US-based MeadWestvaco Corporation (MWV), a global leader in packaging and packaging solutions has acquired Gujarat-based Ruby Macons Limited, a leading corrugated packaging material maker for an undisclosed amount.
MWV has entered into a definitive agreement with Alibhai Nathani and family to purchase Ruby Macons Limited.
"After extensive conversations with MWV, through which we came to understand their global leadership, outstanding technical capabilities, and strong long-term commitment, we chose them as the right partner to take Ruby Macons to the next level," said Alibhai Nathani, chairman of Ruby Macons.
"Our single-most focus while making this decision was to ensure that the business we've built with passion over the last two decades will be in the right hands to ensure long term sustainability for all our stakeholders. Our family will continue to be involved in the business, and are excited about partnering with MWV," he added.
Ruby Macons is the market leader in corrugated packaging materials in India, producing over 150,000 tonnes annually. The company is founded and managed by the Nathani family since 1986. Ruby Macons’ revenues in the past one year touched $80 million (approx Rs 4000 crore) over the last 12 months and has double digit operating margins and strong return on capital.
Ruby Macons has its offices and manufacturing facilities located in and around the industrial city of Vapi, Gujarat, 180 kilometres north of Mumbai. These assets will remain in full operation and will be a part of MWV’s industrial packaging and global manufacturing platform. All Ruby Macons employees will become MWV India employees and the Ruby Macons management team will remain in place, including Ashraf Nathani, managing director of Ruby Macons, who will become vice chairman and president of the business, an official statement informed.
The company has achieved over 20% average growth over the last several years, the company noted in a statement.
"As a global leader in our industry, we’ve built a significant and highly-profitable industrial packaging business in emerging markets, and we believe we can leverage this experience to serve the rapidly-evolving retail sector and fast-growing middle class in India. Adding to our exsisting presence in India and through Ruby Macons and its converting customers, MWV will be able to offer a wide range of packaging solutions that address market and consumer needs in India," said John A Luke Jr, chairman and chief executive officer, MWV.
"We plan to bring innovative solutions like those we've developed in similar markets like Brazil, where for 60 years we’ve delivered solutions in areas including fresh produce, industrial products and consumer goods," he added.
MWV currently has a manufacturing facility in Pune making rigid, humidity-resistant corrugated packaging for fresh fruits and vegetables, consumer goods, household appliances and pharmaceuticals.
