Manjushree Technopack acquires Pearl Polymers

Acquisition to strengthen rigid packaging segment

Manjushree Technopack
Through this deal Pearl Polymer will focus and grow the well-known PearlPET brand to new levels and expects to launch new product lines in future. Photo - Pearl Polymer

Bangaluru based Manjushree Technopack (MTL), India’s largest rigid plastics packaging company backed by Advent International, announced entering into a Business Transfer Agreement with Pearl Polymers to acquire commercial operations and manufacturing facilities of their B2B vertical. This transaction is subject to customary closing conditions and regulatory approvals.

According to the press release, Manjushree was advised by Khaitan on this deal while Pearl Polymers was advised by JSA. Ernst & Young Global (EY) was the exclusive financial advisor to Pearl Polymers.

With over 40 years of packaging expertise in India, Manjushree Technopack fulfills the packaging requirements of the FMCG, food and beverage, home care, personal care, agrochemicals, pharmaceutical, liquor industries, and works with some of the biggest brands in these segments. These include Coca Cola, PepsiCo, Cadbury, GlaxoSmithKline, Procter & Gamble, Nestle, Heinz, Unilever, Tata Consumer Products, Marico, USL, Diageo, and many more. Manjushree has a manufacturing capacity of 1,75,000 MT per annum and a turnover of over Rs 1100 crore.

According to the press statement, Pearl Polymers’ B2B business’s proposed acquisition will help MTL consolidate their leadership position in the container segments while reinforcing its technical strength.

CEO Profile Pic 3 1
Sanjay Kapote, chief executive officer of Manjushree Technopack,

Sanjay Kapote, chief executive officer of Manjushree Technopack, said, “The acquisition announced is in line with our strategy to grow and diversify our business. Acquiring the B2B business from Pearl Polymers will allow us to consolidate our leadership position in the rigid packaging sector. We expect a seamless integration of the acquired business with the rest of the MTL group given the success we have achieved in our acquisitions to date. The proposed acquisition is in line with Manjushree’s aggressive inorganic growth plans. Manjushree aspires to be the employer and partner of choice, we will continue delivering deep value for our customers, post consummation of the transaction.”

“The combination of our technological strength, product range and geographical spread with Pearl Polymers’ robust container business will help us deliver an extended containers portfolio and areas of expertise to our customers in the future,” he added.

Chand Seth, chief managing director of Pearl Polymers, said – “Pearl polymers is the pioneer and was instrumental in creating the market for PET packaging in India. With its customer spread across India and in every segment of the market, we believe that this acquisition will bring great value. Our clients will continue to receive the same high-quality services that they have come to expect for the last 36 years. This deal will allow us to focus and grow the well-known PearlPET brand to new levels. We expect to launch many new product lines in the future.”

With the consummation of the proposed transaction, Manjushree will have access to four of Pearl Polymers’ production units and serve Pearls’ existing customer base, including marquee clientele in the FMCG, liquor, and pharma segments.

The pandemic consolidation

Pearl Polymers is a public company with shares listed on the Bombay Stock Exchange. Over the last couple of years its share price has hovered around Rs 15. It went up to Rs 21 last month (August 2020) and is currently above Rs 18.

Its profitability has been under pressure for the past year with a turnover in most of these years around Rs 178 crore level and profits at either zero in FY 16 and FY 17 and losses of 1, 4 and 11 crores in the subsequent FY18, FY19 and FY20 respectively. The results in FY 2019-20 has seen a marked drop in turnover to Rs. 139 crore from the previous year’s Rs. 178 crore. While the company has stagnated for some years it is possible that the downturn in the economy since the pandemic and lockdown has accelerated its acquisition by a bigger player.

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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– Naresh Khanna

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Editor of Indian Printer and Publisher since 1979 and Packaging South Asia since 2007. Trained as an offset printer and IBM 360 computer programmer. Active in the movement to implement Indian scripts for computer-aided typesetting. Worked as a consultant and trainer to the Indian print and newspaper industry. Visiting faculty of IDC at IIT Powai in the 1990s. Also founder of IPP Services, Training and Research and has worked as its principal industry researcher since 1999. Author of book: Miracle of Indian Democracy.


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