Indian Economy News

Finnish firm Huhtamaki inks deal to buy Positive Packaging for $336 million

Mumbai: Finnish packaging major Huhtamaki has entered into an agreement to acquire Positive Packaging, known for producing packaging materials for brands like Bingo and Surf Excel, for a transaction valued at $336 million (Rs 2,000 crore).

The deal would provide the Espoo-headquartered company a major toehold in India where the rising middle class population with their disposable income will drive growth for packaging products. Positive Packaging, promoted by Enpee group, has nine manufacturing facilities In India.

"The transaction enhances our position in India and provides us with much improved access to the fast growing markets of Africa and Middle East. Many of our global customers are investing heavily to grow in g heavily to grow in these markets, and now we are even better re sourced to help them grow," said Jukka Moisio, CEO of Huhtamaki Oyj, in a re lease. The deal is expected to be finalised in the finalised in the autumn, Huhtamaki said.

The annual net sales of the business to be acquired are approximately 220 million euros and it employs approximately 2,500 people in India and the UAE as well as in the sales offices in seven countries, said a release. The business will become part of Huhtamaki's Flexible Packaging business segment.

"Together with Positive Packaging, Huhtamaki will become a leading flexible packaging provider in the fast-growing emerging markets," says Shashank Sinha, executive vice-president, Flexible Packaging. Positive Packaging produces flexible packaging which finds usage in a range of products from chocolate bars to cat food.

"In the world scenario, the total turnover of packaging industry is $550 billion where the Indian share is $24.6 billion per annum," union minister for state for commerce and industry EM Sudarsana Natchiappan had told the media recently.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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