INDIA- Leading plastic packaging solution provider in rigid plastics for the pharma industry, Shriji Polymers has acquired a controlling stake in Parekhplast India Limited.
According to industry sources, Parekhplast India’s valuation could be about US$24 million (more than ₹200 crores).
The stake acquisition will allow Creador-backed Shriji Polymers to expand its footprint in the rigid plastic packaging space and diversify its portfolio.
Established in 1981, Parekhplast began its journey by manufacturing plastic bottles for industrial applications.
In over three and a half decades of its existence, Parekhplast has developed into one of the leading rigid plastic packaging suppliers in India, catering to a wide variety of industries such as paints, pharmaceuticals, nutraceuticals, healthcare, food and dairy, cosmetics and chemicals & pesticides.
Charul Ghia, the managing director of Parekhplast India said: “The investment by Shriji as a strategic partner has come at the right time when Parekhplast is poised for growth.
“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.”
Commenting on the transaction, Vishnu Jajoo, Executive Director of Shriji Polymers Limited, said: “A significant chapter in our Company unfolds today, as we take another meaningful step of expanding our footprint in the rigid packaging business, where we have proven and well-established capabilities and competencies.
“This acquisition will also diversify our presence in verticals like consumer goods, paints, food products, domestic-pharma and nutraceuticals, where we see considerable opportunities for growth.
“The deep client relationship of Parekhplast will assist in this strategic direction of change. We believe that the team and the organization that Mr. Charul Ghia, the promoter of Parekhplast, has built have created a strong base that we can add to in a significant manner.”
Founded in 1996, Shriji Polymers is a publicly listed company that 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 US$145 million (₹1,200 crores).
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