Rexam to set up shop in India

MUMBAI: Rexam, the world’s largest maker of drink cans, will soon set up shop at Taloja, near Mumbai, to manufacture beverage cans. The company, which has struck a joint venture with Hindustan Tin Works, will invest $13.2m, to set up the can production line, an industry ministry official told ET.

The facility, to be operational by the year-end, will have an annual capacity of 450m cans. State government officials say, the proposed unit will offer direct employment to 150 people.

The company’s domestic partner has sought 25,000 sq metre floor space in the industrial township of Taloja, Rajiv Jalota, CEO, Maharashtra Industrial Development Corporation (MIDC), said.

The MIDC’s 907 hectare-Taloja estate is already a home to major companies like Exide Battery, E-Merck, Kellogg India, Indian Aluminium, Reliance and Bombay Dyeing. “It will now house another big name,” an industry ministry official said.

As per the agreement, Hindustan Tin will hold 49% in HTW Beverage Can India—the JV company, while Rexam, with 51% stake, would be the majority partner. Currently, HT’s clientele includes Nestle, Heinz, Hindustan Lever, Wockhardt, Britannia, Tata Coffee, Vadilal, Pepsi, Coca-Cola etc.

The name of the new entity would be changed to Rexam Beverage Can (India) once formalities are completed. The investment would be funded through 52% equity and 48% debt.

“This would mark out entry in the South East Asian market...going by global growth indicators, India has been our preferred choice,” Rexam Beverage Can Europe and Asia vice-president, Richard Peachey said after finalising its India plans.

The JV firm is in talks with Pepsi, Coca-Cola, United Breweries and SAB Miller to supply cans. The new unit hopes to sell 50m cans this fiscal and plans to supply 250m cans in ’07-08. Besides meeting domestic demands, the JV company would also tap export opportunities in the SAARC region.