Manjushree Technopack backed by Advent to acquire Hitesh Plastics
The Hitesh Plastics acquisition will allow Manjushree to enter the caps and closures market segment and will strengthen its position in the rigid plastic packaging business.
05 Aug 2022 | By Aultrin Vijay
Manjushree Technopack, one of India’s largest rigid plastics packaging players, backed by Advent International, has entered an agreement to acquire the business operations and manufacturing facilities of Hitesh Plastics. The transaction is subject to customary closing conditions and regulatory approvals.
Hitesh Plastics is one of the leading manufacturers of compression and injection moulded plastic caps and closures in India. It caters mainly to the beverages and dairy industry with an installed capacity of over six billion CSD, hot fill, warm fill, water and aseptic closures. Its manufacturing facilities are in Jalgaon, Maharashtra.
The acquisition will allow Manjushree to enter the specialised 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 Manjushree’s existing 21 plants across India. This will see the company’s consolidated manufacturing capacity exceed 2,00,000 MT per annum.
With over 40 years of packaging expertise in India, Manjushree caters to packaging requirements across FMCG, F&B, home care, personal care, agrochemicals, pharmaceutical and liquor industries. With its current manufacturing capacity of 1,90,000 MT per annum and an annual turnover of Rs 2,000 crore, Manjushree is one of India’s largest rigid plastics packaging companies.
Thimmaiah Napanda, MD and CEO at Manjushree Technopack said, “We are excited to continue our journey of rapid growth and meaningful diversification within the rigid plastics sector. In recent years, Manjushree has successfully complemented its organic growth with synergistic acquisitions, and we intend to continue to do so opportunistically. To date, caps and closures have been the missing piece in Manjushree’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,” he added.
Kanhaiyalal Mundhra, promoter of Hitesh Plastics said, “Hitesh Plastics is known in the packaging industry for its product innovation and consistent quality and has always been run in a professional manner. I am delighted to handover the legacy to Manjushree and I am sure that given the complementary portfolio of products, this combination shall be able to offer the entire solution to our beverage customers and convenience in overall sourcing.”
He added, “I hope this association will accelerate the growth of Manjushree and I would like to convey my best wishes to Manjushree, its leadership team and more importantly our employees, ably led by professional management.”
Biren Shah, CFO at Manjushree Technopack, said, “Through this acquisition, we see immense potential for cross selling and cost synergies, and look forward to consummating it soon. With the completion of the proposed transaction, Manjushree will have access to two plants with best-in-class compression and injection moulding machines and a captive solar power plant, alongside 500+ customers, including marquee clientele in the beverages and FMCG industries.”
Manjushree was advised by Khaitan & Co on this deal while Hitesh Plastics was advised by Lumiere Law Partners. KPMG was the exclusive financial advisor to Hitesh Plastics.
The group stands tall with pan India presence and a large converting capacity of over 2,00,000 MT of plastics to films, bottles, containers PET pre-forms and recycled resins. The group through its ESG initiative, “Born Again” has commercialised and invested in recycled resin plants, which is gradually becoming a trusted source with the industry for eco-friendly packaging in India.