PAG-backed Manjushree Technopack may spend $150-180 mn to acquire 4-5 assets as packaging sector undergoes consolidation
“The company wants to strengthen its existence in its existing areas and strengthen the increase in income. 4-5 islands and discussions continue. Two are expected to take place in advanced and in the coming months.”
One of the above mentioned people said, “These acquisitions aim to improve the increase in revenue of MTL and to justify the bill of billion dollars that he searched for when PAG invests in the company last year.” He said. MTL did not request comments to the e -mails sent on Friday.
The packaging sector at the summit of consolidation showed significant growth potential of India’s demand for consumer, industrial, pharmaceutical and export industries. This makes it an attractive offer for ORGLOBAL companies who want to buy assets in India for PE companies and strategies.
Last year, the US -based FONVANT International sold its majority shares in MTL to Pag, a Pacific -oriented private capital firm with a value of $ 1 billion. Initially, Advent asked for an exit through a public offering in his six -year -old bet, which was called when the private capital firm had a complete exit opportunity at a better price in private markets.
PAG Investments
While the revenues from the sales offer are expected to go to Advent, the MTL announced that it will be used to maintain inorganic growth through purchases and other strategic initiatives according to the DRHP it offered in August last year.
Meanwhile Pag, Pravesha Industries Pvt. Ltd for $ 200 million in January. Manjushree, home care, personal care, food and beverages, paints, nuts, agricultural chemicals, liquor and souls and milk products, such as a diversified customer base, while Pravesha focuses only on Prague’s Laficated. Packaging, “one of the people mentioned above, he said.
In general, various investment companies such as Carlyle Group and Bain Capital have created special platforms to purchase and integrate medium -sized companies. Carlyle explains the diversified automatic platform by combining highway industries and roop automotives, while Bain is in the process of creating a similar structure.
Carlyle also has a platform in the general drug segment in India by acquiring Symed Labs, a manufacturer of Nis APIs to partner with Viyash Life Sciences in 2021 and to provide backward integration.
For years, Manjushree, Manjushree, helps to increase the geographical existence of India and expand the product categories and customer base in the newer industries, Classy Konainers and Hitesh Plastics Pvt. Purchased companies such as.
MTL, which already has expertise in certain areas, plans to increase its existence through inorganic and organic growth plans. According to DRHP, the company reported business revenue. La2,117 CRORE IN FY24, La2.096 Crore a year ago. The wife increased more than twice La140 Crore.
Grow through acquisitions
In a report made in December with other acquisitions such as Varahi in 2017 and the National Plastics Industries LTD (NAPLA) facilities in the 2020 financial year in Northern India, the ability to provide general market access and service to various customers significantly improved.
The Credit Rating Agency added that purchases also helped improve product diversity (Added Napla acquisition Portfoli distributors and sprays), added new customers and supplied new products to existing customers.
In addition, in 2017, Assem has established a facility in Guwahati and expanded to Eastern Indian markets. In FY21, a green area capacity in Silvassa, Dadra and Nagar Haveli assigned a hard plastic recycling facility that increases the geographical diversification in the Western market in Bengaluru.
“These have helped to expand to segments (such as caps and caps) segments (such as caps and caps). Adding new plants in Vizag and Mysore will further support customer additions as well as developing product profile.” He said.
Manjushree Technopack’s presence in Northern India developed after the acquisition of Varahi, Napla and PPL. It should continue to help customers integrate MTL manufacturing units with supply chain systems and help them underline the successful integration of past transactions. In addition, the newly assigned Vizag factory, the upcoming Mysore Factory and the latest purchases will bring the company’s facilities closer to customers.
India’s packaging sector, La23 In the financial year, 6,399 billion is expected to reach LaOver the past five years, 8,620 billion directed by various factors such as the increasing demand for urbanization, urbanization, processed and packaged goods last year, and an developing e-commerce sector. The report said that other government initiatives focusing on organized retail and food safety are more demand for high -quality, standard packaging solutions.
MTL that compete with competitors listed like Moldtek packaging, TCPL packagingUflex Ltd and EPL LTD is one of the biggest players in the hard plastic packaging business in India. Reckitt Benckiser, Dabur India, Hindustan Coca Cola Beveges, Pepsico India and Mondelez India Foods have a powerful market share supported by customers.
Although the packaging industry has been quite fragmented, it leads to intense competition that can continue to restrict scalability, pricing power and profitability, while Crisil can continue to benefit from the well -developed, in -company design facilities, various production processes, various production processes and raw material price changes to customers.
