Huhtamaki acquires 51% stake in Mumbai’s ValPack Solutions

Finnish packaging major Huhtamaki has entered the Indian foodservice packaging market with the acquisition of 51% stake in a Mumbai-based manufacturer of paper cups ValPack Solutions.

29 Jul 2016 | By Rushikesh Aravkar

ValPack supplies a comprehensive range of paper cups which include cold cups, hot cups, ripple cups, ice-cream cups, and lids from small to large sizes for both domestic and international market.

In addition to this, the company also manufactures disposable poly-coated paper cups in various sizes and high impact polystyrene lids which are used for both hot and cold beverages apart from other foodservice packaging products.

While the terms and conditions of the deal remain undisclosed, the debt-free purchase price was Euro 2-million (Rs 14.86-crore). Upon completion of the acquisition, ValPack will become part of Huhtamaki's Foodservice Europe-Asia-Oceania business segment.

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Eric Le Lay, executive vice-president, Foodservice Europe-Asia-Oceania at Huhtamaki, said, "I am pleased to expand our presence to India with the acquisition of Valpack. Many of our global and regional customers have plans to grow in India. With Valpack, a well-established company with high manufacturing standards, we're able to serve them locally.”

Valpack's annualised net sales are approximately Euro 4-million (Rs 29.70-crore) and it employs 100 people at its manufacturing unit in the Mumbai.

“We also look forward to growing the business further by investing in additional capacity and introducing an extended offering of foodservice packaging to the Indian market,” added Le Lay.

Operating 73 manufacturing units and 23 sales offices in 34 countries, Huhtamaki provides packaging solutions for food and drink industry. It has approximately 17,000 employees.

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Huhtamaki already has a huge footprint in India’s packaging business since 1999, when it acquired majority stake (owns 68.77%) in Huhtamaki PPL (erstwhile Paper Products Limited). The company further consolidated its position among top packaging converters in India through the acquisitions of A&R Packaging, Webtech Labels, and Positive Packaging. HPPL derives around 80% of its revenues from the domestic market, while exports account for the balance 20%.

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