In a major development in the Indian pharmaceutical packaging space, UK-based Rexam, one of the world's top five in consumer packaging groups has acquired Truepack, a dedicated pharmaceutical packaging major and a leader in the south India for a total cash consideration of £5m. The new company 'Rexam Pharma' is located at the same premises of Truepack in the Peenya Industrial Area, Bangalore.

Rexam is not an unfamiliar name in the Indian pharmaceutical space and was a much-sought-after provider of packaging solutions. "With the acquisition of Truepack, we will support the Indian pharma industry's growth. Our focus is both domestic market and regulated regions. We will now capitalize on Truepack's marketing network to further augment our presence in the country and increase our domestic customer profile", Eric Soubeiran, managing director, Rexam Pharma told Pharmabiz in a telephonic interview.

Plans are underway for more acquisition in India but no details in terms of a specific sector or investments were disclosed.

The 8-year-old Truepack which was a part of the London based Comcraft & Tecapet Group pioneered the concept of design and manufacture of Three Piece Droppers using Injection Blow Moulding Technology (IBM) which is housed in a modern Class 10K facility at Bangalore. This product finds is used for packing ophthalmic, nasal and other oral drops. It is also know for its tamper evident closure systems. The company also has a product design-development centre, customized lab for validation and testing of process and products apart from quality control departments. In FY March 2006, Truepack registered sales to the tune of £2million, almost exclusively from the domestic market. It also recently received approvals from US for exports

According to Lars Emilson, chief executive officer, Rexam, "These deals are further evidence of our strategy to extend our business into emerging markets. Truepack, a well invested pharma-focused company with a good client base, gives us a foothold in India's fast growing pharmaceutical packaging market."

Rexam's business operations are Beverage Packaging and Plastic Packaging. It is the world's leading beverage can maker. Its beverage packaging focuses on metal, glass and plastic. The plastic packaging solutions are for the cosmetic, pharmaceutical and food sector.