Vienna-headquartered Constantia Flexibles Group has signed an agreement to acquire 60 per cent stake in Ahmedabad’s Parikh Packaging Pvt Ltd for an undisclosed amount. The remaining stake will remain with the promoters, the Parikh family.
The company plans to invest the first equity infusion for capacity addition and exploring new geographies – both in domestic and international markets.
“By the end of the year or early next year, we aim to increase our installed capacity from 850 tonnes per month to 1,250 tonnes per month,” said Pranav Parikh, director and one of the three promoters of Parikh Packaging. The other two promoters are Ramesh Parikh and Pavan Parikh.
At present, 25 per cent of the company’s orders come from international markets. According to Parikh Packaging, it has registered annual sales of around $29 million and currently employs around 500 people. It mostly caters to food and non-food industries, as well as health and personal care (HPC) segment.
Commenting on the deal, Constantia CEO Thomas Unger said, “With this acquisition, we are operating in a highly attractive growth market. India has an ever-increasing middle class with growing demand for packaged food and healthcare products, which we want to address with top quality products and services. We also want to support the growth of our international key accounts in this market.”
The acquisition is part of the international growth strategy of Constantia Flexibles and constitutes another important step for further growth and expansion in Asia.
Constantia Flexibles is a packaging group, catering to customers in the food, pet food, pharmaceutical and beverage industries. It has 7,000-plus employees and operates in more than 20 countries.
The Parikh deal is the third acquisition by Constantia since the beginning of CY2013. In February this year, the group announced its acquisition of Ohio-based Spear Group, which has presence in four facilities across North America, Europe, South Africa and Singapore. In January, it completed 100 per cent acquisition of Globalpack, a flexible packaging and folding carton company in Mexico.
(Edited by Sanghamitra Mandal)