21st Aug 2006 07:01
Rexam PLC21 August 2006 Rexam establishes key footholds in growing Indian packaging market Rexam, the global consumer packaging company and the world's leading beveragecan maker, announces that it has established key footholds in the growing Indianpackaging market. It has formed a joint venture with a quoted Indian company,the Hindustan Tin Works (HTW), to start up a beverage can plant and has alsosigned an agreement to acquire Truepack, a pharmaceutical packaging company. Beverage can joint ventureThe joint venture with HTW, in which Rexam will have a majority stake,represents a cash investment by Rexam of some £7m. The beverage can plant, thefirst of its kind in India, is located near Mumbai. It is expected to commenceproduction in the final quarter of 2006 focusing primarily on the beer market. The Indian beverage market is forecast to grow at 6% pa over the next threeyears and represents an attractive growth opportunity for beverage cans drivenby a fast growing young population and substantial middle-class growth allied tofurther urbanisation and a developing supermarket culture. Pharmaceutical acquisitionTruepack is one of the leading manufacturers of primary packaging in plasticsfor the pharmaceutical industry in India. The total cash consideration is £5m,including borrowings assumed. The acquisition is subject to Indian regulatoryapprovals. Truepack has one manufacturing site at Bangalore, where it produces eye, ear andoral dropper bottles, nasal spray bottles as well as tamper evident closuresystems. At the end of its financial year 31 March 2006, the company had sales of £2m,almost exclusively into the domestic market. It has recently been grantedapprovals by US authorities to export a number of its products into the USmarket. Commenting, Lars Emilson, Rexam's Chief Executive, said: "These deals arefurther evidence of our strategy to extend our business into emerging markets.The Indian beverage market has strong growth characteristics, while Truepack, awell invested pharma-focused company with a good client base, gives us afoothold in India's fast growing pharmaceutical packaging market." Enquiries 21 August 2006Lars Emilson, Chief Executive +44 20 7227 4100David Robbie, Group Finance DirectorAndrew Mills, Group Communications DirectorFinancial Dynamics +44 20 7269 7291Richard Mountain more... Editors' notes:Rexam was advised by India Advisory Partners, London. Rexam is a leading global consumer packaging company and the largest beveragecan maker in the world. Our vision is to be the leading global consumerpackaging company. We are business partners to many of the world's most famousand successful consumer brands as well as young, entrepreneurial start-ups. Weoffer a broad range of packaging services and solutions for differentindustries, using different materials and technologies. We have some 25,500people in more than 20 countries. Three things characterise us - leadership inour industry, our commitment to innovation and our passion to deliverexceptional value. Rexam has an ongoing turnover of approximately £3.4 billionand is a member of the FTSE 100. Rexam's ordinary shares are listed with the UKListing Authority and trade on the London Stock Exchange under the symbol REX.For further information, visit Rexam's web site at www.rexam.com. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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