MOSCOW (MRC) -- Packaging solutions maker Shriji Polymers (India) Ltd on Wednesday acquired a majority stake in rigid plastic packaging manufacturer Parekhplast India Ltd, for an undisclosed sum, said Linemint.
According to industry sources, Parekhplast India’s valuation could be more than 200 crore rupees (about USD24 million). They added that most recent deals in the plastics sector have been closed at a valuation of nearly the same value as their toplines.
The stake acquisition will allow Creador-backed Shriji Polymers to expand its presence in the rigid plastic packaging space and diversify its portfolio of verticals as Parekhplast’s portfolio, unlike the former’s, includes clients from various sectors including paints, construction chemicals, FMCG, pharma and nutraceuticals sectors.
“The investment by Shriji as a strategic partner has come at the right time when Parekhplast is poised for growth, and the funds brought in will lead to critical debottlenecking and help expand capacities to cater to our clients with a new and expanded product range focused on the growing consumer needs of the country," said Charul Ghia, the managing director of Parekhplast India.
Mumbai-based Singhi Advisors were the sole financial advisers for the transaction.
We remind, India has announced an extension on the deadline for the implementation of the quality certifications mandated by the Bureau of Indian Standards (BIS) on purified terephthalic acid (PTA) imports. The Department of Chemicals and Petrochemicals, under the Ministry of Chemicals and Fertilizers, via an order issued on 21 December 2022, set 22 June 2023 as the implementation date for the certification to come into effect.
The deadline was previously set for 22 December 2022.
Ujjain-headquartered Shriji Polymers, founded in 1996, is a public listed company which manufactures pharmaceutical plastic packaging products. In May 2020, private equity firm Creador emerged as the frontrunner to acquire a minority stake in Shriji Polymers to buy about 20% stake in the firm. This comprised the 13% stake earlier held by Tata Capital Healthcare Fund and a primary capital infusion, valuing the firm at around 1,200 crore rupees.