Continuing its expansion in emerging markets, pharmaceutical glass and plastics manufacturer Gerresheimer AG ($GXI) has picked up controlling interest in a pharma glass company in India.
Gerresheimer announced Monday that it acquired 70% of shares in Mumbai-based Neutral Glass & Allied Industries. Neutral has a molded glass plant in Kosamba where it manufactures glass vials, injection bottles and other products. The company, with 600 employees, had annual revenues in fiscal 2011 of about €15 million ($20 million). The controlling family retains a 30% interest.
"The Indian pharma market is gaining in international significance, and it is growing at an impressive rate," Uwe Röhrhoff, CEO of Gerresheimer AG, said in a statement.
As pharmaceutical companies have beefed up in emerging markets where they expect to see faster growth than in mature markets, suppliers and services companies are feeling the need to do the same.
A purchase of Neutral propels the Düsseldorf, Germany-based Gerresheimer toward its goal of doubling in 2013 its revenues from emerging markets to €200 million ($267 million). It follows last year's acquisition of Védat, a Brazilian manufacturer of pharmaceutical plastic packaging products.
The purchase of Neutral puts the "I" in its plan to have a solid foothold in the fast-growing BRIC nations, Brazil, Russia, India and China. It now has 5 plants in South America, 7 in China, and the lone facility in India.
- here's Gerresheimer's release