Manjushree Technopack (MTL), backed by Advent International, has entered into an agreement to acquire the business operations and manufacturing facilities of Hitesh Plastics (HPPL), India’s leading manufacturer of plastic caps and closures. The transaction is subject to customary closing conditions and regulatory approvals.

The acquisition will allow MTL to enter the highly specialized caps and closures market segment and will strengthen its position as an end-to-end integrated rigid plastic packaging player. It will also add two new plants, located in Jalgaon, Maharashtra, to MTL’s existing 21 plants across India. This will see the company’s consolidated manufacturing capacity exceed 200,000 MT per annum and further strengthen its market leadership.

With over 40 years of packaging expertise in India, MTL caters to packaging requirements across FMCG, F&B, home care, personal care, agrochemicals, pharmaceutical and liquor industries. With its current manufacturing capacity of 190,000 MT per annum and an annual turnover of approx. Rs 2,000 crore, MTL is India’s largest rigid plastics packaging company.

Speaking about the acquisition, Thimmaiah Napanda, MD and CEO of Manjushree Technopack, said, “We are excited to continue our journey of rapid growth and meaningful diversification within the rigid plastics sector. In recent years, MTL has successfully complemented its organic growth with synergistic acquisitions, and we intend to continue to do so opportunistically. To date, caps and closures has been the missing piece in MTL’s product suite for the beverages segment. We are excited to add it to our portfolio in a sizable and margin accretive manner through the acquisition of Hitesh Plastics. We believe this will make us a one-stop shop for all RPP requirements and further deepen our relationship as strategic partners, to some of the country’s largest beverage companies.”

Kanhaiyalal Mundhra, promoter of Hitesh Plastics said, “Hitesh Plastics is known in the packaging industry for its product innovation and consistent quality and has always been run in a professional manner. I am delighted to hand over the legacy to MTL and I am sure that given the complementary portfolio of products, this combination shall be able to offer the entire solution to our beverage customers and convenience in overall sourcing. I hope this association will accelerate the growth of MTL and I would like to convey my best wishes to MTL, its leadership team and more importantly, our employees, ably led by professional management.”

Biren Shah, CFO of Manjushree Technopack, said, “Through this acquisition, we see immense potential for cross-selling and cost synergies, and look forward to consummating it soon. With the completion of the proposed transaction, Manjushree will have access to two plants with best-in-class compression and injection molding machines and a captive solar power plant, alongside 500+ customers, including marquee clientele in the beverages and FMCG industries.”

Manjushree was advised by Khaitan & Co on this deal while Lumiere Law Partners advised HPPL. KPMG was the exclusive financial advisor to HPPL.