Aluminiums packaging firm Ess Dee Aluminium is striving for huge growth through the inorganic route earmarking Rs500-600 crore for acquisitions in the domestic and international markets.
The company is eyeing Kolkata-based India Foils currently under the Sterlite Group and has completed the Phase I of due-diligence. The process of finalising the deal is expected to be concluded over the next two months. India Foils has three units of which two are closed. state government help is sought by way of assistance like electricity subsidy and sales tax waiver for the turnaround. The company has also bid for Alcan's packaging business which could be valued at $1 billion (Rs 4,000 crore approx.). However it will take some time to finalise this deal. If it succeeds, then the company will have a essence in the cosmetic packaging industry.
The company's first overseas greenfield aluminium foil unit production in Dubai will begin by March with an investment of $35 million. The company plans to set up one more unit in Sikkim in the near future. Currently the company has plants in Daman, Goa, Baddi and Vasai. The company wants to add capacity through the inorganic route and acquisitions its primary thrust, for the next year as growth through greenfield projects would take some time to come into stream.
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