Packaging solutions maker Shriji Polymers (India)  acquired a majority stake in rigid plastic packaging manufacturer Parekhplast India  for an undisclosed sum. Parekhplast is engaged in manufacturing rigid plastic packaging for various consumer goods sectors - paints, construction chemicals, FMCG, pharma and nutraceuticals sectors.

Mumbai based Singhi Advisors were the sole financial advisors to the transaction.

The transaction will enable Shriji to expand its presence in the rigid plastic packaging space and diversify its portfolio of verticals to which it caters. Parekhplast has a rich portfolio of clients like Asian Paints, Ajanta Pharma, Berger Paints, Pidilite Industries etc., with multiple manufacturing facilities across three states in India. It will help Shriji access the fast-growing consumer goods sectors and a broader range of pharma and nutraceuticals businesses. Many of these clients have large aspirations for growth, and Shriji sees a great fit between their business and the Parekhplast business, with synergies available to both companies.

Parekhplast business has grown consistently for many years and is poised for considerable growth with several opportunities and new projects available for growth in years to come.

Commenting on the transaction, Vishnu Jajoo, Executive Director Shriji Polymers Limited, said, “A significant chapter in our Company unfolds today, as we take another meaningful step of expanding our footprint in the rigid packaging business, where we have proven and well-established capabilities and competencies. This acquisition will also diversify our presence in verticals like consumer goods, paints, food products, domestic-pharma and nutraceuticals, where we see considerable opportunities for growth. The deep client relationships of Parekhplast will assist in this strategic direction of change. We believe that the team and the organization that Mr Charul Ghia, the promoter of Parekhplast, has built have created a strong base which we can add to in a significant manner.

Charul Ghia, Managing Director, Parekhplast India Limited, commented that: “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 wide range of clients with a new and expanded product range focused on the growing consumer needs of the country.”