Huhtamaki India Plots M&A Push With $500 Mn in Kitty

Consolidation in packaging sector has large firms looking to acquire assets in a bid to expand

- Sneha Shah & Priyamvada C.

Armed with a $400-500 million war chest, Finnish packaging major Huhtamaki Group's Indian subsidiary is looking to scoop up local assets in a bid to expand its product base and bulk up revenues, two people with knowledge of the development said.

This comes in the backdrop of a consolidation wave playing out in the packaging industry, with large companies such as Essel Propack, Manjushree, as well as Huhtamaki looking to acquire assets in a bid to expand their product and geographical base, these people said.

"Companies such as Huhtamaki are in the market to scout for packaging companies that have scaled up and can be taken into fold," the first person cited above said on condition of anonymity.

The second person added that aside from earmarking around $400-500 million for its inorganic move, the company "has the ability to raise debt domestically, too, to finance these acquisitions".