Company Overview
Founded in 1983 by Vimal Kedia and Surendra Kedia, Manjushree Technopack Limited has emerged as India’s largest rigid plastic packaging company. With a robust converting capacity exceeding 1,75,000 MT annually, Manjushree serves the rigorous packaging demands of leading global FMCG companies across various sectors. The company operates nine strategically located manufacturing plants across India, including facilities in Amritsar, Baddi, Pantnagar, Guwahati, Manesar, Silvassa, and Karnataka. In June 2020, Manjushree took a s ignificant step towards sustainability by launching its first recycling plant in Bidadi, Karnataka.
In September 2020, Manjushree Technopack Limited strengthened its market position through the acquisition of Pearl Polymers Ltd.’s B2B business via a Business Transfer Agreement. This strategic acquisition is set to significantly enhance Manjushree’s presence, especially in the FMCG, pharmaceutical, and liquor segments. Following the necessary regulatory approvals, Manjushree will integrate four of Pearl Polymers’ manufacturing units into its operations, further solidifying its leadership in the packaging industry.
The company is planning to go public. Here’s a look at their journey and what this IPO means.
Advent International’s Investment
Back in 2018, a global private equity firm called Advent International bought Manjushree Technopack.
| Event | Details |
|---|---|
| Year of Acquisition | 2018 |
| Acquirer | Advent International |
| Acquisition Value | ₹2,300 crore |
| Stake Acquired | 40% from Kedara Capital and remaining from the Kedia family |
| Current Ownership | Advent International: 97% | Public Shareholders: 3% |
Potential IPO
Manjushree Technopack Ltd currently has a market capitalization of ₹4,673 crore as of August 2024. Advent International is exploring strategic options for the company, including a potential listing on the capital markets. They have engaged experts from JM Financial, ICICI Securities, Avendus Capital, and Goldman Sachs to assist with the process, with a target valuation of up to $1 billion for the company.
IPO Listing and Delisting of Manjushree Technopack Limited
Manjushree Technopack Ltd went public on January 31, 2008, offering shares at ₹45 each and raising ₹3.3 crore. The shares listed on February 28, 2008, opening at ₹48 and reaching a high of ₹66. However, on March 24, 2015, the company voluntarily delisted from the stock exchanges in accordance with SEBI regulations.
Manjushree’s Business Operations
- Product Range: Manjushree manufactures a wide range of packaging products, including jars, bottles, multilayer containers, PET bottles, and preforms. These are used across various industries such as food, beverages, pharmaceuticals, cosmetics, and agricultural chemicals.
- Clientele: The company serves around 4,000 clients, including major brands like Coca-Cola, PepsiCo, Bisleri, Dabur, Mondelez, Britannia, P&G, ITC, Castrol, and Reckitt Benckiser.
- Manufacturing Capabilities: Manjushree operates 20 manufacturing facilities across India with an installed capacity of over 190,000 tonnes per annum.
Financial Growth
₹(in crores)
| Particulars | FY 2023 | FY 2022 | FY 2021 |
| Revenue from Operations | 2097.34 | 1467.52 | 1046.83 |
| Profit After Tax | 59.23 | 70.82 | 91.15 |
| Earning Per Share | 43.72 | 52.58 | 66.80 |
Strategic Acquisitions
Manjushree has made several smart acquisitions to grow its business:
- Varahi Ltd (2017): Helped expand their market reach.
- National Plastics Industries (2020): Strengthened their presence in North India.
- Pearl Polymers (2021): Added new products like dispensers and sprays.
- Classy Kontainers and Hitesh Plastics (2022): Expanded into new product segments like caps and closures.
These acquisitions have not only expanded their product range but also helped them serve a wider range of clients.
Competition
Manjushree faces competition from other packaging companies like Parksons (owned by Warburg Pincus) and Essel Propack and Piramal Glass (owned by Blackstone).
Conclusion
The IPO of Manjushree Technopack is a big step for the company. For Advent International, it’s a chance to profit from their investment. The company has shown strong revenue growth and has expanded its product offerings and market reach through various acquisitions. For Manjushree, the funds raised will help them grow even more. As Manjushree prepares to list on Dalal Street, many will be watching to see how this successful company continues to thrive in the competitive packaging industry.
READ OUR DEEP DIVE BLOG ON MANJUSHREE TECHNOPACK HERE:
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