INDIA – Austria’s flexible packaging company, Constantia Flexibles has signed a joint venture (JV) agreement with Premji Invest and SB Packagings to scale its Indian business and operations.
In a news release, Constantia said the JV is pursuing organic as well as inorganic growth in higher-added-value market segments in India, continuing what it called a “strong growth trajectory” in the hygiene segment while also developing the more sustainable mono-material EcoLam product range.
Pending regulatory approvals, the agreement is expected to be completed by the end of March this year.
Pim Vervaat, CEO of Constantia Flexibles said: “I am very pleased to partner with SB Packagings and Premji Invest.
“I have the greatest respect for SB Packagings’ achievements and look forward to the joint venture, supported by Premji Invest, to grow the combined business profitably.”
With the new partners, Constantia Flexibles is able to strengthen its business in the region and various market segments.
The partnership is expected to bring together the mono-material capabilities of both Constantia Flexibles India and SB Packagings and offer medium-to-packaging solutions to food and hygiene markets.
Founded in 1989 by OP Banga and Amit Banga, SB Packagings has been manufacturing mono-polymer sustainable packaging since its inception.
Commenting on the agreement, Amit Banga, managing director of SB Packagings said: “We are delighted to enter this joint venture with Constantia and look forward to continuing to develop our businesses together. This JV enables SBP to have a pan India presence across 9 manufacturing locations.”
The joint venture comes at a time when it is unclear how long Constantia Flexibles itself will be owned by Wendel SE.
In November last year, Wendel said that it was considering selling Constantia Flexibles. The value of the company could be around €2 billion ($2.1 billion), it was said at the time.
The investment firm is said to be ‘not in a hurry’ to begin the sale, instead waiting for financial markets to improve.
A formal bidding process could begin in the second quarter of 2023. Constantia Flexibles specializes in flexible packaging, for food and pharmaceutical products, for example. The company employs over 8,500 people worldwide.
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