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|October 20, 1998||
Essel Packaging to set up Rs 425 million joint venture in Germany
Essel Packaging Limited, India's largest manufacturer of laminated and seamless tubes, is setting up a manufacturing plant in Dresden, Germany.
Cyrus Bagwadia, Essel's chief executive and Sanjay Das, executive president (overseas business), have successfully concluded the joint venture with the German partner, Dr Helmut Roschinger, the owner of Argenta International, a commercial organisation based in Munich.
The total cost of the project is estimated at around Rs 425 million.The joint venture company will have an equity base of Rs 130 million while the rest will be raised through loans.
The plant will be located at Dresden which is strategically located close to Poland and other East European countries and with direct access to Russia. The plant will supply laminated tubes to customers in Germany and other European countries.
On the joint venture in Germany, Bagwadia said that the laminate for manufacturing tubes will be supplied from India. Essel will be receiving royalty, and technology fees from the joint venture company. The German venture is expected to commence commercial operations by the first quarter of 1999.
The company has other profit-making ventures in China and Egypt. The Nepal unit is expected to commence production in early 1999.
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