Hitesh Plastics is the leading manufacturer of plastic caps and closures in India.
MTL enters the highly specialized caps and closure market with this acquisition, bolstering its position as an end-to-end integrated rigid plastic packaging player.
Hitesh Plastics processes over 1200 tons of PP and PE annually to produce over 10 billion CSD, Hot-Fill, Warm-Fill, and water closures. It is a major supplier to companies like PepsiCo, Tata-Himalayan, Amul, and others.
MTL will also add the acquired company’s two new plants in Jalgaon, Maharashtra, to its existing list of 21 plants in India. This will push MTL’s total manufacturing capacity beyond 200,000 MT per year, solidifying its market leadership.
Speaking about the acquisition, Thimmaiah Napanda, MD and CEO of Manjushree Technopack Limited, said “We are excited to continue our journey of rapid growth and meaningful diversification within the rigid plastics sector. In recent years, MTL has successfully complemented its organic growth with synergistic acquisitions, and we intend to continue to do so opportunistically. To date, Caps and Closures has been the missing piece in MTL’s product suite for the beverages segment, and we are excited to add it to our portfolio in a sizable and margin accretive manner through the acquisition of Hitesh Plastics. We believe this will make us a one stop shop for all RPP requirements and further deepen our relationship as strategic partners, to some of the country’s largest beverage companies.”
Kanhaiyalal Mundhra, promoter of Hitesh Plastics said “Hitesh Plastics is known in the packaging industry for its product innovation and consistent quality and has always been run in a professional manner. I am delighted to handover the legacy to MTL, and I am sure that given the complementary portfolio of products, this combination shall be able to offer the entire solution to our beverage customers and convenience in overall sourcing. I hope this association will accelerate the growth of MTL and I would like to convey my best wishes to MTL, its leadership team and more importantly our employees, ably led by professional management.”
Biren Shah, CFO of Manjushree Technopack Limited, said “Through this acquisition, we see immense potential for cross selling and cost synergies, and look forward to consummating it soon. With the completion of the proposed transaction, Manjushree will have access to 2 plants with best in class compression and injection molding machines and a captive solar power plant, alongside 500+ customers, including marquee clientele in the beverages and FMCG industries.”
Manjushree was advised by Khaitan & Co on this deal while HPPL was advised by Lumiere Law Partners. KPMG was the exclusive financial advisor to HPPL.