Page 72 - Plastics News December 2016

Business NEWS
Manjushree Technopack expands pan-India by acquiring Varahi
Manjushree Technopack, the Bengaluru-based
rigidpackaging and preform manufacturer, has
acquired Varahi Ltd’s rigid packaging business for an
undisclosed amount. This strategic acquisition, a first for
Manjushree Technopack, further strengthens its lead as
the largest rigid packaging solutions provider in India with providing them a one-stop shop for their rigid packaging
a consolidated turnover
of approximately Rs
800 crore. Varahi has
five manufacturing
facilities at Delhi,
Noida (Uttar Pradesh),
Manesar (Haryana),
Baddi (Himachal
Pradesh), Pantnagar (Uttarakhand). Manjushree, which
is setting up plants in Haridwar and Guwahati to expand
its operations in the northern & north-eastern states,
has been working on a plan to spread its business across
India. With the Varahi acquisition and its new plant
in East India, Manjushree has established a pan-India
presence with eight manufacturing units across South,
North and East India. Manjushree’s client base, which
includes various global and domestic leading consumer
companies such as GSK, Coca-Cola, Pepsi, Nestle,
Mondelez, Reckitt Benkiser, and USL amongst others, will
further get diversified through the addition of Varahi’s
esteemed client base such as Dabur, Bajaj Corp, SC
Johnson, Perfetti and Patanjali amongst others. With
presence across multiple packaging technologies and
a pan India presence, Manjushree today offers a one-
stop shop packaging solution to companies in consumer
and healthcare space across the country. Vimal Kedia,
managing director, Manjushree Technopack, said, “This
is a significant milestone for Manjushree as it marks
our first strategic acquisition. Varahi has a 40 year old
legacy and we were impressed by their client base and
manufacturing capabilities. Acquisition of Varahi’s rigid
packaging business is a win-win situation for customers
and Manjushree as it will enable us to cross-sell world-
class packaging solutions to Manjushree and Varahi’s
customers and establish our strong foothold in north
India. This will further strengthen our leadership position
as a 360 degree rigid packaging solutions provider for
• December 2016 • Plastics News 72
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consumer and healthcare companies across India.”
Manjushree Technopack, which registered a turnover
of approximately Rs 550 crores, caters to the needs
of leading companies across consumer and healthcare
sectors in India and several other export markets by
needs. While the company came out with an IPO in 1995,
it delisted from the stock exchange in 2015 and raised
private equity funding from Kedara Capital. Today, it is
the largest PET bottles and performs manufacturer in
South Asia with a capacity of over 80,000 metric tonnes.
Solvay to sell Acetow and gets
approval for sale of Indupa
stake
Solvay, the Belgium-based materials group, has
agreed to sell its cellulose acetate tow business,
called Acetow, to private equity funds managed by
Blackstone. The sale of Acetow, which makes materials
used in cigarette filters, is based on an enterprise value
of about €1bn, representing
around 7 x EBITDA multiple,
said Solvay in a 7 December
announcement. The group
will use proceeds to pay
down debt. Solvay expects
to generate a capital gain of around €150m after tax.
"The divestment of Acetow is another significant step
in Solvay's transformation towards a multi-specialty
chemical group with a higher growth profile," said
Jean-Pierre Clamadieu, CEO of Solvay.
In a separate announcement on 7 December, Solvay
said the Administrative Council for Economic Defense
(CADE), the Brazilian antitrust authority, has given
clearance to the agreed sale of its 70.59% stake in
PVC producer Solvay Indupa to chemical group Unipar
Carbocloro. Solvay Indupa produces PVC and caustic
soda in Brazil and Argentina. Solvay said it expects
completion of the sale to Unipar Carbocloro, at a total
enterprise value of $202.2m, which was first announced
in May, to take place in the next few weeks.