Bosch Packaging Technology and Klenzaids Contamination Controls are planning a joint venture in India that they intend to use to extend their global reach, particularly in liquid pharmaceuticals and packaging machines for clean-room environments. Both companies signed agreements on November 28, 2014.
The plan is for Bosch to acquire a 49% share in Klenzaids, an owner-managed company that produces processing, packaging, and clean-room technology for the global pharmaceutical industry.
The Klenzaids and Bosch Packaging Technology product portfolios complement each other across the board. Klenzaids generated sales of around AU$8.8 million in 2013 and employs about 350 people. Bosch Packaging Technology, which last year achieved global sales of AU$1.8 billion and employs about 5,600 associates worldwide, already has a presence in India through its Verna location in the state of Goa. The joint venture is set to be headquartered in Mumbai and is expected to employ 380 associates. The plan is subject to the approval of the antitrust authorities.
The primary motivation for the joint venture is the opportunity to fill India’s need for complete lines from a single source.Klenzaids is an Indian family-run business with a product portfolio that includes laboratory and transfer systems designed to meet clean-room requirements. These machines are indispensable for the sterile production of liquid pharmaceuticals. One of the company’s USPs is its ability to supply laboratories that meet biological safety class standards 2-4. Class 4 laboratories have to satisfy the highest safety requirements, such as being able to guarantee the absolute isolation of microorganisms from the environment. Among the company’s other strengths are isolators and processing technologies for the production of liquid pharmaceuticals.
Klenzaids will contribute its expertise in clean-room and processing technologies as well as peripheral systems, and Bosch will contribute its strength in innovative filling technologies. Klenzaids provides customers in the private and public sectors not just with plants, systems, and accessories but also with turnkey solutions: buildings and equipment that a customer can use as soon as they are built or assembled to process and package its particular product. These solutions include laboratories with the highest protection class for use in biosafety.
Hamish Shahani, managing director of Klenzaids, said: “Joining forces and pooling our resources will give us a stronger starting position in the emerging Indian market. Despite our different regional backgrounds, Bosch and Klenzaids have a lot in common. Both place great emphasis on profitable growth, innovative strength, reliability, a motivated workforce, and strong value orientation.”
For Bosch, the venture is a strategically important complement to its Goa location. Bosch Packaging Technology has been developing, building, and selling vertical and horizontal flow wrapping machines for packaging food as well as filling and sealing machines for liquid pharmaceuticals at its location in Verna since 2012. To date, Bosch Packaging Technology has sold over 1,500 packaging machines to leading brand companies in the food and pharmaceutical industries. Bosch is already a world leader in sterile applications with 10,000 plants installed around the world for the pharmaceutical liquids sector.
Dr. Steffen Berns, president of Bosch India, commented, “Following the inauguration of our manufacturing unit in Verna, this is the second milestone for our packaging technology business in two years. I am extremely confident that this new partnership will further strengthen our product portfolio and market reach. The activities of both parent companies dovetail perfectly, and our pharmaceuticals unit as well as our customers will benefit immensely from this joint venture.”
India's economy grew 5.7% in the three months to June 2014 and that growth is expected to rise to 5.6% in 2014 and then to 6.4% in 2015 as both exports and investment increase, according to the World Economic Outlook (WEO) report released by International Monetary Fund (IMF) in November.
