Plastic packaging company Manjushree Technopack Ltd (MTL) is betting big on inorganic growth plans as the Advent International-backed firm aims to treble the revenue to around Rs 3,000 crore over the next three years.
The Bengaluru-headquartered company, which caters to multiple consumer goods companies, including Reckitt Benckiser, Procter & Gamble, Nestle and Coca-Cola, says acquisitions will play a big role in its business expansion plan and also help it achieve revenue targets, by 2024.
“We are more aggressive than earlier, and we see the Covid-19 crisis as an opportunity to grab some businesses that make sense to us,” said Sanjay Kapote, CEO, MTL. The company is currently in talks with four businesses for possible acquisitions. The PET bottles maker is targeting Rs 1,000 crore worth of sales to come through acquisitions in the next four years.
MTL had earlier acquired Varahi Polymers in 2016 to establish a footprint in the north. Last year, the company took over National Plastics, a company, which makes dispensers and pumps, to extend its products portfolio.
Apart from inorganic expansion, the company is also steadily expanding its capacity organically. It has set up a greenfield plant in Silvassa, near Gujarat, expanding its footprint in western India. With this, the company operates 7 rigid plastic manufacturing plants with a total annual capacity of 150,000 million tonnes per annum.
Manjushree Technopack recently rolled out its first recycling plant in Bidadi, Bengaluru, to deliver recycled packaging to personal care, hygiene and home products companies at an investment of $3.5 million. The company plans to set up 3-4 more such plants in a couple of years to take the overall recycled raw material capacity from 6,000 MT to 20,000 MT.
“We have set up an ecosystem in which we collect used bottles, process and recycle them to produce quality output which can be used as a circular economy for non-food and non-pharma segments,” said Kapote.
Source: Business-Standard