The Hindu Business Line : Klockner Pentaplast plans unit in Aurangabad

GREENFIELD IN AURANGABAD: Mr Joachim Kreuzburg, President & COO (Europe and Asia), Klockner Pentaplast (KP), flanked by Mr Alok Marwah (left), KP India Managing Director, and Mr Charles Baechler, Vice-President, SBU Pharma, KP, at a press conference in the Capital on Friday. The Klockner Pentaplast Group, a Germany-based packaging solutions provider, has said that it is setting up a pharmaceutical films manufacturing facility in Aurangabad at an investment of $20 million. — Kamal Narang

New Delhi May 11 Klockner Pentaplast Group (KP), a German-based packaging solutions provider, has said that it is setting up a pharmaceutical films manufacturing facility in Aurangabad, Maharashtra.

The company is looking at an investment of $20 million (Rs 83.25 crore) in this greenfield facility.

The company provides packaging solutions for the pharmaceutical, medical devices, food, electronics sectors and also general-purpose thermoform packaging.

Addressing a press conference here on Friday, Mr Joachim Kreuzburg, President and Chief Operating Officer (Europe and Asia), said, "India is a key market for the company in Asia with major pharmaceutical companies here being our customers. The facility will have installed capacity of 15,000 tonnes per annum and is expected to be operational by the end of the first quarter of 2008 (March-April next year)."

Domestic, export market

Mr Kreuzburg added that the new facility would cater to both the domestic and export markets. The company expects to market 80 per cent of the production in the domestic market, while the rest would be exported to South-East Asia and West Asia. The pharmaceutical packaging business is estimated to be around $5 billion in Asia.

KP currently supplies pharmaceutical packaging products to India from facilities in Western Europe and Thailand. The company had earlier this year acquired PVC films and sheet manufacturing plant from Supreme Industries Ltd with an installed capacity of 10,000 tonnes per annum for $6 million (Rs 26 crore).

Klockner Pentaplast worldwide operates out of 21 manufacturing facilities in 11 countries and closed the previous fiscal with revenues of $1.5 billion. The Indian sales contributed $10 million and the company expects close to $30 million in the first year once the new facility is operational.

Capacity expansion

"The initial capacity of 15,000 tonnes per annum would be further ramped up in the second phase of expansion. And the manufacturing base in India would allow the company to sell products at competitive rates, as it would be able to avoid the duty component levied on such imports," said KP India Managing Director, Mr Alok Marwaha.

Pharmaceutical packaging business currently stands at around $60 million in India and is growing at around 10 per cent annually.

Mr Marwaha said that the company plans to have regional offices in all the major metros to service the 350 clients in India and around 500 clients in the region.

Mr Kreuzburg added that the company was planning to set up a new facility in China, similar in size to that in India, specialising in different packaging solutions.

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