As part of the transaction, Advent purchased all the shares owned by Kedaara Capital and a portion of the Kedia family’s stake in Manjushree Technopack. Manjushree’s Founder and Managing Director, Vimal Kedia, and the rest of the company’s senior management team will remain closely involved in the business. Financial terms of the transaction were not disclosed.
Manjushree Technopack is the No. 1 manufacturer of rigid plastic packaging for the fast-moving consumer goods (FMCG) industry in India. With world-class facilities and technologies, the Bengaluru-based company serves a wide range of FMCG vertical markets, including home care and personal care products, food and beverages, pharmaceuticals, dairy and edible oil.
“Manjushree Technopack is the market leader in an industry with strong growth tailwinds,” said Shweta Jalan, Managing Director and Head of India for Advent International. “The rigid plastic packaging market is expected to expand 15% per year over the next five years, driven by underlying growth in consumer end markets, the continued shift from glass and paper to plastic packaging and the introduction of new products.”
Pankaj Patwari, a Director at Advent International, added: “We see significant opportunities to accelerate Manjushree’s growth by investing in innovation and new business development, expanding into adjacent geographies, segments and business lines, and acquiring other packaging companies.”
Vimal Kedia of Manjushree Technopack said, “We appreciate the support we’ve received from Kedaara over the past three years in promoting new business development, strengthening the management team, streamlining sales management processes and driving geographic expansion to build a pan-India presence. Now, we look forward to partnering with Advent, a leading global investor with strong knowledge of the Indian market and experience in the consumer packaging sector. With the Indian rigid packaging industry expected to double over the next few years, we will look to further strengthen our foothold. Through our new partnership, we will focus on consolidating our leadership position and taking the company to new growth levels.”
Sunish Sharma and Manish Kejriwal, Managing Partners of Kedaara Capital Advisors LLP, commented: “When Kedaara invested in Manjushree, we saw a unique and scaled consumer derivative play backed by a high-quality management team in the fragmented rigid packaging industry. We saw the potential for us to work closely together and build Manjushree into one of India’s leading brands in the packaging industry. During our investment term, the business continuously outgrew the Indian consumer and packaging sector and generated significant value for Kedaara and its investors. It is today positioned to further strengthen its dominance as India’s largest rigid plastics packaging solution provider.”
Advent International has been investing in India for 11 years and opened a Mumbai office in 2009. The transaction is Advent’s fifth investment in India in three years and third investment in the consumer packaging sector globally in less than two years. Including Manjushree, Advent has invested approximately 60 billion rupees (nearly US$1 billion) in seven companies with headquarters or operations in India. Recent investments include Dixcy Textiles, a leading innerwear brand; ASK Group, a leading wealth and investment management business; QuEST, a global engineering solutions provider; and Crompton Greaves Consumer Electricals, India’s premier supplier of consumer electrical goods, lighting and lighting automation systems.
Advent also has significant experience in the industrial sector, including recent investments in two other consumer packaging businesses: Færch Plast, a Danish producer of rigid plastic packaging for the food industry, and Fort Dearborn, a leading North American supplier of high-impact decorative labels for the consumer goods marketplace.
Kedaara Capital is an operationally oriented private equity firm pursuing control and minority investment opportunities in India. The firm has made 10 investments since 2014 across diversified verticals, including consumer and consumer derivatives, financial services, industrial and healthcare. Kedaara has strong expertise in the packaging sector with its investments in Manjushree Technopack and Parksons Packaging.