Hong Kong-based private equity firm PAG has announced its acquisition of a majority stake in Manjushree Technopack, India's largest rigid plastic packaging solutions provider by installed capacity, in a deal valued at approximately ₹8,400 crore, according to the media reports.

This marks PAG's largest transaction in India to date and also halts the company's previously planned IPO. 

Manjushree Technopack, headquartered in Bengaluru, operates 23 manufacturing plants across India and is a leading supplier to industries such as food and beverages, pharmaceuticals, cosmetics, and more. With over 50 patents and designs, the company's annual production capacity is more than 1.9 lakh tonnes.

The company specialises in rigid plastic packaging with a converting capabilty of PET, HDPE, and PP grade plastics that are used to make bottles, containers, and PET preforms. The company also sells kitchen storage products, back-to-school products, and bottles and sippers under the brand name "Assure" in online and offline retail markets. 

In financiial year 2023-24, Manjushree's revenue grew to ₹2,130 crore, up from ₹1,474 crore in FY22. The company had over 950 customers as of the financial year ended 24, according to the regulatory filings. The company's key clients include Britannia, Hindustan Coca-Cola Beverages, Dabur India, PepsiCo, and ITC. 

Before the deal, the US-based equity firm Advent International held a controlling 97.5% stake in Manjushree, which it acquired in partnership with the Kedia family in 2018. Advent had initiated plans for a ₹3,000 crore IPO and had received regulatory approval earlier this month.

However, with this deal, company have opted for a direct sale to PAG to secure a clean exit after six years. This acquisition forms part of PAG's broader strategy in India, where it has already invested over $1.7 billion since 2019, including ventures in wealth management and pharmaceuticals.

The Indian rigid plastic packaging market has been experiencing steady growth, projected to grow at a CAGR of 4% to 7% from 2023 to 2030 according to the industry research reports. The segment is witnessing increasing demand for sustainable and efficient packaging solutions in food and beverages, personal care, and healthcare sectors.

Innovations such as lightweight yet durable packaging designs, and the adoption of PET (polyethylene terephthalate) materials, along with demand for environment-friendly sustainable packaging matierials have further fuelled industry expansion.

Manjushree has made strides in this area by introducing recyclable and eco-friendly materials, catering to increasing consumer and regulatory pressures for environmental responsibility.This focus on sustainability and innovation not only strengthens Manjushree's market position but also complements PAG's investment strategy, which prioritizes businesses with scalable and future-ready solutions.