The proposed acquisition will help MTL consolidate its position in the market. MTL will have access to all production units of Classy Kontainers located in five cities and serve the latter’s existing clientele in the paints, adhesives, speciality chemicals and FMCG segments.
With over 40 years of packaging expertise in India, MTL caters to the packaging requirements of the FMCG, F&B, homecare, personal care, agrochemicals, pharmaceutical, and liquor industries. With a manufacturing capacity of 1,90,000 mt per annum and a turnover of around Rs1,200 crore, MTL is amongst the top mid-sized companies in India.
“The acquisition is in line with our aggressive, inorganic growth and business diversification plans. It will allow us to consolidate our position as leaders in the rigid-packaging sector and diversify our presence into new rigid packaging market segments – paints, adhesives, and speciality chemicals space,” said Sanjay Kapote, MD & CEO of Manjushree Technopack.
“MTL’s technological strength, product range and geographical spread, coupled with Classy Kontainers’ robust business will help us deliver complete packaging solutions to our customers in the future. Post-closing of the transaction, the promoters will continue to work with MTL to ensure smooth transition and future business growth,” he added.
Classy Kontainers is one of the largest custom-molded rigid packaging suppliers in India. The company has expertise in HDPE & PP packaging. Classy Kontainers has a production capacity of more than 12,000mt polymer processing.
“Classy Kontainers is a pioneer when it comes to innovative solutions for rigid packaging in India with a passion for customer service. With the strength of our team and MTL’s nationwide customer base in every segment we are confident this partnership will add tremendous value to our customers and help us take the business to next level of growth,” said Rajiv Mehta, partner at Classy Kontainers.
Manjushree was advised by Khaitan & Co, while Classy Kontainers was advised by Cyril Amarchand Mangaldas and Unaprime Investment Advisors.
“This is a win-win transaction for both the parties. This is part of the larger consolidation initiative within the packaging sector being carried out by the financial investors to help create scaled businesses. We certainly foresee a lot more consolidation going forward and are in discussion with a few,” said Sudhir Dash, founder and CEO of Unaprime.
This article was first published on livemint.com.