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videos | IST

Blackstone says emerging market consumption growth prime reason for Essel Propack acquisition

Private equity fund manager Blackstone India on Monday said emerging market consumption growth was the prime reason for the acquisition of Essel Propack, a leading global speciality packaging company and the largest global manufacturer of laminated tubes.
In an interview to CNBC-TV18's Nisha Poddar, Amit Dixit, senior managing director of Blackstone India, said, "We are committing $0.5 billion to Essel Propack, which is a billion dollars in India just this year across two transactions. Essel Propack has 40 percent of the market share in the oral care category. So, the toothpaste tubes you see, almost everywhere in the globe are made by Essel Propack and they have a strong competitive position."
Ashok Goel vice-chairman and managing director of Essel Propack, said, "As per the regulation whatever money is paid to me as an erstwhile promoter cannot be excluded from the open offer. The first condition that I had with any potential partner was that I do not want to charge a single penny more than my minority shareholders. So, therefore this Rs 16 crore that I am going to get per year and totalling to Rs 80 crore has already been bundled into the open offer upfront."