Alcoa, Nilkamal In Rs 40 Crore Jv For Plastic Closures

Alcoa Closure Systems International (Alcoa CSI), a subsidiary of US-based Alcoa Inc, has entered into a joint venture with Nilkamal Plastics group to produce plastic closures to serve the rapidly growing beverage markets in India and Nepal. Plastic closures are used to bottle soft drinks, mineral water, fruit juices, beer etc and are currently being imported. Alcoa CSI will hold 76 per cent equity stake in the Rs 40 crore joint venture while the balance 24 per cent will be held by two Nilkamal group companies -- Heirloom Finance Pvt Ltd and Nilkamal Builders Pvt Ltd.

The new venture was recently granted foreign investment approval from the Nepal Department Of Industries. The plant will be located in Hetauda, a border town between Nepal and India. The construction and equipment installation is expected to begin shortly.

 

Alcoa CSI is the global leader in beverage closure production and in the development of the rotary compression-moulding process. Nilkamal Plastics, which is the largest moulded plastic crates and furniture manufacturer in Asia, has developed close ties with the domestic soft drink industry through its position as the leading supplier of plastic beverage crates to bottlers in Asia.

Nayan Parekh, director of Nilkamal Plastics, added, "We are excited about the global resources, technical expertise and marketing network Alcoa offers as a partner. We look forward to working together with Alcoa CSI to rapidly expand our presence in the beverage industry throughout India and surrounding regions."

Alcoa is the world's leading producer of primary aluminum, fabricated aluminum and alumina. It is active in all segments of the industry -- technology, mining, refining, smelting, fabricating and recycling. Related businesses include packaging machinery, precision castings, plastic bottles and closures, fiber optic cables, and electrical distribution systems for cars and trucks. Alcoa has 1,42,000 employees in 37 countries. Meanwhile, Alcoa CSI currently operates 41 plants in 21 countries. These facilities provide closures, packaging equipment and expert technical service to the soft drink, juice, bottled water, beer, isotonic, food and personal care markets.