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APRIL Group Expands Global Presence with Acquisition of Origami Cellulo in India

APRIL Group acquires Origami to enter India's growing tissue market, marking a strategic $50 million expansion.

By Athena Xu

5/15, 05:40 EDT
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Key Takeaway

  • APRIL Group acquires a controlling stake in India's Origami Cellulo for $50 million, marking its strategic entry into the Indian market.
  • This acquisition is part of APRIL's global expansion strategy, following investments in China, Southeast Asia, and Brazil.
  • APRIL aims to tap into India's rapidly growing tissue market, driven by changing consumer hygiene and personal care habits.

Strategic Expansion

Indonesia's Asia Pacific Resources International Ltd. (APRIL) Group has announced its acquisition of a controlling stake in Origami Cellulo Pvt., an Indian tissue paper manufacturer. This move signifies APRIL's entry into the Indian market, with the deal valued at approximately $50 million. The acquisition includes buying a 30% stake previously held by BanyanTree Growth Capital II. The advisory role for this transaction was served by ICICI Securities, with part of the deal value to be paid upfront. While APRIL has refrained from disclosing specific financial details, the strategic intent behind this acquisition is clear.

APRIL's expansion into India is part of a broader strategy to increase its global presence, particularly in the world's most populous nations. This follows the company's recent investments in the tissue markets of China, Southeast Asia, and Brazil. Suneel Kulkarni, APRIL's country head for India and the subcontinent, highlighted the rapidly expanding Indian tissue market as a key driver for this acquisition. The market's growth is attributed to changing consumer perceptions and habits regarding hygiene and personal care.

Global Footprint Enhancement

APRIL, under the conglomerate RGE Pte. owned by Indonesian tycoon Sukanto Tanoto, is actively seeking to broaden its international reach through strategic acquisitions. The purchase of Origami Cellulo Pvt. is a testament to APRIL's ambitious global strategy. In December, APRIL announced its intention to acquire Vinda International Holdings Ltd., a tissue maker, for up to $3.3 billion. These moves underscore APRIL's commitment to becoming a significant player in the global tissue market, leveraging acquisitions to tap into new and expanding markets.

The company's focus on the Indian market is particularly noteworthy, given India's large and growing population. This demographic factor, combined with evolving consumer trends towards better hygiene and personal care, presents a lucrative opportunity for APRIL. The acquisition of Origami Cellulo Pvt. not only provides APRIL with a foothold in India but also aligns with its long-term vision of enhancing its global footprint through strategic investments in key markets.

Market Dynamics

The Indian tissue market's rapid expansion is a critical factor in APRIL's strategic decision to enter this market. Consumer habits in India are evolving, with a greater emphasis on hygiene and personal care, driving demand for tissue products. This trend represents a significant opportunity for APRIL to establish and expand its presence in India. By acquiring Origami Cellulo Pvt., APRIL positions itself to capitalize on this growing demand, leveraging Origami's established operations and market knowledge.

The acquisition also reflects the broader industry trend of consolidation and strategic investments by major players seeking to expand their market share and geographical reach. APRIL's entry into India through Origami Cellulo Pvt. is indicative of the company's proactive approach to tapping into high-growth markets, supported by strategic acquisitions.

Management Quotes

  • Suneel Kulkarni, country head of APRIL India and subcontinent:

    "The Indian tissue market is rapidly expanding, driven by consumers’ evolving perceptions and habits on hygiene and personal care."