PAG acquires majority stake in Pravesha Industries for $200 million

PAG had earlier acquired Manjushree Technopack for $1bn

PAG, an Asia-Pacific-focused alternate investment firm, has acquired a majority stake in Pravesha Industries, a pharmaceutical packaging company, at an enterprise valuation of $200 million, according to a source close to the development. 

This acquisition reflects PAG’s focus on capitalising on the growth potential of India’s pharmaceutical packaging sector, driven by strong export demand, PAG said.

 

The deal comes on the heels of PAG’s acquisition of a majority stake in Manjushree Technopack, India’s largest rigid plastic packaging firm, in a transaction valued at $1 billion. Manjushree caters to diverse consumer-end markets, including home care, personal care, and food and beverages.

   

Founded in 1999, Pravesha Industries has four manufacturing facilities across the country, with over 1,950 employees. It annually produces over 15,000 metric tons of plastic bottles, closures, and drums, along with two billion units of cartons, labels, and leaflets. Approximately 95 per cent of its products are exported to developed markets such as the US and Europe.

 

“India’s packaging sector has been one of our focuses, given its exposure to key themes driven by India’s domestic manufacturing, consumer and industrial sectors, particularly the strength of the country’s pharma export industry, leading to an expected double digit industry growth over the next decade and beyond,” said Nikhil Srivastava, partner and managing director, head of India Private Equity, PAG.

 

PAG’s consecutive investments in Pravesha and Manjushree highlight its conviction in India’s packaging industry as a proxy for the country’s burgeoning consumer, industrial, and export sectors. With India’s packaging industry expected to grow at double-digit rates over the next decade, PAG is positioning itself as a key player in this space.

 

PAG currently manages $55 billion in assets, globally across real assets, credit, and private equity. The firm’s private equity business oversees $19 billion in assets across the Asia-Pacific region. Since 2020, PAG has invested $1.5 billion in private equity across seven deals in India, including stakes in Nuvama Wealth Management, Sekhmet Pharmaventures, and Acme Formulations.

 

“Pravesha will be a significant and valuable part of our investments in the packaging sector, and we are eager to drive the company’s growth organically and inorganically in the future,” said Srivastava. 

Growing footprint

 

> The current acquisition shows PAG’s focus to capitalise on India’s growth potential in pharmaceutical packaging sector, driven by strong export demand

> It has also acquired majority stake in Manjushree Technopack, India’s largest rigid plastic packaging firm, for $1 bn

> With India’s packaging industry expected to grow at double-digit rates over the next decade, it is positioning itself as a key player in this space

> PAG currently manages $55 billion in assets, globally across real assets, credit, and private equity