Promoters of Noida-based Polyplex Corporation, one of the world’s leading plastic packaging film manufacturers, are looking to sell their controlling stake and have engaged investment bank Goldman Sachs to take the process forward, according to a recent report by Moneycontrol.
The company operates integrated manufacturing and distribution operations in India, Thailand, Turkey, USA, Indonesia, and Netherlands. The firm supplies to about 1,900 customers in 83 countries.
Moneycontrol reports on Polyplex investments
Polyplex had a market capitalization of 2,469 crores rupees as of reports till April 13. According to the shareholding pattern, the promoters hold a 50.97% stake. The firm’s overseas investments have been made via a listed subsidiary in Thailand, namely Polyplex Thailand. It also has a subsidiary in Singapore, reported Moneycontrol.
“Due to disruptions in the global supply chain, film prices have gone up a lot. This is a good time to monetize, and Polyplex has an attractive product portfolio and professional management in place,” an individual who tracks the packaging sector told Moneycontrol.
Polycom offers a wide range of packaging and industrial film across several PET, PP, and PE base substrates, both standard plain films and value-added films with inline/offline coating, holography, transfer/release, and metalizing capabilities.
The key product line of Polyplex continues to be its Sarafil range of BOPET, BOPP, Blown, and CPP films. Over the last five years, Polyplex has also entered offline value-added coatings, including digital printable and holographic films.
Heightened M&A activity in the Indian packaging sector
The Indian packaging sector has witnessed hectic M&A activity in the last three to four years. In 2018, US-based private equity firm Advent International acquired a majority stake in Bangalore-based PET packaging solutions provider Manjushree Technopack for close to USD330 million.
Indian private equity firm Kedaara Capital, which held about 24% in Manjushree, exited while the promoter Vimal Kedia also diluted his stake. Later in 2020, Manjushree Technopak acquired Pearl Polymers & National Plastics.
In April 2019, another US-based private equity firm Blackstone entered into a definitive agreement with Ashok Goel Trust to purchase a majority stake in Mumbai-based Essel Propack (EPL), a leading global specialty packaging company, and the largest global manufacturer of laminated tubes. Blackstone later made a part exit by selling 23% in September 2020.
Blackstone further expanded into the Indian packaging space by acquiring glass packaging manufacturer Piramal Glass last year at a valuation of $1bn. Piramal Glass designs and manufactures glass packaging products for cosmetics, food and beverage, and pharmaceutical industries.
Last month, The Economic Times reported that US private equity firm Warburg Pincus is likely to have emerged as the highest bidder to acquire a controlling stake in Mumbai-based folding carton manufacturer Parksons Packaging, outbidding peers such as KKR and Bain Capital besides Finnish packaging materials major Huhtamäki Oyj.
A potential deal with Warburg will value the Mumbai-based packaging solutions company at 2,200-2,300 crore rupees. The transaction will see the exit of private equity firm Kedaara Capital from the company founded by Ramesh Kejriwal.