Plastic packaging material maker Manjushree Technopack Ltd (MTL), which is backed by US private equity firm Advent International, has acquired a majority stake in Amritsar-based National Plastics.
The Bengaluru-based company hopes to add about 4-5% to its overall revenue over the next five years through this acquisition, Manjushree said in a statement. The company did not disclose the financial details about the transaction.
This is Manjushree’s first acquisition since it got Advent International on board last year.
The firm hopes to expand its offerings by adding adjacent categories like dispensers and sprayers to its existing product portfolio of plastic containers and preforms, besides acquiring new clients in this segment across India.
Sanjay Kapote, chief executive officer at Manjushree, said the acquisition will help the firm enter newer geographies in South Asia besides helping the company invest in R&D and new business development to bolster National Plastics’ growth.
Manjushree, which was earlier backed by homegrown private equity firm Kedaara Capital, struck its previous deal in 2016 by acquiring Delhi-based rigid packaging firm Varahi Polymers.
National Plastics, which was founded in 1988 by Manish Saggar, manufactures spraying and dispensing systems such as lotion pumps and trigger sprayers. It caters to leading FCMG (fast-moving consumer goods) companies operating in homecare, personal care, automotive and healthcare segments. The company counts Reckitt Benckiser, HRI, ITC, Godrej Consumer, Marico, Patanjali Ayurved, SC Johnson, 3M, Sun Pharma, and Jyoti Labs, as its key clients.
Incorporated in 1987, Manjushree claims to be India’s rigid plastic packaging company with a manufacturing capacity of 1.5 lakh tonnes per annum. The company provides packaging solutions, manufactures and sells plastics preforms, containers and blow film.
It caters to packaging requirements of FMCG, pharma and liquor companies and counts Coca Cola, PepsiCo, Cadbury, GlaxoSmithKline, Procter & Gamble, Nestle, Heinz, Unilever, Tata Tea, Marico, United Spirits, and Diageo as its key clients.
The company posted a consolidated net profit of Rs 49.85 crore for the year ended March 2019 on revenue (from operations) of Rs 1,148.9 crore, according to VCCEdge, the data and research platform of Mosaic Digital.
The company’s net profit was Rs 36.77 crore at the end of March 2018 on revenue of Rs 938.13 crore, according to Edge.