Page 45 - Plastics News October 2021

BUSINESS NEwS

Andhra Sets Up New Authority For Vizag- GTCR Acquires PPC

Kakinada PCPIR Region Flexible Packaging

For Undisclosed Sum

S- bas e d
Upri v at e
e quity fir m
GTCR has
co mp leted
its purchase
o f f lex ib le
p a c ka gin g
manufacturer
PPC Flexible
Packaging (PPC) for an undisclosed

he Andhra Pradesh government project first conceived way back in the sum. Based in Buffalo Grove, Illinois,
Thas constituted the Visakhapatnam- year 2007, and lined up two big-ticket PPC produces flexographic printing
Kakinada Petroleum, Chemicals and projects as anchor tenants at Kakinada and converts flexible films, bags,
Petrochemicals Investment Region with an aggregate investment of over pouches and prototype packaging
Urban Development Authority (VK- 15.72 billion USD. The Andhra Pradesh solutions. The company operates ten
PCPIR UDA) by scrapping the VK- Industry, Infrastructure and Investments manufacturing locations across the US
PCPIR Special Development Authority Department had drawn up the VK- and serves several sectors, including
established back in the year 2008. The PCPIR Master Plan-2031 to develop healthcare and medical applications,
Municipal Administration and Urban industrial clusters, expressway and a snack and organic brands, speciality
Development Department issued a major transport network, residential produce, nutraceutical and bakery end
gazette notification on Friday, October townships and knowledge hubs as part of markets. GTCR managing director
8, removing seven revenue mandals and the grandiose project.The government's David Donnini said: “Kevin [Keneally,
82 villages from the Visakhapatnam target is to attract investments to the tune PPC founder] and the PPC team
Metropolitan Region Development of Rs 2 lakh crore to make the state the have built a remarkable business in
Authority (VMRDA) and bringing them largest petrochemical hub in the country. a short period of time by acquiring
under the new VK-PCPIR UDA. The The project was supposed to generate differentiated packaging assets focused
new entity will now comprise 10 revenue a staggering 12 lakh jobs (direct and on attractive end markets. “We look
mandals and 97 villages spread over a 640 indirect) over the years. But accordingto forward to being partners with the PPC
sq km area, stretching from Kurada village reports there has been a lot to do for team and continuing their successful
in Visakhapatnam district to Vakalapudi the project to see it in term of progress consolidation of high-quality flexible
in East Godavari district. The ruling as it is among one of the ambitious packaging companies.” Following
YSR Congress Party activist Chokkakula plans. Earlier in 2019 Andhra Pradesh the acquisition, PPC’s management
Lakshmi has been appointed as the government had revived the petroleum, will retain a ‘significant’ minority
Chairperson of VK-PCPIR UDA while chemicals and petrochemical investment stake and continue to manage the
the VMRDA Commissioner will be the region (PCPIR) project along the Bay of company.GTCR said it plans to
whole time Chief Executive Officer. The Bengal coast between Visakhapatnam commit ‘substantial’ incremental equity
chairperson will have a two-year tenure, and Kakinada to attract investments to to support future acquisitions and
according to the notification. It will have the tune of Rs 2 lakh crore to make the expansion opportunities as part of
ten other official members, including the state the largest petrochemical hub of the the deal. In 2017, Morgan Stanley
Collectors of Visakhapatnam and East country.Two big-ticket projects had been Capital Partners (MSCP) made its initial
Godavari districts. In 2020, the Andhra lined up as anchors for the PCPIR in investment in PPC. Since then, PPC has
Pradesh government sought to revive Kakinada with an aggregate investment expanded its operations by completing
the Visakhapatnam-Kakinada PCPIR of over USD 15.72 billion.. eight acquisitions.

44 PLASTICS NEWS OCTOBER 2021 45 PLASTICS NEWS OCTOBER 2021