HSIL Ltd, India's leading building products and container glass company, has signed a share purchase agreement with the promoter shareholders of Garden Polymers Pvt Ltd to acquire 60 per cent stake in all cash deals, at an enterprise value of Rs 89 crore.
The remaining 40 per cent would be bought by HSIL's promoter group at the same terms and value. All the precedent conditions and legal formalities would be completed soon.
Garden Polymer manufactures polyethylene terephthalate (PET) bottles, caps and closures in two plants at Dharwad, Karnataka and in Selaqui, Uttrakhand. The company enjoys a ‘leading supplier’ status for most large PET bottle users in liquor, pharma and the fat-moving consumer goods industry. With this acquisition, HSIL would be able to offer a wider range of packaging solutions to its customers.
The rigid plastic packing industry in India is estimated at around Rs 16,000 crore and Garden is the fourth-largest player in the organised PET bottles segment. The PET bottle market is expected to grow at a compound annual growth rate of 14-15 per cent per year over the next five years. Other major users of PET are sectors like food and beverages sector, edible oil, milk, mineral water and carbonated drinks.
