Huhtamaki snaps up second Indian packaging company
The acquisition, which will allow Huhtamaki to enter India’s growing foodservice packaging market, was for a debt-free price of around EUR2m (US$2.23m).
Many of the Finnish company’s customers are already present in India, Huhtamaki said in a statement.
"Many of our global and regional customers have plans to grow in India. With Valpack, a well-established company with high manufacturing standards, we're able to serve them locally,” said Eric Le Lay, Huhtamaki’s regional executive vice-president.
He added that the company planned to invest in additional capacity and extend its range of foodservice packaging for the Indian market.
Operating with some 100 staff in Mumbai, Valpack has achieved annual net sales of around EUR4m (US$4.46m) in recent years. The business will become part of Huhtamaki's Europe-Asia-Oceania foodservice business segment.
The deal marks Huhtamaki’s second acquisition in India after being Mumbai-based Positive Packaging, which makes flexible packaging products in India and the UAE, in 2014 for EUR247m.
A manufacture of packaging products for food, beverage, non-food and consumer products, Huhtamaki Group has 72 factories and 23 sales offices in 34 countries. It employs around 17,000 employees and registered net sales of EUR2.7bn (US$3bn) in 2015.