Japanese firm Toyo Aluminium has acquired a 33.4% stake in Indian pharmaceutical packaging firm Svam Packaging Industries.
While the parties did not disclose the financial terms of the transaction, it was revealed that as part of the joint venture deal, Svam will now be known as ‘Svam Toyal Packaging Industries’.
The company will be engaged in manufacturing aluminium foil packaging solutions, such as laminates for the pharma industry.
The partnership with the Japanese firm will allow Svam to bring in advanced technology in the packaging sector and anti-counterfeiting solutions to curb the problem of spurious drugs.
Svam Packaging Industries managing director Satish Ailawadi said: “This partnership will help us serve our customers better and provide safer packaging products in healthcare as well as food and beverage industry.”
The partners are also planning to establish manufacturing units in India and abroad to serve clients in the pharma and food packaging industry.
Besides serving domestic pharmaceuticals companies, Svam exports its packaging products to clients in Europe, South America, the Middle East and South East Asian countries.
The company has a manufacturing capacity of 10,000t of cold form foils per annum through its three plants in India.
Toyo Aluminium president Hiroshi Yamamoto said: “India is a growing market with a requirement of innovative products. We want to invest in India’s remarkable growth story and ensure product safety through offering our innovative technology in the packaging domain.”
Under the terms of the deal, the partners will set up an R&D centre in Japan to develop new products.