Private equity firm Advent International is looking to sell its portfolio company, Manjushree Technopack at a valuation of $1-1.2 billion, and talks have begun with prospective buyers, sources said. This comes even as the PE firm’s negotiations for a sale of Bharat Serums and Vaccines are at an advanced stage.
Manjushree Technopack is India’s largest rigid plastic packaging solution provider and in 2018, the private equity firm had acquired the entire 40 per cent stake held by Kedaara Capital in a deal that reportedly valued the packaging company at close to ₹2,400 crore. It also acquired stake from the promoter family and the packaging firm is now professionally run.
Since its acquisition, the packaging firm has delivered good returns and sources said Advent was looking to make good on the investment. The private equity player is learnt to be talking to both PE firms and other packaging companies. It is looking to exit the investment.
An email for a response from Advent International remained unanswered.
₹2,100-cr revenue
Manjushree Technopack reported revenue of about ₹2,100 crore in FY23, up from ₹924 crore it had reported in FY18, before the acquisition by Advent. The packaging industry has been facing headwinds over the last couple of years with volatility in raw material prices. This had an effect on the company’s profitability in FY23.
Under Advent, its growth has been rapid. In 2020, it had set up a greenfield manufacturing facility in Silvassa and in 2023 new facilities in Visakhapatnam and Mysuru.
It has also been busy growing inorganically through strategic acquisitions. In 2019, it acquired pumps and triggers maker Napla, in 2021 it acquired the B2B business of Pearl Polymers & Classy Kontainers and in 2022 it bought two manufacturing units in Maharashtra from Hitesh Plastics making its entry into the highly specialised caps and closures market.
Advent International has been in India since 2007 and has invested over $6 billion in 18 Indian companies and a good portion of those investments have come in the last five years.