique drug delivery devices in plastics with 25 top pharma customers in its clientele.

Rexam was certainly impressed, pointing to a recent approval by US authorities to allow Truepack to export a number of its products into the US market and also to the company's strong presence in India's domestic market where last year it posted sales of £2m.

India's booming economy is proving irresistible for many European firms that see huge opportunities in the population's increasing prosperity and low labour costs.

"This deal is further evidence of our strategy to extend our business into emerging markets,"​ Lars Emilson, Rexam's Chief Executive, said.

"Truepack, a well invested pharma-focused company with a good client base, gives us a foothold in India's fast growing pharmaceutical packaging market."

The company works with injection blow moulding technology in a controlled cleanroom environment, with current good manufacturing practice (cGMP) and ISO - 9001:2000 certification.

Truepack says it gets high productivity and output using multicavity hot runner mould technology leading to consistent quality bottles with uniform wall thickness and dimensions.

The products are made with no tops or tails therefore the bottles are free from particulates and other contamination, eliminating secondary operations.

This latest acquisition follows Rexam's takeover of packaging firm Precise Technology in the US in November 2005 as it seeks to achieve achieve further economies of scale.

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