Amcor acquires Phoenix Flexibles in Indian medical packaging tech expansion
14 Aug 2023 --- Amcor is acquiring Indian flexible packaging specialist Phoenix Flexibles, located in Gujarat, which generates an annual revenue of approximately US$20 million from the sale of flexible packaging for food, home care and personal care applications.
The acquisition, made for an undisclosed amount, is part of Amcor’s continued expansion in the Indian market, joining the company’s four existing flexible packaging plants in the country.
The Australian packaging giant says it has achieved double-digit organic sales growth per annum over the last three years. This significantly outpaces growth in the underlying market, it claims, and is also investing to double its local footprint in the pharmaceutical and medical packaging categories.
“Amcor continues to see substantial opportunities to grow our flexible packaging business in India. With this acquisition, we are investing in maintaining and building upon the significant momentum the business has delivered over several years,” Amcor Flexibles Asia Pacific president Mike Cash says.
“The scalable nature of the acquired facility, combined with the localization of new capabilities, further enhances our customer value proposition in this attractive high-growth market."
Advancing flexible tech
The acquisition is intended to spread advanced film technology throughout India, enabling local production of a broader range of more environmentally sustainable packaging solutions.
This, in turn, will enable Amcor to expand its product offerings in high-value segments, says the company.
Additionally, Phoenix Flexibles’ “well capitalized and strategically located production facility” will immediately increase Amcor’s capacity to provide for continuing high demand in the region and “drive strong returns for shareholders.”
Medical market developments
This year, Amcor also acquired China-based MDK, a medical device packaging provider, generating annual sales of approximately US$50 million.
Amcor says that MDK’s coating capabilities, medical paper-based packaging offerings and customer base will enhance its position in the Chinese medical device packaging market.
The MDK acquisition is also intended to strengthen Amcor’s leadership in the broader Asia Pacific medical packaging segment.
“As Amcor continues to sharpen its focus on higher growth priority segments, the addition of MDK will enhance our already strong healthcare platform in the Asia Pacific region,” says Amcor CEO Ron Delia.
“MDK’s talented team brings strong capabilities and a complementary product and customer portfolio. We look forward to working together to unlock value creation opportunities for customers in this fast-growing, high-value segment, which we believe will help us continue to deliver strong returns for our shareholders.”
Edited by Louis Gore-Langton
