Asia-focused private equity fund PAG will acquire Manjushree Technopack Ltd. India’s largest rigid plastic packaging solution provider. US fund Advent International will sell its stake at a valuation of $1 billion, said people aware of the development.
Advent, which had plans to list Manjushree, is said to have notified SEBi of its intent to withdraw from the listing process.
Established in 1978 by Vimal Kedia and Surendra Kedia, Manjushree manufactures jars and bottles, multilayer containers, PET hot-fillable bottles, and pre-forms for use in the food, beverage, pharmaceutical, cosmetic, agricultural chemicals, and allied sectors. It serves about 110,000 clients through its 20 manufacturing facilities across the country.
With an installed capacity of more than 1,90,000 tonnes per annum, Manjushree has customers such as Reckitt Benckiser (India), Dabur India, Mondelez India Foods, Britannia, P&G, ITC, Castrol, Hindustan Coca Cola Beverages, PepsiCo India, and Bisleri.
Manjushree reported a revenue of Rs2,130crore ($252 million) in FY2024, grew from Rs1,474 crore ($175million) in FY 2022.
Advent International had plans to tap the capital markets to list portfolio company Manjushree Technopack Ltd, ET reported in August.
The private equity group has hired JM Financial, ICICI Securities, Avendus Capital and Goldman Sachs to manage the IPO. It had hired Avendus and Goldman Sachs earlier this December to find potential buyers for Manjushree.
Advent acquired Manjushree Technopack in 2018, after trumping Bangkok-based SCG Packaging in the final negotiations. The private equity firm had acquired the entire 40% stake held by Kedaara Capital in a deal that valued India’s largest polyethylene terephthalate (PET) manufacturer at ?2,300 crore. It also acquired the remaining stake from the promoter family and changed the management team.
Presently, Advent holds 97% stake in Manjushree while 3% is held by other public shareholders.
Since setting up its India office in 2009, Advent has invested a total of $ 6 billion. Its major portfolio companies include Aditya Birla Capital, DFM Foods, Cohance Life Sciences, Suven Pharma, Modenik (formerly Dixcy Textiles), Kreditbee, Eureka Forbes.
Source: Economic Times