Alternative investment company PAG has acquired a majority interest in Pravesha Industries, a pharmaceutical packaging company, at an enterprise value of $200m.
This move is part of PAG’s strategy to capitalise on the robust export demand driving India’s pharmaceutical packaging sector.
Established in 1999, Pravesha Industries operates four manufacturing facilities in India and employs more than 1,950 people.
The company’s annual production exceeds 15,000 tonnes (t) of plastic bottles, closures, and drums. It also manufactures two billion units of cartons, labels, and leaflets.
Approximately 95% of Pravesha’s products are exported to developed markets, including the US and Europe.
Business Standard reported that the acquisition follows PAG’s recent purchase of a majority stake in Manjushree Technopack, an Indian rigid plastic packaging company, for $1bn.
Manjushree serves a variety of consumer markets, including home care, personal care, and food and beverages.
PAG’s consecutive investments in Pravesha and Manjushree underscore its belief in the potential of India’s packaging industry, which is closely tied to the country’s growing consumer, industrial, and export sectors.
PAG manages $55bn in assets globally, including real assets, credit, and private equity. The company’s private equity division oversees $19bn in assets in the Asia-Pacific region.
Since 2020, PAG has invested $1.5bn in private equity across seven transactions in India, with investments in companies such as Nuvama Wealth Management, Sekhmet Pharmaventures, and Acme Formulations.
PAG partner, managing director, and India private equity head Nikhil Srivastava was quoted by Business Standard as saying: “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.”
