Parksons Packaging acquires Manohar Packaging

Warburg Pincus owned Parksons finds synergy in Manohar

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Siddarth Kejriwal, managing director of Parksons Packaging talks about the acquisition of Manohar Packaging Screenshot PSA
Siddarth Kejriwal, managing director of Parksons Packaging talks about the acquisition of Manohar Packaging Screenshot PSA

As was rumored in the industry for the past several days, and as announced in the financial press on 29 November 2021, Warburg Pincus-owned Parksons Packaging has acquired a 100% stake in Manohar Packaging. Both companies are headquartered in Mumbai, with Parksons Packaging owning six plants in five locations and Manohar Packaging having two plants including a new greenfield site in Punjab that started production before the onset of the pandemic. While Parksons Packaging is active in almost every FMCG monocarton segment, Manohar is a specialist in premium alcobev packaging.

The financial press says the deal is in the range of Rs 200 to 250 crore (approximately US$ 27 to 33 million). An interview on Zoom with managing director Siddharth Kejriwal and chairman Ramesh Kejriwal of Parksons Packaging confirms that the expected combined revenue of the merged company is expected to be Rs. 1,500 in the financial year ending 31 March 2022.

Parksons Packaging has six carton manufacturing plants in five locations – Daman and Chakan in Western India, two plants in Pantnagar in the North, Sri City in South India, and Guwahati in the Northeast, while Manohar Packaging has carton plants in Mapusa in North Goa and the new plant 17 kilometers west of Ambala in Punjab.

Aditya Patwardhan who has grown the family-owned Manohar Packaging and is its CEO will continue to be part of the management team in the enlarged Parksons Packaging. Patwardhan says, “We’ve always been good and it’s time to become great. We look forward to this association and offering our clients the strongest platform for paper-based packaging that any Indian company can provide and is thus far unparalleled in the industry.”

Siddarth Kejriwal explains that while Parksons Packaging was acquired by Warburg-Pincus in April 2021, the global equity and investment firm is content with letting the Kejriwal family continue to drive the growth of the Indian monocarton business. Speaking about inorganic growth and the acquisition of Manohar Packaging, he said, “Parksons has a tradition of doing things differently and for us finding the right partner means looking for real synergy. We look for customer fit, location fit, culture fit, and most of all trust.”

He spoke further about the synergy between the two organizations, “Scalability is another factor that we look for when evaluating inorganic growth, and the new plant in Punjab can easily be scaled to four times its current capacity. The plant is located in a region with many of the biggest food and pharma players as well as alcobev. The real benefit is to the premium alcobev brand owners that Manohar brings closer to us, who will now be able to leverage our network of eight plants in every part of the country.”

Parksons Packaging is hopeful of bettering the Indian monocarton industry’s expected double digital growth in the 2022-23 financial year. Chairman Ramesh Kejriwal says that 20% growth is achievable for the combined company which would take the turnover to Rs 1,800 crores. With another K&B Rapida 7-color coater press ordered and expected to be installed before 31 March 2022, capacity addition and redundancy for the Punjab plant is already underway. He states, “We are aiming to reach Rs 2,000 crore in FY 2022-23 itself, which is achievable. And there is certainly no harm in being ambitious in our goals.”

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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