PAG’s Strategic Move into India’s Thriving Pharmaceutical Packaging Sector
Capitalizing on Export Demand
Alternative investment company PAG has made a significant move into India’s pharmaceutical packaging industry, acquiring a majority stake in Pravesha Industries at an enterprise value of $200 million. This strategic investment is part of PAG’s plan to tap into the robust export demand driving the sector’s growth.
Pravesha Industries: A Leading Player
Established in 1999, Pravesha Industries operates four manufacturing facilities in India, employing over 1,950 people. The company’s annual production capacity is impressive, exceeding 15,000 tonnes of plastic bottles, closures, and drums, as well as two billion units of cartons, labels, and leaflets. Notably, approximately 95% of Pravesha’s products are exported to developed markets, including the US and Europe.
PAG’s Commitment to India’s Packaging Industry
This acquisition follows PAG’s recent purchase of a majority stake in Manjushree Technopack, an Indian rigid plastic packaging company, for $1 billion. Manjushree serves a variety of consumer markets, including home care, personal care, and food and beverages. PAG’s consecutive investments in Pravesha and Manjushree demonstrate its confidence in the potential of India’s packaging industry, which is closely tied to the country’s growing consumer, industrial, and export sectors.
PAG’s Global Reach and Expertise
PAG manages a substantial $55 billion in assets globally, including real assets, credit, and private equity. The company’s private equity division oversees $19 billion in assets in the Asia-Pacific region. Since 2020, PAG has invested $1.5 billion in private equity across seven transactions in India, with investments in companies such as Nuvama Wealth Management, Sekhmet Pharmaventures, and Acme Formulations.
A Bright Future for India’s Packaging Sector
Nikhil Srivastava, PAG partner, managing director, and India private equity head, emphasized the sector’s growth potential, stating, “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.”
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