Canpack to set up Rs 760 cr plant in Aurangabad

Poland-based packaging major, Canpack, will invest Rs 760 crore in setting up a plant at Walunj in Aurangabad district of Maharashtra.

The company manufactures aluminium-based packaging material for beer, beverages, food and chemical industry.

A memorandum of understanding (MoU) was signed by company's Indian subsidiary managing director Harish Jaju and state industry secretary VK Jairath in the presence of chief minister Vilasrao Deshmukh and industry minister Ashok Chavan.

Company's international president and CEO WA Smulski was also present on the occasion.

The plant is expected to start production by mid-2009 and would have a production capacity of 900 million cans. Over the next five years, the company would ramp up the capacity to 2 billion units. It will provide direct employment to 300.

Smulski said the company chose Aurangabad as many beer and beverage units are located in the area and many more are expected to come up.

"The India plant will help us save on transportation cost by seven to eight dollars per 1,000 units as currently Indian clients are catered through our unit in the West Asia. Besides, the plant will help us save on import duty, which is around 15 per cent of our total cost," he said.