Asia Pacific-focused PAG announced on January 13 that it has signed definitive documents to invest in Manjushree Technopack Limited, one of India’s largest rigid plastic packaging companies. The private equity investment firm also added that it has acquired a majority stake in Pravesha Industries Private Limited, a leading packaging firm focused on the pharmaceutical industry.
According to sources, the Manjushree Technopack deal valued the firm at $1 billion while the controlling stake in Pravesha Industries was sealed at an enterprise value of $200 million.
On November 2022, Moneycontrol was the first to report that Advent-backed Manjushree Technopack had dropped IPO plans and finalised a deal with PAG.
On November 8, Moneycontrol had also reported that PAG had held advanced discussions and emerged as the front-runner to buy a controlling stake in Manjushree Technopack, even as the IPO route was also being considered by Advent as part of a dual track process.
Manjushree is focused on a diversified base of customers across consumer end-markets including home care, personal care, food and beverages, paints, nutraceuticals, agrochemical, liquor and spirits, and dairy.
Pravesha, founded in 1999, produces more than 15,000 metric tons of plastic bottles, closures and drums and more than two billion units of cartons, labels and leaflets annually for some of the world’s largest pharmaceutical companies. About 95 per cent of Pravesha’s packaging products are used in developed markets including the US and Europe.
Nikhil Srivastava, Partner & Managing Director, Head of India Private Equity at PAG said: “India’s packaging sector has been one of our focus areas, given its exposure to key themes driven by India’s domestic manufacturing, consumer and industrial sectors, particularly the strength of the country’s pharma export industry, leading to an expected double digit industry growth over the next decade and beyond. Pravesha has established long-term relationships with some of the world's leading pharmaceutical companies and has become a partner of choice due to its diverse product offerings, superior quality and services, and innovative solutions. We believe Pravesha will be a significant and valuable part of our investments in the packaging sector, and we are eager to drive the company’s growth organically and inorganically in the future.”
PAG has been investing in India since 2009 across multiple strategies and business sectors and currently manages over $3 billion in assets in India. PAG’s other private equity investments include Nuvama Wealth Management , one of India’s largest wealth management players; Sekhmet Pharmaventures, a leading diversified pharmaceutical platform; and Acme Formulations, a leading contract development and manufacturing outsourcing (CDMO) company.
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