​​Huhtamaki PPL acquires Ajanta Packaging

In a bid to further strengthen its label business, Mumbai-based Huhtamaki PPL (HPPL) has entered into a business transfer agreement for the acquisition of Ajanta Packaging in India.

24 Mar 2018 | By Priya Raju

According to HPPL, this transaction is a slump sale, at an enterprise valuation of Rs 100.3-crore, on “a cash-free, debt-free basis”.

Ajanta Packaging, promoted by Sudhir and Chandan Khanna, is one of the top names in the label printing segment in India. It has manufacturing facilities in Daman and Baddi.

In 2012, HPPL acquired 51% shares in Mumbai-based Webtech Labels. In 2017, HPPL’s subsidiary Webtech Labels set up a label manufacturing unit in Sikkim, to service its customers based in North East India.

This partnership with Ajanta, will further consolidate HPPL’s position in the pressure sensitive label business.

According to the company, “volume growth should be in double digits for the next couple of years. GST and demonetisation will have a positive impact on long-term growth. The addressable market size has increased post-GST.”

The company’s planned capex for CY 18 and CY 19 is approximately Rs 100 crore. Around 25% of total sales is from international markets particularly from Africa.