Essel Propack and Arista Tubes join
the cosmetics, personal care and toiletries sector, has acquired
the UK-based Arista Tubes, which manufactures plastic seamless
The acquisition was made for an undisclosed sum through Mauritius based Lamitube Technologies, a subsidiary of Essel Propack and, according to Ashok Goel, the vice chairman and managing director of Essel Propack, would be funded through a combination of internal accruals and borrowing.
With this acquisition Essel Propack, which has a 30 per cent share of the global laminated tubes market, has taken the first step towards its goal of consolidating the seamless plastic tubes business.
Goel said the acquisition was in line with the company's strategy to expand its product lines. "This acquisition gives us new markets and new opportunities, which I am sure will lead to accelerated growth," he said.
Essel Propack is active in 11 countries and has the capacity to manufacture 2.7 billion tubes a year in its 17 plants - including a plastic seamless tubes plant at Wada, India.
Arista Tubes was founded in 1998 and now has a turnover of $20 million through manufacturing plastic seamless tubes for the cosmetics, personal care, toiletries and pharmaceutical sectors. Hence, a 30 per cent stake of the market in the UK and Ireland.
"The global reach of Essel Propack coupled with Arista Tubes' knowledge will make us a force to reckon with in the plastic tubes business as well in the global arena," said R. Chandrasekhar, COO of Essel Propack.