Alternative assets manager Investcorp on Friday said it has invested Rs 340 crore ($41 million) in Canpac Trends Pvt Ltd, an Indian folding carton and packaging solutions company, paving the way for a partial exit by JM Financial Private Equity.
Before the current round, JM Financial Private Equity invested Rs 60 crore in Canpac Trends in 2021, its seventh investment by JM Financial India Fund II.
JM Financial acted as the sole financial advisor to the deal.
This investment will help Gujarat-based Canpac expand its production footprint to all major manufacturing hubs of the country. Additionally, these funds will be utilised to accelerate growth via acquisitions and strengthen its R&D initiatives.
Canpac is a manufacturer of packaging materials like folding cartons, corrugated boxes, paper bags, flexible laminates, and luxury boxes. It supplies products to a diverse set of marquee customers across industries.
Canpac started manufacturing paper packaging in Ahmedabad in 2012. It expanded to Tirupur in 2015 and subsequently to Kolkata in 2021 through the acquisition of Manisha Creations. Today, Canpac serves over 400 large and mid-sized companies in India and abroad across diverse end-use consumer segments.
“While the paper packaging market is over Rs 570 billion in India, the industry remains highly fragmented with an opportunity for leaders to consolidate,” said Anshuman Goenka, Partner, Investcorp.
Investcorp’s investment in Canpac Trends comes as it is looking to increase its exposure to India in the next five years. The firm expects to have assets worth $5 billion in the country over the medium term, its co-CEO Rishi Kapoor told DealStreetAsia last year.
Investcorp, which counts Abu Dhabi sovereign fund Mubadala Investment Co among its shareholders, began its operations in India in 2019. The midmarket-focused firm has made investments in India across consumer, healthcare, wellness, and financial services, with an overlay of technology, according to Kapoor.
Investcorp, which manages alternative investments in private equity, real estate, absolute return investments, infrastructure, credit management, and strategic capital, has backed several Indian startups like Xpressbees, Wingreens, FreshToHome, and Incred.
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