Velvin Group Forms Joint Venture with Rengo To Advance Innovation By CIOTechOutlook Team

Velvin Group Forms Joint Venture with Rengo To Advance Innovation

CIOTechOutlook Team | Thursday, 16 November 2023, 09:09 IST

Velvin Group, a major maker of paper-based sustainable packaging solutions in India, and Rengo Co., Ltd., Japan, have formally launched their strategic joint venture. This historic collaboration aims to level the playing field in India's corrugation industry while also offering up new opportunities for development and success.

"Rengo, a global leader in paper and corrugated box manufacturing, and Velvin, with a profound understanding of the domestic market, are poised to create powerful synergies through their collaboration," as articulated by Vincent Mathias, Managing Director of Velvin Group.

The decision to join forces in a joint venture for the upcoming Corrugation Unit in Cheyyar, Tamil Nadu comes after considering the potential benefits and synergies that could be harnessed by working together. Due to Rengo's 30% equity participation, the company will change its name from 'Velvin Containers Pvt. Ltd.' to 'Velvin Rengo Containers Private Limited', as per business standard.

Rengo Co., Ltd. was established in 1909 and is based in Osaka, Japan. In Japan and other areas of the world, the Company and its subsidiaries make and distribute paperboard, corrugated boxes, folding cartons, and flexible packaging. Rengo now operates 198 plants in 29 countries spanning Asia, Europe, and North America.

One of the key goals of this joint venture is to considerably expand both firms' market reach. Velvin Group and Rengo Group hope to make their packaging solutions more available to a worldwide audience by uniting their distribution networks. This strategic alliance aims to stimulate ground-breaking research and development projects that will result in the development of cutting-edge sustainable packaging solutions that will fulfill the market's growing expectations.