MeadWestvaco Corporation , in sync with its strategy of expanding in emerging markets, has acquired a leading producer of corrugated packaging materials in India, Ruby Macons Limited. The company will become a part of MeadWestvaco’s global Industrial Packaging segment.
Founded in 1986, Ruby Macons currently operates two mills containing three paper machines in and around Vapi, Gujarat. The mills produce around 150,000 tons of containerboard annually. The company generates annual revenue of around $80 million enjoying double digit operating margins. The company has achieved more than 20% average growth over the last several years.
MeadWestvaco has been operating in India for the past 20 years. The company currently has a facility in Pune manufacturing rigid, humidity resistant corrugated packaging for fresh fruits and vegetables, consumer goods, household appliance and pharmaceuticals.
It has its corporate office in Pune, which caters a variety of consumer markets, including Healthcare, Beauty & Personal Care, and Beverage. The company also markets specialty chemicals for asphalt paving and other specialty chemicals markets.
Packaging is a large and growing global market, particularly benefiting from the economic prosperity in emerging markets around the world, particularly in Brazil, China and India. The rapidly-evolving retail sector and the fast-growing middle class make India a profitable destination for packaging players.
Furthermore, packaging is becoming crucial to the successful marketing of products as solutions that enhance freshness, convenience and product safety are becoming imperatives since consumers are becoming more and more aware these days. MeadWestvaco is well positioned to capture growth from these trends with its new products and solutions.
Richmond, Virginia-based MeadWestvaco is a global producer of packaging, coated and specialty papers, consumer and office products, and specialty chemicals. Among the principal markets that the company serves are the food, beverage, beauty & personal care, healthcare, media & entertainment, tobacco and home & garden industries.
The company operates in 30 countries and serves customers across more than 100 nations. MeadWestvaco retains a short-term Zacks #3 Rank (Hold). MeadWestvaco competes with International Paper Company
(IP - Free Report
) and Weyerhaeuser Co.
(WY - Free Report