Manjushree Technopack to acquire Oricon's packaging business for Rs 520 crore

This transaction will double MTL’s current market share in the caps and closures segment, with an installed capacity of nearly 15Bn pieces per annum, MTL also stated.

Manjushree Technopack Limited (MTL) announced on April 11 that it has entered into definitive agreements to acquire the plastics packaging business of Oricon Enterprises Limited for an Enterprise Value of Rs 520 crore.

The acquired business includes Oriental Containers, manufacturer of plastic caps & closures and preforms, primarily used in beverages.

This transaction will double MTL’s current market share in the caps and closures segment, with an installed capacity of nearly 15Bn pieces per annum, MTL also stated.

The acquisition comprises two manufacturing plants located in Goa and Odisha.

The combined business will benefit from a wider array of moulds, machines, and SKUs, strengthening unit economics and deepening key customer relationships, MTL said.

MTL further stated this transaction underscores its position as the market leader in the rigid plastics packaging sector, and that the acquisition aligns with its growth strategy of creating value through acquiring and integrating businesses.

Thimmaiah Napanda, MD and CEO of MTL, expresses excitement about bringing Oriental Containers under MTL's ownership and emphasizes the strategic move to establish market leadership.

Thimmaiah Napanda said, “This strategic move underscores our dedication to delivering unparalleled quality and value to our customers and supporting them as a fully integrated partner for both growth and business continuity planning. I am thrilled at the prospect of successfully integrating the business and the significant growth opportunities this opens up for us as we look to expand further over the coming period.”

Adarsh Somani, MD and promoter of Oricon Enterprises Limited, said, “Our Business will complement MTL’s existing portfolio and help MTL achieve market leadership in the closures space as well as get a strong foothold in eastern India. Our customers, vendor partners and employees will all benefit from this consolidation and solid eco system built by MTL as they continue their strong growth trajectory.”