Huhtamaki India, the Indian subsidiary of the Finnish packaging giant Huhtamaki Group, is gearing up for a significant expansion drive through mergers and acquisitions (M&A). The company has reportedly amassed a war chest of $400-500 million to acquire local assets, aiming to broaden its product portfolio and boost revenue. This move occurs amidst a growing wave of consolidation within the packaging industry, where large players are seeking to enhance their market presence and capabilities.
The packaging sector has witnessed considerable M&A activity in recent years, with companies like Essel Propack and Manjushree being acquired by larger entities. Huhtamaki's planned investment signals its intent to actively participate in this consolidation trend and strengthen its position in the Indian market.
Huhtamaki's interest in expanding its footprint in India aligns with the company's global strategy of pursuing growth in emerging markets. In 2021, Huhtamaki acquired Elif, a flexible packaging company with operations in Europe, the Middle East, and Africa, for $483 million. This acquisition expanded Huhtamaki's technology capabilities, product range, and manufacturing footprint, particularly in Turkey.
The Indian packaging industry is driven by factors such as rising consumerism, increasing demand for packaged food and beverages, and the growth of e-commerce. As a result, the industry presents attractive opportunities for companies looking to expand their operations and cater to the evolving needs of consumers.
Huhtamaki's planned M&A push in India suggests a targeted approach to acquiring companies that can complement its existing product lines and enhance its market reach. The company may focus on targets with innovative packaging solutions, sustainable packaging options, or strong customer relationships.
In addition to acquisitions, Huhtamaki is also focused on internal growth and efficiency improvements. In the first quarter of 2025, the company realized cost savings of €87 million, which helped offset the impact of cost inflation. The company also acquired Zellwin Farms, a producer of molded fiber packaging in Florida, in April 2025.
Huhtamaki's commitment to sustainability is evident in its target to have all its products designed to be recyclable, compostable, or reusable by 2030. The company is actively seeking solutions that reduce the environmental impact of packaging, and this focus is likely to influence its M&A strategy in India.
