Advent International exploring strategic options for Manjushree Technopak; eyeing up to $1bn valuation

With over 40 years of packaging expertise in India, Bengaluru-based Manjushree caters to packaging requirements across FMCG, F&B, home care, personal care, agrochemicals, pharmaceutical and liquor industries

Leading global private equity investor Advent International, which is spearheaded by Shweta Jalan in India is exploring strategic options to unlock value in India's largest rigid plastic packaging firm Manjushree Technopak, multiple industry sources with knowledge of the matter told Moneycontrol.

"Advent International recently invited pitches from a clutch of foreign and domestic investment banks to pick an advisor and explore an exit by selling a controlling stake in portfolio company Manjushree Technopak," one of the persons above told Moneycontrol.

"They entered the firm more than five years back and are now looking to clock returns. An advisor should be finalized soon," a second person elaborated. Two other persons confirmed the above divestment plans.

A fifth person told Moneycontrol that Advent is also simultaneously exploring the possibility of an IPO for Manjushree Technopak and added that both sale and listing options are on the table currently.

"Advent is expecting a valuation of up to a billion dollars for the entire firm. They own over 98 per cent," the fifth person added.

All the five persons above spoke to Moneycontrol on the condition of anonymity.

Moneycontrol has sent email queries and is awaiting a response from Manjushree Technopack and will update the article when we hear from the firm. Advent International declined to comment.

In October 2018, Advent invested in market leader Manjushree Technopack in partnership with the founding Kedia family. As part of the transaction, Advent purchased all the shares owned by investor Kedaara Capital and a portion of the Kedia family’s stake in Manjushree Technopack.

Back then, reports said the deal valued the firm between Rs 2,300 crores to Rs 2,440 crores. Reports had also named Carlye, KKR and US-based firms IPG Inc and Graham Packaging Inc as other potential bidders for Manjushree.

Manjushree Technopak: The Stats And Specialities

With over 40 years of packaging expertise in India, Bengaluru-based Manjushree caters to packaging requirements across FMCG, F&B, home care, personal care, agrochemicals, pharmaceutical and liquor industries. According to an official release dated 29th September, it has a pan-India presence across 20 plants and a large converting capacity of over 200,000 MT of plastics to films, bottles, containersm PET preforms and recycled resins, with an annual turnover of around Rs 2,600 crores.

The group through its ESG initiative, “Born Again” has commercialised & invested in recycled resin plants, which are gradually being embraced by the industry for eco-friendly packaging in India.

In late September, Manjushree entered into a collaboration agreement with the bottle-to-bottle grade recycling division of listed player Ganesha Ecosphere Group (Ganesha, India’s largest plastic bottle recycler) to co-develop and supply food and non-food grade packaging products made of recycled plastics.

Since the entry of Advent International, Manjushree has been on the prowl for acquisitions.

In July 2022, it acquired 100 per cent of the business operations and manufacturing facilities of Hitesh Plastics, a Bengaluru-based maker of plastic caps and closures.

Earlier, according to reports, it purchased a majority stake in Bengaluru-based Classy Kontainers, New Delhi-based Pear Polymers and Amritsar-based National Plastics.

A Closer Look At Advent

Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 410 private equity investments across 42 countries, and as of March 31, 2023, had $95 billion in assets under management.

The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology.

The India portfolio of Advent includes Suven Pharma, Cohance, KreditBee, Yes Bank, Tredence, Eureka Forbes, Aditya Birla Capital, Bharat Serums and Vaccines, DFM Foods, Modenik.

Also read: Carlyle picks up significant minority stake in Quest Global; Bain Capital, Advent International to exit

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