Shriji Polymers (India) Limited, manufacturer of packaging solutions in rigid plastics for the pharma industry, announced on Wednesday that it has invested in Parekhplast India Limited and bought a controlling stake in the company. Parekhplast is engaged in manufacturing rigid plastic packaging for various consumer goods sectors – paints, construction chemicals, FMCG, pharma and nutraceuticals sectors. Mumbai-based Singhi Advisors has exclusively advised the deal.
Industry sources indicate that the deal has been consummated for a majority stake and the valuation could be in excess of Rs. 200 crore. According to industry insiders, Parekhplast India has a top line of Rs 200 crore. Most recent deals in the plastics sectors, including the sale of Hitesh Plastics to Advent-backed Manjushree Technopack was consummated at a valuation of one-time of the total revenue.
The transaction will enable Shriji to expand its presence in the rigid plastic packaging space and diversify its portfolio of verticals to which it caters. Parekhplast has a rich portfolio of clients like Asian Paints, Ajanta Pharma, Berger Paints, Pidilite Industries with multiple manufacturing facilities across three states in India. It will help Shriji access the fast-growing consumer goods sectors and a broader range of pharma and nutraceuticals businesses. Many of these clients have large aspirations for growth, and Shriji sees a great fit between their business and the Parekhplast business, with synergies available to both companies.
Parekhplast’s business has grown consistently for many years and is poised for considerable growth with several opportunities and new projects available for growth in years to come.
Commenting on the transaction, Mr. Vishnu Jajoo, Executive Director Shriji Polymers Limited, said, “A significant chapter in our company unfolds today, as we take another meaningful step of expanding our footprint in the rigid packaging business, where we have proven and well-established capabilities and competencies. This acquisition will also diversify our presence in verticals like consumer goods, paints, food products, domestic-pharma and nutraceuticals, where we see considerable opportunities for growth. The deep client relationships of Parekhplast will assist in this strategic direction of change. We believe that the team and the organization that Mr Charul Ghia, the promoter of Parekhplast, has built have created a strong base which we can add to in a significant manner.
Mr Charul Ghia, Managing Director, Parekhplast India Limited said “The investment by Shriji as a strategic partner has come at the right time when Parekhplast is poised for growth, and the funds brought in will lead to critical debottlenecking and help expand capacities to cater to our wide range of clients with a new and expanded product range focused on the growing consumer needs of the country.”
