MeadWestVaco acquires Ranjangaon-based Wadco Packaging

24 October 2008

Packaging material maker MeadWestvaco Corp today said it had acquired a 51-per cent stake in one of the largest Indian corrugated fibre cartons maker,Wadco Packaging Pvt. Ltd.

MeadWestvaco plans to run the Ranjangaon, Maharashtra-based Wadco as a joint venture with its promoter Pankaj Wadhwa.

The MWV Wadco joint venture will extend the corrugated packaging design, manufacturing and technology capabilities of Wadco and MWV to India's local fresh produce market, where products suffer a 40-per cent value loss due to inefficient post-harvest practices, processing and handling before they reach the market.

The joint venture will help eliminate waste and strengthen supply chain efficiency by protecting products during transport to the local markets.

"Wadco's manufacturing capabilities and on-the-ground expertise combined with MWV's advanced packaging technology will provide solutions that meet the business challenges of the Indian marketplace," said Bruce Thomas, senior vice president, global market strategy and emerging markets, MWV. "This transaction supports our overall strategy for growth in emerging markets and is an important step in enabling us to better address local needs while building our presence in the fast-growing Indian market."

Under the agreement, MWV will oversee Wadco operations and Pankaj Wadhwa, current owner of Wadco, will continue to run the company as managing director.