“This acquisition marks our first strategic investment towards industry consolidation.” - Vimal Kedia, MD, Manjushree Technopack Ltd.

Announcing the acquisition, Vimal Kedia, Managing Director, Manjushree Technopack Ltd said, "This is a significant milestone for Manjushree as it marks our first strategic investment towards industry consolidation. Varahi has a 40 year old legacy and we were impressed by their manufacturing capabilities.

"With this acquisition, Manjushree gets a solid foothold in North India and cross-selling products of between Manjushree and Varahi's customers will give us a huge positive growth. Our aim is to become a 360 degree rigid packaging solutions provider for brands across India and this gives us impetus to serve our existing and new clients with world-class packaging solutions. We are excited to have team Varahi on board."

Manjushree will boost its sales by gaining access to registered designs and patents filed by Varahi. The Bangalore-based company now owns over 100 registered designs and patents, which will allow it to produce containers from 5ml to 20 litres, in over 1,000 different shapes, sizes & designs.

Indian plastic packaging industry's output is expected to touch 17.6 million MT in 2016-17. PET (Polyethylene terephthalate) is one of the common polymer resin used for packing food, beverages and medicine.

It accounts for almost 5% of the total output at about 0.8 million MTPA. The demand for polymers, particularly PET, has been growing at 10 -12% CAGR in the last decade and is expected to hold the trajectory. India's per capita PET consumption is 0.6 kg while the global average is of 2.9 kg.

Today, Manjushree has a total production capacity of 100,000 MTPA which is roughly 12.5% of total PET demand in India.

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