Shriji Polymers (India), a leading manufacturer of packaging solutions in rigid plastics for the pharma industry, has acquired controlling stake in Parekhplast India for an undisclosed amount.
According to industry sources, the majority stake in Parekhplast would have been higher than its topline of ₹200 crore.
This was the kind of valuation made in the recent deal where US private equity firm Advent International-backed Manjushree Technopack agreed to acquire entire stake in Bengaluru-based Hitesh Plastics, he said.
Parekhplast also makes rigid plastic packaging for various consumer goods sectors - paints, construction chemicals, FMCG, pharma and nutraceuticals sectors.
Diversification
The transaction will enable Shriji to expand its presence in the rigid plastic packaging space and diversify its product portfolio. The newly acquired company Parekhplast has clients such as Asian Paints, Ajanta Pharma, Berger Paints, Pidilite Industries with manufacturing facilities across three states.
It will help Shriji access the fast-growing consumer goods sectors and a broader range of pharma and nutraceuticals businesses.
Vishnu Jajoo, Executive Director Shriji Polymers said the acquisition will diversify presence in verticals such as consumer goods, paints, food products, domestic-pharma and nutraceuticals which is witnessing considerable opportunities for growth.
The deep client relationships of Parekhplast will assist in this strategic direction of change, he added.
Charul Ghia, Managing Director, Parekhplast India said the investment by Shriji as a strategic partner has come at the right time when Parekhplast is poised for growth and the funds brought in will lead to critical debottlenecking and expand capacities to deliver new and expanded product range focused on the growing consumer needs.
Singhi Advisors, Mumbai was financial advisors to the transaction.