Delta Thermoformers inks joint venture with Zhejiang Xinyuanfang Plastic

Aims to achieve Rs 650 crore revenue in couple of years through new product offerings

City based plastics packaging major Delta Thermoformers Ltd has entered into a joint venture with Zhejiang Xinyuanfang Plastic Co. Ltd, one of China's largest plastics manufacturers, to introduce innovative and cost effective products to Indian consumers and also expand its footprints in other Asian markets.

This joint venture will enable Delta to manufacture and supply various types of plastic packaging products such as thermoformed, vacuum formed blister packaging, PVC products such as rigid films, jumbo rolls, folding doors with glass, PVC films for floor board, printing, wood grain and other packaging products. Following the joint venture, Delhi will be one of the largest manufacturers of plastic packaging materials in India.

"This venture will bring in a range of international customers to Delta Thermoformers which will also support Zhejiang to emerge as a global leader. The joint venture company plans to achieve its revenue target by serving range of existing and new products for companies in India, China and the rest of the world. The growth will also provide sound employment opportunities to the skilled manpower. Through this, we would serve the ever growing packaging demand for food, pharmaceutical and other industrial customers. This venture will give Delta Thermoformers an edge over its competitors in this space and will capture large share of market over the next five - seven years," said Mohammed Arif, Director, Delta Thermoformers Ltd.

There is a clear cut synergy between the two producers of plastics packaging materials. This partnership would entail the joint venture company to offer a very wide range of plastic packaging products to the market, using state of the art technology and high end machines brought in by Zhejiang to the new company, thereby being able to cater to the growing Indian market.

"We look forward to have a handsome growth from the venture in India to address South Asian customers and also plan to address the high quality requirements of global companies. In order to get market leadership in Asia, Zhejiang which is already a leader in China, entered into a joint venture with Delta to capture the massive opportunity to grow together," said Huang Yuan Fang, President, Zhejiang Xinyuanfang Plastic Co Ltd.

The venture is projected to generate total revenue of US$ 100 million (Rs 650 crore) in the next couple of years. The venture will carry out its manufacturing activities from the existing plant of Delta in Vasai, Maharashtra.

The Joint Venture deal is structured by Alcor Mergers and Acquisitions Pvt. Ltd., a portfolio company of Alcor Fund.

"Alcor is a leading investment bank and has been instrumental in structuring joint ventures of Indian companies with global companies for rapid growth. Alcor Fund has seen India as a great destination to invest. This Venture, besides bringing in foreign earnings for India, will support Indian Prime Minister's drive of 'Make in India'," said Thomas Mathew, Director, Alcor Fund.