Premji Invest acquires significant stake in SB Packagings

SB is a leader in sustainable flexible packaging and hygiene segment

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SB Packagings
Amit Banga of SB Packaging speaking at the PDIT2 Conference on sustainable laminates for flexible packaging. Photo PSA

A press release received on 12 August 2021, says that Delhi-based SB Packagings (SBP) has received investment from Premji Invest for a significant stake in the company. The transaction primarily involves partial stake sale held by the Banga family who are the existing promoter shareholders in SBP. The infusion of primary capital is meant for capacity expansion and for inorganic acquisitions to enable a faster scaling up SB Packagings’ flexible materials for both domestic and International markets.

SB Packagings being leading manufacturer of flexible packaging

Founded in 1989, by OP Banga, SBP is a leading manufacturer of flexible packaging materials in India, supplying to major players in the hygiene and food industry including P&G, J&J, Unicharm, Kimberly Clark, Nobel Hygiene, Walmart, Future Group, PepsiCo, Dabur, and Tata. SBP has won several awards and global accolades for its innovations and printing excellence and is at the forefront of providing sustainable packaging solutions.

The company is currently managed by the second generation managing director, Amit Banga, who joined the industry 30 years ago. After the closing of the transaction, Banga will continue to remain a significant shareholder in the company and would continue to drive the business. He will be supported by an enhanced professional management team with the help of financial and strategic support from Premji Invest.

Commenting on the deal, SBP’s managing director said, “We have grown steadily over the last decade, winning the trust and market share with our marquee global customers who have a very high threshold for quality and consistency. Innovation and sustainability have been the core pillars of SBP’s business model. With the backing from Premji Invest, one of India’s leading PE investors, we look forward to further expanding our capabilities through organic and inorganic routes thereby strengthening our position in the Indian flexible packaging Industry.”

Chairman Emeritus of SBP, OP Banga said, “The seeds sown four decades back have become a big tree now and this partnership with Premji Invest has my best wishes and blessings towards our vision of building a business around the needs of the society.”

Investing in middle size companies for growth

Premji Invest is the investment arm of Azim Premji’s endowment and philanthropic initiatives. It has been active in investing in the Indian markets for over ten years with a large investment corpus. The focus of investments has been to grow medium-sized Indian companies into large companies that can compete globally.

Premji Invest has put given its support across sectors like consumer, financials, technology, and manufacturing, including Fab India, Hygienic Research, ID foods, Lenskart, Policy Bazaar, Flipkart, Gold Plus Glass and Shubham Housing. Premji Invest is excited to partner with SB Packagings to help them scale to the next level of growth.

EY and Khaitan & Co acted as advisors to SB Packagings on this transaction.

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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