Essel Propack to acquire Alcan's packaging unit?

12-Sep-07
Reports indicate that Essel Propack is in talks to acquire Alcan's packaging unit. Although the Rs 300-crore Essel Propack is the largest specialty packaging company through its 12 plants across the world, it has a relatively smaller presence in the personal care packaging segment. If successful, the deal with Alcan would propel Essel to the top position in personal care packaging. Alcan Packaging Beauty, on the other hand, is present in 11 countries and has some of the world's leading cosmetics and beauty companies as its customers. After Alcan (with sales of US$800 mln last year) announced plans to sell its packaging unit as part of a restructuring exercise, Essel Propack has been reported to be in talks with Alcan Packaging Beauty. Earlier in the year, in July, London-based mining major Rio Tinto agreed to buy Alcan, the world's third-largest aluminium company, for nearly US$38 bln. Under the terms of that buyout, Rio Tinto stipulated that Alcan sell its packaging business, which includes packaging for food and beverage, medical and pharmaceutical, cosmetics and tobacco. This acquisition plan seems to be in line with the recent interest shown by Essel Propack in buying out packaging units to gain a robust presence in packaging and laminated tubes, aluminium-made tubes used by toothpaste and other consumer goods makers. Last month, Essel had decided to participate in the rehabilitation and revival of Ras Propack Lamipack and Ras Extrusion, both declared as sick by the Board of Industrial and Financial Reconstruction.
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