NATIONAL NEWS
ACQUISITION
PRODUCT LAUNCH
HSIL to acquire Garden Polymers
PepsiCo and HUL launch ice tea This year marks the coming together of two FMCG giants, PepsiCo India and Hindustan Unilever Ltd (HUL), with the recent launch of Lipton Ice Tea. It is made of tea leaves, real sugar and natural fruity flavours, targeted at the 16–29 year urban, affluent, healthy audience. According to Geetu Verma, Executive Director – Innovation, PepsiCo India, “Today’s urban young adults are looking for a drink that is delicious and also healthy. Tea is a familiar & preferred beverage option in India and ice tea is fast gaining popularity a m o n g the young consumers. Lipton Ice Tea is a global product that offers a combination of great taste and refreshment on the go. We are confident that the product will resonate strongly with our target audience.” Arun Srinivas, General Manager – Beverages, HUL, said, “While tea drinking is an entrenched habit among the Indian consumers, the youth in
HSIL Ltd, one of India’s leading building product and container glass companies, has recently announced its decision to acquire 60 per cent stake in Garden Polymers Pvt Ltd. Total deal size agreed for 100 per cent stake is ` 89 crore. Garden Polymer Pvt Ltd manufactures PET bottles, caps and closures with two strategically located plants in Dharwad (Karnataka) and Selaqui (Uttrakhand). The plants are equipped with imported stateof-the-art machines and moulds. This acquisition has synergies with container glass division of HSIL, which has same set of customers and, with this acquisition, HSIL will be able to offer wider range of packaging solutions to these customers. The rigid plastic packaging industry in India is around ` 16,000 crore and Garden is the 4th largest player in organised PET bottles segment. PET bottle market is expected to grow at a CAGR of 14-15 per cent per annum over the next 5 years. Besides liquor, pharma and FMCG, other major users of PET bottles are food & beverages, edible oil, milk, mineral water and carbonated drinks which are yet not explored by Garden, so growth avenues are plenty.
India are looking at more contemporary formats and healthy offerings. Ice tea ticks both the boxes and it can get the youth into the tea category. Lipton’s tea expertise coupled with its strong equity places it is in the pole position to service this emerging consumer need. We strongly believe that PepsiCo’s strengths in QSRs and HUL’s strengths in modern retail outlets & family grocer channels will help grow this nascent category.” PepsiCo India has launched the product in the PET format in the Delhi NCR Region and the company plans to introduce the product in other markets across India in a phased manner. Priced at ` 25 for a 350 mL PET bottle, Lipton Ice Tea will be available in two variants: green tea in mint & lemon flavour and black tea in lemon flavour. PACKAGING
JOINT VENTURE
McCormick to invest $ 115 million in India Basmati rice distributor Kohinoor Foods Ltd (KFL) recently announced that it has formed a joint venture with US based food and seasonings maker McCormick and Company, to market and sell its Kohinoor basmati rice & food products in India. McCormick will hold 85 per cent stake in the joint venture and it will invest a total of $ 115 million. Kohinoor Foods makes and distributes rice as well as cooking pastes, spices, seasonings and frozen foods in India, while McCormick is into manufacturing, marketing and
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distribution of spices, seasonings, specialty foods and flavourings. “The deal will add immense value to our business. It will improve our cash flow, reduce our bank debt and increase shareholder value,” said Satnam Arora, Managing Director, KFL. The ` 907-crore KFL also exports its products to markets like the US and Canada. McCormick said it expects emerging markets to contribute 12 per cent of its sales by 2015, up from 9 per cent last year. The spicemaker hoped to generate about $ 85 million from the JV.
Modern Food Processing | July 2011
Uflex joins European packaging association Uflex, one of the leading names in the Indian flexible packaging industry, has joined the UK-based environmental packaging body Industrial Council for Packaging & Environment (Incpen). Askoh Chaturvedi, Chairman and MD, Uflex said, “Incpen can be instrumental on behalf of the producers and users of packaging material in addressing the growing environmental concerns of the public and environmental authorities worldwide from a clear perspective”