Constantia Flexibles, Premji Invest, and Amit Banga, managing director of SB Packagings, have finalized the joint venture to create one of the largest sustainable packaging platforms in India and South Asia, following the regulatory approval from the Competition Commission of India (CCI).
The proposal entails the acquisition of the entire shareholding of C-Flex India Entities, including Creative Polypack, Aparna Paper, Vibgyor, and Parikh Flexibles, media reports said.
The CCI on 3 April 2023, approved a share swap for the acquisition of C-Flex India Entities by SBP, in consideration for which C-Flex will be issued certain shareholding in SBP.
The joint venture, between two flexible packaging industry leaders and Premji Invest as shareholders, will leverage each company’s unique strengths and resources to achieve greater success in the Indian market.
O.P. Banga, founder of SB Packagings conveyed his best wishes for the joint venture. “The joint venture positions us as a clear leader to drive the sustainable packaging agenda in India and beyond with a unique product offering,” noted Amit Banga, managing director of SB Packagings.
“I have full confidence in the partnership’s ability to be an effective solution provider to its customers in India through innovation and excellence. We will drive growth and profitability for all stakeholders,” said Pim Vervaat, global CEO, of Constantia Flexibles.
The companies have said that the joint venture will help them to pursue organic as well as inorganic growth in higher value-added market segments. The implication is that the joint venture will leverage SB Packagings’ strong growth trajectory in the hygiene, food, and HPC segment while further extending the Indian and Asian markets for the mono-material EcoLam product range developed by Constantia and manufactured in its Ahmedabad plant, Packaging South Asia had reported.
Essentially the joint business will bring together the advanced mono-material capabilities of both SB Packagings and Constantia Flexibles India to offer medium to high-barrier packaging solutions to the food and hygiene markets. As SB Packagings is a leading player in the hygiene segment, the new partnership will help extend the joint portfolio across the ten combined manufacturing locations of the joint venture.
Strong synergy potential with a focus on sustainability
SB-Constantia Flexibles will operate in the food and hygiene markets, offering medium to high-barrier packaging solutions. It will have close to 2,700 employees across nine plants spread across the country.
Deepak Ganjoo, ex-president of AMESA (India, Middle East and Africa) region, Essel Propack has been appointed as the CEO of the joint venture and will spearhead the business. Deepak and the management team will focus on delivering sustainable and innovative solutions to customers in India and South Asia under the guidance and mentorship of the Board of Directors. Pim Vervaat, Amit Banga, and Rajesh Ramaiah from Premji Invest, the key shareholder representatives on the Board will focus on driving the strategic imperatives and inorganic growth of the JV.
The JV will pursue organic and inorganic growth opportunities in higher value-added market segments, continuing its strong growth trajectory in the hygiene, food, and HPC segment even as it further develops the sustainable mono material EcoLam product range. It will bring together the mono-material capabilities of both Constantia Flexibles India and SB Packagings and offer medium to high-barrier packaging solutions to food and hygiene markets.
KPMG in India acted as the exclusive financial advisor to Constantia Flexibles for the transaction.