MeadWestvaco (MWV) has acquired an Indian corrugated packaging material producer and said it will tap into the experience of its presence in Brazil to accelerate growth through the deal.
MWV did not disclose the purchase price for Indian firm Ruby Macons but said it would strengthen their position in a market they have targeted for growth and enable them to meet customer demand.
The firm said they will leverage the experience gained from their operations in Brazil to serve the evolving retail sector and growing middle class in India, targeting the fresh produce, consumer goods and industrial products markets.
Ruby Macons rundown
Ruby Macons produces more than 150,000 tons annually of corrugated packaging materials with revenues of $80m over the last 12 months and double digit operating margins.
The company has achieved greater than 20% average growth over the last several years and is poised for future growth through further expansion, said MWV.
Ruby Macons’ operations include two mills containing three paper machines and are located in and around Vapi, Gujarat, near Mumbai.
These assets will become part of MWV’s industrial packaging and global manufacturing platform.
The acquisition expands MWV’s presence in industrial packaging in India, which includes a manufacturing facility in Pune making rigid, humidity-resistant corrugated packaging for fresh fruits and vegetables and pharmaceuticals.
“The acquisition of Ruby Macons extends our participation in India, strengthening our presence in a market that we have targeted for profitable growth,” said John A. Luke, Jr., chairman and chief executive officer of MWV.
“The addition of Ruby Macons boosts our ability to grow profitably in India by bringing their leading local position and capabilities in packaging materials together with our global expertise and innovation capabilities.”
All Ruby Macons employees will become MWV India employees and the management team will remain in place, including Ashraf Nathani, managing director of Ruby Macons, who will become vice chairman and president of the business.
Broader growth plans
“Our plan is to continue to drive aggressive growth in this business as part of our broader India and global growth plans,” said Peter C. Durette, senior vice president and chief strategy officer for MWV, who oversees the company’s business and growth in India.
“We see significant potential for high quality, innovative solutions in India, from corrugated and consumer packaging to specialty chemicals that can help solve significant challenges in India and improve the lives of consumers.”
Ashraf Nathani, chairman of Ruby Macons, said: “I am excited about leading MWV’s paperboard operations in India, and I know that we will build a very strong presence in the market. The products, relationships and quality leadership of Ruby Macons will be leveraged together with the strong MWV technical and management teams.”