“Rani Group” proves: Promises made in acquiring UAB “Umaras” are being kept

Nearly a year ago, Finland’s Rani Group, one of the most successful companies in the packaging industry, acquired UAB Umaras, one of the largest polyethylene film and packaging manufacturers in the Baltics. The new owners of Umaras continue to follow their philosophy of business and community support in Lithuania – planning expansion of the company and signing a sponsorship agreement with Utena basketball club Juventus.

The deal between the two family-owned businesses, Rani Group and Umaras, was completed in October 2024. Mikael Ahlbäck, co-owner of Rani Group, recalls that prior to the acquisition, there was about a year of getting to know Umaras’ operations, people, and even the regional environment. He also admits that family businesses share similar philosophies, which makes it easier for owners to understand each other, predict one another’s actions, and make decisions more quickly – allowing them to operate and evolve more efficiently.

The only way for a business to survive – is to grow

“One of the reasons for coming into Umaras was the goal to grow the Group. Family-owned companies usually invest heavily in their expansion. So, after acquiring Umaras, we are also thinking about it‘s development. The only way for a business to survive is to grow,” says M. Ahlbäck.

He also emphasizes that family businesses do not have “big bags of money,” and therefore look for smaller companies with a similar philosophy, which can complement or expand the product portfolio. According to him, Rani Group never competed with Umaras in the same markets, as their companies offered different products.

“That is why the next step for Umaras is production expansion. We have already installed a solar power plant on the factory’s roof, we plan to modernize equipment, and increase production of products that the market values most and for which there is unmet demand. What is very important is that Umaras’ specialists have the knowledge and experience needed to achieve these goals. In Finland, we lack certain competencies – you cannot be the best in every field, specialization is very valuable. So, in essence, we are helping each other to grow,” says the co-owner of Rani Group.

Preparing for market recovery Dennis Christian Granqvist, CEO of Umaras, confirms that new production lines are planned to increase capacity. He notes that after the COVID-19 pandemic, the packaging market declined sharply, perhaps by as much as a third, but now there is “light at the end of the tunnel.”

“We are currently researching the market to determine which products manufactured in Lithuania will have the highest demand and where production should be expanded most – this will answer the question of which equipment to purchase. It is clear that expansion must go hand in hand with the company’s ‘green’ growth,” says the CEO of Umaras. “We believe the market cannot fall further, so we must prepare for growth in the coming years. In addition, across Europe, there are already signs of recovery in businesses that need packaging.”

According to D. Ch. Granqvist, Umaras will soon receive smaller-scale investments to improve product quality and efficiency, reduce waste, and later, as demand increases, production capacities will be further expanded.

When basketball is a national religion

In Finland’s Ostrobothnia and Central Ostrobothnia regions, where Rani Group employs many people, the company supports local communities, especially sports, culture, leisure, and youth organizations. In Utena, however, the group’s support is somewhat atypical. Despite the change in ownership, Umaras remains a sponsor of the local basketball club Juventus – a new sponsorship agreement has already been signed.

“We believe it is important to provide our employees and local residents with opportunities for meaningful leisure. For many years, we have only supported communities where our factories are located and where our employees live – their sports organizations and events. Juventus is a high-level basketball team, which makes this sponsorship somewhat unusual for us, but the club is very significant for Utena and the region, and therefore also for our employees,” emphasizes M. Ahlbäck. Rolandas Jarutis, Director of Utenos Juventus, was delighted that cooperation with Umaras continues.

“Although the owners of the company have changed, the partnership remains. We see that the new Finnish owners also understand that basketball in Lithuania is not just a sport, but a religion. Supporting Utena’s basketball team demonstrates the owners’ attitude towards the city and local community. Our cooperation creates greater opportunities for Umaras to be visible,” says Jarutis. “Umaras remains one of the club’s larger partners, and with their support, we aim for the highest goals in the new season – medals. Our common goal is to bring pride to Utena’s name.”

Close cooperation with local authorities

Paulius Čyvas, Director of the Utena District Municipality Administration and member of the Utenos Juventus board, stresses that foreign investment is very important for the city and district, and that close cooperation is maintained with the new owners and leaders of Umaras.

“On the very first day, when the Rani Group–Umaras deal was closed last year, the new owners assured us that they plan to invest in the acquired company and modernize it. Joining an international group will open new markets for Umaras’ products, all jobs will be preserved, and, if market conditions are favorable, expansion is planned,” says Čyvas. “Now, nearly a year later, we see these promises being fulfilled. We are already discussing concrete expansion plans. With the company’s current management, we cooperate closely – meeting when it comes to solving various issues such as increasing electricity capacity or changing land-use purposes.”

Concluding, M. Ahlbäck notes that Rani Group only acquires companies – it has never sold one voluntarily (the only exception being the sale of its business in Russia after the invasion of Ukraine). “We invest for the long term, not just for a few years,” he assures.