Manjushree Technopack Buys Packaging Company Classy Kontainers

Advent International backed Manjushree Technopack Limited (MTL), one of India’s largest packaging companies, on Monday announced the acquisition of Classy Kontainers, India’s largest custom-molded rigid packaging supplier, for an undisclosed sum to further consolidate its presence in the fast growing segment.

However, sources familiar with the transaction, said MTL paid around Rs 350-Rs 400 crores for the target.

This will be the second acquisition by Manjushree after Pearl Polymers last September.

As per the transaction, the proposed acquisition will give Manjushree access to all production units of Classy Kontainers – located in five cities and serve the latter’s existing clients in the paints, adhesives, speciality Chemicals and FMCG segments.

“The acquisition is in line with our aggressive, inorganic growth and business diversification plans,” Sanjay Kapote, MD & CEO of Manjushree Technopack Limited, said. “It will allow us to consolidate our position as leaders in the rigid-packaging sector and diversify our presence into new rigid packaging market segments. Given our success in acquisitions till date, we expect a seamless integration of Classy Kontainers with the rest of the MTL group.”

With over 40 years of packaging expertise in India, MTL caters to the packaging requirements of the FMCG, F&B, homecare, personal care, agrochemicals, pharmaceutical, and liquor industries. With a manufacturing capacity of 1,90,000 MT per annum and a turnover of around Rs 1200+ crore, MTL is amongst the top mid-sized companies in India.

Classy Kontainers has a production capacity of more than 12,000MT polymer processing, specializing in HDPE & PP packaging.

“MTL’s technological strength, product range and geographical spread, coupled with Classy Kontainers’ robust business will help us deliver complete packaging solutions to our customers in the future. Post-closing of the transaction, the promoters will continue to work with MTL to ensure smooth transition and future business growth,” Kapote added.

Manjushree was advised by Khaitan & Co & Classy Kontainers was advised by Cyril Amarchand Mangaldas and UnaPrime Investment Advisers on this deal.

The Indian packaging industry, heavily fragmented, has seen significant PE activities in recent times with players like Blackstone, Advent or even Warburg Pincus taking significant bets to create platforms. The packaging industry in India was valued at $75 billion in 2020, and it is expected to reach $205 billion by 2025, registering a CAGR of 26% during this period.

India’s per capita packaging consumption is 11 kg per year, as compared to 45 kg in China, 32 kg in Brazil, 110 kg in the US, 65 kg in Europe.

“Classy Kontainers is a pioneer when it comes to innovative solutions for rigid packaging in India. With the strength of our team and MTL’s nationwide customer base in every segment we are confident this partnership will add tremendous value to our Customers and help us take the business to next level of growth,” said Rajiv Mehta, Partner at Classy Kontainers, said.


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