Asia-focused private equity firm ADV Partners and family office PremjiInvest have acquired a controlling stake in Micro Plastics, which makes toys as well as parts for sports goods and automotives.
The investment will support the expansion and development of the toy maker’s facilities.
In February, VCCircle had reported about the imminent deal.
Micro Plastics had renewed attempts to raise private equity funding in December, two years after its efforts failed to make much headway.
“The toy sector in India holds a lot of potential both on the export and domestic fronts. Micro Plastics has emerged as a key Indian contract manufacturer for leading global brands, and we look to build these relationships further,” Vijendra Babu, founder and managing director of Micro Plastics, said.
“We also look forward to broadening our footprint in consumer goods, healthcare, and sports, among other sectors,” Babu, who will retain his stake in the toy maker, said.
Hong Kong-headquartered private equity firm NewQuest Capital Partners was also among the suitors for the company, according to media reports.
“ADV Partners’ investment is a continuation of efforts to back Indian entrepreneurs who have established market leadership in specific manufacturing segments in the country while contributing to the government’s long-term self-reliance vision,” Suresh Prabhala, co-founder and managing partner of ADV Partners, said.
Micro Plastics was set up in 2005. The toy maker also makes plastic injection components, tooling and sub-assemblies for several industries including automotives, electricals, electronics and telecoms.
The company runs three factories and says that 70% of revenue comes from exports to the US, the UK, Europe and Asia. Its clients include US-based toys maker Hasbro Inc and French sports goods retailer Decathlon.