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.

The impact, resilience, and growth of responsible packaging in a wide region are daily chronicled by Packaging South Asia.

A multi-channel B2B publication and digital platform such as Packaging South Asia is always aware of the prospect of new beginnings and renewal. Its 16-year-old print monthly, based in New Delhi, India has demonstrated its commitment to progress and growth. The Indian and Asian packaging industries have shown resilience in the face of ongoing challenges over the past three years.

As we present our publishing plan for 2023, India’s real GDP growth for the financial year ending 31 March 2023 will reach 6.3%. Packaging industry growth has exceeded GDP growth even when allowing for inflation in the past three years.

The capacity for flexible film manufacturing in India increased by 33% over the past three years. With orders in place, we expect another 33% capacity addition from 2023 to 2025. Capacities in monocartons, corrugation, aseptic liquid packaging, and labels have grown similarly. The numbers are positive for most of the economies in the region – our platform increasingly reaches and influences these.

Even given the disruptions of supply chains, raw material prices, and the challenge of responsible and sustainable packaging, packaging in all its creative forms and purposes has significant headroom to grow in India and Asia. Our context and coverage engulf the entire packaging supply chain – from concept to shelf and further – to waste collection and recycling. We target brand owners, product managers, raw material suppliers, packaging designers and converters, and recyclers.

In an admittedly fragmented and textured terrain, this is the right time to plan your participation and marketing support communication – in our impactful and highly targeted business platform. Tell us what you need. Speak and write to our editorial and advertising teams! For advertisement ads1@ippgroup.in , for editorial info@ippgroup.in and for subscriptions subscription@ippgroup.in

– Naresh Khanna

Subscribe Now
unnamed 1


Subscribe to our Newsletter

As 2023 begins and FY 23-24 unfolds, will you support us?

What lies in store for the packaging industry in India and South Asia this coming year? Inflation, disruption of supply chains or environmental regulation? Or the resumption of high rural demand, continued investment and industry consolidation? Whatever happens, Packaging South Asia will be there, providing clarity and independent technical and business information in India and South Asia and around the world. We are a compact Indian organization bringing a window of fair and rigorous technical and business information that the industry can access this year and beyond. Please support us with your advertising and subscriptions, to keep us going and growing.

Thank you.


Please enter your comment!
Please enter your name here