The US-based company will expand the capacity of Daman facility of Powerband (in which it acquired 74% stake in September 2016) and construct a greenfield facility in the country
The US-based Intertape Polymer Group Inc, which manufactures paper and film-based pressure-sensitive tapes for packaging industry, is planning to invest $ 20 million (about Rs 135 crore) to strengthen its business and enhance capacity in India.
Intertape’s new investment plan involves capacity expansion of Powerband plant in Daman as well as the construction of a greenfield facility in the country. With this, the company is aiming to grow its business beyond North America, where it has been a dominate player, to fast-growing Indian market, which is expected to witness manifold increase in packaging requirement.
This announcement, made by the company while declaring its third quarter results, follows Intertape’s acquisition of controlling stake (74 percent) in Powerband Industries Pvt Ltd (a global supplier of acrylic adhesive-based carton sealing tapes and stretch films located in Daman), in September this year. The remaining 26 percent state in Powerband is held by the Desai family which founded the company in 1994.
“We believe that it is critical to IPG’s growth that we expand from being a primarily North American producer to becoming a greater participant in the global market.
This transaction materially furthers IPG’s strategy to expand globally due, in part, to Powerband’s presence in virtually every significant global market, as well as providing IPG with the benefit of access to a low cost and high growth jurisdiction,” said Greg Yull, IPG’s president and chief executive officer, on the occasion of acquiring stake in Powerband in September 2016.
Intertape Polymer Group Inc is one of the leading players in the development, manufacture and sale of a variety of paper and film based pressure-sensitive and water-activated tapes, polyethylene and specialised polyolefin films, woven coated fabrics and complementary packaging systems for industrial and retail use.
The company employs approximately 2,200 employees with operations in 18 locations, including 12 manufacturing facilities in North America, one in Europe and one in India.