Warburg in pole position to acquire control of Parksons Packaging – ET

Parksons Packaging could be valued at Rs 2,200-2,300 crore by investor

HP Indigo 30000 at Parksons’ Daman plant (Photo: PSA)| Parksons Packaging
HP Indigo 30000 at Parksons’ Daman plant

American 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. It is said Warburg Pincus outbid peers such as KKR and Bain Capital apart from the well established in India, global packaging major Huhtamäki Oyj, according to a report based on “multiple people aware of the deal” in the Economic Times

Warburg’s potential deal will value the Mumbai-based packaging solutions company at Rs 2,200-2,300 crore, sources aware of the development told ET. The report indicates that the transaction will see the exit of private equity firm Kedaara Capital from the company founded by Ramesh Kejriwal in 1996.

Kedaara is said to have invested Rs 200 crore in the company in 2015 to buy about 25% stake that another private equity investor, ChrysCapital, held. The investment in Parksons Packaging will be Warburg’s fourth investment in India in the last six months if the deal goes through.

Kejriwal’s sons Siddharth and Chaitanya will continue to run the business and hold a minority stake post transaction, one of the sources told the financial daily. Parksons reported a revenue of Rs 946 crore during the fiscal year 2018-2019, while net profit stood at Rs 39.51 crore. According to ET, the company has not filed the numbers for the fiscal year 2019-2020 yet with the ministry of corporate affairs.

Parksons Packaging, headquartered in Mumbai, currently operates six monocarton packaging plants across five locations in India. In 2019, the company became the first in India to commission an HP Indigo 30000 digital press at its Daman plant. Daman is the first and oldest monocarton plant. Other plants are in Chakan near Pune, also in Western India, Pantnagar in North India, Sri City near Chenna in South India, and Guwahati in Northeast India.

Parksons Packaging operates a battery of offset Heidelberg, and KBA offset presses and modern converting and finishing equipment across its plants. Late last year, it commissioned a newly installed Rapida 76. It also became the first monocarton printer to commission the HP Indigo 30000, a B2-format (20 x 30-inch) in the country.

Packaging South Asia — resilient, growing and impactful — daily, monthly — always responsive

The multi-channel B2B in print and digital 17-year-old platform matches the industry’s growth trajectory. The Indian, South Asian, Southeast Asian, and Middle East packaging industries are looking beyond the resilience of the past three years. They are resuming capacity expansion and diversification, with high technology and automation in new plants and projects.

As we present our 2024 publishing plan, India’s real GDP growth for the financial year ending 31 March 2024 will exceed 6%. The packaging industry growth will match the GDP growth in volume terms and surpass it by at least 3% in terms of nominal growth allowing for price inflation in energy, raw materials, consumables, and capital equipment.

The capacity for flexible film manufacturing in India increased by 45% over the past four years. With orders in place, we expect another 20% capacity addition in 2024 and 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels are growing similarly. As the consumption story returns over the next six months, we expect demand to return and exceed the growth trajectory of previous years. The numbers are positive for most of the economies in the region – and as shown by our analytics, our platform increasingly reaches and influences these.

For responsible and sustainable packaging, with its attendant regulations and compliances, there is significant headroom to grow in India and the region. Our coverage includes the entire packaging supply chain – from concept to shelf and to waste collection, sorting, and recycling.

We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers. This is a large and complex canvas – the only thing that can work is your agile thinking and innovation together with our continuous learning and persistence.

The coming year looks to be an up year in this region, and this is the right time to plan your participation and marketing communication – in our rich and highly targeted business platform with human resources on the ground. Share your thoughts and plans to inspire and mobilize our editorial and advertising teams!

For editorial info@ippgroup.in — for advertisement ads1@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna (25 October 2023)

Subscribe Now
unnamed 1


Subscribe to our Newsletter


Please enter your comment!
Please enter your name here