INDONESIA (From news reports) -- Indonesia's Asia Pacific Resources International Ltd (APRIL) Group, which makes fibre, pulp and paper, announced on May 15 that it has acquired a controlling stake in Origami, India's leading consumer tissue products company, marking its entry into the fast-growing India tissue and personal hygiene market.
APRIL Group did not provide details on the deal value.
Bloomberg reports that the deal, estimated at approximately $50 million in total, includes the purchase of a 30% holding owned by BanyanTree Growth Capital II, according to sources who preferred to remain anonymous as the information is not public. ICICI Securities is serving as the advisor for APRIL Group, and a portion of the deal value will be paid upfront, the sources added.
Origami operates tissue paper mills and manufactures a range of products, including facial tissues, paper napkins, toilet tissue rolls, and wet wipes.
Founded in 1995 by Neelam and Manoj Pachisia, Origami would continue under their leadership with a significant minority stake after the acquisition.
The Indian tissue market has shown substantial growth due to an expanding middle class, changing consumer perceptions on hygiene, and increased demand for international-standard products, APRIL Group, which has manufacturing operations in Indonesia's Riau Province, said in a statement.
"The Indian tissue market is rapidly expanding, driven by consumers' evolving perceptions and habits on hygiene and personal care," said Suneel Kulkarni, Country Head, APRIL India & Subcontinent. "By bringing together APRIL and Origami, we're well placed to serve the growing national demand for high quality, sustainable personal hygiene products."
APRIL said its acquisition of Origami aligns with its strategy to expand into populous markets and follows investments in tissue markets in China, Southeast Asia and Brazil.
The acquisition enables APRIL to integrate leading local enterprises into its global growth plans and upgrade technology and processes to provide environmentally conscious products.
APRIL aims to support foreign direct investment in local production through the "Make in India" initiative.
"Together, APRIL and Origami are stronger," Kulkarni added. "With this acquisition, APRIL is well-positioned to drive increasing penetration and access to high quality and sustainably produced tissue paper and other products to the Indian consumer. This growth will be achieved through additional investments across manufacturing, deepening existing channels, expanding and developing new channels, and product innovation."
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