MEADwestvaco Corporation declares it has formed a joint venture with India-based corrugated box manufacturer Wadco Packaging Pvt. Ltd by purchasing a 51 per cent equity stake in the company. The MWV Wadco joint venture will extend the proven corrugated packaging design, manufacturing and technology capabilities of Wadco and MWV to Indias local fresh produce market, where there is a 40 per cent value loss of the produce before it reaches the market due to inefficient post-harvest practices, processing and handling. The joint venture, a first of its kind in India, will help eliminate waste and strengthen supply chain efficiency by protecting products during transport to the local Indian marketplace.
"Wadco manufacturing capabilities and on-the ground expertise combines with MWVs advanced packaging technology will provide solutions that meet the business challenges of the Indian market place," said Bruce Thomas, senior vice president, Global Market Strategy and Emerging Markets, MWV. "This transaction supports our overall strategy for growth in emerging markets and is an important step in enabling us to better address local needs while building our presence in the fast growing Indian market."
Under this agreement, MWV will oversee Wadco will be manufacturing MWVs rigid, humidity-resistant agri-produce corrugated packaging, and apply it to the Indian produce market as well as the other markets i9t current servers, including consumer goods, household appliances and pharmaceuticals. The new business model will build on and adapt MWVs packaging expertise, resulting in a broader product portfolio, more value chain experience and cutting edge design, materials, equipment and technology.