Manjushree Technopack, the plastics packaging leader with the support of US Private equity firm Advent International, took over Bengaluru-based Hitesh Plastics in a slump sale. As per the agreement, the business operations and manufacturing facilities of Hitesh Plastics, a top manufacturer of closures and plastic caps in India, have been obtained by Manjushree.
With this takeover, Manjushree Technopack entered the closure markets and specialized caps, improving its position as a quality rigid plastic packaging player. Hitesh Plastics processes over 1200 tonnes of PP and PE annually to manufacture over 610 billion INR, hot-fill, water closures, and Warm-Fill. It supplies products to companies like PepsiCo, Amul, Tata-Himalayan, and others.
Manjushree Technopack has entered the specialized caps and closure markets by adding two new plants in Jalgaon, Maharashtra, to its existing 21 plants in India. This addition will make its total manufacturing capacity more than 200,000 million tonnes in a year, marking its position as a plastic packaging market leader.
Manjushree to strengthen relationships with major beverage companies
Laying more light on the acquisition, managing director and CEO of Manjushree Technopack, Dr Thimmalah Napanda, stated that they were excited to continue the journey of rapid growth and meaningful variation within the rigid plastics industry. The current years have seen the company successfully enhance its organic growth with collaborations, and they intend to tap such growth opportunities.
He added that the company has been missing from the caps and closure products market in the beverages section and was excited about adding it to their portfolio in a planned manner by securing Hitesh Plastics. They believed this would make their company a one-stop shop for all RPP requirements and strengthen their relationship as strategic partners with a few of the country’s largest beverage companies.
The promoter of Hitesh Plastics, Kanhaiyalal Munddhra, stated to Manjushree that Hitesh Plastics has secured a name in the packaging industry due to its innovative products and consistent quality work professionally.
He added that they were happy to hand over the legacy to Manjushree Technopack and was sure that the entire solution would be offered to beverage customers with a complementary portfolio of products. He hoped this takeover would help Manjushree Technopack grow and conveyed his wishes to its leadership team and employees led by professional management.
Manjushree Technopack’s investment in shares
CFO of Manjushree Technopack, Biren Shah, declared that with this acquisition, they see the possibility of cross-selling and cost synergies and look forward to fulfilling the ideas. Once this takeover has been complete, Manjushree Technopack will have access to two plants with first-class compression and injection molding machines combined with a solar power plant and more than 500 customers, including marquee clients in the FMCG industries.
Manjushree Technopack has been making a few business deals over the past few years since October 2018, when backed by Advent International. Manjushree Technopack bought majority shares in a Bengaluru-based company Classy Kontainers.
In this deal between Hitesh Plastics and Manjushree, Hitesh Plastics was guided by Lumiere Law partners, whereas Khaitan advised Manjushree Technopack. Hitech Plastics has KPMG as its exclusive financial advisor.