Advent-backed packaging firm Manjushree Technopack to acquire Hitesh Plastics
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Plastics packaging player Manjushree Technopack Limited (MTL), backed by US private equity firm Advent International, has agreed to acquire 100% stake in Bengaluru-based Hitesh Plastics by way of a slump sale.  

Commenting on MTL’s 4th acquisition so far, the companies said in a statement, “the acquisition will allow MTL to enter the highly specialized caps and closures market segment and will strengthen its position as an end-to-end integrated rigid plastic packaging player. It will also add two new plants, located in Jalgaon, Maharashtra, to MTL’s existing 21 plants across India”.  

The firms, however, did not disclose financial details of the transaction, which is subject to customary closing conditions and regulatory approvals.  

“With the completion of the proposed transaction, Manjushree will have access to 2 plants with latest compression and injection molding machines and a captive solar power plant, alongside 500+ customers, including marquee clientele in the beverages and FMCG industries,” said Biren Shah, chief financial officer of MTL.  

MTL’s current capacity of 190,000 MT per annum will increase to 200,000 MT post the Hitesh Plastics acquisition. 

MTL has been closing a few deals over the past few years since it received investment from Advent International in October 2018.   

Last year  in August, MTL purchased a majority stake in another Bengaluru-based Classy Kontainers. Previously, in September 2020, it had acquired New-Delhi based Pearl Polymers and a majority stake in Amritsar-based National Plastics.  

Incorporated in 1987, MTL provides packaging solutions, manufactures and sells plastics preforms, containers and blow film. It caters to packaging requirements across FMCG, F&B, home care, personal care, agrochemicals, pharmaceutical and liquor industries with an annual turnover of around Rs 2,000 crore.  

Manjushree was advised by Khaitan & Co on this deal while HPPL was advised by Lumiere Law Partners. KPMG was the exclusive financial advisor to HPPL.  

HPPL caters mainly to the beverages and dairy industry with an installed capacity of over 6 billion CSD (carbonated soft drink closure), hot fill, warm fill, water and aseptic closures. Its manufacturing facilities are in Jalgaon, Maharashtra.  

“To date, caps and closures have been the missing piece in MTL’s product suite for the beverages segment, and we are excited to add it to our portfolio in a sizable and margin accretive manner through the acquisition of Hitesh Plastics. We believe this will make us a one stop shop for all RPP requirements and further deepen our relationship as strategic partners, to some of the country’s largest beverage companies,” said Thimmaiah Napanda, MD and CEO of MTL.  

MTL counts Coca-Cola, PepsiCo, Cadbury, GlaxoSmithKline, Procter & Gamble, Nestle, Heinz, Unilever, Tata Tea, Marico, United Spirits, and Diageo as its key clients.

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