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Gujarat Glass buys US firm`s cosmetics unit
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Gujarat Glass Pvt Ltd (GGPL), a Piramal Enterprises outfit, has acquired the cosmetics and perfumery business of the US-based The Glass Group (GGI) for $18 million (about Rs 81 crore).
The US acquisition of GGPL, which was funded through internal accruals and loans from banks, involves takeover of GGIs Flat River plant at Missourii in the US. The plant of GGI has two furnaces of 100 tonne per day with nine lines and the latest bottle decoration and PVC coating facilities.
Gujarat Glass is a leading glass container manufacturer in the country focussing on the speciality glass containers for the quality conscious cosmetic and pharmaceutical segments.
With this acquisition, GGPLs total turnover would be around Rs 750 crore with almost two-third of its sales in the foreign markets.
GGIs cosmetics and perfumery business is estimated at $70 million. Established in 1988, this US company has been a pioneer in glass bottle manufacturing in America.
Commenting on the US acquisition, Swati Piramal, director, Nicholas Piramal said GGPL has been making strategic acquisitions to further consolidate its position in the global glass bottle market.
The GGI business and facility acquisition would facilitate technical as well as marketing synergy to both these companies. While GGPL would benefit by introducing its products into the US market through this US arm by expanding the total product basket of GGI, it would also be benefited with the some of the technology from GGI plant, she added.
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October 20th, 2005
Source: Business-standard.com |
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