Pacman-CCL signs a binding agreement to acquire a majority stake in Super Labels.
On the 2nd of February 2017, the world’s largest label printing company CCL announced their entry into India. CCL lead by Geoffery T Martin and headquartered in Toronto Canada has 2015 revenues reported at 3 Billion USD and a total workforce in excess of 19000 employees, operating out of 150 state of art manufacturing facilities spread over North America, Latin America, Europe, Asia, Australia and Africa.
Pacman-CCL signs binding agreement to acquire Super Labels
CCL Industries, global provider of specialty label and packaging solutions for corporations, government institutions, small businesses and consumers, announced that the Pacman-CCL joint venture, headquartered in Dubai, has signed a binding agreement to acquire a 70% stake in privately owned Super Label, based in Mumbai. Closing is subject to customary procedures and is expected to conclude later this month. The company will continue to be headed by its founder, Bharat Mehta, and becomes part of Pacman-CCL trading under the CCL corporate identity system with immediate effect.
Super Label focuses on pressure sensitive labels for large consumer products and healthcare customers with operations in India. Pacman-CCL will invest $3.75 million in the venture to acquire its stake, reduce debt and provide funding for future expansion. With plants in Dubai, Oman, Saudi Arabia, Pakistan and Egypt as well as India, the company is jointly owned by CCL and Albwardy Investment based in Dubai and headed by John Dawson, Managing Director. 2016 sales were approximately $50 million.
Geoffrey T. Martin, President and CEO of CCL, commented, “Over the last decade we looked many times at entering India through acquiring a local business. Super Label is one of the best managed we have seen, I believe this is the best way forward given Pacman-CCL’s proximity to the region. Our Indian Checkpoint subsidiaries remain separate to this venture, entirely under CCL control, focusing exclusively on Retail and Apparel markets.”
CCL has been eyeing the Indian market for more than 6 years now. In its 21st March 2011 announcement, CCL Label Worldwide ruffled many feathers and set the ball rolling towards the current trend of JV’s and acquisitions. CCL label headquartered in Canada, employing 5800 employees at 61 locations around the world, acquired 50% stake in Dubai based Label Co. Pacman. It had also agreed to a prospective future Greenfield investment by Pacman- CCL in India. Though CCL has yet to announce their entry into India in label production yet leading Indian label manufacturers have opened their doors by either selling out or partnering with larger players.
During Labelexpo 2013 at Brussels, Geoff Martin, Chairman of CCL Label, mentioned that they were looking for companies whose promoters had emotional dedication towards their venture. He was considering those who could manage their company well with vision to see their units and team prosper despite management changing hands. In December 2015 Guenther Birkner, now the President, Healthcare and Specialty business at CCL visited Mumbai and the news spread everywhere that CCL had signed up to acquire controlling interest in Bharat Mehta lead Super Labels in Mumbai. However, there was no official announcement. After CCL took over Checkpoint systems, it was more evident that CCL now has presence in India. CCL has formally announced its entry into label industry of India.
One of India’s first label printers started with a Siki
Bharat Mehta and his brother had setup a label press around 1976. Bharat Mehta bought his first Siki Label press from Ahmedabad where it was being used to produce unsupported wet glue labels. Shifting over from a business in agricultural pumps at the age of 26, Bharat Mehta settled down perfectly in to his label printing business. He is one of the most respected label printers. From a single Siki he went on to add a fully loaded Gallus, an EM 280 8-colours, EM 280 6-colours, and an Acquaflex. He was the first in India to opt for a full UV label press. In the earlier part of the decade of 2000-2010 he lost heavily in a major fire but firm resolve brought him right back in what he liked best, “Producing self adhesive labels”.
Soft spoken Bharat Mehta is both, the history and present of the Indian label industry. He is one of the first label printers in India and his Super Labels is one of the leading and respected label printing companies in Mumbai. His two sons joined him in business after completing their management studies.
Indian label industry is growing for sure but most of our printers complain of intense competition and depleting margins. They are under pressure to service debt as they would ideally wish to do comfortably. They are in a dilemma on further expansion, especially when large multinational companies are investing into India. They wonder if the existing customer base and market will grow rapidly to provide enough opportunities for all or shrink by the incoming of foreign investors into labeling. My personal view is that with a growing literate population, low per capita usage at present and expanding retail, there will be enough business for all.
(Written by Harveer Sahni, Managing Director Weldon Celloplast, India)
