Bengaluru-based Manjushree Technopack offers rigid packaging solutions across consumer goods verticals like food products, agro chemicals, pharma, home care and personal care, among others. Photo: Pradeep Gaur/Mint; graphic: Naveen Kumar Saini/Mint
Bengaluru-based Manjushree Technopack offers rigid packaging solutions across consumer goods verticals like food products, agro chemicals, pharma, home care and personal care, among others. Photo: Pradeep Gaur/Mint; graphic: Naveen Kumar Saini/Mint

Kedaara hires Citigroup to chart exit plan from Manjushree Technopack

Kedaara Capital and Ladoga Holdings Ltd had jointly picked up a 24% stake in the packaging company in 2015 for about $23 million

Mumbai:Kedaara Capital has started preparing for its exit from Manjushree Technopack Ltd, two people close to the development said. The private equity firm has hired Citigroup to handle the exit mandate, these people said on condition of anonymity.

Kedaara Capital and Ladoga Holdings Ltd had jointly picked up a 24% stake in the packaging company in 2015 for about $23 million.

Kedaara Capital could not be reached for a comment. Mails and calls to Manjushree Techopack were not answered. Citigroup declined to comment.

Bengaluru-based Manjushree Technopack offers rigid packaging solutions across consumer goods verticals like food products, agro chemicals, pharma, home care and personal care, among others.

Apart from manufacturing, the firm also offers services like warehousing and logistics. Some of its customers are Dabur, SC Johnson, Perfetti Van Melle, Patanjali Ayurved, Coca-Cola, Nestle, Mondelez, PepsiCo and Reckitt Benckiser.

In the last three years, it has expanded its production capacity inorganically as well.

In November 2016, Manjushree acquired Delhi-based packaging firm Varahi Ltd for an undisclosed account. The acquisition was to enable the firm to expand its production capacity and customer base and strengthen foothold in north India.

The Varahi buyout was predicted to take Manjushree Technopack’s revenues to over Rs800 crore and enhance the production capacity by 20%.

For the fiscal year 2017, Manjushree Technopack posted a net profit of Rs61 crore against Rs58 crore a year earlier. Its gross revenues rose from Rs644 crore in fiscal 2016 to Rs741 crore in fiscal 2017.

Apart from Manjushree Technopak, Kedaara Capital also has investments in Mumbai-based Parksons Packaging Ltd, the country’s largest independent manufacturer of folding cartons and paper packaging.

On Tuesday, Kedaara Capital also announced its investment in Vishal Mega Mart along with Partners Group of Switzerland. Some of its other portfolio companies include Mahindra Logistics, Au Small Finance Bank, Bill Forge, Aavas Financiers Ltd, Vijaya Diagnostics, Vedant Fashions and Spandana Sphoorty Financial Ltd.

According to the Packaging Industry Association of India, the packaging industry in India is growing at a rate of 22-25% per annum.

“Costs of processing and packaging food (in India) can be up to 40% lower than parts of Europe which, combined with India’s resources of skilled labour, make it an attractive venue for investment," the website stated

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