Mumbai-based printing solutions provider Repro India today said it has acquired the printing operations of Macmillan Publishers India (MPIL) for an undisclosed amount.
As part of the deal, MPIL will outsource printing of education books to Repro, translating into business worth Rs 250 crore for Repro over the next 5 years, the company said in a statement.
"With this alliance, the relationship between Repro and MPIL will be further strengthened and will position Repro as a crucial global partner for Macmillan," Repro India Executive Director Pramod Khera said.
This should also throw up opportunities for Repro to partner with Macmillan globally, he added.
The acquisition, which includes MPIL's printing operations in Chennai, with a deliverable capacity of about 6 million books annually, would strengthen Repro's foothold in the South Indian market.
Commenting on the deal, MPIL Managing Director Rajiv Beri said: "Printing is not our core activity and we would like to focus on publishing growth. This is a strategic decision which will further consolidate our investments and energies in development and delivery of quality, need-based content."
Established in 1892, MPIL is a part of UK-based leading publisher Macmillan. It has over 3,000 titles and works with over 20,000 schools across India.
Repro, on the other hand, offers solutions to education publishers worldwide. With an installed printing capacity of over 1 million books per day, Repro is one of the largest exporters of education books.
It has been servicing the requirement for education books in India, Africa and UK, the statement said.
Repro's client list also includes Pearson, Oxford, Longman, Cambridge, McGraw-Hill, the World Bank and UNICEF.
Nearly 60% of its business comes from exports, serviced from two facilities located at Mumbai and Surat.
For the first quarter ended June 30, 2011, Repro registered a 21% increase in revenues to Rs 72.76 crore, compared to Rs 60.23 crore in the same quarter last year.
The company's net profit increased nearly three times to Rs 8.70 crore during the quarter under review from Rs 2.94 crore in the same quarter of the previous fiscal.
Repro's scrip was trading at Rs 162.40 in the afternoon on the Bombay Stock Exchange, up 10.51% compared to the previous close.