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Packaging solutions maker Shriji Polymers (India) Ltd on Wednesday acquired a majority stake in rigid plastic packaging manufacturer Parekhplast India Ltd, for an undisclosed sum.

According to industry sources, Parekhplast India’s valuation could be more than 200 crore (about $24 million). They added that most recent deals in the plastics sector have been closed at a valuation of nearly the same value as their toplines.

The stake acquisition will allow Creador-backed Shriji Polymers to expand its presence in the rigid plastic packaging space and diversify its portfolio of verticals as Parekhplast’s portfolio, unlike the former’s, includes clients from various sectors including paints, construction chemicals, FMCG, pharma and nutraceuticals sectors.

“The investment by Shriji as a strategic partner has come at the right time when Parekhplast is poised for growth, and 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," said Charul Ghia, the managing director of Parekhplast India.

Mumbai-based Singhi Advisors were the sole financial advisers for the transaction.

Ujjain-headquartered Shriji Polymers, founded in 1996, is a public listed company which 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 1,200 crore.

Among other deals in the plastics sector, packaging firm Manjushree Technopack Limited (MTL), backed by US private equity firm Advent International, acquired a 100% stake in Bengaluru-based Hitesh Plastics by way of a slump sale, in July this year.

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