BANGLADESH – Ispahani Group, one of the leading conglomerates in the country, has partnered with the packaging company Tampaco Group to expand its packaging business, as reported by the Financial Express.
As part of the agreement, Ispahani has acquired a minority stake in Tampaco Foils, a subsidiary of the Tampaco Group.
The agreement was signed by the companies at the head office of UCB Investment, Bangladesh’s merchant bank, in Dhaka, the capital of the country.
The exact percentage of stake purchased and the equity investment made by Ispahani has not been disclosed by either company.
Ispahani chair, Mirza Salman Ispahani, was quoted by the publication as saying, “Tampaco Foils boasts a distinct presence, goodwill, and advanced technology in Bangladesh’s growing packaging industry.
“We are committed to supporting Tampaco to develop world-class sustainable packaging solutions.”
Ispahani is headquartered in Chittagong and operates in a wide variety of sectors, including textiles, property, poultry, and shipping.
Tampaco Foils, meanwhile, is considered one of the leading companies in Bangladesh specializing in flexible and tobacco packaging.
The strategic partnership is expected to improve corporate governance, enhance value, and drive growth within the country’s packaging sector.
Tampaco Group’s managing director and president of the Bangladesh Flexible Packaging Industries Association, Safius Sami Alamgir, stated, “Ispahani brings invaluable market experience, financial resources, and extensive business expertise to Bangladesh’s rapidly growing packaging industry.
“This partnership not only provides us with the means to enhance our expansion and investment initiatives in the packaging sector, but it also opens doors to growth in related industries.”
The deal comes at a time when the market size of the local flexible packaging industry, valued at around Tk6,000 crore (US$545.58m), is experiencing an annual growth rate of approximately 20%.
The industry employs around 50,000 people and has a local annual demand for 200,000 tonnes of flexible packaging material, with 80% being met by domestic companies.
Though there are at least 100 local companies that produce flexible foil products, 7-8 key players hold nearly 50% of the market share.
People involved in the industry have stated that the sector, which used to rely entirely on imports, now satisfies approximately 80% of the local demand.
