DENMARK – Brødrene Hartmann, a Danish manufacturer of moulded fibre packaging has entered into an agreement to acquire Mohan Fibre Products India’s leading manufacturer of egg and fruit packaging.
Based in Punjab, Mohan Fibre manufactures and distributes moulded-fibre packaging to egg and apple producers in northern states of Himachal Pradesh, Punjab and Haryana.
The acquisition marks Hartmann’s entry into the market and gives the company a solid platform in the attractive Indian market, which is characterised by a favourable demographic development and increasing egg and fruit production.
Hartmann believes that the combination of population growth and rising urbanisation in the coming years forms a solid foundation for continued development of the retail industry and increasing demand for egg packaging.
In addition, the company foresees an increase in the penetration of moulded-fibre packaging for protection of fruit as supply chains are professionalized.
Torben Rosenkrantz-Theil, CEO of Hartmann saiys: “Mohan Fibre is a profitable company and will improve our earnings from day one.
“The acquisition marks a strategic decision to enter into the great Indian market in which we see significant growth potential.”
Hartmann has agreed to pay Mohan Fibre shareholders DKK 119 million (US$17.56 million) for the deal, which is expected to be completed by mid-2020 conditional on a formal authority approval of Hartmann as a buyer.
Hartmann maintained that the expansion is in line with the company’s strategy ‘Think ahead’, which also entails significant investments in existing markets.
In 2020, Hartmann plans to complete a significant capacity expansion in Europe with a particular focus on the British and Southern European markets, significantly expand the existing factory in the US and open a new factory in Brazil.
Headquartered in Gentofte, Denmark, Hartmann has 2,000 employees and operates 12 factories in Europe, Israel and North and South America.
In addition to manufacturing moulded-fibre egg packaging, the company also sells machinery and technology to manufacturers of moulded-fibre packaging in selected markets.