MUMBAI, NOV 15: Essel Packaging Ltd (EPL), belonging to the Subhash Chandra group, has acquired Propack, the fourth largest laminated tube producer in the world, in a negotiated deal, including a cash payment of $11 million.Post acquisition, Propack promoter owner Bernhard A Schwyn would hold 22 per cent stake in Essel Propack, Subhash Chandra 31 per cent and the rest with financial institutions and the public. The merger of these two packaging leaders has paved the way to acquire entire global market and with their efforts the new entity would acquire 80 per cent of market share in leading markets like India and China, Bagwadia said during his presentation.Schwyn, who had signed the deal with EPL, termed the merger of unique strengths in global management, innovations and technology. ``We aim to be the most admired partner supplier. In that respect, Propack could not have found more ideal partner than Essel Packaging," he said.Schwyn and his family would be accommodated in the board of Essel Propack Ltd while restructuring the board, Chandra announced. "By merging resources and innovations, the new company will aim at significantly enhancing the services and benefits for our valued customers and with our global presence in the four continents in this world combined with managerial expertise in dealing with such markets in India and China will help us to captain the future of our company worldwide," Chandra said.Over 15 years, EPL has grown 30 times and has operations now in China, Germany, Egypt, Nepal besides 5 plants in India. Propack, the 4th largest laminated tube producer with operations in China, Philippines, Indonesia, Venezuela and Columbia. Propack has patents for a `revolutionary tube processing technology.
