JM Financial India Fund II has invested Rs 60 crore ($8.3 million) in Canpac Trends, a Gujarat-based folding carton and packaging solutions company.
This marks the seventh investment by the fund. Proceeds will support augmentation of capacities.
JM Financial India Fund II, part of the homegrown JM Financial Group, is a sector-agnostic growth-capital private equity fund.
It targets small to mid-market companies, with a focus on financial services, consumer, IT, infrastructure services and manufacturing.
Its investments include India Home Loan Ltd, microlender Spandana Sphoorty Financial, vending solutions provider Vendiman, nutraceutical firm Innovcare Lifesciences, co-living, student housing and urban living operator Isthara Parks, and BRFL Textiles.
Canpac was founded in 2010 by first-generation entrepreneur Nilesh Todi. It is headquartered in Ahmedabad, Gujarat, where it operates one manufacturing plant and another in Tirupur, Tamil Nadu.
Darius Pandole, managing director and chief executive, private equity and equity alternative investment funds, JM Financial, said, “We believe that the packaging sector is poised to continue its growth trajectory. Increased consumption of packaged goods, growth in organised retail and e-commerce and increasing premiumisation will drive growth for organised packaging players. Canpac is well positioned to capture this growth spectrum.”
Advisors on the deal included Steer Advisors (investment banker), Economic Laws Practice (legal advisor to JM Financial India Fund II) and Anoma Legal (legal advisor to Canpac).