Finland-based packaging solutions provider Huhtamaki has agreed to acquire India-based Ajanta Packaging to expand its operations in the region.
Huhtamaki is paying €13m to acquire the manufacturer of pressure sensitive (PS) labels. It will include the acquired business in its flexible packaging business segment.
Huhtamaki said that the acquisition will further expand its labeling business in India through adding new printing technologies to its offerings. Ajanta’s products will also compliment Huhtamaki's existing labeling product portfolio.
Ajanta Packaging stated that its PS labels, which are resistant to humidity, can be applied to all kinds of containers. The labels can be applied manually or using automatic applicators to the products.
Furthermore, the firm produces boarding passes and baggage tags are suitable for use on highly durable multi-layered substrates, and can be removed or resealed based on the client’s requirements.
It also manufactures security and anti-counterfeiting labels to protect goods from tampering, counterfeiting and diversion. Security labels will help to monitor products across the supply chain.
Security labels are used to safeguard high-value goods or easily counterfeited items such as pharmaceuticals, electronics and other consumer goods.
With around 170 employees, Ajanta Packaging operates two advanced manufacturing facilities in Daman of West India and Baddi of North India.
The deal is expected to be completed by the end of April this year.
In 2016, Huhtamäki also purchased 51% stake in Indian paper cup manufacturer Val Pack Solutions.
ValPack supplies a range of paper cups that include cold cups, hot cups, ripple cups, ice-cream cups, and lids from small to large sizes for both domestic and international market.
Its portfolio also includes disposable poly-coated paper cups in various sizes and high impact polystyrene lids for both hot and cold beverages.
Based in Espoo, Huhtamaki provides packaging solutions to the customers in the food and drink sectors.
The company operates 76 manufacturing facilities and additional 24 sales only offices in 34 countries.