Finnish packaging firm Huhtamaki Oyj is acquiring India-based Ajanta Packaging, a privately owned manufacturer of pressure sensitive labels, for 13 million euros ($16.14 million).
In a March 23 statement, the company stated that the acquisition would strengthen its labeling business in India by adding new printing technologies and improving its innovation capability.
The acquired business has an annual sales of 10 million euros ($12.4 million) and employs 170 people at its two manufacturing facilities in Daman, in western India, and Baddi, in northern India.
The transaction is expected to be closed at the end of April.
The business will become part of Huhtamaki's flexible packaging business segment.
According to figures released by Tata Strategic Management Group in 2016, India's packaging industry in is expected to reach 60 billion euros ($74.5 billion) in 2020 from 26 billion euros ($32.3 billion) in 2015.
The report also predicted that India's packaging industry would register 18 percent annual growth rate, with the flexible packaging and rigid packaging expected to grow annually at 25 percent and 15 percent, respectively.