In October 2021, TCPL Packaging replaced its oldest multicolor offset press at its Goa plant with a new K&B Rapida multicolor packaging press. Although TCPL is a public limited company quoted on the Sensex it was a ceremonial occasion where as usual the promoter family and its industry partners took part in the inauguration. Posting photos of the event on social media, the company’s executive director Akshay Kanoria said, “As India comes out of the pandemic and demand picks up, we are sure to see increased demand for packaging. Customers and consumers are also becoming more discerning, necessitating better technology investments.” This is the second K&B Rapida multicolor at the TCPL plant in Goa, with the first highly configured press installed in January of 2019.
Packaging has in the main been a resilient pillar of the Indian economy in the past twenty months of the pandemic and its lockdowns. As there is some mitigation of the risks and consequences of a further wave or a new strain of the Covid-19 virus, the industry is counting on some of the most affected parts of the economy to also recover. At the same time many of the structured companies such as TCPL Packaging that were poised for rapid growth before the pandemic, are daily revealing the consolidation of projects that were underway but delayed and can take advantage of new opportunities that are presenting themselves.
TCPL to acquire 60% stake in Creative Offset Printers, Noida
On 3 November 2021, TCPL packaging announced that its board of directors has approved the acquisition of a majority stake in Creative Offset Printers Private Limited (COPPL). “The company has entered into a definitive share purchase agreement to acquire 60% equity stake of COPPL. The completion of the transaction is subject to satisfactory accomplishment of certain conditions precedent.
“With this acquisition, TCPL enters into the high potential rigid boxes segment, in one of the fastest-growing smartphone markets in the world.” The statement goes on to say that Creative Offset Printers is strategically located in Noida “to target the large upcoming mobile manufacturing hub in India.”
The release goes on to say, “The acquisition is aligned with TCPL’s strategic objective to grow by leveraging its scale and institutional capabilities in a largely unorganized industry. With both entities having manufacturing facilities in close proximity, TCPL anticipates deriving notable synergies including rationalization and optimization of various costs.”
Saket Kanoria, managing director, of TCPL Packaging, said, “The acquisition of a majority stake in COPPL . . . is a strategic step towards enhancing the company’s future growth prospects. With this acquisition, TCPL has entered into the high potential rigid boxes segment that primarily caters to one of the fastest-growing smartphone markets in the world. This tuck-in acquisition complements our existing business model and offers us many synergistic opportunities that should play out over the next few quarters.”
TCPL Halma joint venture
In the last week, TCPL Packaging also announced a joint venture with Maarten Halma to build a state-of-the-art paper cup factory. The joint venture of Halma Solutions and the Kanoria family promoters of the TCPL group will establish and build the factory in Goa. It is expected to be up and running by April 2022. TCPL has known Halma for over fifteen years and TCPL’s executive editor Akshay Kanoria said on social media, “With our technical strength and experience and Maarten’s vast knowledge in the paper cups and disposables segment, we aim to be the best factory in India and one of the best in the world for disposable products!!”
Flexible packaging expansion
At the same time, TCPL’s flexible packaging expansion, delayed slightly by the pandemic and the lockdowns, is now nearing completion. The plant which will contain a blown film with an MDO unit to produce recyclable single polymer films and laminates and an additional gravure press is expected to be commissioned in the first quarter of 2022. Thus the TCPL Packaging group proceeds with its considered and strategic expansions by way of renewing its older production infrastructure and investing in new sustainable technologies, alongside acquisitions and joint ventures that bring it into new packaging segments.