Constantia Flexibles has agreed to acquire a majority shareholding in the Indian film-based laminates producer Creative Polypack.
Creative Polypack is India’s fourth largest flexible packaging group, manufacturing film-based flexible packaging for the food, and home and personal care industries, as well as paper-based soap wrappers. The company serves domestic and international consumer goods companies in India.
Creative Polypack is family-owned and was founded in 1986. It has eight production sites in Baddi, Kanpur, Kolkata, Assam and Puducherry, in northern, eastern and southern India. It is expected to achieve sales of around €75 million (US$92.6 million) in the business year 2017/2018.
Alexander Baumgartner, Constantia Flexibles CEO, said: ‘Through this acquisition, we will become the third largest flexible packaging company in India – the fastest growing packaging market globally, with double-digit growth rates driven by the megatrend urbanization and the expansion of the retail sector. In addition, we gain a stronger footprint in the HPC market, which complements our existing customer portfolio, while we are now able to cover the whole of the Indian subcontinent with our extensive production footprint.’
Creative Polypack’s senior management will remain in their current roles after the transaction closes.
Constantia Flexibles is an active supplier of film-based flexible packaging for the Indian market since acquiring Parikh Packaging in 2013, which is investing a double-digit million euro amount in a new greenfield site that will be home to a polyethylene blown film extruder, high-definition flexo printing press and laminators that will produce high barrier laminates that can be fully recycled. The extra capacity will come on stream in 2019.