Sonoco expands global reach with new capability centre in Hyderabad, India

INDIA – Sustainable packaging solutions provider Sonoco is set to establish its first global capability centre (GCC) in Hyderabad, Telangana, India.

The new facility, named the Sonoco Performance Hub (SPH), marks a significant strategic move for the 125-year-old Fortune 500 company, which generates annual revenues of $7bn to $8bn.

As reported by The Times of India, Sonoco plans to invest up to US$10 million in the first phase of the SPH.

Over the next 12-18 months, the company aims to recruit around 300 engineers, with a longer-term goal of hiring 500 technology professionals within three years.

Located near an IKEA store in HITEC City, a major technology hub in Hyderabad, the SPH is expected to begin operations by May this year.

Sonoco Vice President and CIO Rajeev Ankireddypalli emphasized the centre’s role in driving operational excellence through digital services.

He explained, “While we’re starting with technology services focused on process automation and innovation, our vision is to expand our capabilities as a comprehensive GCC, supporting a broader range of business processes.”

Currently, Sonoco has a global technology team of 700 within a workforce of 30,000.

In addition to the SPH development, Sonoco recently acquired Eviosys, a European metal packaging company, as part of its ongoing portfolio transformation strategy aimed at driving long-term growth and value creation.

Furthermore, Sonoco has entered into an agreement to sell its Thermoformed and Flexibles Packaging (TFP) business to TOPPAN Holdings for US$1.8 billion, a move that is expected to close in the first half of 2025.

Toppan’s packaging business seeks to “Change the World through Packaging Innovation”. In its words, it aims to “foster a society focused on well-being and sustainability, while safeguarding our planet for future generations, through the continuous development of innovative packaging solutions that explore cutting-edge materials and technologies.”

Meanwhile, Sonoco’s TFP business caters to the food, retail, and medical verticals sectors, offering complex packaging for such solutions as fresh foods, prepared meals, snacks, pet food, condiments, coffee, and healthcare products.

In 2023, it was believed to have a revenue of around US$1.3 billion (€1,248,253,645.60) on a pro forma standalone basis.

Its acquisition is set to apply Toppan’s technical expertise and manufacturing capabilities to the ‘robust’ sales network, customer base, and solution development capabilities of Sonoco’s thermoformed and flexible packaging in North and South America.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE

Newer Post

Thumbnail for Sonoco expands global reach with new capability centre in Hyderabad, India

AeroFlexx partners with Chemipack to revolutionize eco-friendly liquid packaging in Europe

Older Post

Thumbnail for Sonoco expands global reach with new capability centre in Hyderabad, India

Blue Ocean Closures secures investment from Nissha to expand sustainable packaging

Be the first to leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.