Date:13/05/2007 URL: http://www.thehindu.com/2007/05/13/stories/2007051302241300.htm

Business

Klockner to set up manufacturing facility

Staff Reporter

NEW DELHI: The Klockner Pentaplast group, provider of packaging solutions, on Friday announced setting up its manufacturing plant at Aurangabad in Maharashtra.

The German company will spend Rs.83.35 crore in the fist phase of its manufacturing facility that will produce films for pharmaceutical and food packaging as well as speciality technical films.

"The production facility in India will not only cater to the needs of the Indian market but also supply its products to neighbouring countries — China, Pakistan, Bangladesh and the Gulf and other South Asian nations,'' Klockner Pentaplast's President and COO (Europe and Asia) Joachim Kreuzburg said.

The company will also be developing its Aurangabad plant as its "Centre for Excellence" for Asia that with help in the company's research and design activities.

"The greenfield facility will have a capacity of 15,000 tonnes annually and we hope to earn $ 30 million in the first year of our operations. India is all set to become a major player in the pharmaceutical sector and we want India to be a hub for pharmaceutical packaging solutions in Asia,'' Mr. Kreuzburg said.

At present, the pharmaceutical packaging business in Asia stands at $4-5 billion.

According to the company's Managing Director (India) Alok Marwaha, "The new plant's capacity will be further ramped up in the second phase of expansion. Soon we will also be investing $ 20 million in a new pharmaceutical film-making facility here that would cater to both domestic and export markets.''