Manjushree Technopack Ltd, a maker of plastic packaging products, has acquired Delhi-based rival Varahi Ltd for an undisclosed sum to become one of the largest suppliers of rigid plastic packaging products in the country. “With this acquisition, Manjushree gets a solid foothold in north India and cross-selling products between Manjushree and Varahi’s customers will give us a huge positive growth,” Vimal Kedia, managing director of Manjushree Technopack, said in a statement. Varahi offers rigid packaging solutions to packaged consumer goods companies, beverage and drug makers. It has manufacturing units in Noida, Baddi and Pantnagar, with a combined production capacity of 20,000 tons. Its clients include Reckitt Benckiser, Dabur, Patanjali and Perfetti Van Melle.
At present, Manjushree has a total production capacity of 100,000 tpa of polyethylene terephthalate (PET), which is roughly 12.5% of the total PET demand in India. Following the acquisition, Manjushree, India’s largest PET and preform manufacturer, will have seven manufacturing locations in the country with a total production capacity of four billion units per annum. The eighth manufacturing unit in Guwahati is slated to start commercial operations in January.
The acquisition is expected to take the organization’s revenue to Rs800 crore from Rs546 crore in 2015-16.