Asian private equity firm ADV Partners and Premji Invest have acquired a significant majority stake in leading plastic molding company Micro Plastics for around $70 million.
The funds would be used for the company’s expansion plans and the development of new manufacturing facilities to cater to increasing demand. Though the company has not officially specified investment details, sources told ET that both Premji and ADV together invested $70 million to take control of the company.
Headquartered in Bangalore, Micro Plastics has five manufacturing facilities in and around the city. The company offers designing to shipping final products for diverse industries ranging from toys and model hobby kits to sports equipment, its website showed.
“ADV Partners’ investment in Micro Plastics is a continuation of our efforts to back Indian entrepreneurs who have established market leadership in specific manufacturing segments in India while contributing to the Indian government’s long-term ‘Atmanirbhar’ (self-reliance) vision,” said Suresh Prabhala, co-founder and managing partner at ADV Partners.
MPPL is the market leader in contract manufacturing of toys in India for leading global brands such as Hasbro and Mattel. The company’s manufacturing facilities feature state-of-the-art injection moulding machines, an in-house tool room, mold design, press shop, assembly lines, quality testing lab, and decoration facilities.
“The toy sector in India holds lot of potential both on the export and domestic fronts. We also look forward to broadening our footprint in consumer goods, healthcare, and sports among other sectors,” said Micro Plastics founder and managing director, Vijendra Babu.
“MPPL has scaled to become the largest toy manufacturer in India over the past few years. With the government’s push towards local manufacturing, and global customers increasing their outsourcing to India, our intent is to further develop MPPL as a trusted partner in delivering quality products consistent with the highest standards of ethics and governance,” a Premji Invest spokesperson said.
