Manjushree Technopack eyes acquisitions as it seeks tripling revenue in 4 years

Rigid plastics packaging major Manjushree Technopack Ltd (MTL) expects acquisitions to play a significant role as it seeks to triple revenue and profit in the next four years, according to a top company official.

The company, which ended last fiscal with revenue of over Rs 1,100 crore and EBIDTA of Rs 220 crore, expects to have "a couple of more acquisitions in the next one year" adding to the takeover of an Amritsar-based firm last quarter.

"We will triple revenue and EBIDTA in the next four years. Almost Rs 1,000 crore will come come through inorganic growth," MTL CEO Sanjay Kapote told PTI.

 

He further said, "We have acquired a company last quarter. We will be doing couple of more (acquisitions) in next one year....still the target identification and the process is on."

Kapote, however, declined to comment on how big these acquisitions could be as the process is ongoing. He also did not disclose the deal size of MTL's acquisition of National Plastics in Amritsar, citing a non-disclosure agreement.

Apart from inorganic growth, Kapote said the company is expanding its manufacturing footprint by setting up a new unit at Silvassa with an investment of over Rs 100 crore.

"MTL has presence in north, east and south India but we didn't have any presence in west. So a year ago, we thought that we should have that presence because a big chunk of our customers are still in that part of the world," he said.

The company has started investing in last eight-nine months and "then we will invest further in the next two and a half years in a phased manner", he added.

The Silvassa plant will focus on production of plastic containers and bottles for a diverse range of food and non-food segments.

Asked how much of revenue contribution is expected from the Silvassa unit, Kapote said,"We expect around Rs 200 crore of revenue to be added once all phases are completed."

With the plant coming onstream, the company will have a total of nine manufacturing units across India, he added.

On growth outlook, he said with commodity prices under pressure this year, "we will be doing a little better, it will be around 10 per cent higher on the volumes".