Manjushree Technopack Ltd. (MTL) one of India’s largest rigid plastics packaging companies announced that the company had entered into a business transfer agreement with Classy Kontainers which is also a company in the packaging segment. The deal includes the acquisition of Classy Kontainers’ commercial operations and manufacturing facilities.
The planned acquisition support MTL in consolidating its position in the market and diversifying its business to wider product portfolios which includes packaging products for paints, adhesives, specialty chemicals, and FMCG segments. After the acquisition MTL will gain access to all production facilities of Classy Kontainers which are located in five cities.
MTL has over 40 years of packaging experience in India. MTL already provides packaging solutions to various segments including FMCG, F&B, homecare, personal care, agrochemicals, pharmaceutical, and liquor industries. MTL has an existing capacity of around 1,90,000 metric tonnes per year.
The deal comes at a time when the packaging industry is experiencing robust demand growth in India. The demand of packaging products in India is growing due to increasing preference for packaged food, and gradual replacement of traditional packaging such as metal cans and cartons by polymer packaging. Other factors driving the demand of polymer packaging in India are growing consumer preference for convenient packaging, ease of use, lightweight etc.