JM Financial PE fund invests Rs 60 crore in packaging firm Canpac Trends

JM Financial PE fund invests Rs 60 crore in packaging firm Canpac Trends

Summary

JM Financial PE fund invests Rs 60 crore in packaging firm Canpac Trends

Synopsis

Canpac is a leading manufacturer of packaging materials like folding cartons, corrugated boxes, paper bags, flexible laminates and luxury boxes. It supplies products to a diverse set of marquee customers across industries.



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    The transaction marks seventh investment by JM Financial India Fund II. The private equity arm of JM manages around Rs 2000 crore.
    MUMBAI: JM Financial Private Equity has invested Rs 60 crore in a Gujarat-based folding carton and packaging solutions company, Canpac Trends in what should be seen as a continued interest from private equity investors in packaging solution firms.

    Proceeds from the investment will support augmentation of the existing capacities of Canpac, the companies said in a statement.

    Canpac is a leading manufacturer of packaging materials like folding cartons, corrugated boxes, paper bags, flexible laminates and luxury boxes. It supplies products to a diverse set of marquee customers across industries.

    Founded in 2010 by Nilesh Todi, Canpac is headquartered in Gujarat with large manufacturing plants in Ahmedabad (Gujarat) and Tirupur (Tamil Nadu).

    The transaction marks seventh investment by JM Financial India Fund II. The private equity arm of JM manages around Rs 2000 crore.

    “We believe that the packaging sector is poised to continue its growth trajectory. Increased consumption of packaged goods, growth in organized retail and e-commerce and increasing premiumization will drive growth for organized packaging players and Canpac is well positioned to capture this growth spectrum. The fund infusion will help the company scale-up its business and expand its market share,” said Darius Pandole, Managing Director & CEO, PE & Equity AIFs, JM Financial.

    “Canpac has emerged as a fast growing packaging player in the country with a key focus on folding carton and corrugated boxes. This growth capital infusion and partnership with a seasoned investor like JM Financial Private Equity will help us accelerate our current expansion plans and expand market share,” said Nilesh Todi, Managing Director, Canpac.

    Due to the high growth potential, Indian packaging industry remains on the radar of global packaging players and private equity funds.

    The largest buyout in Indian packaging sector was Blackstone's acquisition of Essel Propack for $470 million in 2019. However, the largest buyout by a foreign company was that of Huhtamaki's purchase of Mumbai-based Positive Packaging in 2014 for $336 million. Huhtamaki also acquired a 51 per cent stake in Valpack Solutions Pvt Ltd, a paper cup manufacturer in Mumbai, in July 2016.
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