Blackstone-owned PGP Glass in talks with lenders to roll-over $300-mn offshore loans

Blackstone aquired PGP Glass in 2020

Global private equity major Blackstone-owned PGP Glass Private Limited, earlier known as Piramal Glass, is in talks with lenders to roll-over external commercial borrowings (ECB) worth almost $300 million, two people aware of the development told Moneycontrol. They spoke on condition of anonymity.

The loans were availed by the private equity investor to fund the acquisition of PGP Glass from the Piramal group in 2020. Blackstone acquired a 100 percent stake in the company from the Piramal group in 2020 for a valuation of around Rs 7,000 crore.

The ECB loans are due in March 2026, the people cited above said.

Most of the lenders have provided their consent for the roll-over of these loans and the transaction is expected to be completed soon, they added. After the roll-over, the loans are likely to have a bullet repayment at the end of 2.5-3 years or longer, the sources said.

This transaction will provide Blackstone further runway to prepare for an exit from PGP Glass, they added. Typically, such acquisition loans are repaid when the private equity firm sells its stake in the company.

Moneycontrol reported last year in April that Blackstone was exploring options to sell both a controlling stake or up to a 50 percent stake in PGP Glass at a valuation of over $2 billion.

An email sent to Blackstone did not elicit a response till the time of publication.

Glass business

PGP Glass serves the cosmetics and perfume, pharmaceuticals, and specialty food packaging industries. It is a major supplier of glass bottles to top global cosmetic brands, generating about 38 percent of its consolidated revenue

from the cosmetics and perfume sector, according to a report by credit rating agency CARE. It is also a market leader in the production of “Type I” pharma glass, holding a dominant share in the domestic market. “On a global scale, only five companies manufacture this type of glass,” the report said.

The company operates three manufacturing facilities in India and Sri Lanka, with marketing and distribution arms in the US, Dubai, and Europe, and exports its products to over 75 countries.

The company has a reputed clientele base including global companies such as Berlin Packaging, Diageo, Coty, Loreal, Yves Rocher, Baralan & De Ruy Cosmetics, Pfizer, Avantor,  Ole Smoky & Berlin among others.

In FY25, 75 percent of its revenue was generated from exports, as per the CARE report. In the export market North America (33 percent) and Europe (16 percent) are the highest contributors.

The company recorded a revenue of Rs 4,216.3 crore and a profit of Rs 384.26 crore in FY25, while in FY24 its revenue and profit stood at Rs 4,044.3 crore and Rs 305 crore respectively.