Huhtamaki eyes India acquisitions with $500 mn war chest: report

Huhtamaki India, the local arm of Finnish packaging company Huhtamaki Group, is preparing for a slew of domestic acquisitions as the sector enters a phase of consolidation, Mint reported, citing people familiar with the development.

Backed by a war chest of $400–500 million, the company is scouting for packaging firms with scaled-up operations to expand its product portfolio and geographical footprint, the report said.

The move comes as market leaders in the packaging industry, including Essel Propack and Manjushree, weigh similar expansion strategies to broaden their asset base and reinforce market presence.

Huhtamaki Oyj, the Finland-based parent, holds a 67.73% stake in the Indian listed entity.

Set up in 1935 and headquartered in Thane, Huhtamaki India operates 10 manufacturing facilities across Maharashtra, Uttarakhand, Assam, Andhra Pradesh, and Himachal Pradesh, serving clients across the food, pharma, personal care, and industrial segments.

The company closed FY24 with a revenue of ₹2,550 crore, up 2.98% from the previous year, and a profit after tax of ₹140 crore.

Ratings firm Crisil noted in a recent report that Huhtamaki India’s healthy liquidity, driven by internal accruals and proceeds from recent land sales in Thane and Ambernath, is expected to comfortably help meet its capital expenditure and working capital requirements through FY26.

The company’s net cash accruals over FY24–26 are projected to be sufficient to support its investment plans, with the utilization of funds from asset sales to be closely monitored, the report said.

India’s packaging sector, valued at $74.7 billion in FY23, is projected to exceed $100 billion over the next five years, driven by structural tailwinds such as rising disposable incomes, urbanization, and growing demand for processed and packaged goods.