Aureos South Asia Fund has invested $7 million or Rs 35 crore in Sai Security Printers Pvt Ltd, a paper packaging company based in Faridabad and Bangalore. The fund is managed by Aureos South Asia Managers Ltd, a subsidiary of the emerging markets PE fund manager Aureos Capital, which has $1.3 billion under management.
“Sai will use the funds to build on its already strong production and technology capabilities, and will work towards moving into new markets, adding new customers and providing end-to-end packaging and printing solutions while increasingly focusing on high-margin business,” said Vijay Raghavan, managing director of Sai Security Printers.
The company started out as a security printing business and evolved into a multi-product packaging company. It manufactures labels and mono-cartons for pharmaceutical, food & beverage and FMCG industries, and currently employs around 600 people.
“Sai has a strong customer base, marked by high customer retention. Its strategy for future development includes expansion into recession-resilient and higher-margin products for the pharmaceutical, beverages and FMCG sectors,” commented Balaji Srinivas, Managing Partner of Aureos India.
In 2008, Tano India Private Equity Fund I, another mid-market-focused fund, invested $7.4 million in Anil Printers Ltd. The company prints prepaid scratch cards, pin mailers, airline tickets, cargo bills and carbon-less stationery for telecommunications, banking, courier and logistics industries. In December, Hyderabad-based EcoPaper, a manufacturer of handmade paper products, also received angel funding from Srini Chakwal.
Incorporated in 2001, Aureos has extended its footprint to more than 50 emerging markets across Asia, Africa and Latin America by establishing 17 regional private equity funds. These funds are managed through a network of 28 offices worldwide, by a team of over 90 investment professionals.
Aureos has recently announced that it plans to raise $200 million or Rs 900 crore for its new India fund. The Aureos India Fund II will focus on investing in companies across emerging sectors and target tier II and tier III cities, which remain below the radar of mainstream international investors. Its last deal took place in July 2011 when it invested in Chennai-based publishing services provider Newgen Knowledge Works Pvt Ltd.