In a press release datelined Mumbai 13 January 2025, PAG, an Asia Pacific-focused private equity investment firm, announced its acquisition of a majority stake in Pravesha Industries Private Limited, a packaging company focused on the pharmaceutical industry from promoters Bomma Reddy and RPR Sons Advisors. Bomma Reddy is the brother in law of Ram Prasad Reddy one of the promoters of Aurobindo Pharma and also the investment vehicle RPR Sons Advisors.
According to media reports, Pravesha has been valued at US$ 200 million (approximately Rs. 1,734 crore) and PAG acquired a little over 80% for Rs 1,387 crore. It reported revenues for FY 2023-24 at Rs 597.28 crore (approximately US$ 69 million), with an EBITDA of Rs 139.55 crore (approximately US$ 16 million) and a profit of Rs 91.04 crore (approximately US$ 10.5 million).
Founded in 1999, Hyderabad-based Pravesha is a pharma-focused packaging company with six units. According to the press release, it produces more than 15,000 metric tons of plastic bottles, closures and drums and more than two billion units of cartons, labels and leaflets annually for leading pharmaceutical companies. Approximately 95% of Pravesha’s packaging products are used in developed markets including the US and Europe.
Nikhil Srivastava, partner, managing director, and head of India Private Equity at PAG states, “India’s packaging sector has been one of our focuses, given its exposure to key themes driven by India’s domestic manufacturing, consumer and industrial sectors, particularly the strength of the country’s pharma export industry, leading to an expected double digit industry growth over the next decade and beyond. Pravesha has established long-term relationships with some of the world’s leading pharmaceutical companies and has become a partner of choice due to its diverse product offerings, superior quality and services, and innovative solutions. We believe Pravesha will be a significant and valuable part of our investments in the packaging sector, and we are eager to drive the company’s growth organically and inorganically in the future.”
Bomma Sivaprasad Reddy, outgoing director at Pravesha, said, “Pravesha is a trusted partner for leading pharmaceutical companies, thanks to its unwavering focus on innovation, customer service, and agility. As we embark on the next phase of growth, PAG brings vision, deep expertise, and a senior team of highly experienced professionals with a proven track record of creating value.”
This is PAG’s second acquisition of an Indian packaging company in the past two months, with the agreement to acquire Manjushree Technopack a plastic packaging company taking place in end-November for an enterprise value of US$ 1 billion.
As we have reported earlier, PAG signed definitive documents to invest in Manjushree Technopack Limited, in November and recent financial media reports indicate that this acquisition is headed toward an initial public offering. Manjushree produces plastic containers for suppliers to consumer end-markets including home care, personal care, food and beverages, paints, nutraceuticals, agrochemicals, liquor and spirits, and dairy.
PAG has been investing in India since 2009 and currently manages over US$ 3 billion in assets in India. It sometimes describes itself as an alternative investment or off-market investment company. Its other private equity investments include Nuvama Wealth Management (NSE: NUVAMA); Sekhmet Pharmaventures, a leading diversified pharmaceutical platform; and Acme Formulations, a leading contract development and manufacturing outsourcing (CDMO) company.
