The Indian unit of Finnish packaging company
Huhtamaki will acquire Ajanta Packaging (India) for Rs 100.3 crore ($15.5
million) in an all-cash deal. The entire business of Ajanta Packaging is
acquired as a going concern on a slump sale basis, Huhtamaki PPL Ltd, the local
division of the Finnish firm, said in a stock-exchange disclosure. Meanwhile, Shares of Huhtamaki PPL advanced more
than 4 percent intraday Monday on acquisition of the business of Ajanta
Packaging. The acquisition
will help Huhtamaki in consolidating its position in pressure sensitive label
business, it said. The transaction is likely to be closed next month.
Ajanta Packaging, promoted by Sudhir and Chandan
Khanna, manufactures pressure sensitive labels, baggage tags and security
labels. It has manufacturing facilities at Daman and Baddi in Himachal Pradesh,
according to its website. Its revenues stood at Rs 81.1 crore in the year
through 31 March 2017.
Huhtamaki PPL, formerly known as The Paper Products
Ltd, provides packaging solutions for labels, tube laminate webs,
thermoformable laminates and promotional materials. The company has 15
manufacturing facilities in the country. Its clients include Britannia, Coca
Cola, Ferrero, Glaxo Smithkline, Marico, Mondelez, Nestle, Pepsico, Procter
& Gamble and Unilever. Huhtamaki’s income stood at Rs 564.94 crore and net
profit was Rs 20.94 crore in the October-December quarter.
In 2015, Huhtamaki acquired Mumbai-based Positive
Packaging Industries Ltd for Rs 818 crore ($136.6 million). In 2012, it bought
a 51% stake in Webtech Labels Pvt. Ltd, which manufactures labels for the
pharmaceuticals sector, for Rs 37.7 crore ($ 6.94 million).
