Post the acquisition of the pharma assets of Bengaluru-based packaging company Kamsri, LSE-listed Essentra is set to expand its footprint in India in its health and personal care segment.
Owing to the steady nature of clients in the sector and the vast opportunity that the Indian market offers, the company is pegging on long-term growth in the sector, hoping to capture a market of Rs 100 crore by 2020. Essentra is a leading supplier of specialist plastic, fibre, foam and packaging products with three strategic business units — component solutions, health and personal care packaging and filtration products.
Specialising in products such as cartons, leaflets, labels, blister foils and cold foams, the £1.1 billion company claims to be the second largest player in the pharma packaging sector in North America.
“With the overwhelming presence of generic drug companies in India, the opportunity that lies before us is huge. The market for pharma packaging may be estimated at Rs 2,000 crore, out of which Rs 500 crore may comprise of the segments that Essentra has its presence in,” said P T Sreekumar, Managing Director, Essentra Asia. The company plans to scale its business in the vertical to acquire up to 15% of the market share in India. “Within Essentra’s ‘Drive for 2020’ agenda, we hope to achieve a sizeable market within the vertical in India,” he said.
The company finds its extensive clientele in the likes of GlaxoSmithKline, Johnson & Johnson and Pfizer, among others.
Having made its two biggest acquisitions — Clondalkin’s specialist packaging division for $455 million and Contego Healthcare for £160 million — in the past three years, the company has been able to take its health and personal care packaging from 10% of its total business to about 38%.
While the current year will be all about transitioning customers and consolidating the business, “Acquisition is the strategy to grow in this sector. We will look at more acquisitions down the line,” said Sreekumar.