Asia-Pacific focused alternative investment firm PAG will acquire a majority stake in Manjushree Technopack, India’s largest rigid plastic packaging solution company, for ₹8,400 crore ($1 billion).

The US-based private equity investor, Advent International, will be selling its stake in the company to PAG, said people aware of the development.

Currently, Advent holds 97 per cent stake in Manjushree while 3 per cent is held by other public shareholders.

Third $1 billion transaction 

The deal to acquire Manjushree will be the largest for PAG in India thus far and will be the third $1 billion transaction it has completed globally this year.

Earlier, Advent had filed papers with India’s capital markets regulator, SEBI, to dilute its stake through an initial public offering. At the beginning of this month, SEBI issued its final observation for Manjushree Technopack’s ₹3,000 crore IPO.

However, with the latest deal, the IPO plans will be put on hold.

Led by Nikhil Srivastava in India, PAG has ⁠deployed over $1.7 billion in the country since founding its office in 2019. It currently manages over $3 billion in assets across multiple strategies and business sectors in India, and has been investing in the country since 2009.

The transaction marks PAG’s seventh private equity investment in the country, including Nuvama Wealth Management, Acme Formulations, a leading contract development and manufacturing outsourcing company, RK Pharma Inc and Sekhmet Pharmaventures.

Serves 110,000 clients

Established in 1978, Manjushree manufactures jars and bottles, multilayer containers, PET hot-fillable bottles, and pre-forms used in the food, beverage, pharmaceutical, cosmetic, agricultural chemicals, and allied sectors. It serves about 110,000 clients through its 20 manufacturing facilities across the country.

Manjushree reported a revenue of ₹2,130 crore in FY24, which grew from ₹1,474 crore in FY22.

The company has an installed capacity of over 1.90 lakh tonne per annum, and has Reckitt Benckiser, Dabur India, Mondelez India Foods, Britannia, P&G, ITC, Castrol, Hindustan Coca Cola Beverages, PepsiCo India and Bisleri among its consumers.

PAG manages over $55 billion in capital on behalf of nearly 300 global institutional investors. It’s private equity business manages four pan-Asian buyout funds and two growth funds with $19 billion of capital under management.

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