Press ReleasesNPI Makes Full-Scale Entry into Paper Container Processing Business in IndiaAcquires largest local paper cup manufacturing company

Nippon Paper Industries Co., Ltd.

Nippon Paper Industries Co., Ltd. (President: Fumio Manoshiro; hereinafter, "NPI") agreed in December 2016　to acquire 100% of the issued stock of Plus Paper Foodpac Private Limited, India's largest paper cup manufacturer, aiming to complete the acquisition in January 2017. This will be a part of NPI group's overseas expansion initiative for the paper container processing business following its recent plant opening in Vietnam.

In its fifth medium-term business plan (from FY 2015 to FY 2017) NPI has been challenging itself to transform its business structure, proactively reallocating management resources to fields in which future growth is anticipated. In the continued economic development of Asia, the paper and paperboard container market, particularly for food and beverages, is expected to see sound growth along with the expansion of personal consumption.

With a population of 1.3 billion and an annual economic growth rate of over 8%, India has a big potential for the paper and paperboard container market, backed by increased demand in the Food Service industry resulting from the expansion of the middle-income class. Also the shift from plastic to paper to alleviate the solid waste problem will support the market growth. Through this acquisition, NPI establishes its first manufacturing and sales base in India, which will help the company further develop businesses in the area, thereby enhancing corporate value.

■Overview of Plus Paper Foodpac Private Limited