Company Overview
Manjushree Technopack Limited is the largest rigid plastic packaging company in India. It was set up in 1983 by Vimal Kedia and Surendra Kedia. Manjushree has a formidable converting capacity of more than 1,75,000 MT annually, which meets the packaging requirements of global FMCG companies. The company has nine manufacturing plants located in Amritsar, Baddi, Pantnagar, Guwahati, Manesar, Silvassa, and Karnataka, and other regions of India. In June 2020, Manjushree further enhanced its sustainability efforts by opening its first recycling plant in Bidadi, Karnataka.
In September 2020, with the acquisition of Pearl Polymers Ltd.’s B2B business through a Business Transfer Agreement, Manjushree Technopack Limited strengthened its market presence. The acquisition will allow Manjushree to expand its reach to the FMCG, pharmaceutical, and liquor markets. Post getting the necessary regulatory approvals, Manjushree will be able to strategically integrate 4 of Pearl Polymers’ manufacturing units into their systems, allowing them to dominate the packaging industry.
The company has plans to go public, which will be discussed later on, along with their other milestones and what implications the IPO holds for them.
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
As of August 2024, the market valuation of Manjushree Technopack Ltd is ₹4,673 crore. Advent International is currently considering other strategic alternatives for the firm, which include a possible capital markets IPO. With a target valuation of $1 billion, they hired JM Financial, ICICI Securities, Avendus Capital, and Goldman Sachs to help with the processes.
IPO Listing and Delisting of Manjushree Technopack Limited
Manjushree Technopack Ltd became a public company on January 31, 2008, raising ₹3.3 crore through an IPO at the price of ₹45 per share. The shares were listed on February 28, 2008, and the first day closing price was ₹66. However, the company voluntarily delisted from the stock exchanges on March 24, 2015, in line with SEBI delisting guidelines.
Manjushree’s Business Operations
- Product offerings: As a Manjushree packaging products supplier, the Company offers jars, bottles, multilayer containers, PET bottles, and performs, among others. These packaging products find applications in food and beverages, pharmaceuticals, cosmetics, chemical agriculture, and other industries.
- Client Portfolio: Major brand customers served by the Company include Coca-Cola, PepsiCo, Bisleri, Dabur, Mondelez, Britannia, P&G, ITC, Castrol, and Reckitt Benckiser. The Company has about 4,000 clients.
- Manufacturing Capabilities: Currently, Manjushree possesses a 20 manufacturing facility footprint across India with a consolidated production capacity exceeding 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 furthered its business with several strategic acquisitions.
- Varahi Ltd (2017): Assist in deepening their market penetration.
- National Plastics Industries(2020): Present in North India.
- Pearl Polymers(2021): Provided new product offerings of dispensers and sprays.
- Classy Kontainers and Hitesh Plastics(2022): Moved into new product areas of caps and closures.
These acquisitions not only diversified their products but also enabled them to cater to a broader scope of clientele.
Competition
Other competitors in the space include Parksons (a subsidiary of Warburg Pincus) and Essel Propack and Piramal Glass (managed by Blackstone), who also do packaging.
Conclusion
The IPO of Manjushree Technopack marks a key milestone for the firm. For Advent International, it is a way to capitalize on their investment. The firm has exhibited robust revenue growth from various product lines, along with an expanding procurement and market base. For Manjushree, the proceeds raised will enable them to further expand. All eyes will be on how this successful business continues to perform in the competitive packaging industry as a successful listing on Dallal Street.
READ OUR DEEP DIVE BLOG ON MANJUSHREE TECHNOPACK HERE:
Get in touch with us
For any query/ personal assistance feel free to reach out at support@Altiusinvestech.com or call us at +91-8240614850.
Know, more about Unlisted Company here.
You can also check out the list of Best 5 Unlisted Shares to Buy in India
For Direct Trading, contact us.
To buy unlisted shares, contact us.
To know more about How to apply for an IPO?