EPL to acquire Creative Stylo Packs to strengthen beauty & cosmetics categories

EPL to purchase 72.5% stake in cash, balance through shares

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EPL
Sudhanshu Vats, managing director and chief executive officer of EPL

Mumbai-based EPL (formerly known as Essel Propack), the specialty packaging company, announced on 12 November 2020 that its board of directors have approved the acquisition of Creative Stylo Packs in a part-cash and part-stock transaction. Creative Stylo Packs is known to be an established manufacturer of corrugated boxes, laminated tubes, plastic co-ex tubes, and caps-primarily serving personal care, cosmetic, pharmaceuticals, and FMCG markets in India.

According to EPL, the transaction entails purchasing a 72.5% stake in Creative Stylo Packs through cash. The remaining 27.5% stake will be purchased through the issuance of EPL shares to the founders of Creative Stylo Pack post the merger. Bhavik Shah and Darshan Shah, the founders of Creative Stylo Packs, will join the EPL management team post the acquisition.

With this acquisition, EPL plans to make a much stronger play in the beauty and cosmetics categories, growing rapidly. The richer product portfolio will allow it to serve both existing and new customers better, driving both volumes and value. The acquisition will also boost EPL’s plastic tube capabilities, which, combined with EPL’s strong equity in laminate tubes, gives the company a vibrant platform for growth. The transaction will accelerate revenue and EBITDA growth for EPL, it said.

EPL’s managing director and chief executive officer, Sudhanshu Vats, said, “EPL is committed to leading the pack; simultaneously driving market leading revenue growth as well as capital-efficient and consistent earnings growth. A stronger play in beauty and cosmetics is key to this vision. We believe that our acquisition of Creative will enrich our portfolio, enabling us to advance our ambition in personal care. This will also strengthen us further in AMESA (Africa, Middle East and South Asia), a key growth region for us.”

He further added, “I am personally delighted to welcome Bhavik and Darshan to the EPL fold. Their entrepreneurial spirit and youthful energy will help us move forward with greater purpose & agility.”

Speaking on the occasion, Bhavik Shah, founder of Creative Stylo Packs, said, “Darshan and I are extremely proud of what we have created thus far through innovation and customer centricity and now we have an opportunity to continue and accelerate the growth path through the EPL platform. We are really excited and look forward to working with the EPL team in furthering their cause of being a leading specialty packaging company in the World.”

With an oral care volume share of 36% globally, EPL has units operating across the USA, Mexico, Colombia, Poland, Germany, Egypt, Russia, China, Philippines, and India. These facilities cater to five core categories of oral care, beauty and cosmetics, pharma and health, food and nutrition, and home care; offering customized solutions through constant innovations in materials, technology, design, and processes.

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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