Investcorp has spearheaded a funding round of Rs 340 crore (approximately USD 41 million) in Canpac Trends, a paper-based packaging solutions company. The investment aims to facilitate the expansion of the company’s production capabilities across major manufacturing hubs in India, fueling growth through acquisitions and bolstering research and development initiatives, as stated by Investcorp.
In the acquisition, SBI, the Indian public sector bank, procured a total of 370,000 shares, each priced at Rs 1,349. This strategic move resulted in the establishment of a 6.35% stake valued at Rs 49.9 crore, simultaneously triggering the partial exit of JM Financial’s second India fund. JM Financial had initially invested in Canpac in 2021 and played the role of exclusive financial advisor to Canpac and its selling shareholders.
Canpac Trends, headquartered in Ahmedabad, specializes in providing folding carton solutions to a diverse range of industries, including fashion and retail, food and food services, FMCG, and industrial products. The company boasts a clientele of over 400 large and mid-sized companies both within India and internationally.
Nilesh Todi, founder of Canpac Trends, emphasized the significance of the investment for the company’s growth journey, enabling them to scale up manufacturing and sales capabilities. The funds will support the establishment of a presence in all major manufacturing hubs across India.
Canpac Trends has expanded its offerings with Altpac, focusing on the production of paper bags for e-commerce and omni-channel retail, and Sweetdisp, catering to the rapidly growing chained Quick Service Restaurants (QSR) and food services sector.
Anshuman Goenka, partner at Investcorp, highlighted Canpac’s leadership position in the paper packaging market, emphasizing its ability to deliver superior quality and safety to customers. Investcorp, a global alternative investment firm, specializes in various alternative investments, including private equity, real estate, credit, and infrastructure.
The paper packaging market in India is poised for substantial growth, projected to reach USD 204.81 billion by 2025, with a compound annual growth rate (CAGR) of 26.7% from 2020 to 2025, according to the Invest India portal. The laminates and flexible packaging segments, particularly PET and woven sacks, are expected to be the fastest-growing. The industry, comprising over 900 paper units, has an installed capacity of nearly 30.73 million metric tons, with around 553 operational mills as of March 2023, according to Invest India.
