Jurisdiction - India
India – CCI Approves Acquisition By Huhtamaki PPL Limited.

13 January, 2015


On November 20 2014, the CCI approved the proposed combination between Huhtamaki PPL Limited (‘HPPL’) and Positive Packaging Industries Limited (‘PPIL’) (together referred to as the ‘Parties’). The proposed combination relates to acquisition 100% equity shares of PPIL and subsequent merger of PPIL into HPPL (‘Proposed Transaction’).

CCI observed that HPPL is engaged in the business of consumer packaging and is specifically active in the areas of flexible packaging, labelling technologies, shrink sleeves and specialized cartons, along with several other products. PPIL is engaged in the business of flexible packaging, labelling technologies and shrinks sleeves. It further observed that PPIL also has integrated facilities for rotogravure printing cylinders, cast polypropylene films, polyethylene film etc.

CCI observed that the flexible packaging market may be classified into three segments (a) roll form laminates; (b) pre-formed pouches and (c) tube laminates based on the type of flexible packaging laminates and the packaging formats. CCI observed that the market may also be segmented based on end usage markets such as food, beverages, confectionary, dairy, home and personal care, pharmaceuticals etc.

Accordingly, CCI observed that there were horizontal overlaps in the products of the Parties as regards the flexible packaging business which included roll form laminates, pre-formed pouches and tube laminates, shrink sleeves and pressure sensitive labels. CCI further observed that there was no significant vertical relationship between the Parties except that HPPL purchased minor quantities of packaging film from PPIL annually, which accounted only for a small portion of PPIL’s market share.

CCI observed that the combined market share of HPPL and PPIL, in the overall flexible packaging, is less than 5%.

CCI considered the Proposed Transaction and decided to seek opinion from Indian Institute of Packaging, Mumbai (‘IIP’) in relation to the flexible packaging market in India. IIP stated that along with HPPL and PPIL there are other leading manufacturers who are engaged in manufacturing of flexible packaging products including high grade packaging material in India.

CCI observed that firms in the Indian packaging industry are attempting to upgrade their packaging technologies in order to produce high quality packaging materials so as to meet the requirement of FMCG companies which was substantiated by IIP. Further the combined market share of the parties was not enough to raise any competition concern and there were other competitors in the market for flexible packaging and labelling technologies.

Accordingly CCI found that the Proposed Transaction was unlikely to cause an AAEC in the market and accordingly approved the Proposed Transaction.




For further information, please contact:


Zia Mody, AZB & Partners
[email protected]


Abhijit Joshi, AZB & Partners 
[email protected]

Shuva Mandal, AZB & Partners 
[email protected]


Samir Gandhi, AZB & Partners
[email protected]

Percy Billimoria, AZB & Partners 
[email protected]


Aditya Bhat, AZB & Partners 
[email protected]

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