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Delhi-based SB Packagings (SBP) on Thursday said Premji Invest has picked up "significant stake" in the company for USD 25 million (Rs 185.5 crore).
The transaction primarily involves partial stake sale held by the existing shareholders in SBP and infusion of primary capital for capacity expansion and inorganic acquisitions to enable faster scale up of its product portfolio for both domestic and international markets.
Speaking to PTI, SBP Chief Executive Officer Saurabh Jain said: "We intend to create a platform of companies, which are focused on value-added packaging which are more complex, which has an angle of sustainability, recyclability."
"The funds have been raised to make acquisitions. We have a fairly strong warchest of funds to make acquisitions. We are in conversations with many companies, we are evaluating them and we are seeing how they will be a strategic fit for us," he added.
Jain noted that while the company has been growing at 20-25 per cent CAGR organically over the past few years, its inorganic plans will get further bolstered with Premji Invest coming on board. The company expects its revenues to touch Rs 275-300 crore this financial year.
"We are exporting internationally and that's another area of growth for us. It will also be important for us as we evaluate acquisition targets. So, companies having a good share of exports will be of specific interest to us," he added.
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Founded in 1989, SBP is a leading manufacturer of flexible packaging materials in India, supplying to major players in the hygiene and food industry including P&G, J&J, Unicharm, Kimberly Clark, Nobel Hygiene, Walmart, Future Group, PepsiCo, Dabur, and Tata among other brands.
SBP was founded by OP Banga and is currently managed by his son, Amit Banga, who has been in the business for the past 30 years. Post transaction, Amit will continue to remain a significant shareholder in the company and will continue to drive the business, supported by a professional management team.
"Innovation and sustainability have been the core pillars of SBP's business model. With the backing from Premji Invest, one of India's leading PE investors, we look forward to further expanding our capabilities through organic and inorganic routes thereby strengthening our position in the Indian flexible packaging industry," SBP MD Amit Banga said in a statement.
Premji Invest is the investment arm of Azim Premji's endowment and philanthropic initiatives. Investments of Premji Invest are across sectors like consumer, financials, technology, and manufacturing in companies like Fab India, Hygienic Research, ID foods, Lenskart, Policy Bazaar, Flipkart, Gold Plus Glass and Shubham Housing.
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