Essel sells its flexible packaging arm to Australian firm, Amcor

The company’s decision to cease PIPL as its major subsidiary is a part of its strategy to exit non-core adhesive lamination packaging business and pursue growth opportunities in its core tube packaging business globally, including India.

“The deal will provide PIPL an opportunity to further grow and prosper in the flexible packaging space as part of Amcor, an Australia listed global packaging company engaged in flexible and rigid packaging,” quoted Essel in its press release.

Adding to the company’s statement, Ashok Goel, Essel’s vice chairman and managing director, said “The divestment of PIPL is in line with our strategic decision to intensify focus on the core tube packaging business globally, including India. We are noticing a significant growth in the demand of laminated tubes across the globe, in beauty and cosmetics, pharma and health and food categories. This decision will help us to further strengthen our expertise in tube packaging business and deleverage.”

PIPL was founded in 1989 and serves some of the industry majors like Cadbury, Eveready, Britannia, General Mills, Godrej, Dabur, Henkel, Hindustan Unilever, Himalaya Drugs, ITC Foods and P&G. It offers rotogravure printing for flexible packaging laminate packaging in paper, film and foil and shrink-sleeve packaging.

The company has manufacturing facilities in Pondicherry, Sitarganj (Uttarakhand) and Cuddalore (Tamil Nadu). Apart from exporting to countries like Sri Lanka and Africa, it also caters to the local market.

This acquisition will be the third by Amcor in India. Prior to this, the Australian packaging company had expanded its Indian operations by acquiring the business of two packaging entities, Parry Enterprises and Uniglobe Packaging.