With this acquisition, Manjushree has seven manufacturing locations units across India with a total production capacity of four billion units per annum. The eighth location of Guwahati, Assam is expected to start commercial operations in January 2017. The move will propel the organisation’ turnover upwards of Rs 800 crores.

Varahi was founded in 1971 by the late HR Sanghavi. It offers rigid packaging solutions for FMCG, beverage and pharmaceutical companies. Its manufacturing units are located in Noida, Baddi and Pantnagar with a combined production capacity of 20,000 MT.

Vimal Kedia, the managing director at Manjushree Technopack said about the acquisition, “This is a significant milestone for Manjushree as it marks our first strategic investment towards industry consolidation. Varahi has a 40 year old legacy and we were impressed by their manufacturing capabilities. With this acquisition, Manjushree gets a solid foothold in North India and cross-selling products of between Manjushree and Varahi’s customers will give us a huge positive growth. Our aim is to become a 360 degree rigid packaging solutions provider for brands across India and this gives us impetus to serve our existing and new clients with world-class packaging solutions. We are excited to have team Varahi on board.”

Manjushree will boost its sales by gaining access to registered designs and patents filed by Varahi. The Bangalore-based company now owns over 100 registered designs and patents, which will allow it to produce containers from 5 ml to 20 litres, in over 1,000 different shapes, sizes and designs.

Backed by Kedaara Capital, Manjushree closed 2015-2016 with a turnover of Rs 546 crores. Involved in the manufacture of specialty plastic packaging products for domestic/export markets, it caters to the needs of leading companies in FMCG, pharma and food and beverage sectors.

Indian plastic packaging industry’s output is expected to touch 17.6 million MT in 2016-17. PET (Polyethylene terephthalate) is one of the common polymer resin used for packing food, beverages and medicine. It accounts for almost 5% of the total output at about 0.8 million MTPA. The demand for polymers, particularly PET, has been growing at 10-12% CAGR in the last decade and is expected to hold the trajectory. India’s per capita PET consumption is 0.6 kg while the global average is of 2.9 kg.

Today, Manjushree has a total production capacity of 100,000 MTPA which is 12.5% of the total PET demand in India.