Manjushree Technopack Acquires Plastics Packaging Business of Oricon Enterprises for INR 520 Cr Two manufacturing plants located in Goa and Odisha are part of the acquisition.
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Manjushree Technopack Limited (MTL) announced that it has entered into definitive agreements to acquire the plastics packaging business of Oricon Enterprises Limited for an enterprise value of INR 520 crore.
The acquired business includes Oriental Containers, a manufacturer of plastic caps & closures and preforms that are mostly used in beverages.
Two manufacturing plants located in Goa and Odisha are part of the acquisition.
According to the official release, this transaction will double MTL's current market share in the caps and closures segment, making it the market leader with an installed capacity of nearly 15 billion pieces per annum.
The combined business will have a wider array of moulds, machines, and SKUs and will strengthen unit economics due to operational synergies as well as deepen key customer relationships.
Along with gaining access to the preforms and closures market in eastern India, this transaction will help underscore MTL's overall position as the market leader in the rigid plastic packaging sector in India.
The transaction is consistent with MTL's growth strategy, adding to a track record of successfully creating value from acquiring and integrating businesses.
Thimmaiah Napanda, MD and CEO of Manjushree Technopack Limited, said, "We are excited to bring Oriental Containers under our ownership as we continue our journey of rapid growth and establishing market leadership in the rigid plastic packaging space in India. While we are already the market leaders in three out of the five segments we operate in (preforms, containers, caps and closures, pumps and dispensers, and recycling), this transaction will make us the clear leader in four segments."
"This strategic move underscores our dedication to delivering unparalleled quality and value to our customers and supporting them as a fully integrated partner for both growth and business continuity planning," he added.
MTL is a leader in the rigid plastic packaging space, with over 40 years of operational expertise in India. It claims to have a pan-India presence and a converting capacity of over 200,000 MT of plastics to PET preforms, bottles, containers, films and recycled resins.
After being acquired by Advent International in 2018, MTL claims to have experienced significant expansion over the past six years, going from having two business sectors at the time of investment in 2018 to five business categories at this time.
Oricon makes a variety of closures, including plastic caps, metal crowns, ROPP caps, collapsible tubes, and more. Most recently, the company has started producing preforms. It has multiple manufacturing plants in Odisha, Goa, and Maharashtra.
