PAG Acquires Majority Stake in Pravesha Industries for $200 Million, Bolstering India's Pharmaceutical Packaging Sector

BENGALURU – In a strategic move to expand its footprint in India's burgeoning packaging industry, PAG, a leading private equity firm focused on the Asia Pacific region, has acquired a majority stake in Pravesha Industries Pvt. Ltd for $200 million. This investment marks PAG's second major play in the Indian packaging sector within a span of two months, following its recent acquisition of a stake in Manjushree Technopack, India's largest packaging company, valued at $1 billion.

The aggressive investment strategy adopted by PAG underscores the immense growth potential within India's packaging sector, driven by robust demand across diverse industries including consumer goods, industrial products, pharmaceuticals, and exports. While Manjushree Technopack caters to a broad customer base across various consumer end-markets such as home care, personal care, food and beverages, paints, nutraceuticals, agrochemicals, liquor and spirits, and dairy, Pravesha Industries distinguishes itself as a specialized player, focusing exclusively on pharmaceutical packaging.

"India's packaging sector has been one of our key 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," stated Nikhil Srivastava, Partner & Managing Director, Head of India Private Equity at PAG, in a statement released on Monday.

While the specific financial details of the transaction remain undisclosed, Srivastava emphasized that Pravesha Industries will play a pivotal role in augmenting PAG's portfolio within the packaging sector, contributing significantly to both organic and inorganic growth in the future.

Founded in 1999, Pravesha Industries boasts a substantial manufacturing capacity, producing over 15,000 metric tonnes of plastic bottles, closures, and drums annually. In addition to its plastic products, the company also manufactures more than two billion units of cartons, labels, and leaflets each year, catering to some of the world's largest pharmaceutical companies. Pravesha claims that approximately 95% of its packaging products are exported to developed markets, including the United States and Europe.

PAG has been actively investing in India since 2009 and currently manages over $3 billion in assets across a diverse range of sectors. Other notable investments by the firm include Nuvama Wealth Management, one of India’s largest wealth management firms; Sekhmet Pharmaventures, a diversified pharmaceutical platform; and Acme Formulations, a leading contract development and manufacturing outsourcing company.