Manjushree Technopak acquires Varahi Polymers; deal estimated at Rs 350 crore
This is Manjushree Technopack’s first acquisition and will pit it directly against multinational packaging company Tetrapak.
This is Manjushree Technopack’s first acquisition and will pit it directly against multinational packaging company Tetrapak. Manjushree currently packs for Coca-Cola, Nestle, Mondelez, GlaxoSmithKline Consumer and Heinz, among others.
“This acquisition gives us scale of operations, a pan India presence and manufacturing capacity all over the country,” Manjushree Technopack Managing Director Vimal Kedia told ET. He declined to comment on the deal size.
The deal gives Manjushree access to all three factories of the Rs 225-crore Varahi Polymers in Noida, Baddi and Pantnagar, its assets and intellectual property rights.
“This is a complete buy out of all manufacturing assets of the packaging division of Varahi, in addition to access to its R&D and patents, which we will leverage for growth. The acquisition gives us a strong foothold in north India and brings us closer to customers in the region,” said Kedia. The deal will give Manjushree a combined footprint of over 200 customers, six manufacturing bases and 300 patented and registered packaging designs.
Manjushree has a 20% market share of the Rs 4,000 crore organised PET (plastic bottles) and rigid packaging industry. And with sales of Rs 540 crore, Manjushree says it is the largest PET bottles maker in South Asia. The company delisted from the stock exchange last year and raised private equity funding from Kedara Capital.
The per capita consumption of PET bottles in India is 0.6 kilo against the world average of 2.9 kilos. PET, primarily used for food and beverage packaging, has been growing at 10-12% CAGR, fuelled by consumer companies foraying into multiple packs and formats ranging from entry-level single-serve packs popular in rural and tier-two and three markets to large economy packs commonly sold in organised trade.