Global packaging company MeadWestvaco (MWV) has signed a Memorandum of Understanding (MoU) with the Gujarat government to invest Rs10bn ($183m) over the next three to four years.

The latest investment will be used to expand the company's production facility acquired as part of acquisition of Ruby Macons in November 2012.

Besides purchase of the Indian corrugated packaging materials producer, the investment includes expansion of existing production at the facility by installing a new paper machine, which manufactures paperboard products and grades.

MWV junior chairman and chief executive officer John Luke said as India is an important market for the company, it plans to increase its presence with acquisition and expansion in Gujarat.

"We see significant opportunities for higher quality and more innovative packaging solutions in corrugated or industrial markets, largely due to the emergence of modern retail," Luke said.

The investment is set to expand the company's presence in industrial and agricultural packaging in India, which includes a converting facility in Pune already that manufactures rigid, humidity-resistant corrugated packaging.